What Are Pfizer’s Key Sources of Revenue?

by Trefis Team
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Pfizer’s (NYSE:PFE) key sources of revenues are Oncology, Neuroscience, Cardiovascular, Anti-Infectives, Musculoskeletal, and Legacy Pharma, Consumer, Biosimilars & Others. While the company’s Oncology drugs account for only 10% of the company’s overall revenues, it accounts for close to 20% of the company’s value, according to our estimates. This can be attributed to higher expected proportion of revenues and profits from Oncology in the coming years. Pfizer’s Legacy Pharma, Consumer, Biosimilars, & Others is the largest segment, and accounts for over 35% of the company’s revenues. We have created an interactive dashboard analysis that shows Pfizer’s key revenue sources, and the expected 2018 performance. You can adjust the revenue drivers to see the impact on the overall revenues, EPS, and price estimate.

Eliquis & Biosimilars To Drive Legacy Pharma, Consumer, Biosimilars & Others Segment Growth

Pfizer’s cardiovascular drug Eliquis has been on a strong run for a while now, and we expect this trend to continue in the near term, as the drug continues to increase its market share. Eliquis was initially approved for treatment of venous thromboembolic events, and prevention of heart attacks in patients with an irregular heart beat, not caused by a heart valve problem, called non-valvular atrial fibrillation. In 2014, the European Commission as well as the U.S. FDA approved the drug for the treatment of Deep Vein Thrombosis and Pulmonary Embolism, as well as for the prevention of recurrence of these conditions. In the recent quarters, Eliquis’ adoption among healthcare specialists has increased. It should be noted that the marketing rights for Eliquis are shared between Pfizer and Bristol-Myers Squibb.  Apart from Eliquis, we also expect the company to benefit from its biosimilars in the coming years.  Currently, Pfizer has 6 biosimilars in phase 3 trials, which it is testing for blockbuster drugs, Avastin, Rituxan/MabThera, Herceptin, and Humira. 

Oncology Revenues To Grow At A Higher Pace Than Other Segments

We expect Oncology segment revenues to grow at a CAGR of 10.40% in the coming years led by Ibrance and its new drugs, such as Bavencio. Ibrance has been approved for the treatment of breast cancer, which is the most prevalent cancer type in women. An estimated 266,120 new cases of invasive breast cancer, and 63,960 new cases of non-invasive breast cancer, are expected to be diagnosed in women in the U.S. this year. The majority of breast cancers are HER2 (human epidermal growth factor receptor 2), which means that Ibrance targets a very broad set of breast cancer patients. Bavencio (Avelumab) is co-developed by Pfizer and Merck KGaA. In 2017, the drug was approved by the U.S. FDA, and EMA for the treatment of Merkel-cell carcinoma. In Phase 3, it is studied for its efficiency to treat ovarian and bladder cancer. Bavencio’s peak sales are estimated to be around $4 billion. Beyond Oncology, many of Pfizer’s other segments will likely see declines in the near term, and beyond, as many of its drugs have either lost patent exclusivity or are about to lose it over the next couple of years.

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