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What Contributed to Pfizer’s Growth in 2016?

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Apr. 3 2017, Updated 10:41 a.m. ET

Understanding growth contributors

Previously, we discussed Pfizer’s (PFE) segment-wise and geographical revenue trends. The key performers in its product portfolio include Lyrica, Ibrance, Xeljanz, and Eliquis from the Innovative Health business.

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Positive growth contributors

The following products contributed to Pfizer’s positive growth:

  • A 2.7% increase in total Lyrica revenues to $4.9 billion in 2016 as compared to $4.8 billion in 2015, primarily due to a 14% increase in sales of Lyrica IH offset by a 29% decrease in sales of Lyrica EH. Lyrica EH includes revenues from Europe, Turkey, Russia, Israel, and Central Asia, while Lyrica IH includes revenues from the rest of the world.
  • Ibrance, the new blockbuster drug to treat advanced breast cancer, was launched in February 2015, reported over 100% growth in revenues at $2.1 billion in 2016 as compared to $723 million in 2015 due to the strong response from the healthcare practitioners. The US markets reported Ibrance sales of ~$2.1 billion in 2016 as compared to $718 million in 2015.
  • BMP2 reported a growth of 8% in its revenues to $251 million during 2016 due to increased demand in the US markets.
  • Xalkori and Xeljanz achieved sales of $561 million and $927 million, respectively, during 2016. Xalkori’s revenue grew 17% while Xeljanz’s revenue increased by over 78% during 2016 as compared to 2015 revenues.
  • Chantix/Champix revenues rose 27% to $842 million in 2016 as compared to $671 million in 2015.
  • EpiPen, one of the key products of Mylan (MYL), contains drugs manufactured by Pfizer. Pfizer reported a 14% increase in EpiPen revenues to $386 million for 2016.
  • Medrol and Sulperazon sterile injectable products reported revenue growth of 16% to $450 million and 23% to $396 million, respectively.

Alliance revenues rose ~33% to $1.8 billion in 2016 as compared to $1.3 billion in 2015. Alliance revenues included Eliques and Rebif for 2015 and Eliques and Xtandi for 2016.

To divest the risk, investors can consider ETFs like the Guggenheim S&P 500 Top 50 ETF (XLG), which holds 2.0% of its total assets in Pfizer, 3.2% of its total assets in Johnson & Johnson (JNJ), 1.9% of its total assets in Merck (MRK), and 1.0% of its total assets in AbbVie (ABBV).

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