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How Pfizer Performed across Geographies during 4Q17

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Pfizer’s performance by geographies

As discussed earlier, Pfizer’s (PFE) revenue rose ~1% to $13.7 billion during 4Q17 driven by increased sales of its Innovative Health products. However, this growth was substantially offset by lower sales of its Essential Health products (except for biosimilars) and few of its legacy established products.

The above chart shows Pfizer’s revenue in the United States as well as in international markets. It reflects revenues for both Pfizer’s Innovative Health and Essential Health segments in 4Q17. Pfizer reported a fall of ~4% in its US sales in 4Q17, while its sales outside US markets reported a 5% revenue rise in the quarter.

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Performance in US markets

Pfizer reported revenue of ~$6.5 billion in US markets during 4Q17, a 4% fall compared to ~$6.8 billion in 4Q16.

  • The Innovative Health segment’s revenue reported a 6% rise driven by a 3% rise in revenues from internal medicine products, a 23% rise in revenues from oncology products, and a 51% rise in revenues from inflammation and immunology products. These rises were partially offset by a 7% fall in revenues from vaccines, a 5% fall in revenues from rare disease products, and a 9% fall in revenues from consumer healthcare products.
  • The Essential Health segment’s revenue fell 25% driven by a 12% fall in revenues from legacy established products, a 23% fall in revenues from sterile injectable pharmaceuticals, and a 50% fall in revenues from Peri-LOE products. The fall was offset by a 6% rise in revenues from Pfizer One and $44 million from biosimilar sales.

Performance in international markets

Pfizer reported revenue of ~$7.2 billion in international markets during 4Q17, a 4% rise compared to $6.8 million in 4Q16.

  • The Innovative Health segment’s revenue reported a 6% rise driven by a 13% rise in revenues from internal medicine products, a 28% rise in revenues from vaccines, a 3% rise in revenues from rare disease products, and a 12% rise in revenues from consumer healthcare products. These rises were partially offset by a 21% fall in revenues from oncology products and a 6% fall in revenues from inflammation and immunology products.
  • The Essential Health segment’s revenue rose ~5% driven by a 9% rise in revenues from legacy established products, a 12% rise in revenues from sterile injectable pharmaceuticals, a 14% rise in revenues from Pfizer One, and a 37% rise in revenues from biosimilars. These rises were partially offset by an 8% fall in revenues from Pfizer’s Peri-LOE products.

The PowerShares Dynamic Pharmaceuticals ETF (PJP) has 5.0% of its total holdings in Pfizer, 5.0% in Eli Lilly (LLY), 4.9% in Biogen (BIIB), and 2.7% in Mylan NV (MYL).

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