Key positions traded by Renaissance Technologies in 3Q14 (Part 8 of 10)
Renaissance Technologies and Pfizer, Inc.
Renaissance exited its position in Pfizer, Inc. (PFE) during 3Q14. The stock accounted for 0.668% of the fund’s 2Q14 portfolio.
About Pfizer, Inc.
PFE is a research-based biopharmaceutical company. It operates in five segments:
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Primary Care
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Specialty Care and Oncology
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Established Products and Emerging Markets
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Animal Health
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Consumer Healthcare
PFE’s revenues dip due to expiration of agreements
At the beginning of fiscal year 2014, PFE managed its commercial operations through a new global commercial structure. The structure consisted of the following three operating segments:
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Global Innovative Pharmaceutical, or GIP
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Global Vaccines, Oncology and Consumer Healthcare, or VOC
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Global Established Pharmaceutical, or GEP
Reported revenues decreased $281 million, or 2%. This reflects an operational decline and the unfavorable impact of foreign exchange. The operational decline was mainly due to the expiration of the co-promotion term of the collaboration agreement with Enbrel in the US and Canada. It was also due to the ongoing termination of the SPIRIVA collaboration in certain countries, the loss of exclusivity and subsequent multi-source generic competition for Detrol LA in the US, and other product losses of exclusivity in certain markets.
Revenues in developed markets were impacted favorably by the growth of certain key products—including LYRICA, Prevnar, Eliquis, XELJANX, XALKORI, Inlyta, and Nexium 24HR—primarily in the US as a result of its recent launch. Also, revenues in emerging markets increased 9% operationally—including strong operational growth from Prevnar as well as from LIPITOR, primarily in China.
GEP revenues decreased 6% operationally, primarily due to the loss of exclusivity and subsequent launch of multi-source generic competition for Detrol LA in the US in January 2014, VIAGRA in most major European markets in June 2013, and Aricept in Canada in December 2013.
GIP revenues declined 4% operationally, primarily due to the expiration of the co-promotion term of the collaboration agreement for Enbrel in the US and Canada in October for a 36-month period.
VOC revenues increased 13% due to an increase in revenues of global vaccines, global oncology, and consumer healthcare.
On December 15, it declared a dividend of $0.28 per share.
Acquisitions in the third quarter
In July, PFE announced that it entered into a definitive agreement to acquire Baxter International’s (BAX) portfolio of marketed vaccines for $635 million. As part of the transaction, PFE will also acquire a portion of BAX’s facility in Orth, Austria. The vaccines are manufactured at the facility. This deal is expected to complete by the end of 2014.