Product losses of exclusivity, legacy Hospira supply shortages and a decline in legacy Established Products in developed markets will continue to hurt Pfizer. The company faces competitive pressures in the CDK inhibitor category as well as from generic drugs.
Earlier in the week, Pfizer was downgraded from Buy to Neutral by UBS analyst Navin Jacob who raised concerns about the company’s patent cliffs for many of its key products. In November, Pfizer lost a patent war in the UK for its drug Lyrica.
The biggest development during the quarter was the joint venture between Pfizer and GlaxoSmithKline plc (GSK) on their consumer health businesses. The transaction is expected to close in the second half of this year and the combined entity will be a giant in the consumer health sector. This will be a key point to watch out for during the results announcement.
Pfizer’s stock drops after Q3 revenue misses estimates despite earnings beat
In the third quarter, Pfizer topped estimates on earnings but missed on revenues. Revenue inched up slightly to $13.3 billion, helped by growth in key brands, while adjusted earnings rose 15% to $0.78 per share.
Pfizer’s peers Allergan (AGN) and Amgen (AMGN) are also set to report their earnings results on Tuesday. Over the past three months, Pfizer’s stock has dropped over 5%. As of 2 pm ET, the stock was down slightly by 0.54%.