Quantcast
Get breaking news alerts via email

Click here to manage your alerts
This May 4, 2014 photo shows the Pfizer logo on the exterior of a former Pfizer factory, in the Brooklyn borough of New York. The pharmaceutical giant reports quarterly financial results on Tuesday, July 29, 2014. (AP Photo/Mark Lennihan)
Pfizer’s quarterly profit sank but topped forecasts
Earnings » Big drop not bad news but reflects large sale that boosted the books a year ago.
First Published Jul 29 2014 02:13 pm • Last Updated Jul 29 2014 02:13 pm

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.

Join the Discussion
Post a Comment

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.


story continues below
story continues below

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.



Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment


About Reader Comments


Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Videos
Jobs
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.