Charges, generic Lipitor cut Pfizer net income
PFIZER Inc said yesterday that its first-quarter profit fell 19 per cent, due to legal and other charges and new generic competition to blockbuster cholesterol pill Lipitor cutting US sales by 15 per cent despite the drugmaker offering big rebates and discounts to keep patients on its brand.
The world’s biggest drugmaker beat Wall Street’s profit expectations but narrowly missed its sales forecast in the first full quarter since Lipitor lost patent protection.
Pfizer lowered its adjusted profit forecast for 2012 by six cents, to a range of US$2.14 ($187) to US$2.24 per share. Analysts had predicted US$2.26 per share. Including one-time items, it expects earnings per share of US$1.23 to US$1.38.
New York-based Pfizer said the forecast change was due to its recent decision to sell its infant-nutirition business to Swiss food and drink giant Nestle SA for US$11.85 billion. The steep drop in Lipitor revenue was factored into its previous forecasts.
The maker of Viagra said net income was US$1.79 billion, or 24 cents per share, down from US$2.22 billion, or 28 cents a share, a year earlier.
Excluding one-time items, Pfizer would have made US$4.43 billion, or 58 cents per share. Analysts were expected 56 cents a share.
Charges totalled US$2.64 billion after taxes. They included US$1.07 billion for adjustments to the value of acquired businesses, US$115 million in acquisition-related costs, and US$1.45 billion for a mix of restructuring and productivity initiatives, a writedown on an immune disorder compound acquired when Pfizer bought fellow drugmaker Wyeth in October 2009, and legal fees.