Pfizer Hit by Stronger Dollar, Patent Losses -- Update

By Michael Calia 

Pfizer Inc. issued downbeat guidance for the new year, citing the stronger U.S. dollar and recent drug-patent losses, and reported a decline in sales in the most recent period.

The drug maker's fourth-quarter results beat expectations, however.

The company said it expected to post $2 to $2.10 a share in earnings and $44.5 billion to $46.5 billion in revenue for the new year. Analysts polled by Thomson Reuters were projecting $2.18 a share in earnings and $47.56 billion in revenue.

Shares of Pfizer slid 1.5% in premarket trading.

Pfizer has had to combat a wave of patent expirations weighing on sales. The company has forged development partnerships and sought to make deals in a busy time for pharmaceuticals mergers and acquisitions. The company, however, failed in its $120 billion bid to take over AstraZeneca PLC last year.

Sales of global established products, Pfizer's biggest revenue contributor, fell 11% to $6.41 billion in the period. The company's global innovative products segment, however, delivered 3% sales growth to $3.75 billion.

Pfizer has sought to broaden its reach into potentially high-growth markets. The company said Tuesday that its research and development expenses surged 14% to $2.04 billion in the quarter.

The company also has focused on growing its vaccines business while adapting to the demands of the lucrative market for the products. Pfizer said Monday that it would cut the price of its pneumococcal vaccine for the third time in three years as the industry faces criticism over expensive vaccine prices. Earlier this month, meanwhile, Pfizer bought a controlling interest in Redvax GmbH, which is producing a potential herpes vaccine.

The company's global vaccines business posted $1.32 billion in revenue for the most recent quarter, an 18% increase from a year earlier.

Overall, Pfizer posted a profit of $1.23 billion, or 19 cents a share, down from $2.57 billion, or 29 cents a share, in the prior-year period. Excluding certain items, per-share earnings fell to 54 cents from 56 cents.

Revenue fell 3.3% to $13.12 billion.

Analysts polled by Thomson Reuters had projected 53 cents a share and $12.9 billion in revenue.

Write to Michael Calia at [e-mail]

Access Investor Kit for Pfizer Inc.

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US7170811035