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Pfizer’s Geographical Performance in 1Q17

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Geographical performance

Previously in this series, we discussed Pfizer’s (PFE) revenues by segment. Pfizer reported a 2% decline in revenues to $12.78 billion for 1Q17, compared to $13.00 billion for 1Q16. To better understand the factors affecting growth, let’s take a look at Pfizer’s performance in US markets and beyond in 1Q17.

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Performance in the US markets

Revenues from US markets fell marginally to $6.64 billion in 1Q17, compared to $6.66 billion in 1Q16. This change includes an increase of 9% in revenues from the Innovative Health segment to $4.49 billion in 1Q17, compared to $4.11 billion in 1Q16.

The Innovative Health segment reported 9% growth in US markets in 1Q17, driven by Eliquis, Lyrica, Chantix, Ibrance, Xeljanz, and Somavert. For the Essential Health segment, the drugs Relpax, Medrol, Celebrex, and Revatio reported growth in 1Q17

Performance in international markets

Revenues from international markets fell 3% to $6.14 billion in 1Q17, compared to $6.34 billion in 1Q16. This change includes an operational decrease of 1% and a 2% negative impact of foreign exchange.

Revenues from the Innovative Health segment were flat at $2.92 billion in 1Q17, driven by the Lyrica, Eliquis, Xalkori, Xeljanz, Refacto AF, and Consumer Healthcare franchise. For the Essential Health segment, revenues fell 4% in 1Q17.

To divest risk, investors can consider ETFs like the iShares S&P Global Health Care ETF (IXJ), which invests ~4.9% of its total assets in Pfizer. The iShares S&P Global Health Care ETF also invests 4.9% of its total assets in Novartis (NVS), 3.1% in Amgen (AMGN), and 4.4% in Merck and Co. (MRK).

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