Second-Quarter 2012 Financial Reports Show Pfizer, Novartis Down; Merck Up

Jul 31, 2012

Pharmaceutical industry leaders Pfizer, Novartis, and Merck—among others—released second-quarter 2012 results, emphasizing growth of new products and strength in emerging markets.

Pfizer’s second-quarter 2012 revenues were $15.1 billion, down 9% from the second-quarter 2011, the company stated in a recent press release. US revenues were down 15% compared with the year-ago quarter, primarily due to the loss of exclusivity of Lipitor on Nov. 30, 2011. International revenues, which represented 62% of total revenues for the quarter, were down 5% compared to the year-ago quarter, primarily due to the unfavorable impact of foreign exchange, said the release. Emerging market unit revenues grew 14% compared with the year-ago quarter, primarily due to volume growth in China and Russia. Pfizer reaffirmed its 2012 financial guidance, noting its continued confidence, financial flexibility, and significant cost savings generated by cost-reduction and productivity initiatives, said Frank D’Amelio, Pfizer CFO, in the release.

Novartis’ group net sales, including its Pharmaceuticals division and Alcon eye care division, were $14.3 billion in the second-quarter 2012, down 4% from second-quarter 2011, stated the company in a press release. Currency had a negative impact of 5%, resulting in 1% growth on a constant-currency basis, said the release. Growth from recently launched products more than offset the loss associated with the Diovan patent expiration. Recently launched products now represent 29% of the company’s group net sales compared with 25% last year, demonstrating Novartis’ continued focus on portfolio rejuvenation. The group secured eight significant regulatory milestones in the second quarter as well, which included European CHMP recommendations for Afinitor in breast cancer, Jakavi in myelofibrosis, and Seebri Breezhaler in COPD, commented Novartis CEO Joseph Jimenez.

Merck’s global sales were $12.3 billion in second-quarter 2012, up 1%, or 5% excluding foreign exchange, from second-quarter 2011, said the company in a press release. Second-quarter pharmaceutical sales grew 5% after excluding 2011 sales of Remicade and Simponi transferred to Johnson & Johnson through a settlement agreement. Emerging markets accounted for 18% of pharmaceutical sales in the second quarter. China, in particular, grew 27% in the second quarter, including 4% from foreign exchange.

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