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Mar 29, 2020
Pfizer Q1 2020 Earnings Report
Pfizer's Q1 2020 financial results were reported, reflecting the impact of COVID-19 and strategic business realignments.
Key Takeaways
Pfizer reported Q1 2020 revenues of $12.0 billion, an 8% decrease compared to Q1 2019. Biopharma grew 12% operationally, while Upjohn declined 37%. Reported EPS was $0.61, and adjusted EPS was $0.80. The company reaffirmed its 2020 financial guidance.
Total revenues decreased by 8% to $12.0 billion, impacted by the loss of exclusivity for Lyrica and declines in China.
Biopharma revenues increased by 12% operationally, driven by key brands like Eliquis, Vyndaqel/Vyndamax, Ibrance and Inlyta.
Upjohn revenues declined by 37% operationally, due to generic competition for Lyrica in the U.S. and the VBP program in China.
The company is actively involved in researching potential therapeutics and vaccines for COVID-19, with investments increasing R&D expenses.
Pfizer
Pfizer
Pfizer Revenue by Segment
Revenue by Segment
Biopharma Revenue
CapyFin.com Forward Guidance
Pfizer reaffirmed its 2020 financial guidance for revenues and Adjusted diluted EPS, while updating certain other guidance components primarily to reflect actual and anticipated impacts from the COVID-19 pandemic.
Positive Outlook
- Patient visits with physicians, vaccinations and elective surgical procedures will rebound starting in second-half 2020 and align more closely with historical levels.
- New-to-brand prescription trends for certain key products and vaccination rates will resume on a similar trajectory to what was seen in 2019, beginning in second-half 2020.
- Access to prescribers for sales force colleagues is restored in second-half 2020.
- Clinical trial enrollment, including new study starts, will fully resume in second-half 2020.
- Pfizer's manufacturing and supply chain activities are not materially disrupted.
Challenges Ahead
- Guidance range for revenues was reaffirmed at $48.5 to $50.5 billion, absorbing a $0.6 billion unfavorable impact from changes in foreign exchange rates in relation to the U.S. dollar since mid-January 2020.
- Guidance for Adjusted diluted EPS absorbs a $0.04 unfavorable impact from changes in foreign exchange rates since mid-January 2020.
- The decrease in guidance for Adjusted SI&A expenses reflects incremental cost-savings opportunities, as well as actual and anticipated COVID-19-related spending reductions.
- An increase in guidance for Adjusted R&D expenses, which now includes anticipated incremental investments to develop potential therapies and a potential vaccine to combat COVID-19.
- Financial guidance for Adjusted diluted EPS continues to assume no share repurchases in 2020.