Pfizer Inc., whose research and development headquarters are in Groton and New London, said today its fourth-quarter profit plunged 90 percent on a hefty legal settlement for investigations into its marketing practices and a decline in sales.
The earnings report came as the world’s biggest drugmaker also announced it is buying rival drugmaker Wyeth for $68 billion in cash and stock.
It is also reducing its work force by about 10 percent, cutting the number of its manufacturing sites and slashing its dividend. It cut its 2009 forecast.
The New York-based maker of Lipitor and Viagra said it earned $268 million, or 4 cents per share, during the fourth quarter. That’s down from a profit of $2.72 billion, or 40 cents per share, a year ago. It says revenue fell 4 percent to $12.35 billion.
Excluding about $2.3 billion in legal charges for a deal to settle investigations into off-label marketing practices, the company says profit rose to 65 cents per share. That beats the profit of 59 cents per share expected by analysts surveyed by Thomson Reuters.
While physicians can prescribe drugs for off-label, or unnapproved uses, company’s can’t market products for anything other than their approved uses.
For the full year, the company earned $8.1 billion, or $1.20 per share, compared with profit of $8.14 billion, or $1.17 per share, in 2007 revenue fell slightly to $48.3 billion from $48.42 billion.
Looking ahead, New York-based Pfizer expects earnings per share between $1.85 and $1.95 in 2009, below forecasts for $2.49.
At 11 a.m., Pfizer shares traded at $15.87, down $1.58, or 9 percent. (AP)
