Analyzing Pfizer’s Estimates for the Future
In 4Q16, Pfizer reported EPS of $0.47 on revenues of $13.63 billion against an EPS estimate of $0.50 on revenues of $13.64 billion.
In January 2017, ICU Medical modified its merger agreement with Pfizer to acquire Hospira’s global infusion systems business.
To strengthen the Innovative Health business, Pfizer is focused on developing new drugs as well as expanding the market reach of existing products.
When Pfizer released its 4Q16 results on January 31, 2017, it also released its financial guidance for 2017.
The key performers in Pfizer’s (PFE) product portfolio include Lyrica, Ibrance, Xeljanz, and Eliquis, which are in the company’s Innovative Health business.
The overall share of revenues for Pfizer’s Essential Health products fell marginally to 43.3% of the total revenues for 4Q16, from 45.6% in 4Q15.
Pfizer’s (PFE) portfolio includes medicines, vaccines, and consumer healthcare products. It segregates its operations into Innovative Health and Essential Health.
Pfizer was trading at a forward PE multiple of ~13.0x on February 23, 2017, compared to the industry average of ~16.1x.
Eli Lilly & Co. (LLY) stock has risen ~10% over the last 12 months. Analysts estimate that the stock has the potential to return ~7.6% over the next 12 months.
In 4Q16, Eli Lilly & Co.’s (LLY) Animal Health segment, Elanco, reported a 3% increase in revenues to $837.6 million, compared to $811.7 million in 4Q15.
Eli Lilly and Boehringer Ingelheim launched Jardiance in the US markets for a new indication of reducing the risk of cardiovascular death in patients with type 2 diabetes.
In 4Q16, Eli Lilly (LLY) reported Basaglar sales of $40 million from Japan and several European markets.
In 4Q16, Cymbalta’s US sales fell by $2 million, and its international sales fell by $40 million.
Erbitux’s sales fell 13% to $153.7 million in 4Q16, compared to ~$176.2 million in 4Q15.
Eli Lilly’s (LLY) Humulin portfolio consists of concentrated insulin products used to lower the blood sugar levels in patients with type 1 and type 2 diabetes mellitus.
In 4Q16, Effient’s US sales saw a $12 million increase, and its international sales saw a $11 million decrease.
Eli Lilly & Co.’s (LLY) Animal Health segment operates through Elanco. Elanco accounted for ~15.5% of the company’s total revenues.
Eli Lilly & Co.’s (LLY) top line rose 7% to ~$5.8 billion for 4Q16, driven by volume growth of pharmaceutical products such as Erbitux, Trulicity, Humalog, and Cyramza.
Out of the 21 analysts covering Merck & Co., 62% of analysts recommended a “buy,” ~33% of analysts recommended a “hold,” and 5% of analysts recommended a “sell” on February 20, 2017.
On a capital structure–neutral basis, Merck & Co. (MRK) currently trades at ~10.2x. This is much lower than the industry’s average of ~11.6x.