Pfizer Inc. (NYSE:PFE) posted its second quarter earnings on Tuesday that marginally topped the estimates of analysts. Pfizer, the largest drugmaker in the United States is looking forward to split the business, which can give way to spin-off of its generic division. The drug maker reaffirmed its financial guidance for the year.
Adjusted income for Pfizer Inc. (NYSE:PFE) came in at $4 billion or 56 cents per share, a decline of 10 percent from $4.45 billion, or 59 cents per share in the corresponding quarter of the previous year. Revenue came down by 7 percent to $12.97 billion. Average estimates by analysts for the quarter was an income of 55 cents per share, on revenue of $13.01 billion.
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Revenue from cancer medicine surged 28 percent in the second quarter under core drug division. Latest products like Inlyta and Xalkori assisted in the increase.
From operations point of view, revenues were primarily affected by losses of patent on Lipitor coupled with factors like shifts in government purchasing patterns for bulk orders of Pfizer’s Prevnar pneumococcal vaccine, says a report from Reuters.
CEO Read said that he is looking forward to expanding the business in the emerging markets to boost growth in the second half of the year led by China.
“From a total company view, we are tracking to our expectations for the full year and continue to capitalize on the investments we are making to better position Pfizer for long-term success,” he added.
Pfizer may split its businesses
CEO Ian Read said that the company is seeking to spin off its commercial operations into two units for branded products and a third for generics. Ian Read has been analyzing organization’s structure and divested its nutrition and animal health businesses.
According to Read, the new model of the company will fuel innovation in the core drugs business and will upgrade the value of consumer along with off-patent established brands. It will further ensure optimum utilization of capital.
Sales of the Generic business of Pfizer Inc. (NYSE:PFE) that contributes around 17 percent of total sales lags behind by its patent protected drugs. In the past also analysts have suggested Pfizer to spin off its generic business so that it can give more effort to its core branded pharmaceutical business. However, any such spin off in the company division is not possible before 2016.
Last year in November, Pfizer Inc. (NYSE:PFE) sold off its nutrition business to Nestle SA for $11.85 billion in cash and animal health business was broken from Pfizer to form a new company called Zoetis.