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Jun 28, 2020
Pfizer Q2 2020 Earnings Report
Reported a decrease in revenues and net income due to the impact of COVID-19 and generic competition for Lyrica, while Biopharma revenues increased.
Key Takeaways
Pfizer's Q2 2020 revenues were $11.8 billion, an 11% decrease compared to Q2 2019. Reported diluted EPS was $0.61, while adjusted diluted EPS was $0.78. The company raised its 2020 financial guidance for revenues and adjusted diluted EPS. The COVID-19 pandemic had an estimated net unfavorable impact of approximately $500 million on Q2 2020 revenues.
Second-quarter revenues decreased 11% to $11.8 billion, impacted by COVID-19 and generic competition.
Reported diluted EPS was $0.61, and adjusted diluted EPS was $0.78.
Biopharma revenues increased 6% operationally, driven by Vyndaqel/Vyndamax, Eliquis, and Ibrance.
Upjohn revenues declined 31% operationally due to Lyrica's U.S. loss of exclusivity.
Pfizer
Pfizer
Pfizer Revenue by Segment
Revenue by Segment
Biopharma Revenue
CapyFin.com Forward Guidance
Pfizer increased its 2020 financial guidance for Total Company and New Pfizer revenues and Adjusted diluted EPS and reaffirmed all other financial guidance components.
Positive Outlook
- Patient visits with physicians, vaccination rates and the number of elective surgical procedures will gradually increase from second-quarter 2020 levels, beginning in third-quarter 2020
- New-to-brand prescription trends for certain key products will gradually improve from second-quarter 2020 levels, beginning in third-quarter 2020
- Gradual improvement in access to U.S. healthcare professionals for sales force colleagues
- Clinical trial enrollment, including new study starts, continues throughout the remainder of 2020
- Pfizer’s manufacturing and supply chain activities continue to not be materially disrupted
Challenges Ahead
- The near-term outlook has greater macroeconomic uncertainty than usual due to COVID-19
- Financial guidance reflects the anticipated unfavorable impact of approximately $0.6 billion on revenues as a result of changes in foreign exchange rates relative to the U.S. dollar compared to foreign exchange rates from 2019
- Reflects an anticipated negative revenue impact of $2.4 billion due to recent and expected generic and biosimilar competition for certain products that have recently lost or are anticipated to soon lose patent protection
- Does not assume the completion of any business development transactions not completed as of June 28, 2020, including any one-time upfront payments associated with such transactions
- Updated financial guidance does not include any revenues from a potential COVID-19 vaccine.