Pfizer and Mylan: What to Expect from Revenue Growth in 2019

Revenue guidance for fiscal 2019

In its fourth-quarter earnings conference call, Pfizer (PFE) forecasted that its fiscal 2019 revenues would fall in the range of $52 billion to $54 billion due in part to the anticipated negative impact of $2.6 billion associated with generic erosion for certain major drugs and $900 million worth of negative impact related to unfavorable foreign currency fluctuations in fiscal 2019. The company is expecting strong demand for products such as Ibrance, Eliquis, Xtandi, and Xeljanz and the label expansion of existing products to drive revenue growth in fiscal 2019.

Pfizer and Mylan: What to Expect from Revenue Growth in 2019

In its fourth-quarter earnings conference call, Mylan (MYL) has guided for revenues in the range of $11.5 billion to $12.5 billion for fiscal 2019, implying YoY mid-single-digit growth. In fiscal 2019, the company has assumed high-single-digit YoY revenue growth for its North America segment and mid-single-digit YoY revenue growth for both its Europe segment as well as the Rest of World segment.

According to Mylan’s fourth-quarter earnings conference call, the company expects to realize revenues worth $1.0 billion from new product launches in fiscal 2019. According to Mylan’s fourth-quarter earnings investor presentation, the company expects to benefit from the commercial launch of Wixela InHub, the first generic version of GlaxoSmithKline’s (GSK) Advair Diskus, the 2018 launch of Fulphila, a biosimilar version of Amgen’s (AMGN) Neulasta, and NCE (new chemical entity) Yupelri. The company is also expected to gradually increase its share in the generic Copaxone segment with Glatiramer Acetate in fiscal 2019.

Wall Street’s projections

Wall Street analysts have projected Pfizer’s revenues to be $53.33 billion, $54.19 billion, and $56.66 billion, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively, which implies a YoY revenue change of -0.59%, 1.61%, and 4.56% for fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

On the other hand, Wall Street analysts have projected Mylan’s revenues to be $11.89 billion, $12.34 billion, and $12.79 billion, for fiscal 2019, fiscal 2020, and fiscal 2021, respectively, which implies a YoY revenue change of 4.01%, 3.73%, and 3.65% for fiscal 2019, fiscal 2020, and fiscal 2021, respectively.

Although Pfizer is expected to report higher absolute revenues, Mylan is expected to report higher YoY revenue growth from fiscal 2019 to fiscal 2021.

Next, we’ll discuss EPS projections for Pfizer and Mylan in fiscal 2019.