Drug maker Pfizer Inc., with research and development operations in Connecticut, on Wednesday posted a 34 percent jump in revenue, but about $3.2 billion in acquisition charges related to its buyout of rival Wyeth Inc. and higher costs across the board weighed down profits.
The maker of Viagra and cholesterol fighter Lipitor, which paid $68 billion to get Wyeth’s vaccines, biologic drugs and consumer health staples such as Centrum vitamins and pain relievers Advil and Anacin, already has slashed about 4,200 jobs and cut other costs.
New York-based Pfizer said its revenue in the fourth quarter totaled $16.54 billion, half a billion above what analysts were expecting as the recession continues to reduce sales of even prescription medicines.
Wyeth products contributed $3.3 billion of those sales. Excluding that boost, revenue was up about 7 percent from the $12.35 billion Pfizer reported in the fourth quarter of 2008, but Pfizer noted favorable exchange rates boosted total revenue by 4 percent.
Net income amounted to $767 million, nearly triple the $266 million the world’s biggest drugmaker earned a year earlier, when results were hurt by a whopping $2.3 billion charge to settle federal allegations Pfizer improperly marketed some of its drugs. That profit is equal to earnings per share of 10 cents, or 49 cents after excluding one-time items.
Analysts polled by Thomson Reuters were expecting Pfizer to earn 50 cents a share, on average. The per-share results were reduced somewhat because Pfizer issued new shares to help fund the Wyeth purchase, increasing outstanding shares by about 16 percent.
The company said it expects revenue this year to range from $67 billion to $69 billion. It forecast earnings per share of 95 cents to $1.10, or a range of $2.10 to $2.20 excluding one-time items.
Analysts were expecting revenue of $67.5 billion, but higher earnings per share, at $2.27. Pfizer said it recently reduced its 2010 forecast by 6 cents a share because of the recent strengthening of the dollar.
Shares of Pfizer slipped in premarket trading to $18.75 from Tuesday’s close of $19.06. (AP)
