Pfizer Reports Rock-Solid Quarter
DOW JONES & COMPANY, INC. 7:55 AM ET 5/3/2016
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Pfizer Inc. (PFE) on Tuesday reported better-than-expected results for its first quarter and raised its guidance for the year as both new and established product lines showed revenue growth.
In April, Pfizer and Allergan PLC(AGN) terminated their planned $150 billion merger after the Obama administration took aim at the deal that would have moved the biggest drug company in the U.S. to Ireland to lower its taxes.
Pfizer said strong performance so far this year and an improved business outlook, along with more favorable foreign exchange rates, led the company to boost its outlook.
It now expects to earn between $2.38 and $2.48 a share this year, excluding special items, up 18 cents from the previous muted guidance that was below analysts' expectations at the time. Analysts polled by Thomson Reuters had forecast $2.30 a share in earnings.
The company forecast $51 billion to $53 billion in revenue, up $2 billion from the previous range. Analysts were expecting $51.24 billion in revenue.
In the latest quarter, new drugs such as nerve pain drug Lyrica, pneumococcus vaccine Prevnar and smoking cessation aid Champix helped drive a 23% increase in innovative product sales.
Sales grew 17% in the established drug business.
In September, Pfizer bought Hospira Inc. in a $16 billion deal that has made the company a leading player in the growing market for lower-priced versions of costly biotech drugs. Pfizer, like many of its peers, has faced a string of patent expirations over recent years as well as growing generic competition for former blockbusters like cholesterol fighter Lipitor and pain pill Celebrex.
In all, Pfizer reported a profit of $3.02 billion, or 49 cents a share, up from $2.38 billion, or 38 cents a share a year prior.
Excluding certain items, adjusted earnings were 67 cents a share, up from 51 cents. Revenue rose 20% to $13 billion.
Analysts polled by Thomson Reuters had forecast adjusted earnings of 55 cents a share on revenue of $12.02 billion.
Write to Austen Hufford at austen.hufford@wsj.com
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