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Pfizer’s 2Q profit sinks 79 pct but tops forecasts

KDWN

Pfizer’s second-quarter earnings plunged 79 percent from last year, when the world’s second-largest drugmaker booked a $10 billion-plus gain from a business spinoff.

The New York company said Tuesday it earned $2.91 billion, or 45 cents per share, down from $14.1 billion, or $1.98 per share, last year. Adjusted earnings totaled 58 cents per share, a penny more than analysts expected.

Revenue slipped 2 percent to $12.77 billion, $300 million above forecasts.

Among Pfizer’s top medicines, sales climbed 16 percent to $1.32 billion for pain and fibromyalgia treatment Lyrica and 14 percent to $1.1 billion for its Prevnar vaccines against pneumonia and other infections. Pfizer noted increased generic competition to multiple Pfizer drugs, plus the end of some revenue-producing partnerships, cut revenue $850 million in the quarter.

Pfizer Inc. is best known for creating medicines for the masses, including the erectile dysfunction pill Viagra, Prevnar and cholesterol fighter Lipitor, which was the world’s top-selling drug for a decade.

CEO Ian Read has been selling noncore assets and reducing costs to free up money for research on diabetes, cancer and other complex disorders needing better treatments.

Over the past three years, Pfizer divested its capsule-making and nutrition businesses. In June 2013, it spun off its remaining stake in its animal health business as a new company, Zoetis Inc., receiving an after-tax $10.6 billion gain.

Then in May, British drugmaker AstraZeneca rejected Pfizer’s $119 billion buyout proposal, which would have been the largest deal in pharmaceutical history. Besides gaining AstraZeneca’s drugs and pipeline, Pfizer wanted to move its legal headquarters to England to get a lower tax rate than it faces in the U.S., a strategy called “inversion” that is suddenly hot in corporate America.

In an interview, Read said Pfizer continues to look at deals of all sizes, with three goals: improving its portfolio of new and experimental drugs, limiting overlap in research and sales forces, and lowering its tax bill, as inversion would do.

“There is a limited number of companies” that meet all three aims, Read said.

He said the company continues to push the federal government to reform the corporate tax structure, which taxes companies at a high 35 percent, including profits made overseas and brought back to the U.S. Most other countries tax businesses only on profits made inside their borders, putting U.S.-based companies at a disadvantage, Read said.

Pfizer noted it’s awaiting U.S. approval of a meningitis B vaccine and will apply next month for approval of its highest-profile experimental drug, palbociclib for advanced breast cancer.

Erik Gordon, an analyst and professor at University of Michigan’s Ross School of Business said the 13 percent jump in research spending in the quarter “may scare investors who are wary of Pfizer’s spotty record in turning internal R&D into successful products.”

The company reaffirmed its 2014 forecast for adjusted earnings of $2.20 to $2.30 per share. Analysts expect $2.24.

In afternoon trading, Pfizer shares were down 15 cents at $29.95. —

Business Writer Tom Murphy in Indianapolis contributed to this story.

Follow Linda A. Johnson at http://www.twitter.com/LindaJ-onPharma

Pfizer’s 2Q profit sinks 79 pct but tops forecasts

KDWN

Pfizer’s second-quarter earnings plunged 79 percent from last year, when the world’s second-largest drugmaker booked a $10 billion-plus gain from a business spinoff.

The New York company said Tuesday it earned $2.91 billion, or 45 cents per share, down from $14.1 billion, or $1.98 per share, last year. Adjusted earnings totaled 58 cents per share, a penny more than analysts expected.

Revenue slipped 2 percent to $12.77 billion, $300 million above forecasts.

Among Pfizer’s top medicines, sales climbed 16 percent to $1.32 billion for pain and fibromyalgia treatment Lyrica and 14 percent to $1.1 billion for its Prevnar vaccines against pneumonia and other infections. Pfizer noted increased generic competition to multiple Pfizer drugs, plus the end of some revenue-producing partnerships, cut revenue $850 million in the quarter.

