Dive Brief:
- Pharma giants Pfizer, Bristol-Myers Squibb, and Novartis all reported Q4 2014 earnings on Tuesday and projected dampened earnings going into 2015.
- An eagle-eyed snapshot: Novartis' net income was down 27.7%, while Pfizer's net income was down 52.2% and BMS's was down 98.2%. The drug sales that were the biggest anchors on those three companies were, respectively, Lucentis (down 6.7%); Celebrex, and Lipitor (down 31.1% and 6.4%); and Abilify (down 25%).
- Big changes in currency rates, including a surging dollar, and patent expirations led the companies to forecast depressed 2015 earnings compared to industry expectations.
Dive Insight:
The biggest pharma companies are global players, and their finances are subject to global events. With an ever-stronger dollar, product sales are beginning to flag in markets outside of the United States as foreign buyers lose purchasing power.
Novartis CEO Joe Jimenez told Bloomberg that a rising franc and dollar would eat away as much as 12% of the company's core operating income in 2015. Then there's the issue of patent expiry for big-name products such as BMS's Abilify and Pfizer's flagship Celebrex and Lipitor therapies.