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Pfizer, Inc. (PFE - Free Report) reported fourth-quarter 2020 adjusted earnings per share of 42 cents, which missed the Zacks Consensus Estimate of 46 cents. Earnings however rose 14% year over year.
Revenues came in $11.68 billion, which beat the Zacks Consensus Estimate of $11.01 billion. Sales rose 12% from the year-ago quarter on a reported basis and 11% on an operational basis.
The fourth quarter of 2020 results marked the first quarterly result for the “New Pfizer”. Pfizer’s Biopharma unit became the “New Pfizer” following the separation of the Upjohn unit. In November, Pfizer completed the transaction to divest its Upjohn Business and combine it with Mylan N.V. to form Viatris (VTRS - Free Report) . Following the transaction, Upjohn was spun off to Pfizer stockholders by way of a pro-rata distribution and immediately thereafter combined with Mylan. Pfizer stockholders own approximately 57% of Viatris common stock while Mylan shareholders own approximately 43%.
Higher sales of brands like Eliquis, Ibrance, Inlyta and Xeljanz and significant contribution from new drug Vyndaqel/Vyndamax and higher biosimilars revenues drove this segment’s sales growth. Weaker sales of Chantix in the United States and Enbrel internationally partially offset the increase. Importantly, Prevnar 13/Prevenar 13 sales improved in the quarter.
International revenues rose 9% to $5.8 billion. On an operational basis, international sales rose 7% in the quarter. U.S. revenues rose 15% to $5.9 billion.
Adjusted selling, informational and administrative (SI&A) expenses declined 2% (operationally) in the quarter to $3.58 billion. Adjusted R&D expenses rose 24% to $3.07 billion due to costs related to development of COVID-19 vaccines.
Segment Discussion
Oncology revenues increased 21% (on an operational basis) to $3.02 billion. Vaccine revenues rose 16% to $2.0 billion. Internal Medicine rose 1% to $2.3 billion. The Inflammation & Immunology franchise was flat at $1.3 billion. The portfolio of Rare Disease rose 24% to $865 million. Hospital sub-segment’s sales rose 7% to $2.2 billion.
Ibrance revenues rose 11% year over year to $1.43 billion driven by strong CDK class market penetration.
Inlyta revenues were $228 million in the quarter, up 41% driven mainly by growth in the United States and developed Europe following FDA approvals in 2019 for the combination use of Inlyta in first-line treatment of advanced renal cell carcinoma patients
Global Prevnar 13/Prevenar 13 revenues rose 10% to $1.75 billion due to higher sales in developed Europe and the United States. Prevnar 13 revenues rose 11% in the United States due to the favorable timing of government purchases, which offset the negative impact of the revised Advisory Committee on Immunization Practices (ACIP) recommendations in 2019 (shared decision making). Prevenar 13 revenues rose 10% in international markets.
Enbrel revenues declined 18% to $345 million in key European markets, Japan and Brazil due to continued biosimilar competition. Pfizer has exclusive rights to Amgen’s (AMGN - Free Report) blockbuster RA drug, Enbrel, outside the United States and Canada.
Alliance revenues from Bristol-Myers (BMY - Free Report) for Eliquis and direct sales rose 14% to $1.26 billion. Xalkori sales declined 9% to $135 million. Xeljanz sales rose 14% to $696 million. Xtandi recorded alliance revenues of $283 million in the quarter, up 16% year over year. Sutent sales declined 13% to $203 million. Chantix sales declined 33% to $191 million in the quarter.
Importantly, new rare disease drug Vyndaqel/Vyndamax recorded sales of $429 million in the quarter compared with $351 million in the previous quarter.
Total biosimilar revenues were $525 million, up 86% year over year driven by new oncology biosimilars (Trazimera, Zirabev and Ruxience). Sterile injectables global revenues rose 11% operationally to $1.49 billion.
In the quarter, Pfizer and partner BioNTech successfully developed BNT162b2, a two-shot vaccine for COVID-19, which is now approved for emergency/temporary use several countries. Vaccine rollouts were in full swing in the second half of the fourth quarter. Final data from a phase III study on BNT162b2, announced in November, showed that the candidate was 95% effective in preventing COVID-19 after two doses were given three weeks apart. The vaccine contributed $154 million in sales in the fourth quarter.
2020 Results
Full-year 2020 sales rose 2% to $41.9 billion, missing the Zacks Consensus Estimate of $43.95 billion and also falling slightly short of the guided range of $40.8 billion to $42.4 billion for the “New Pfizer”.
