Behind Pfizer’s Legacy Established Products Performance in 2017

In 2016, Pfizer’s (PFE) Lipitor reported revenues of ~$1.8 billion, which represented a ~5% YoY (year-over-year) fall. In 1Q17, Lipitor generated revenues of ~$404 million, which was ~2% lower YoY and ~13% lower on a QoQ (quarter-over-quarter) basis.

Lipitor is used for the treatment of elevated LDL (low-density lipoprotein) cholesterol levels in the blood. Generic erosion across major markets around the world was the primary factor for the decline in Lipitor revenues.

In 1Q17, the drug witnessed an increase in volume growth in China but a decrease in the volume of sales in other emerging markets, primarily in the Middle East, Japan, and other developed international markets.

In 2016, Norvasc reported revenues of ~$991 million, reflecting a 3% YoY fall. In 1Q17, Norvasc generated revenues of ~$228 million, which was a YoY ~3% YoY fall and a 8% QoQ fall. The generic erosion in Japan primarily caused the decline in Norvasc revenues in 2016.

In 2016, Premarin reported revenues of ~$1.0 billion, which was similar to revenues in 2015. In 1Q17, Premarin generated revenues of ~$228 million, which was ~11% lower on a YoY basis and represented a 14% QoQ decline.

Premarin is used to address moderate to severe menopausal symptoms. In 1Q17, US revenues witnessed a 12% YoY decline. A decrease in prescription volumes, and lower market growth attributed to the decline in Pfizer’s 1Q17 revenues.

In 2016, Relpax reported revenues of ~$323 million, reflecting a 8% YoY fall. In 1Q17, Relpax generated revenues of ~$82 million, or ~5% higher YoY and 9% higher QoQ. Relpax is used for the treatment of acute migraines.

In 2016, EpiPen reported revenues of ~$386 million, reflecting a 14% YoY rise. In 1Q17, EpiPen generated revenues of ~$81 million, which represented a ~16% YoY decline and a 7% QoQ decline. EpiPen (epinephrine injection) is indicated for the treatment of type-1 allergic reactions like anaphylaxis.

In 2016, Zithromax reported revenues of ~$272 million, reflecting a 1% YoY decline. In 1Q17, Zithromax saw revenues of ~$79 million, which was ~1% lower YoY and 14% higher QoQ. Zithromax (azithromycin) is an antibiotic used for the treatment of infections caused by bacteria.

In 2016, Xalatan reported revenues of ~$386 million, reflecting a 3% YoY fall. In 1Q17, Xalatan generated revenues of ~$77 million, which was ~13% lower YoY and 14% lower QoQ.

In 2016, Zoloft reported revenues of ~$304 million, reflecting a 19% YoY fall. In 1Q17, Zoloft saw revenues of ~$68 million, which was ~14% lower YoY and 11% lower QoQ.

Pfizer’s peers in general medicine include Johnson & Johnson (JNJ), Merck (MRK), Abbott Pharmaceuticals, GlaxoSmithKline (GSK), Teva Pharmaceuticals, Eli Lilly, and Bayer. Notably, the PowerShares Dynamic Pharmaceuticals Portfolio (PJP) has ~4.8% of its total portfolio holdings in Pfizer.