The company's press release on earnings:
Thursday July 9, 4:59 pm Eastern Time
Company Press Release
SOURCE: Pfizer Inc
NEW YORK, July 9 /PRNewswire/ -- Pfizer Inc
(NYSE: PFE) today reported that second-quarter total
revenues were $3,633 million, an increase of 25 percent
over the second quarter of 1997. Net income for the
quarter was $628 million, a 38 percent increase, as
diluted earnings per share (e.p.s.) rose by 34 percent to
47 cents.
For the first half, total revenues were $6,972 million, up
by 18 percent over the first half of 1997. Net income
was $1,320 million, an increase of 25 percent. Diluted
e.p.s. were $1.00 for the half, an increase of 23 percent.
The increase in total revenues in the second quarter was
driven by strong sales performances of in-line
pharmaceutical products worldwide; strong gains in
sales for the company's alliance products, Lipitor and
Aricept; the successful introduction this year of our new
antibiotic Trovan; and the extraordinary performance of
Viagra, introduced in April for the treatment of erectile
dysfunction. Foreign exchange reduced reported
revenue by 3 percent, and the Valleylab and
Strato/Infusaid divestitures had a 2 percent negative
effect. Volume contributed 26 percent to revenue
growth, while price increased revenues in the quarter by
2 percent.
The April 10th introduction of Viagra created a number
of pharmaceutical industry milestones. As of June 26,
2.7 million prescriptions were filled and $411 million in
sales recorded, including substantial trade stocking of
the product. More than 160,000 physicians have written
prescriptions. Assuming approval in Europe by the
fourth quarter, Pfizer plans to introduce Viagra in 50
countries by the end of the year.
"While we caution that it is too early to make long-range
projections about sustainable Viagra prescription levels,
the initial response has been truly extraordinary," said
William C. Steere, Jr., chairman and chief executive
officer. "Its strong acceptance by physicians and patients
attests to Viagra's safety and efficacy and its benefits for
many men and their partners."
"Trovan has also been a great initial success for us," he
continued, "and early this month was approved by the
European Medicines Evaluation Agency. We plan to
introduce Trovan in about 20 countries during 1998."
"Equally encouraging," Mr. Steere said, "is the continued
strength of our in-line products around the world.
Physicians and patients increasingly rely on such
medicines as Norvasc, Zoloft, Zithromax and Zyrtec, as
well as our alliance products Lipitor and Aricept. Our
challenge continues to be balancing growth and
investment -- making those investments in R&D and in
sales and marketing necessary to optimize our current
growth while continuing to invest in the platform for
tomorrow's success. Often, these investments are
substantial, as demonstrated by the 25-percent rise in
R&D spending this quarter. For the year, we plan R&D
spending of about $2.3 billion."
David L. Shedlarz, senior vice president and chief
financial officer, said, "Recognizing that our U.S.
revenues are growing faster than our global revenues,
we are increasing our projected 1998 tax rate by one
percentage point to 29 percent to reflect the higher tax
rate in the U.S. The impact of this change for the half is
reflected in the current quarter's results."
SECOND-QUARTER SEGMENT PERFORMANCE
Pharmaceuticals
Worldwide revenues of the Pfizer Pharmaceuticals
Group were $2,872 million, an increase of 37 percent
over the same period last year. Excluding the effect of
foreign exchange, the increase was 40 percent. In the
U.S., revenues increased 64 percent to $1,813 million.
International revenues increased 6 percent to $1,059
million. Excluding foreign exchange, international
revenues increased 13 percent.
Worldwide sales of Norvasc, our intrinsic once-a-day
calcium channel blocker for the treatment of
hypertension and angina, reached $618 million for the
quarter, an increase of 18 percent. Norvasc continues to
be the company's largest-selling product and the
largest-selling hypertension medicine in the world. Sales
of Procardia XL declined by 6 percent to $157 million
partially due to the increased emphasis on, and
acceptance by the worldwide medical community of, the
newer agent Norvasc. Worldwide sales of Cardura, a
selective alpha blocker for the treatment of hypertension
and benign prostatic hyperplasia (enlarged prostate),
increased by 7 percent to $159 million.
Worldwide sales of Zoloft, the company's selective
serotonin re-uptake inhibitor for the treatment of
depression, obsessive-compulsive disorder and panic
disorder, increased by 23 percent to $398 million. One
of the leading medicines in its class, Zoloft continues to
benefit from introductions in international markets, new
indications and increased field-force support.
