Some companies make investments like no-brainers and such decisions are taken when the company is aware of is sales growth’s evaporating rate. It is the best time for the company to stay away from the stock market if they want to stay away from losing the race. The decisions in certain cases are not even well understood. Pfizer is currently in a situation where it is about to enter the decline phase in its sales. The others find investing in Pfizer as an excellent option despite its recent fall in revenue. The nerve pain drug, Lyrica, is on the verge of losing its patent and it is being delayed for quite some time now, but the patent is going to expire by later of June.
The drug had generated nearly $1.2 Billion in revenue during the first quarter of 2019 and approximately $3.8 Billion in 2018. The sales growth would not evaporate immediately, but Pfizer has already raised an alarm that it would be entering a lower revenue gain period. Pfizer’s other product could also not help the company bounce back. Pfizer has its Q1 revenue escalated to $212 Million years over a year regardless of its anticoagulant Eliquis and breast cancer drug Ibrance’s strong growth. The pharma also had acquired Array BioPharma. The acquisition has added two winners, Braftovi and Mektovi, which can treat melanoma and its combination with Erbitux can prove promising for colorectal cancer treatment. The growth is going to decline and as per Wall Street analysis, Pfizer’s revenue will dip to 290 Million in Q3 in comparison to Q2.
Lyrica’s loss of patent exclusivity reflects Pfizer’s stock price reflects it. Pfizer is expected to hit the rocks by the second half of 2019 and extend up to 2020. The company is expected to rise after 2020. Upjohn segment of Pfizer is assumed to help the company earn profitability. Merck, on the other hand, is ready to launch pneumococcal vaccine Prevnar 13 but Pfizer is sure that it will bounce back. Pfizer has approved Vyndaquel and Vyndamax in May as a therapy for rare genetic disease transthyretin amyloid cardiomyopathy and it can help annual sales reach $2 Billion. The approval of Bavencio and Inlyta combination for advanced renal cell cancer treatment can also surge the sales growth.