Adjusted earnings for 2020 were $2.22 per share, which also missed the Zacks Consensus Estimate of $2.31 and fell short of the guided range of $2.28-$2.38 for the “New Pfizer”. Earnings were up 16% year over year
2021 Guidance
Pfizer raised its previously issued earnings guidance for 2021 while providing financial guidance for adjusted revenues and other items.
Revenues are expected in the range of $59.4 billion to $61.4 billion, indicating growth of 44% from 2020 levels. The Zacks Consensus Estimate for revenues is $55.4 billion. The revenue guidance includes approximately $15 billion in sales from BNT162b2. Excluding BNT162b2, total revenues in 2021 are expected to be in the range of $44.4 billion to $46.4 billion
Adjusted earnings per share guidance was raised to a range of $3.10-$3.20 from the prior expectation of $3.00-$3.10 (guided on Jan 12). The earnings guidance indicates 42% increase over 2020 actual results. The Zacks Consensus Estimate for earnings is $3.16 per share. Excluding BNT162b2, EPS is expected to be $2.50 - $2.60 in 2021.
Foreign exchange is expected to benefit 2021 revenues by 3% and EPS by 4%.
Research and development expense is expected in the range of $9.2-$9.7 billion. SI&A spending is expected in the range of $11.0-$12.0 billion. Adjusted tax rate is expected to be approximately 15% in 2021.
Our Take
Pfizer’s fourth-quarter results were mixed as it missed estimates for earnings while beating the same for sales. Pfizer’s financial outlook for 2021 was quite upbeat.
Shares were up slightly in pre-market trading. This year so far, Pfizer’s stock has declined 2.7% against an increase of 0.9% for the industry.
Despite the ongoing impact of COVID-19, we believe the Consumer Healthcare joint venture with Glaxo and the merger of Upjohn unit with Mylan has made Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines. The smaller Pfizer should see better revenue growth as the Lyrica loss of exclusivity cliff goes away. Pfizer expects strong growth of key brands like Ibrance, Inlyta and Eliquis to continue to drive sales. In addition, new brands such as Vyndaqel/Vyndamax, Braftovi, Mektovi and oncology biosimilars are bringing in additional sales. The company, along with partner BioNTech, developed BNT162b2, the first COVID-19 vaccine to get FDA’s emergency approval, in record time.
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Pfizer (PFE) Q4 Earnings Miss, Sales Beat, 2021 View Upbeat
Pfizer, Inc. (PFE - Free Report) reported fourth-quarter 2020 adjusted earnings per share of 42 cents, which missed the Zacks Consensus Estimate of 46 cents. Earnings however rose 14% year over year.
Revenues came in $11.68 billion, which beat the Zacks Consensus Estimate of $11.01 billion. Sales rose 12% from the year-ago quarter on a reported basis and 11% on an operational basis.
The fourth quarter of 2020 results marked the first quarterly result for the “New Pfizer”. Pfizer’s Biopharma unit became the “New Pfizer” following the separation of the Upjohn unit. In November, Pfizer completed the transaction to divest its Upjohn Business and combine it with Mylan N.V. to form Viatris (VTRS - Free Report) . Following the transaction, Upjohn was spun off to Pfizer stockholders by way of a pro-rata distribution and immediately thereafter combined with Mylan. Pfizer stockholders own approximately 57% of Viatris common stock while Mylan shareholders own approximately 43%.
Higher sales of brands like Eliquis, Ibrance, Inlyta and Xeljanz and significant contribution from new drug Vyndaqel/Vyndamax and higher biosimilars revenues drove this segment’s sales growth. Weaker sales of Chantix in the United States and Enbrel internationally partially offset the increase. Importantly, Prevnar 13/Prevenar 13 sales improved in the quarter.
International revenues rose 9% to $5.8 billion. On an operational basis, international sales rose 7% in the quarter. U.S. revenues rose 15% to $5.9 billion.
Adjusted selling, informational and administrative (SI&A) expenses declined 2% (operationally) in the quarter to $3.58 billion. Adjusted R&D expenses rose 24% to $3.07 billion due to costs related to development of COVID-19 vaccines.
Segment Discussion
Oncology revenues increased 21% (on an operational basis) to $3.02 billion. Vaccine revenues rose 16% to $2.0 billion. Internal Medicine rose 1% to $2.3 billion. The Inflammation & Immunology franchise was flat at $1.3 billion. The portfolio of Rare Disease rose 24% to $865 million. Hospital sub-segment’s sales rose 7% to $2.2 billion.
Ibrance revenues rose 11% year over year to $1.43 billion driven by strong CDK class market penetration.