In infectious disease products, sales of our new
quinolone antibiotic Trovan were $22 million for the
quarter. Trovan offers coverage against four major types
of bacteria -- Gram-positive, Gram-negative, anaerobic,
and atypical -- with the convenience of once-daily
dosing for all indications and both oral and intravenous
dosage forms. The 14 indications approved by the FDA
in December are the most for the initial approval of a
drug. In less than six months after its introduction in the
U.S., Trovan was receiving 7 percent of new
prescriptions for all quinolone antibiotics.
Worldwide sales of Zithromax, a broad-spectrum
antibiotic, increased by 3 percent to $163 million, as
physicians increasingly recognize the product's broad
efficacy, convenient dosing, favorable side-effects profile
and, in the case of the children's dosage form, a pleasant
taste. Zithromax continues to be the most prescribed
brand-name oral antibiotic in the U.S.
Sales of Diflucan, the leading therapy for a wide range of
fungal infections, decreased by 3 percent worldwide to
$211 million, reflecting the impact of foreign exchange
and the lower incidence of fungal infections in AIDS
patients being treated with protease inhibitors. In its 11th
year on the world market, Diflucan remains the
largest-selling prescription antifungal.
Sales of Zyrtec, a prescription anti-allergy medicine,
increased by 51 percent to $105 million. During the
quarter, Zyrtec was approved by the FDA as the first
once-daily prescription antihistamine for the treatment of
seasonal and perennial allergies and hives in children
between the ages of 2 and 5 years.
Alliance revenue, resulting from the co-promotion sales
of Lipitor and Aricept, was $198 million. Lipitor, for the
treatment of elevated lipid levels in patients with high
cholesterol, was discovered and developed by the
Parke-Davis Research Division of Warner-Lambert
Company. In the U.S., more new prescriptions are
written for Lipitor than any other agent in its class.
Aricept was discovered and developed by Eisai Co.,
Ltd., and accounts for some 97 percent of all
Alzheimer's disease prescription drug sales in the U.S.
Aricept has been shown in clinical trials to be safe and
effective in enhancing or maintaining cognition in people
with mild to moderate Alzheimer's disease. Global
prescriptions for Alzheimer's medicines have increased
roughly sixfold since the initial introduction of Aricept.
Medical Technology
Worldwide reported sales of the Medical Technology
Group (MTG) were $321 million, a decrease of 12
percent. Excluding the effect of foreign exchange and
sales of the divested Valleylab and Strato/Infusaid
businesses, MTG sales increased by 6 percent.
In June, Pfizer announced it had agreed to sell Schneider
Worldwide to Boston Scientific Corporation for $2.1
billion in cash. The transaction, pending the usual
regulatory approvals, is expected to close later this year.
Pfizer is continuing its announced review of strategic
options regarding the other MTG businesses,
Howmedica and American Medical Systems. No
decisions have been reached.
Animal Health
Sales of the Animal Health Group (AHG) increased by
2 percent, to $320 million for the quarter. AHG was
particularly affected by foreign exchange as more than
58 percent of the segment's sales were made abroad.
Excluding the currency effect, sales increased by 7
percent. Overall performance was negatively affected by
weak economic conditions in Asia and drought in
Australia.
Worldwide sales of Dectomax, an anti-parasitic for
cattle, swine and sheep, increased by 58 percent to $46
million. Rimadyl, AHG's non-steroidal anti-inflammatory
drug for osteoarthritis in dogs, and RespiSure, a vaccine
for respiratory infections in swine, continued to perform
very well.
Consumer Health Care
Sales of the Consumer Health Care Group declined by
11 percent to $120 million, reflecting strong competitive
pressures in over-the-counter medicines, as well as the
unfavorable impact of foreign exchange.
Commentary
"As we have said in the past," Mr. Shedlarz noted,
"Pfizer's financial performance for the full year will
depend on the continued strong performance of new,
in-line and alliance products, as well as the size and
timing of our investments, and other factors such as the
impact of foreign exchange on revenues and income, and
the effective tax rate. We will continue to invest in sales
and marketing and in R&D to fully realize the medical
and commercial potential of our product opportunities,
both near- and long-term."
5993 07/09/98 16:59 EDT HT |
