Pfizer Inc. on Tuesday reported better-than-expected results for its second quarter as newer product lines showed revenue growth.
In April, Pfizer and Allergan PLC terminated their planned $150 billion merger after the Obama administration took aim at the deal that would have moved the biggest drug company in the U.S. to Ireland to lower its taxes.
Pfizer shares fell 0.7% in premarket trading. Results beat analyst expectations and the drug company reaffirmed its forecast for the year.
In its innovative health division, drugs such as breast cancer treatment Ibrance, nerve pain drug Lyrica and smoking cessation aid Champix helped increase segment revenue 7.2%.
In September, Pfizer bought Hospira Inc. in a $16 billion deal that has made the company a leading player in the growing market for lower-priced versions of costly biotech drugs. Pfizer, like many of its peers, has faced a string of patent expirations over recent years as well as growing generic competition for former blockbusters like cholesterol fighter Lipitor and pain pill Celebrex.
Sales grew 16% in the established drug business but fell 6.1% when the Hospira acquisition was excluded as many of its established drugs like Lipitor, menopause-treatment Premarin and bacteria-fighter Zyvox posted revenue declines.
Research and development costs rose 0.8% in the quarter.
In all, Pfizer reported a profit of $2.02 billion, or 33 cents a share, down from $2.63 billion, or 42 cents a share a year prior. Excluding certain items, adjusted earnings were 64 cents a share, up from 56 cents.
Revenue rose 11% to $13.15 billion.
Analysts polled by Thomson Reuters had forecast adjusted earnings of 62 cents a share on revenue of $13.01 billion.
By: Austen Hufford (The Wall Street Journal).
Photo: The Telegraph.
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