As the third quarter of 2019 comes to an end, most biopharma companies are reporting their earnings as they head into the final lap for the year. Here’s a look at some of the bigger companies’ reports that came out this week.
Pfizer
Pfizer reported third-quarter 2019 revenues of $12.7 billion, which is actually a 3% operational decline. It reported $13.298 billion in the third quarter of 2018. For the nine-month period, Pfizer reported $39.062 billion, down 2% from 2018’s figure of $39.670 billion.
The breakdown of the company’s three divisions were: Biopharma, $10.108 billion, up 7% from the third quarter of 2018; Upjohn, with $2.195 billion, down 28% from $3.036 billion from the same period last year; and Consumer Healthcare, $377 million, down 55% from $839 million in the 2018 third quarter.
The company has paid out $14.9 billion to shareholders in the last nine months, with $6.1 billion of dividends and $8.9 billion of share repurchases.
“We reported strong third-quarter 2019 financial results, driven by 9% volume-driven operational revenue growth in our Biopharma business, including growth from key brands such as Ibrance, Xeljanz, Eliquis, Vyndaqel and Inlyta as well as in emerging markets,” said Albert Bourla, Pfizer’s chief executive officer. “Upjohn revenues were negatively impacted primarily by the July 2019 loss of exclusivity of Lyrica in the U.S., while Consumer Healthcare revenues declined as a result of the completion of the JV transaction with GSK during the quarter.”
Merck and Co.
Merck reported third-quarter revenue had increased by 15% for the third quarter, from $10.794 billion in 2018 to $12.397 billion this year. Not surprisingly, the big driver for the company’s Pharmaceutical sales was its checkpoint inhibitor Keytruda, which brought in $3.070 billion for the quarter, up from $1.889 billion in the same period last year. This is an increase of 62%. Keytruda was followed by Gardasil/Gardasil 9, a vaccine for human papillomavirus (HPV), which brought in $1.320 billion for the quarter, up 26% from $1.048 billion in the 2018 third quarter. This was followed closely by Januvia/Janumet, for diabetes. Januvia was actually down 12% from the previous year’s third quarter, bringing in $1.311 billion compared to $1.490 from last year.
Overall, third-quarter pharmaceutical sales were $11.1 billion, up 15% from the previous year’s third quarter. Another $1.1 billion came from Animal Health, which was an increase of 10% from the third quarter in 2018.
“We achieved another quarter of strong revenue and earnings growth as we continue to realize the benefits of our sustained investment in research and development and our focus on commercial execution,” said Kenneth C. Frazier, chairman and chief executive officer of Merck. “We are confident that the investments we are making now will allow us to convert cutting-edge science into medicines and vaccines of great benefit to patients and value to shareholders.”
Amgen
Amgen reported a 3% decrease in total revenues from the third quarter of 2019 compared to the same period in 2018. Total revenues were $5.737 billion, down 3% from $5.904 billion in that period. Product sales declined globally by 1%, but certain drugs, such as Prolia, Repatha, Aimovig, Parsabiv, Kyprolis and Blincyto all grew in the double digits or better. Prolia grew 18%, Evenity, which launched in the first half of the year generated $459 million in the third quarter, Repatha sales rose 40%, Aimovig brought in $66 million, Parsabiv grew 54%, Kyprolis increased 15%, and Blincyto rose 47%.
The company also reported strong growth in its biosimilar produce line. One of the more noticeable changes is Amgen’s decision to close out its neuroscience research. David Meline, the company’s chief financial officer, indicated it was to provide financial support to other areas that will provide long-term growth. The one exception to that is its Aimovig for migraine, which it plans to continue supporting.
“Amgen continues to execute well in a dynamic environment, with many of our innovative medicines delivering double-digit, volume-driven growth, complemented by the strong performance of our recently launched biosimilar products,” said Robert A. Bradway, Amgen’s chairman and chief executive officer. “We continue to advance numerous first-in-class medicines in our pipeline, while also pursuing external opportunities that will contribute to our long-term growth, such as our pending acquisition of Otezla.”
Incyte Corporation
Incyte reported total third-quarter revenues of $551.581 million, up 23% from the same quarter last year’s figure of $449.683 million. The big driver is Jakafi, which accounted for $433.387 million of it, up 25% from $347.567 in the third quarter. In the nine-month period, Jakafi has brought in $1.2185 billion in sales, up 21% from the same period last year. Jakafi is followed by Iclusig, which for the quarter brought in $20.611 million, up 2% from $20.148 in the third quarter 2018.
“Revenue growth continues to be very strong, driven by robust demand for Jakafi (ruxolitinib) in all three approved indications and, as a result, we are raising guidance for full year Jakafi net sales,” said Herve Hoppenot, Incyte’s chief executive officer. “At the beginning of 2019, we laid out an ambitious set of development goals for our late-stage portfolio, and in the third quarter we have continued to execute against them. The recent clinical success in the REACH2 trial of ruxolitinib in steroid-refractory acute GVHD; the updated data from pemigatinib in cholangiocarcinoma and subsequent NDA submission; and the recently-presented 52-week data from the randomized Phase II trial of ruxolitinib cream in vitiligo are all illustrative of the significant progress we have made this year.”
Johnson & Johnson
Drug behemoth Johnson & Johnson reported third quarter sales of $20.729 billion, up 1.9% from the 2018 third-quarter sales of $20.348 billion. Net earnings, however, were down by 55.4%, from $3.934 billion in the third quarter of 2018 to $1.753 billion this quarter. Diluted Earnings Per Share (EPS) were down 54.2% from $1.44 to $0.66 in the same period.
U.S. sales were up 1.2% to $10.791 billion, International sales up 2.6% to $9.938 billion. In breaking out is divisions, Consumer products brought in $3.469 billion, up 1.6%, Pharmaceuticals reported $10.877 billion, up 5.1%, and Medical Devices cited $6.383 billion, down 3.1%.
The earnings exceeded Wall Street projections, despite the numerous multimillion-dollar lawsuits over talc and opioids. The company raised its full-year guidance for earnings of $8.62 to $8.67 per share, with revenue ranging from $81.8 billion to $82.3 billion. Those figures are up from full-year guidance of $8.53 to $8.63 per share on revenue of $82.4 billion to $82.3 billion.
“Our third-quarter results represent strong performance, driven by competitive underlying growth in Pharmaceuticals and Medical Devices, as well as continued optimization in our Consumer business,” said Alex Gorsky, J&J’s chairman and chief executive officer. “As we look ahead, we remain confident in the strength of our broad-based business model, which is fueled by our disciplined portfolio management, focus on transformational innovation and dedicated employees around the world who position us for success today and well into the future.”
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