Year Established: 1849
Revenues: $53,647 (+2%)
Net Income: $11,153 (-48%)
R&D: $8,006 (+4%)
TOP SELLING DRUGS
|Prevnar 13||pneumoccal vaccine||$5,802||4%|
In 2018, Pfizer reported revenues of $53,647 billion, an increase of two percent, as several of its biggest-selling medicines and vaccines continued to grow, including Ibrance, Eliquis, Xeljanz and Prevnar 13. Pfizer also reported growth in emerging markets and in biosimilars, which helped to absorb $1.7 billion in lost revenue because of products that recently lost marketing exclusivity. Eight billion dollars was invested during the year in research and development (R&D).
During the year, Pfizer unveiled plans to reorganize into three businesses, which became effective at the beginning of the company’s 2019 fiscal year, and are Pfizer Biopharmaceuticals Group, that now includes biosimilars and a new Hospital business unit for anti-infectives and sterile injectables; Upjohn, an off-patent branded and generic medicines business based in China that is bringing 20 of its most iconic brands to more than 100 markets around the world; and a Consumer Healthcare business aligned with the growing trend of consumers taking their health into their own hands.
Also on the consumer side of the business, at the end of the year Pfizer and GlaxoSmithKline entered a joint venture to create a global consumer healthcare company. The deal calls for Pfizer contributing its consumer healthcare business to GlaxoSmithKline’s existing consumer healthcare business. The 2017 global sales for the combined business were approximately $12.7 billion. The deal is expected to close in the second half of 2019.
The joint venture will be a category leader in pain relief, respiratory, vitamin and mineral supplements, digestive health, skin health and therapeutic oral health. It’s expected to be among the largest consumer healthcare players in key geographies, including the U.S., Europe, China, India and Australasia. The joint venture will operate globally under the GSK Consumer Healthcare name. Following the integration, GSK intends to separate the joint venture as an independent company.
As we moved into 2019, it was announced that Dr. Albert Bourla, chief operating officer at the time, would be taking over the reins of the stripped down Pfizer organization as its new chief executive officer, succeeding Ian Read. Under Mr. Read, Pfizer received 30 FDA approvals and amassed a pipeline with the potential for approximately 25-30 approvals through 2022, of which as many as 15 have the potential to be blockbusters.
Sterile manufacturing investment
In terms of growth, Pfizer is investing $465 million to expand its U.S. manufacturing with technically advanced sterile injectable pharmaceutical production facilities in Portage, MI, which will create approximately 450 new jobs over the next several years. Known as Modular Aseptic Processing (MAP), the new 400,000 square foot production facility expands Pfizer’s presence in Portage, located in Kalamazoo County, where the company now employs more than 2,200 people at one of its largest plants.
MAP will incorporate technically advanced aseptic manufacturing equipment, systems and design, including multiple, self-contained modular manufacturing lines. This allows the manufacturing line in each module to be entirely separate from all other manufacturing lines. Construction is expected to be completed in 2021. After the facility is validated by regulatory agencies, production should begin in 2024.
The investment is part of Pfizer’s overall plan to invest approximately $5 billion in U.S.-based capital projects as a result of the enactment of the Tax Cuts and Jobs Act. During the next six years, the company expects to invest approximately $1.1 billion in Kalamazoo County, which is in addition to the $1 billion it has invested in the site over the past decade.
The Portage site is a primary global supplier of sterile injectable, liquids and semi-solid medicines, and active pharmaceutical ingredients (APIs), producing more than 150 products. Its biggest product is Solu-Medrol, a widely used injectable anti-inflammatory medicine.
Cancer research collaborations
Pfizer remained active during the year on the cancer research front. It inked a deal worth up to $520 million with Kineta Immuno-Oncology (KIO), to develop RIG-I agonist immunotherapies for the treatment of cancer.
Leap Therapeutics entered into a collaboration with Pfizer and Merck KGaA to evaluate Leap’s GITR agonist, TRX518, in combination with avelumab, a human anti-PD-L1 IgG1 monoclonal antibody, and chemotherapy. Avelumab has received accelerated approval by the FDA for the treatment of patients with metastatic Merkel cell carcinoma (MCC) and previously treated patients with locally advanced or metastatic urothelial carcinoma (mUC), and is under further clinical evaluation across a range of tumor types under a global strategic alliance between Merck KGaA and Pfizer.
Daiichi Sankyo also entered into a clinical trial collaboration agreement with Pfizer and Merck KGaA to evaluate the combination of [fam-] trastuzumab deruxtecan (DS-8201), an investigational HER2 targeting antibody drug conjugate (ADC), in combination with the checkpoint inhibitor avelumab and/or an investigational Merck KGaA DNA damage response (DDR) inhibitor, in patients with HER2 expressing or mutated solid tumors.
A separate research collaboration to conduct preclinical studies evaluating [fam-] trastuzumab deruxtecan in combination with avelumab, the DDR inhibitor and other investigational compounds in Merck KGaA’s and Pfizer’s pipelines is also underway.
Aside from cancer, during the year Pfizer also signed a $425 million flu vaccine deal with BioNTech AG, a biotech focused on precise immunotherapies for the treatment of cancer and infectious disease. The multi-year R&D collaboration’s goal is to develop mRNA-based vaccines for the prevention of influenza (flu).