Pfizer Inc. is best known for creating medicines for the masses, including the erectile dysfunction pill Viagra, Prevnar and cholesterol fighter Lipitor, which was the world’s top-selling drug for a decade.

CEO Ian Read has been selling noncore assets and reducing costs to free up money for research on diabetes, cancer and other complex disorders needing better treatments.

Over the past three years, Pfizer divested its capsule-making and nutrition businesses. In June 2013, it spun off its remaining stake in its animal health business as a new company, Zoetis Inc., receiving an after-tax $10.6 billion gain.

Then in May, British drugmaker AstraZeneca rejected Pfizer’s $119 billion buyout proposal, which would have been the largest deal in pharmaceutical history. Besides gaining AstraZeneca’s drugs and pipeline, Pfizer wanted to move its legal headquarters to England to get a lower tax rate than it faces in the U.S., a strategy called “inversion” that is suddenly hot in corporate America.

In an interview, Read said Pfizer continues to look at deals of all sizes, with three goals: improving its portfolio of new and experimental drugs, limiting overlap in research and sales forces, and lowering its tax bill, as inversion would do.

“There is a limited number of companies” that meet all three aims, Read said.

He said the company continues to push the federal government to reform the corporate tax structure, which taxes companies at a high 35 percent, including profits made overseas and brought back to the U.S. Most other countries tax businesses only on profits made inside their borders, putting U.S.-based companies at a disadvantage, Read said.

Pfizer noted it’s awaiting U.S. approval of a meningitis B vaccine and will apply next month for approval of its highest-profile experimental drug, palbociclib for advanced breast cancer.

Erik Gordon, an analyst and professor at University of Michigan’s Ross School of Business said the 13 percent jump in research spending in the quarter “may scare investors who are wary of Pfizer’s spotty record in turning internal R&D into successful products.”

The company reaffirmed its 2014 forecast for adjusted earnings of $2.20 to $2.30 per share. Analysts expect $2.24.

In afternoon trading, Pfizer shares were down 15 cents at $29.95. —

Business Writer Tom Murphy in Indianapolis contributed to this story.

Follow Linda A. Johnson at http://www.twitter.com/LindaJ-onPharma

Pfizer’s 2Q profit sinks 79 pct but tops forecasts

KDWN

Pfizer’s second-quarter earnings plunged 79 percent from last year, when the world’s second-largest drugmaker booked a $10 billion-plus gain from a business spinoff.

The New York company said Tuesday it earned $2.91 billion, or 45 cents per share, down from $14.1 billion, or $1.98 per share, last year. Adjusted earnings totaled 58 cents per share, a penny more than analysts expected.

Revenue slipped 2 percent to $12.77 billion, $300 million above forecasts.

Among Pfizer’s top medicines, sales climbed 16 percent to $1.32 billion for pain and fibromyalgia treatment Lyrica and 14 percent to $1.1 billion for its Prevnar vaccines against pneumonia and other infections. Pfizer noted increased generic competition to multiple Pfizer drugs, plus the end of some revenue-producing partnerships, cut revenue $850 million in the quarter.

Pfizer Inc. is best known for creating medicines for the masses, including the erectile dysfunction pill Viagra, Prevnar and cholesterol fighter Lipitor, which was the world’s top-selling drug for a decade.

CEO Ian Read has been selling noncore assets and reducing costs to free up money for research on diabetes, cancer and other complex disorders needing better treatments.

Over the past three years, Pfizer divested its capsule-making and nutrition businesses. In June 2013, it spun off its remaining stake in its animal health business as a new company, Zoetis Inc., receiving an after-tax $10.6 billion gain.

Then in May, British drugmaker AstraZeneca rejected Pfizer’s $119 billion buyout proposal, which would have been the largest deal in pharmaceutical history. Besides gaining AstraZeneca’s drugs and pipeline, Pfizer wanted to move its legal headquarters to England to get a lower tax rate than it faces in the U.S., a strategy called “inversion” that is suddenly hot in corporate America.

