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 michael.calia@wsj.com
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