Will Pfizer's (PFE) BioPharma Unit Boost Its Q4 Earnings?
Zacks Investment Research | Jan 23, 2020 09:31PM ET
Pfizer, Inc. (NYSE:PFE) Biopharmaceuticals Group comprises six business units — Oncology, Inflammation & Immunology, Rare Disease, Hospital, Vaccines and Internal Medicine. It is the company’s key top-line driver.
Within the Biopharma group, oncology sales are likely to have risen in the fourth quarter, driven by higher sales of Ibrance, Inlyta, Xalkori and alliance revenues from Astellas for Xtandi.
Continued strong uptake in international markets and consistent growth in the United States are likely to have driven Ibrance’s sales. Importantly, U.S. sales of Inlyta rose significantly in the third quarter, gaining from FDA approvals in 2019 for the combination of Inlyta plus Pfizer’s Bavencio and Inlyta plus Merck’s (NYSE:MRK) Keytruda in first-line treatment of advanced renal cell carcinoma patients. The trend is expected to have continued in the fourth quarter.
In non-oncology area, sales of drugs like Xeljanz, alliance revenues from Bristol-Myers (NYSE:BMY) for Eliquis and Chantix are likely to have provided top-line support. Regarding Xeljanz, continued growth in rheumatoid arthritis (RA) revenues and contributions from launches in new indications, psoriatic arthritis and ulcerative colitis (UC) are likely to have driven sales.
In July 2019, Xeljanz’s prescribing information in the United States was updated by the FDA to include two additional boxed warnings as well as changes to the indication and dosing for UC following review of a post-marketing study. Regarding this update, Pfizer mentioned on the third-quarter conference call that it was not sure how the label update will affect prescribing trends of the drug in the future quarters. An update is expected on the fourth- quarter call.
The Zacks Consensus Estimate for sales of Ibrance (worldwide) and alliance revenues from Eliquis is $1.36 billion and $1.05 billion, respectively. The Zacks Consensus Estimate for Inlyta and Xeljanz’s sales is pegged at $150 million and $616 million, respectively.
Pfizer’s shares have declined 0.6% in the past year against an increase of 16.8% for the the complete list of today’s Zacks #1 Rank stocks here .
Pfizer Inc. Price and Consensus
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