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Pfizer Reiterated Its Fiscal 2019 Revenue Guidance

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Revenue guidance

In its first-quarter earnings press release, Pfizer (PFE) reiterated its fiscal 2019 revenue guidance of $52.0 billion to $54.0 billion. According to the company’s first-quarter earnings conference call, Pfizer has assumed that the Centers for Disease Control and Prevention and the Advisory Committee on Immunization Practices will maintain existing age-based recommendations for adults related to dosing of Prevnar -13 (Pneumococcal 13-valent Conjugate Vaccine) in a vote scheduled for late 2019. The company believes that maintaining the current recommendation will be instrumental in reducing cases of pneumococcal pneumonia, thereby reducing hospitalizations as well as outpatient doctor visits.

According to the company’s first-quarter earnings conference call, Pfizer is also anticipating headwinds associated with ongoing pricing reforms in China.

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Analysts expect Pfizer’s revenues to change YoY by -0.49% to $53.39 billion in fiscal 2019, 1.04% to $53.94 billion in fiscal 2020, and 3.88% to $56.04 billion in fiscal 2021.

Analysts also expect Pfizer’s revenues to change YoY by -0.59% to $13.39 billion in the second quarter, -1.64% to $13.08 billion in the third quarter, and -2.25% to $13.66 billion in the fourth quarter of fiscal 2019.

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Performance in the first quarter

In the first quarter, Pfizer’s Biopharma segment reported revenues of $9.18 billion, a YoY rise of 3% on a reported basis and 7% on an operational basis. According to the company’s first-quarter earnings conference call, the Biopharma business accounted for 70% of the company’s total revenues. The segment’s revenues were driven by solid uptake of key brands such as Eliquis, Prevnar 13, Xeljanz, and Ibrance. The Biopharma business reported YoY volume growth of 11% and YoY net pricing declines of 3% in the first quarter.

In the first quarter, the Upjohn business reported revenues of $3.08 billion, a YoY decline of 1% on a reported basis but a 1% rise on an operational basis. According to the company’s first-quarter earnings press release, this performance has been mainly driven by 25% operational revenue growth in emerging markets. The business reported a solid volume-driven operational revenue growth in China, mainly driven by the solid uptake of brands such as Celebrex, Lipitor, and Norvasc.

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