Pfizer slumps on increased generic competition

Source: Healthcare Digital

Date :17/04/2008 04:13:54

Pfizer, Inc. reports drop in first quarter earnings after declining sales of its cholesterol drug Liptor and increased generic competition.

The world's biggest drug maker said net profit fell 18 percent to $2.78 billion, or 41 cents per share, from $3.39 billion, or 48 cents per share, a year earlier.

Global quarterly revenue fell five percent to $11.85 billion falling short of the $12.06 billion analysts had forecast. Sales would have fallen ten percent if not for the weak dollar, which raises the value of overseas sales when converted back to dollars.

Patents

Pfizer said the drop was primarily down to the loss of U.S. patent protection on blood-pressure medication Norvasc and antidepressant Zoloft.

To add to the discomfort, global sales of Lipitor, Pfizer’s flagship product and the world's top-selling drug, fell seven percent to $3.1 billion while U.S. sales of the medicine plunged 18 percent.

Against this backdrop, New York-based Pfizer has said that it expects revenue to be largely flat until 2009, when it sees sales of newer products compensating for those lost to patent expirations.

New products

Pfizer said pain medications Lyrica and Celebrex showed year-over-year growth. Lyrica's quarterly sales shot up 47 percent to $582 million, while Celebrex sales edged up two percent to $611 million.

Analysts anticipate Lyrica sales to rocket 53 percent to $605 million, with Celebrex sales jumping ten percent to $658 million.

Pfizer said it still expects earnings this year excluding special items of $2.35 to $2.45 per share. That would represent growth of 6.8 to 13.3 percent.

April 17, 2008