In an interview, Read said Pfizer continues to look at deals of all sizes, with three goals: improving its portfolio of new and experimental drugs, limiting overlap in research and sales forces, and lowering its tax bill, as inversion would do.

“There is a limited number of companies” that meet all three aims, Read said.

He said the company continues to push the federal government to reform the corporate tax structure, which taxes companies at a high 35 percent, including profits made overseas and brought back to the U.S. Most other countries tax businesses only on profits made inside their borders, putting U.S.-based companies at a disadvantage, Read said.

Pfizer noted it’s awaiting U.S. approval of a meningitis B vaccine and will apply next month for approval of its highest-profile experimental drug, palbociclib for advanced breast cancer.

Erik Gordon, an analyst and professor at University of Michigan’s Ross School of Business said the 13 percent jump in research spending in the quarter “may scare investors who are wary of Pfizer’s spotty record in turning internal R&D into successful products.”

The company reaffirmed its 2014 forecast for adjusted earnings of $2.20 to $2.30 per share. Analysts expect $2.24.

In afternoon trading, Pfizer shares were down 15 cents at $29.95. —

Business Writer Tom Murphy in Indianapolis contributed to this story.

Follow Linda A. Johnson at http://www.twitter.com/LindaJ-onPharma

Pfizer’s 2Q profit sinks 79 pct but tops forecasts

KDWN

NEW YORK (AP) — Pfizer’s second-quarter earnings plunged 79 percent from last year, when the world’s second-largest drugmaker booked a business spinoff gain of more than $10 billion. The latest results still edged analyst expectations.

The New York company said Tuesday it earned $2.91 billion, or 45 cents per share, in the quarter. That compares with earnings of $14.1 billion, or $1.98 per share, last year. Adjusted earnings totaled 58 cents per share.

Analysts expected, on average, earnings of 57 cents per share, according to FactSet.

Revenue slipped 2 percent to $12.77 billion, while analysts forecast $12.47 billion, on average.

Pfizer Inc. is best known for creating medicines for the masses, including the erectile dysfunction pill Viagra, the Prevnar vaccine against pneumonia and related infections, and the now-generic cholesterol fighter Lipitor, which was once the world’s best-selling drug.

Chairman and CEO Ian Read has been streamlining Pfizer to reduce costs and free up money for research on disorders with limited treatments or in areas where the company has expertise. Over the last three years, Pfizer has divested assets outside its core business.

It sold its capsule-making operation and its nutrition business for a total of nearly $14 billion. Then it spun off its animal health business as a new company in June 2013.

That’s when it divested its remaining 80 percent stake in the new company, called Zoetis Inc., receiving an after-tax gain of $10.6 billion.

Pfizer also booked a gain of $1.35 -billion in last year’s quarter from a patent litigation settlement with Teva Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries Ltd.

Among Pfizer’s top selling drugs, global sales of the pain and fibromyalgia treatment Lyrica climbed 16 percent in this year’s quarter to $1.32 billion, while revenue from its Prevnar family of vaccines rose 14 percent to $1.1 billion.

Restructuring and acquisition-related costs fell 56 percent this year for the drugmaker to $81 million from $183 million.

The drugmaker also once again reaffirmed its forecast for 2014 adjusted earnings of between $2.20 and $2.30 per share. Analysts expect $2.24 per share, on average.

In the latest quarter, British drugmaker AstraZeneca rejected a $119 billion buyout proposal from Pfizer, which would have amounted to the largest deal in the industry’s history. Besides gaining access to AstraZeneca’s drugs and pipeline, Pfizer wanted to move its legal headquarters to England to get a lower tax rate than it faces in the U.S.

Pfizer shares rose 16 cents to $30.26 in premarket trading Tuesday. The stock had slipped nearly 2 percent so far this year as of Monday’s market close. Meanwhile, the Standard & Poor’s 500 index has climbed 7.1 percent.

