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How Is Pfizer’s Immunology and Inflammation Portfolio Positioned Now?

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Xeljanz revenue trends

In 3Q17, Pfizer’s (PFE) Xeljanz generated revenues of $348 million, a ~48% increase on a year-over-year (or YoY) basis and 4% growth on a quarter-over-quarter basis. In 3Q17, in the US market and international markets, Xeljanz reported revenues of $291 million and $57 million, which is ~44% and 76% growth on a YoY basis.

During the first nine months of 2017, Xeljanz reported revenues of $935 million, ~44% growth on a YoY basis. In the US and international markets, Xeljanz reported revenues of $793 and $142 million for the first nine months of 2017, respectively, compared to $567 million and $82 million in the first nine months of 2016.

In September 2017, Pfizer received 9.8% of the weekly new prescription share for Xeljanz’s present indication of rheumatoid arthritis. In October 2017, weekly new prescriptions reached 10%, demonstrating a rapid growth of the drug in the advanced rheumatoid arthritis therapy market. Pfizer anticipates the U.S. Food and Drug Administration (or FDA) approval of Xeljanz for psoriatic arthritis by the end of the year. The US FDA is reviewing Xeljanz for the treatment of ulcerative colitis, and its Prescription Drug User Fee Act date has been set in March 2018.

Xeljanz competes with AbbVie’s (ABBV) Humira and Johnson & Johnson’s Remicade and Simponi. In 3Q17, AbbVie generated revenues of around $7.0 billion from sales of Humira. Remicade and Simponi are commercialized jointly by Johnson & Johnson (JNJ) and Merck in different regions globally.

In 3Q17, Merck generated revenues of $214 million and $219 million from sales of Remicade and Simponi, respectively. In 3Q17, Johnson & Johnson generated revenues of $1.6 billion and $476 million from sales of Remicade and Simponi.

Enbrel revenue trends

In 3Q17, Enbrel reported revenues of $613 million, which reflected a ~13% decline on a year-over-year (or YoY) basis and a 1% decline on a quarter-over-quarter basis.

Enbrel reported revenues of $1.8 billion in the first nine months of 2017, a ~17% decline on a YoY basis. Pfizer commercializes Enbrel in markets outside the US and Canada, while Amgen (AMGN) commercializes it in the US and Canada. In 3Q17, Amgen generated revenues of $1.4 billion from sales of Enbrel in the US and Canada.

Growth in the sales of Pfizer’s immunology and inflammation portfolio could boost the share prices of the iShares U.S. Healthcare ETF (IYH). Pfizer makes up about ~6.5% of IYH’s total portfolio holding.

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