Pfizer Inc (NYSE: PFE) stock rose over 0.5% in the pre-market session of Feb 3rd, 2021 (Source: Google finance) post fourth quarter of FY 20. In November, Pfizer had completed the transaction to divest its Upjohn Business and combining it with Mylan N.V. to form Viatris VTRS. After the transaction, Upjohn was spun off to Pfizer stockholders by way of a pro-rata distribution and immediately thereafter combined with Mylan. Pfizer stockholders own approximately 57% of Viatris common stock while Mylan shareholders own approximately 43%.
PFE in the fourth quarter of FY 20 has reported the adjusted earnings per share of 42 cents, missing the analysts’ estimates for the adjusted earnings per share of 46 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 11 percent to $11.68 billion in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of $11.01 billion. Oncology revenues rose 21% (on an operational basis) to $3.02 billion. Vaccine revenues grew 16% to $2.0 billion. Internal Medicine grew 1% to $2.3 billion.
Moreover, the rise in sales of brands like Eliquis, Ibrance, Inlyta and Xeljanz and significant contribution from new drug Vyndaqel/Vyndamax and higher biosimilars revenues drove Biopharma’s sales growth. Weaker sales of Chantix in the United States and Enbrel internationally partially offset the increase. Importantly, Prevnar 13/Prevenar 13 sales improved in the quarter.
For fiscal 2021, the sales are expected to be in the range of $59.4-$61.4 billion are $4 billion higher than consensus at the midpoint, with Covid-19 vaccine sales expected at $15 billion vs. consensus for $11 billion. The midpoint EPS goal of $3.15 is slightly below the expectations, due to much lower gross margin and higher R&D costs. The company expects annual earnings per share to be in the range of $3.10 to $3.20.
Pfizer commands a higher price for its Covid-19 vaccine than some rivals. As per the terms of its supply deal with the U.S., the company is charging $19.50 for each shot of the two-dose regimen. Meanwhile AstraZeneca Plc, which hasn’t yet gained U.S. authorization for its two-dose vaccine, has plans to charge less than $4 per shot, and J&J is aiming to price its single-shot vaccine at less than $10. Pfizer’s vaccine sales projection mainly includes doses that are expected to be delivered this year under existing contracts, the company said as it reported fourth-quarter earnings. Excluding those sales, Pfizer expects 2021 full-year revenue to be in the range of $44.4 billion to $46.4 billion.