Pfizer Inc. (NYSE:PFE) Q3 2018 Earnings Conference Call Transcript

Oct 30, 2018 • 10:00 am ET


Pfizer Inc. (NYSE:PFE) Q3 2018 Earnings Conference Call Transcript


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Good day, everyone, and welcome to Pfizer's Third Quarter 2018 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Mr. Chuck Triano, SVP of IR. Please go ahead, sir.

Chuck Triano

Good morning, and thank you for joining us today to review Pfizer's third quarter 2018 performance. I'm joined today by our Chairman and CEO, Ian Read; Albert Bourla, our COO; Frank D'Amelio, our CFO; Mikael Dolston, President of Worldwide Research and Development; Angela Hwang, Group President - Pfizer Essential Health; John Young, Group President - Pfizer Innovative Health; and Doug Lankler, our General Counsel.

The slides that will be presented on this call can be viewed on our website,

(Forward-Looking Cautionary Statements)

During our call, we will also include certain financial measures that were not prepared in accordance with US generally accepted accounting principles. Reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in Pfizer's Form 8-K, dated today, October 30, 2018. Any non-GAAP measures presented are not and should not be viewed as substitutes for financial measures required by US GAAP, have no standardized meaning prescribed by US GAAP and may not be comparable to the calculations of similar measures at other companies.

Ian, Albert, Frank will now make prepared remarks and then we will move to a question-and-answer session. With that, I'll now turn the call over to Ian Read. Ian?

Ian Read

Thank you, Chuck, and good morning, everyone. During my remarks, I will discuss the progress we are making within each of our businesses and the latest advancements within our R&D pipeline. I will then ask Albert to discuss some of the steps we are taking to prepare the company to accelerate top line growth in the future.

In the third quarter, total company revenues were up 2% operationally, driven by a continued strength of key brands, biosimilars, and emerging markets. These growth drivers were partially offset by the loss of exclusivity of Viagra in the US in December 2017, a decline in US Legacy Established Products, driven by industry-wide pricing challenges, as well as product supply shortages and associated inventory reduction related to our legacy Hospira products. I'll begin with a few words about each of our businesses, starting with Pfizer Innovative Health. This business had another solid quarter, growing its top line 5% operationally, thanks to the continued strength of several of our biggest selling medicines.

We remain very pleased with the performance of Ibrance, which has solidified its leadership position in the CDK 4/6 inhibitor class in the US, holding at just under a 90% share in terms of new prescription volume. Our current growth driver for Ibrance remains the international markets, particularly across Europe and Japan. And we had another quarter of solid growth there.

For Xtandi, alliance revenues in the US were up 5% over the second quarter and a 20% year-over-year growth. We are seeing an increased number of urologists prescribing it. There are