Pfizer (PFE) on Monday reported second-quarter revenue that missed expectations as it also agreed to combine its off-patent Upjohn business with Mylan (MYL) in an all-stock reverse Morris trust transaction.
New York-based Pfizer said adjusted diluted earnings rose to $0.80 per share for the most recent quarter, up from $0.77 from the prior year and the Capital IQ consensus for $0.75. Revenue slid to $13.26 billion from $13.64 billion, shy of the Street’s view for $13.43 billion.
Revenue at Pfizer’s biopharmaceuticals business rose 6% operationally to $9.6 billion, driven by sales growth of its Ibrance, Eliquis and Xeljanz treatments, which was offset by declines in sales of Enbrel and Prevnar. Upjohn revenue fell 7% to $2.8 billion, led lower by a 20% operational decline in China.
US revenue under Upjohn fell 9%, pushed down by lower Viagra sales after the treatment’s December 2017 patent expiration and Lyrica, with saw volumes decline due to wholesale destocking ahead of that drug’s patent expiration.
Consumer healthcare revenue rose 1% operationally to $862 million as 4% growth in international markets offset a 2% decline in the US.
Pfizer cut its guidance for the year to reflect its anticipated Aug. 1 formation of a consumer healthcare joint venture with GlaxoSmithKline (GSK) and the expected near-term completion of its Array BioPharma acquisition. The company now expects revenue for the year to come in at between $50.5 billion to $52.5 billion from its April view of $52 billion to $54 billion, below the Street’s view of $53.45 billion. Adjusted diluted EPS it expected to be between $2.76 from $2.86, down from $2.83 to $2.93 and below market expectations of $2.91.