Pfizer Inc. (PFE) reported a rise in earnings for the second quarter, helped by the strength of its anchor brands, primarily Ibrance, Eliquis, and Xeljanz. The top and bottom lines came in above analysts’ expectations. However, shares fell 1.17% in the premarket session after the drug giant lowered its revenue outlook due to recent unfavorable change in foreign exchange rates.
Reported net income climbed 28% to $0.65 per share, while on an adjusted basis, it improved 21% to $0.81 per share.
Revenue rose 4% to $13.5 billion driven by the continued growth of key brands as well as biosimilars. This was partially offset by product losses of exclusivity, a decline in legacy Established Products in developed markets and ongoing legacy Hospira supply shortages.
Looking ahead into the full year 2018, Pfizer lowered its revenue outlook to the range of $53 billion to $55 billion from the prior estimate of $53.5 billion to $55.5 billion. The revenue estimate was updated solely to reflect recent unfavorable changes in foreign exchange rates in relation to the US dollar from mid-April 2018 to mid-July 2018.
However, adjusted EPS guidance was lifted upward to $2.95-$3.05 from the previous forecast of $2.90-$3.00, reflecting share repurchases totaling about $6.1 billion already completed in 2018.
“We are looking ahead to several potential near-term opportunities in core therapeutic areas, and continue to see the potential for approximately 25-30 approvals through 2022, of which up to 15 have the potential to be blockbusters. We continue to believe our pipeline positions us to deliver life-changing medicines to patients while enhancing shareholder value,” executive chief Ian Read said.
Innovative Health revenue increased by 5% operationally, primarily driven by continued growth from key brands in emerging markets and the US. Operational revenue growth for Eliquis, Ibrance, Xeljanz, and Xtandi was 42%, 19%, 37% and 21%, respectively.
During the first half of 2018, Pfizer returned $10.1 billion directly to shareholders through a combination of $4 billion of dividends and $6.1 billion of share repurchases.
EC approves biosimilar for cancer
In a separate release, Pfizer said the European Commission (EC) has approved Trazimera, a biosimilar to cancer treatment drug Herceptin.
Related: Pfizer plans to split into 3 units, foray into hospital business
Shares of Pfizer ended Monday’s regular trading session up 0.47% at $38.59 on the NYSE. The stock rose 6% year-to-date and 16% in the past year.
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