Pfizer Reports Q3 2020 Earnings: Upjohn China Revenue Down 21% Amid Volume-Based Procurement Impact

Pfizer Reports Third-Quarter 2020 Financial ResultsRecently, U.S. pharmaceutical giant Pfizer announced its financial results for the third quarter of 2020. The financial report showed that global revenue in the third quarter was $12.131 billion, a 4% year-over-year decrease (calculated at constant exchange rates, same below). Revenue for the first three quarters totaled $35.961 billion, an 8% year-over-year decrease. Its Biopharmaceuticals segment achieved a 4% growth in the third quarter, reaching $10.215 billion, while Upjohn, Pfizer’s off-patent branded and generic medicines division, saw an 18% decline to $1.916 billion.

The national volume-based procurement policy was officially implemented in March 2019 and expanded nationwide by December of that year, exerting a continuous impact on Upjohn’s performance. During the reporting period, the performance of core products such as Lipitor (atorvastatin) and Norvasc (amlodipine) remained lackluster. Furthermore, the COVID-19 pandemic led to a reduction in elective surgeries, shorter hospital stays, and improved infection control measures in China, resulting in decreased demand for certain anti-infective products and thereby affecting Pfizer’s hospital business in China. In this quarter, Pfizer Upjohn’s revenue in China declined by 21% year-on-year (specific sales figures were not disclosed).

On a positive note, demand for Prevnar 13 (the 13-valent pneumococcal polysaccharide conjugate vaccine) remains robust in the Chinese market. Meanwhile, Pfizer’s divestiture of Upjohn and its merger with Mylan are expected to be completed in the fourth quarter of this year.

According to the GBI SOURCE drug database, Pfizer had two products marketed in China in 2020: etugliflozin tablets (brand name: Jianuotuo) and tafamidis meglumine (brand name: Weidaquan). In addition, 65 acceptance numbers covering applications for 33 products were approved. For detailed product information, please visit the GBI SOURCE drug database.

Appendix: Top 10 Drugs by Pfizer’s 2019 Revenue (in millions of USD)