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How Pfizer’s Innovative Health and Essential Health Business Performed in 3Q17

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Pfizer’s businesses

Pfizer’s (PFE) business includes a large portfolio of drugs, vaccines, and consumer healthcare products classified in two segments: Innovative Health and Essential Health. The Innovative Health segment reported 11% growth in revenues at constant exchange rates for 3Q17, offset by an 11% decline in revenues at constant exchange rates.

Innovative Health in 3Q17

The contribution of this segment toward total revenues rose to 61.6% in 3Q17, compared with 56.2% in 3Q16. In 3Q17, the segment reported revenues of $8.11 billion, an 11% growth compared with to $7.33 billion with 3Q16. This included the following:

  • 9% growth in revenues from internal medicines
  • 1% growth in revenues from vaccines
  • 46% growth in revenues from oncology franchise
  • 4% growth in revenues from the inflammation and immunology franchise
  • 4% growth in revenues from consumer healthcare products

This growth was offset by a 3% fall in revenues in the rare disease franchise. The growth in the internal medicines franchise was driven by the following:

  • 10% growth in Lyrica IH sales
  • 43% growth in Eliquis revenues
  • 21% growth in Chantix-Champix sales
  • 24% growth in BMP2 sales

The FSME-IMMUN-Tico Vac vaccine reported 31% growth, and other vaccines except Prevnar 13 reported 17% growth. These were offset by a 1% decline in Prevnar 13 sales.

For oncology, all products except Inylta reported growth in 3Q17. The inflammation and immunology franchise’s growth was driven by a 48% rise in Xeljanz sales and Eucrisa, offset by 13% lower sales of Enbrel.

Essential Health in 3Q17

The Essential Health segment’s revenues fell 12% to $5.05 billion in 3Q17, compared with $5.71 billion during 3Q16. The decline was driven by the following:

  • a 1% fall in sales of Legacy established products
  • a 13% fall in Sterile Injectable products
  • a 22% fall in Peri-LOE product sales

These declines were offset by 70% growth in biosimilar sales and 3% growth in Pfizer CenterOne revenues. Alliance revenues reported 77% growth to $741 million in 3Q17, compared with $419 million during 3Q16.

Notably, the Fidelity MSCI Healthcare ETF (FHLC) has 5.6% of its total assets in Pfizer (PFE). FHLC also has 9.7% in Johnson & Johnson (JNJ), 3.7% in Amgen (AMGN), and 3.0% in Gilead Sciences (GILD).

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