Pfizer’s growth rate
As discussed earlier, Pfizer (PFE) reported an increase of ~13% in revenues in constant currencies for 2Q16. The company’s 2Q16 revenues were ~$13.2 billion, which were ~7.7% higher than analysts’ estimates of ~$12.1 billion.
Its growth was impacted negatively by foreign exchange rates, as over 50% of total revenues are received from international sales.
Pfizer has segregated its operations into two business segments:
- Pfizer Innovative Health, previously referred to as the Innovative Pharmaceuticals business, including the Global Innovative Pharmaceuticals segment and Global Vaccines, Oncology, and Consumer Healthcare segment
- Pfizer Essential Health, previously referred to as the Established Pharmaceuticals business
Pfizer’s Innovative Health business reported a growth of 9% in revenues at constant exchange rates to $7.1 billion, as compared to ~$6.6 billion for 2Q15. The growth was driven mainly by increased sales of Ibrance, Lyrica, and Xeljanz, in the US markets, and Eliquis in both the US and the international markets. The growth was impacted by lower sales of Prevnar 13 vaccines during 2Q16.
Pfizer’s Essential Health business revenues increased by 9% at constant exchange rates to ~$6.0 billion in 2Q16, as compared to ~$5.2 billion in 2Q15, driven by the legacy Hospira business. Excluding the revenues from Hospira, the Essential Health business revenues decreased by 3% at constant exchange rates during 2Q16.
Investors can consider ETFs like the iShares US Pharmaceuticals ETF (IHE), which holds ~8.4% of its total assets in Pfizer, or the Vanguard Health Care ETF (VHT), which holds ~6.9% of its total assets in Pfizer. VHT also holds ~2.9% in Allergan (AGN), ~3.7% in Amgen (AMGN), ~3.9% in Bristol-Myers Squibb (BMY), and ~5.1% in Merck (MRK).