Pfizer’s 2Q profit sinks 79 pct but tops forecasts

KDWN

NEW YORK (AP) — Pfizer’s second-quarter earnings plunged 79 percent from last year, when the world’s second-largest drugmaker booked a business spinoff gain of more than $10 billion. The latest results still edged analyst expectations.

The New York company said Tuesday it earned $2.91 billion, or 45 cents per share, in the quarter. That compares with earnings of $14.1 billion, or $1.98 per share, last year. Adjusted earnings totaled 58 cents per share.

Analysts expected, on average, earnings of 57 cents per share, according to FactSet.

Revenue slipped 2 percent to $12.77 billion, while analysts forecast $12.47 billion, on average.

Pfizer Inc. is best known for creating medicines for the masses, including the erectile dysfunction pill Viagra, the Prevnar vaccine against pneumonia and related infections, and the now-generic cholesterol fighter Lipitor, which was once the world’s best-selling drug.

Chairman and CEO Ian Read has been streamlining Pfizer to reduce costs and free up money for research on disorders with limited treatments or in areas where the company has expertise. Over the last three years, Pfizer has divested assets outside its core business.

It sold its capsule-making operation and its nutrition business for a total of nearly $14 billion. Then it spun off its animal health business as a new company in June 2013.

That’s when it divested its remaining 80 percent stake in the new company, called Zoetis Inc., receiving an after-tax gain of $10.6 billion.

Pfizer also booked a gain of $1.35 -billion in last year’s quarter from a patent litigation settlement with Teva Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries Ltd.

Among Pfizer’s top selling drugs, global sales of the pain and fibromyalgia treatment Lyrica climbed 16 percent in this year’s quarter to $1.32 billion, while revenue from its Prevnar family of vaccines rose 14 percent to $1.1 billion.

Restructuring and acquisition-related costs fell 56 percent this year for the drugmaker to $81 million from $183 million.

The drugmaker also once again reaffirmed its forecast for 2014 adjusted earnings of between $2.20 and $2.30 per share. Analysts expect $2.24 per share, on average.

In the latest quarter, British drugmaker AstraZeneca rejected a $119 billion buyout proposal from Pfizer, which would have amounted to the largest deal in the industry’s history. Besides gaining access to AstraZeneca’s drugs and pipeline, Pfizer wanted to move its legal headquarters to England to get a lower tax rate than it faces in the U.S.

Pfizer shares rose 16 cents to $30.26 in premarket trading Tuesday. The stock had slipped nearly 2 percent so far this year as of Monday’s market close. Meanwhile, the Standard & Poor’s 500 index has climbed 7.1 percent.

Pfizer’s 2Q profit sinks 79 pct but tops forecasts

KDWN

NEW YORK (AP) — Pfizer’s second-quarter earnings plunged 79 percent from last year, when the world’s second-largest drugmaker booked a business spinoff gain of more than $10 billion, but results in the most recent quarter still edged analyst expectations.

The New York company said Tuesday it earned $2.91 billion, or 45 cents per share, in the quarter. That compares with earnings of $14.1 billion, or $1.98 per share, last year. Adjusted earnings totaled 58 cents per share.

Analysts expected, on average, earnings of 57 cents per share, according to FactSet.

Revenue slipped 2 percent to $12.77 billion, while analysts forecast $12.47 billion, on average.

Pfizer Inc. is best known for creating medicines for the masses, including the erectile dysfunction pill Viagra, the Prevnar vaccine against pneumonia and related infections, and the now-generic cholesterol fighter Lipitor, which was once the world’s best-selling drug.

Over the last three years, Pfizer has divested assets outside its core business. It sold its capsule-making operation and its nutrition business for a total of nearly $14 billion. Then it spun off its animal health business as a new company in June 2013.

That’s when it divested its remaining 80 percent stake in the new company, called Zoetis Inc., receiving an after-tax gain of $10.6 billion.