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A Look at Pfizer’s Innovative Health Business

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An overview of Pfizer’s Innovative Health business

In the second quarter of 2016, Pfizer (PFE) reorganized its Innovative Pharmaceutical and Consumer Healthcare operations as the Innovative Health (or IH) business segment.

Along with Consumer Healthcare, this segment includes therapeutics areas such as internal medicine, vaccines, oncology, inflammation and immunology, and rare diseases.

 

The share of Internal Medicine has the highest contribution, with 31% of the total segment’s revenue in the first six months of 2016. It is followed by the Vaccines business, with a 21% share, and Oncology, with a 15% share.

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What are the core brands in each therapeutic area?

The core brands in the Internal Medicine business are Lyrica IH, Viagra IH, Chantix/Champix, Toviaz, and BMP2, along with alliance revenues and other internal medicines. Lyrica’s contribution to the IH business stood at ~$1.0 billion while Viagra earned $300 million for the IH business.

We’ll discuss the key drugs in the Internal Medicine portfolio in the next article.

Under the Vaccine business, Pfizer sells Prevnar/Prevenar 13 and FSME/IMMUN-TicoVac, along with other vaccines. Prevnar/Prevenar 13, the major contributor to the Vaccine business, earned $1.3 billion during 2Q16.

Ibrance is the major drug in the Oncology portfolio, generating $514 million in revenues during 2Q16. Other drugs in the portfolio include Sutent, Xalkori, and Inlyta.

The Inflammation & Immunology (or I&I) franchise includes Enbrel as a major contributor, along with Xeljanz and other I&I drugs. Enbrel earned $766 million outside the US and Canada in 2Q16.

The rare disease drugs include BeneFIX, Genotropin, Refacto AF/Xyntha, Somavert, and Rapamune. BeneFIX was the major contributor to the portfolio, earning $183 million in 2Q16.

The Consumer Healthcare business generated $837 million in revenues in 2Q16.

If you invest in the Health Care SPDR ETF (XLV), you can gain exposure to Pfizer. XLV holds ~7.6% of its assets in Pfizer. The fund also invests in Johnson & Johnson (JNJ), Merck (MRK), and Amgen (AMGN).

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