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Pfizer Narrows 2012 Outlook after Posting 14% Drop in Net Income for Q3 (PFE)

New Yor- based, World’s Largest Pharmaceutical Company that discovers, develops, manufactures, and markets medicines for humans and animals, Pfizer Inc. (NYSE: PFE) today reported results for the third quarter ended September 30, 2012.

PFE’s consolidated revenues for the quarter decreased by 16% to $13,976 million from $16,609 million reported for the same period in the previous year. Income before tax for the quarter decreased by 16% to $2,991 million from that of $3,541 million reported in the third quarter of 2011. Net income attributable to common stockholders for the quarter decreased by 14% to $3,208 million from $3,738 million reported for the same period in the previous year.

The 16% decrease in revenues reflected an 18% fall in PFE’s major business segment- Biopharmaceutical.

Sales of the company’s top selling drug, Lipitor fell drastically by 71% to $749 million from $2,602 million. This was mainly due to the loss of exclusivity for this drug and availability of generic substitutes. The company also noticed decline in sales from most of its biopharmaceutical products including 14% fall in Prevnar 13, 35% fall in Xalatan/Xalacom, 17% drop in Detrol, 27% drop in Zosyn/Tazocin, 35% drop in Effexor, 78% drop in Geodon, 39% drop in Aricept, 30% in BMP2 and 55% in Caduet.

PFE also narrowed its 2012 Adjusted EPS to $2.14 – $2.17 a share, from $2.12 – $2.22 a share.

PFE’s Board of Directors also authorized a new $10 billion share repurchase program to be utilized over time after the sale of nutrition business to Nestle. This new program is in addition to the $4.1 billion authorization remaining under the current share repurchase program. PFE had repurchased approximately $5.9 billion, or 255.1 million shares so far this year.

PFE shares have slipped in trading today. At last check, PFE shares were trading 1.49% lower at $24.5 with volume down from its daily average of 26.9 million to 24.3 million.


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