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Comparing Pfizer’s and Merck’s 2019 Revenue Growth Trajectories

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Jun. 3 2019, Published 11:07 a.m. ET

Revenue projections for Pfizer

In its first-quarter earnings investor presentation, Pfizer (PFE) reaffirmed its 2019 revenue guidance of $52.0 billion–$54 billion.

Since January 1, 2019, Pfizer has reorganized its business in a new commercial structure made up of three reporting segments: PBG (Pfizer Biopharmaceuticals Group), Upjohn, and Consumer Healthcare. According to Pfizer’s fourth-quarter earnings press release, PBG houses the company’s Innovative Health products, including biosimilars and hospital products. Upjohn is headquartered in China and houses Pfizer’s off-patent branded and generics business. The Consumer Healthcare segment includes Pfizer’s over-the-counter products.

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On December 19, 2018, Pfizer issued a press release announcing a joint venture between its consumer healthcare business and GlaxoSmithKline’s consumer healthcare business to form a global consumer healthcare company. The deal is expected to close in the second half of 2019 and result in $650 million worth of peak cost synergies. To learn more about this transaction, read Pfizer and GlaxoSmithKline’s Consumer Health Business.

Analysts expect Pfizer’s revenue to see YoY (year-over-year) changes of -0.50% to $53.38 billion in 2019, 1.32% to $54.08 billion in 2020, and 3.76% to $56.12 billion in 2021. These estimates have not assumed the completion of the deal with GlaxoSmithKline.

Revenue projections for Merck

In its first-quarter earnings investor presentation, Merck & Co. (MRK) narrowed and raised its 2019 revenue guidance from $43.2 billion–$44.7 billion to $43.9 billion–$45.1 billion. The new guidance represents YoY (year-over-year) reported revenue growth of 4%–7% and of 5%–8% excluding the impact of foreign exchange fluctuations. The previous guidance represented YoY reported revenue growth of 2%–6% and 3%–7% excluding the impact of foreign exchange fluctuations. The company is assuming a negative revenue impact of more than 1% on its 2019 revenue. To learn more about Merck’s revenue growth drivers, read Keytruda: Merck’s Key Growth Driver in Fiscal 2019.

Analysts expect Merck’s revenues to see YoY rises of 5.74% to $44.72 billion in 2019, 5.76% to $47.30 billion in 2020, and 5.01% to $49.67 billion in 2021.

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