Pfizer Inc (NYSE:PFE) & Merck & Co Inc (NYSE:MRK) Miss The Bus
Pfizer Inc (NYSE:PFE) continues its flat ride on bourses on Tuesday, though Dow Jones Industrial Average saw a robust rebound. Both Pfizer Inc (NYSE:PFE) and Merck (NYSE:MRK) failed to take advantage of the rebound. Comparatively, Merck share prices fell further while Pfizer managed to maintain a steady, flat performance for the day.
Pfizer is expectant of Remoxy approval, and has commenced new range of clinical trials.
Pharmaceutical companies have been struggling in the aftermath of patent cliff and lower sales revenues.
Fortunately for Pfizer, its spread of patents across different health care verticals is standing it in good stead. Merck, on the other hand, with a focus only on two of its block-buster diabetes drugs- Januvia and Janumet-has nearly come to a standstill, given Januvia’s recent stalling. Merck’s pipeline too is pathetic, in comparison to Pfizer’s more dramatic spread of patents for the future. Pfizer has drugs such as: Xeljanz for treatment of Rheumatoid, Eliquis- a drug for thinning the blood – over and above its global block-buster Lipitor. However, Lipitor’s patent expiry is round the corner and Pfizer is well-positioned with its rich-haul of live patented-drugs to bolster earnings.
Incidentally, this has been the factor that led to Pfizer’s rather healthy third-quarter returns. Merck posted poor results for the same quarter, losing out on revenue earnings due to patent cliffs.
Pfizer it cannot be denied has been a consistent performer in revenue earnings. In the last quarter it beat EPS by $0.02 posting $0.58. However, in terms of net profits the company did see a fall of nearly 19% bringing in only $2.59 billion. Revenue earnings too fell short by 2% for the year with just $12.64 billion in earnings.
The primary revenue loser for Pfizer in the quarter was the- Primary Care division – earning only $3.26billion, posting 10% loss. Other divisions, namely, consumer healthcare, Oncology, established products and emerging markets all had positive earnings.