Pfizer Inc. reported disappointing first-quarter financial results this morning,
with dramatically increased profits failing to mask weaknesses in pharmaceutical
sales.
The drug giant, which has its largest worldwide research-and-development site in
Groton, reported profits of $2.75 billion for the first three months of the
year, a 53 percent increase from the same period last year. But the company
lowered its projected earnings for 2013 as it noted a 9 percent reduction in
revenues quarter over quarter, with lower sales of its cholesterol blockbuster
Lipitor accounting for most of the losses.
Lipitor started facing generic competition in much of Europe last year, and in
the United States in late 2011. In the last quarter alone, sales were off 86
percent in the United States and 55 percent worldwide compared with revenue
generated in the first three months of last year.
The first-quarter earnings reported appeared stronger than they really were
because the same period last year had been weighed down by legal expenses as
well as costs associated with worldwide downsizings.
Despite the quarterly revenue dip and 6 cent reduction in projected earnings per
share for the year, Pfizer Chief Executive Officer Ian Read said in a statement
that the company remains in good shape.
"We are clearly seeing the benefits of the investments we've been making in our
innovative core, as evidenced by recent key product launches, including
(anti-clotting medicine) Eliquis, (rheumatoid arthritis pill) Xeljanz and
various oncology products, as well as significant progress within our
mid-to-late stage product pipeline, most notably (breast cancer drug)
palbociclib," Read said.
The report noted a 3 percent reduction in quarterly R&D expenses. But adjusted
earnings per share were 54 cents, down from 57 cents a year ago, and Pfizer
lowered its full-year forecast to show profits of $2.14 to $2.24 a share.
"So far this year, we have returned approximately $8 billion to shareholders in
dividends and share repurchases, with significant additional capital expected to
be allocated to these activities for the remainder of the year," said Frank
D'Amelio, Pfizer's chief financial officer, in a statement. "Our solid
performance during first-quarter 2013 was negatively impacted by approximately 2
cents per share due to changes in foreign exchange rates in relation to the U.S.
dollar, including the devaluation of the Venezuelan currency in February."
Pfizer's stock price fell about 3.5 percent in late-morning trading on the New
York Stock Exchange. The price of $29.36 a share was more than $1 off Monday's
close but is up about 30 percent over the past year.
___
(c)2013 The Day (New London, Conn.)
Visit The Day (New London, Conn.) at www.theday.com
Distributed by MCT Information Services
