Pfizer (NYSE:PFE), the famous American pharmaceutical corporation is on the verge of losing its most valuable asset: its patents. In fact many patents have become generics rendering Pfizer’s (NYSE:PFE) growth to slow down. After losing some of its most famous products like Lipitor, Viagra, etc the company is now striving hard to overcome this major setback and once again climb up to their previous position. Pfizer’s CEO, Lan Read stated that the corporation is planning to develop an organic growth strategy by expanding their business so that they can overcome this sudden road bump.

 

However, Pfizer’s (NYSE:PFE) third quarter results show that this will not be simply a piece of cake. During this quarter, the company generated profits of some $12.36 billion which is about 2% less than last year’s earnings i.e. $12.64 billion. Although the drop in currency did not prove beneficial for the company’s earnings but the major factor in bringing down the revenue is the current increase in patent losses all over the world. Adjusted earnings for this quarter took a steep fall by almost 2% with fall in prices per share of $0.57, whereas, last year it was only $0.05.  However, the company (NYSE:PFE) did manage to perform better than Wall Street’s predictions of EPS of $0.55 with a net revenue of $12.24b.

 

Now we take a look at Pfizer’s (NYSE:PFE) last quarter results to figure out what is actually favoring the company and what isn’t. The company’s three successful moves include: attaining stability in growing markets, enhancing vaccines & oncology medicine and of course the market demand for the company’s (NYSE:PFE) most successful products. The emerging markets provided profits of $2.87b i.e. an increase of almost 9%. Lipitor was the most prominent entity in this success with revenues of $308m coming from China.

 

Statistics reveal that oncology vaccines proved lucky for the company (NYSE:PFE) as the international vaccine market made $1.14b with Prevnar during this quarter. The oncology sales rose by 17% resulting in a total of $551m gains. Another key product in increasing the company’s (NYSE:PFE) sales is Lyrica, with sales of $1.3b during this quarter, it is estimated that the drug may reach the $5b target per year.

 

Now let’s talk about what does not appear to work out for the company. The major reason behind the company’s losses is the decrease in exclusivity and Pfizer’s key drug Detrol also saw some decrease in sales at 58% with earnings of $54m. The reason for this decline can be the collective competition in the international market.  In fact Pfizer’s (NYSE:PFE) famous Lipitor, after its extra ordinary growth had to lose its patent, and in some countries displayed a decline in sales by 8%.

 

In order to stay afloat during this crisis, the company made some agreements with Amgen (NASDAQ:AMGN) over the collaboration of Enbrel (an anti-inflammation drug) but these pacts were canceled which resulted in Pfizer’s (NYSE:PFE) current position. The company’s overall performance looks a bit shaky with the current expense range increased from 6.7-7.2 billion to new a range of 6.9-7.2 billion dollars, whereas the adjusted earnings range was increased from 18.5%-19% to 19%-20%.

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