Pfizer earn­ings tum­ble on lost patents

The Myanmar Times - - International Business -

PHAR­MA­CEU­TI­CAL gi­ant Pfizer re­ported lower third-quar­ter earn­ings as the loss of some patents and one­time costs on a pend­ing di­vest­ment off­set the lift from higher rev­enues.

Pfizer high­lighted the ef­fect in earn­ings due to ex­pir­ing patents in some Euro­pean mar­kets for mus­cle pain drug Lyrica and an­tibi­otic Zyvox, al­though sales of Lyrica rose.

Other drugs also saw de­clin­ing sales amid com­pe­ti­tion from generic ver­sions, in­clud­ing anti-im­po­tence drug Vi­a­gra and anti-de­pres­sant treat­ment Zoloft.

Net profit for the phar­ma­ceu­ti­cal gi­ant was US$1.3 bil­lion, down 38 per­cent from the year-ago pe­riod.

Rev­enues rose 8pc to $13 bil­lion, boosted by sales from the pur­chase of Hospira, a leader in in­jectable drugs.

Over the last 18 months, Pfizer also ac­quired Me­di­va­tion, which mar­kets the suc­cess­ful prostate can­cer drug Xtandi, and Ana­cor, used to treat in­flam­ma­tory ail­ments.

The ac­quired as­sets are “pro­vid­ing new near-term op­por­tu­ni­ties to po­ten­tially drive in­cre­men­tal growth for the busi­ness as its prod­uct pipe­line con­tin­ues to ma­ture”, said Pfizer chief ex­ec­u­tive Ian Read.

Pfizer has be­gun to pare away less at­trac­tive as­sets from these ac­qui­si­tions. It took a one-time

im­pair­ment charge re­lated to its sale of Hospira’s global in­fu­sion ther­apy busi­ness to ICU Med­i­cal, a fac­tor in an 18pc rise in over­all costs to $8.5 bil­lion that was part of the rea­son for the drop in thirdquar­ter earn­ings.

Drugs with solid sales gains in­cluded breast can­cer treat­ment Ibrance and Xel­janz for rheuma­toid arthri­tis.

But Pfizer pulled the plug on anti-choles­terol drug Bo­co­cizumab as it did not meet ex­pec­ta­tions. Costs from this will hit fourth quar­ter earn­ings, re­sult­ing it in low­er­ing its range for full-year prof­its. –

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