Inlyta revenues were $228 million in the quarter, up 41% driven mainly by growth in the United States and developed Europe following FDA approvals in 2019 for the combination use of Inlyta in first-line treatment of advanced renal cell carcinoma patients
Global Prevnar 13/Prevenar 13 revenues rose 10% to $1.75 billion due to higher sales in developed Europe and the United States. Prevnar 13 revenues rose 11% in the United States due to the favorable timing of government purchases, which offset the negative impact of the revised Advisory Committee on Immunization Practices (ACIP) recommendations in 2019 (shared decision making). Prevenar 13 revenues rose 10% in international markets.
Enbrel revenues declined 18% to $345 million in key European markets, Japan and Brazil due to continued biosimilar competition. Pfizer has exclusive rights to Amgen’s (AMGN - Free Report) blockbuster RA drug, Enbrel, outside the United States and Canada.
Alliance revenues from Bristol-Myers (BMY - Free Report) for Eliquis and direct sales rose 14% to $1.26 billion. Xalkori sales declined 9% to $135 million. Xeljanz sales rose 14% to $696 million. Xtandi recorded alliance revenues of $283 million in the quarter, up 16% year over year. Sutent sales declined 13% to $203 million. Chantix sales declined 33% to $191 million in the quarter.
Importantly, new rare disease drug Vyndaqel/Vyndamax recorded sales of $429 million in the quarter compared with $351 million in the previous quarter.
Total biosimilar revenues were $525 million, up 86% year over year driven by new oncology biosimilars (Trazimera, Zirabev and Ruxience). Sterile injectables global revenues rose 11% operationally to $1.49 billion.
In the quarter, Pfizer and partner BioNTech successfully developed BNT162b2, a two-shot vaccine for COVID-19, which is now approved for emergency/temporary use several countries. Vaccine rollouts were in full swing in the second half of the fourth quarter. Final data from a phase III study on BNT162b2, announced in November, showed that the candidate was 95% effective in preventing COVID-19 after two doses were given three weeks apart. The vaccine contributed $154 million in sales in the fourth quarter.
2020 Results
Full-year 2020 sales rose 2% to $41.9 billion, missing the Zacks Consensus Estimate of $43.95 billion and also falling slightly short of the guided range of $40.8 billion to $42.4 billion for the “New Pfizer”.
Adjusted earnings for 2020 were $2.22 per share, which also missed the Zacks Consensus Estimate of $2.31 and fell short of the guided range of $2.28-$2.38 for the “New Pfizer”. Earnings were up 16% year over year
2021 Guidance
Pfizer raised its previously issued earnings guidance for 2021 while providing financial guidance for adjusted revenues and other items.
Revenues are expected in the range of $59.4 billion to $61.4 billion, indicating growth of 44% from 2020 levels. The Zacks Consensus Estimate for revenues is $55.4 billion. The revenue guidance includes approximately $15 billion in sales from BNT162b2. Excluding BNT162b2, total revenues in 2021 are expected to be in the range of $44.4 billion to $46.4 billion
Adjusted earnings per share guidance was raised to a range of $3.10-$3.20 from the prior expectation of $3.00-$3.10 (guided on Jan 12). The earnings guidance indicates 42% increase over 2020 actual results. The Zacks Consensus Estimate for earnings is $3.16 per share. Excluding BNT162b2, EPS is expected to be $2.50 - $2.60 in 2021.
Foreign exchange is expected to benefit 2021 revenues by 3% and EPS by 4%.
Research and development expense is expected in the range of $9.2-$9.7 billion. SI&A spending is expected in the range of $11.0-$12.0 billion. Adjusted tax rate is expected to be approximately 15% in 2021.
Our Take
Pfizer’s fourth-quarter results were mixed as it missed estimates for earnings while beating the same for sales. Pfizer’s financial outlook for 2021 was quite upbeat.
Shares were up slightly in pre-market trading. This year so far, Pfizer’s stock has declined 2.7% against an increase of 0.9% for the industry.
Despite the ongoing impact of COVID-19, we believe the Consumer Healthcare joint venture with Glaxo and the merger of Upjohn unit with Mylan has made Pfizer a smaller company with a diversified portfolio of innovative drugs and vaccines. The smaller Pfizer should see better revenue growth as the Lyrica loss of exclusivity cliff goes away. Pfizer expects strong growth of key brands like Ibrance, Inlyta and Eliquis to continue to drive sales. In addition, new brands such as Vyndaqel/Vyndamax, Braftovi, Mektovi and oncology biosimilars are bringing in additional sales. The company, along with partner BioNTech, developed BNT162b2, the first COVID-19 vaccine to get FDA’s emergency approval, in record time.
Pfizer currently has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Pfizer Inc. Price and Consensus
Pfizer Inc. price-consensus-chart | Pfizer Inc. Quote
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>