Pfizer earnings tumble on lost patents
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. –