Pfizer Q4 Results Review — Slowdown In Key Power Brands Impacts Sales: ICICI Direct

ICICI Direct Report

Pfizer Ltd.'s revenue grew 4.2% to Rs 572.6 crore. On the operational front, Ebitda grew 10% YoY to Rs 182 crore whereas margins grew 166 basis points YoY to 31.8%. Profit after tax came in at Rs 149.2 crore.

Revenues growth was below our expectations as most top 10 power brands registered de-growth YoY, as per IQVIA quarterly data.

Pfizer's margins were as per our expectations and are likely to sustain at the current level. Top brands like Magnex (anti-infective), Corex-Dx (respiratory), Dolonex (pain management), Minipress-XL (cardiac) remained top performers during Q4 FY23 on a YoY basis, which was offset by de-growth from Eliquis (Cardiac), Wysolone (Hormones), Gelusil-Mps (Gastro), Becosules (VMS) etc.

This was attributable to higher generic competition, high Covid base, MR recalibration among others. Going ahead, we continue to monitor progress of these power brands.

Key triggers for future price performance:

• Addressing apparent slowdown in key brands like Eliquis, Becosules, Wysolone, Mucaine among others which, after growing decently since 2020, have slowed down in FY23.

• Measured approach with de-focusing and hiving off of tail brands and focus on core therapies like vaccines, pain management, vitamins-minearals,-suppliment, gastrointestinal and CVS.

• Traction in key power brands after the MR rationalisation.

• Overall performance in the backdrop of key patent expiries, competition in Prevnar-13.

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