Pfizer Needs a New Prescription After Third-Quarter Results
Biopharmaceutical company Pfizer, Inc. (NYSE: PFE) saw its third-quarter earnings erode as exclusivity and patent rights to name brand drugs continued to slip out of its grasp. The company reported earnings before the markets opened October 29. Adjusted diluted earnings per share for the company climbed to 58 cents a share, a gain of 16 percent over last year’s third-quarter results. Reported diluted earnings per share decreased year-over-year by 19 percent and were 39 cents. Reported revenues and reported net income also declined this quarter, $12.6 billion and $2.59 billion, respectively.
In a statement, Chairman and CEO Ian Read said that he was pleased with the results because Pfizer is still producing “solid financial results on an operational basis, despite the impact of product losses of exclusivity and the ongoing expiration of the Spiriva collaboration in certain countries as well as the challenging operating environment.”
Losing exclusivity to the previously mentioned Spiriva collaboration, as well as “the continued erosion for branded Lipitor in the U.S., developed Europe and certain other markets,” hurt the company’s revenue. Lipitor did help Pfizer gain in China, according to the report. Emerging market revenues grew by 5 percent this quarter. Although, revenues also took a hit here, with the government buying less Prevnar and Enbrel.
The Oncology sector of the company saw a revenue increase of 26 percent for the quarter, and the company highlighted several new drugs in various stages of development and governmental approval. It also revised down factors across the board in its 2013 Financial Guidance, notably adjusted revenues are now $50.8 to $51.8 billion, instead of $50.8 to $52.8 billion, and reported diluted earnings per share have been lowered to $3.05 to $3.15 from $3.07 to $3.22.
In early morning trading, Pfizer shares were down, to at least $30.60 per share from the previous day’s close of $30.74 per share.