Pfizer and Merck Beat Q1 Earnings Expectations Amid Strong Product Performance

　　【Pharmaceutical Station Industry News] As of April 17, a total of 122 pharmaceutical companies listed on China’s A-share market had released their first-quarter 2019 earnings reports, with mixed results among them. Meanwhile, foreign pharmaceutical giants such as AbbVie, Johnson & Johnson, Novartis, Bayer, Roche, AstraZeneca, and Biogen have also sequentially announced their first-quarter performance. Recently, three additional pharmaceutical behemoths—Pfizer, Merck, and Eli Lilly—released their first-quarter 2019 financial reports. Among them, Pfizer and Merck delivered outstanding performance, while Eli Lilly’s revenue fell short of expectations.
 

Pfizer: $13.12 billion
 

According to the financial report, Pfizer Inc. reported first-quarter revenue of $13.12 billion, exceeding market expectations. The better-than-expected revenue was primarily attributed to CEO Albert Bourla’s 2018 restructuring of the company’s senior management team. Pfizer is currently focused on corporate restructuring and expanding its portfolio of drugs and therapies, particularly in the field of oncology.
 

In terms of product sales, Pfizer’s pain medication Lyrica recorded first-quarter sales of $1.19 billion. Lyrica, a drug used to treat neuropathic pain, generated nearly $5 billion in revenue last year and will face generic competition this June. In addition, sales of several other Pfizer drugs have also declined this year.
 

Data shows that Pfizer is a large global research-based biopharmaceutical company.
 

Merck: $10.81 billion
 

Merck’s first-quarter revenue reached $10.81 billion, exceeding the expected $10.48 billion. Notably, in the first quarter of 2019, sales of the anticancer drug Keytruda surged 55% to $2.27 billion, driving the company’s performance growth and putting pressure on Bristol-Myers Squibb’s competing drug Opdivo. Meanwhile, sales of the preventive vaccine Gardasil grew 27%, reaching $838 million.
 

Data shows that Merck is a multinational pharmaceutical company rooted in scientific research, dedicated to the research, development, and sales of innovative pharmaceutical products.
 

Eli Lilly: $5.09 billion
 

Eli Lilly reported first-quarter 2019 revenue of $5.09 billion, missing the prior market expectation of $5.12 billion. The company expects further declines in U.S. drug prices this year due to intensified competition from generic medications.
 

The financial report shows that in the first quarter of this year, Eli Lilly's diabetes drug Trulicity generated $879.7 million for the company, which was lower than the market expectation of $952 million. The sales of its anti-cancer drug Alimta remained flat year-on-year at $499 million.
 

Previously, in its 2018 annual report, Eli Lilly stated that the company expected its 2019 revenue to be between $25.1 billion and $25.6 billion. Revenue growth would continue to be driven by new drugs, including Trulicity, Taltz, Basaglar, Jardiance, and Cyramza. Meanwhile, revenue growth was also expected to come from the newly launched migraine treatment Emgality and the broad-spectrum anticancer drug larotrectinib (Vitrakvi), as well as other drugs anticipated to gain approval in 2019.
 

Data shows that Eli Lilly and Company is a global, research-based pharmaceutical company dedicated to providing innovative, drug-based healthcare solutions for people worldwide.
 

Industry insiders note that, judging from the first-quarter reports of various multinational pharmaceutical companies, it is evident that in addition to coping with competitive pressure from similar drugs, the threat from the generic drug market is gradually becoming more prominent. As for the Chinese market, factors such as the inclusion of more drugs in the national medical insurance catalog, the spreading impact of the “4+7” volume-based procurement policy, and the accelerated approval process for innovative drugs in China will increasingly require these multinational pharmaceutical companies to adopt more localized strategies.