Pfizer on Tuesday lowered the top end of its full-year sales outlook partly blaming the strength in the US dollar and said its third-quarter revenues missed estimates even as profits jumped 45 per cent.
The New York-based company said it now expects to report full-year revenues in the range of $53bn to $53.7bn, down from its previous outlook for revenues between $53bn to $55bn.
The company attributed the less optimistic outlook to lower than expected revenues from its so-called Essential Health unit — which includes legacy brands like Lipitor and Viagra, that have already lost or will soon lose market exclusivity — “primarily due to continued legacy Hospira Sterile Injectable Pharmaceuticals (SIP) product shortages in the US”. Pfizer also attributed the cut to the recent strength in the US dollar vis-à-vis emerging market currencies and the euro.
The tighter outlook comes after third-quarter revenues edged up 1 per cent to $13.3bn, missing analyst expectations for $13.5bn, according to a survey by Refinitiv.
Profits however jumped 45 per cent, as net income climbed to $4.1bn in the third quarter from $2.84bn in the year ago quarter. That translated to earnings per share of 69 cents a share, up from 47 cents a share in the prior year quarter.
Adjusted for one-time items, EPS of 78 cents was better than analysts’ forecasts for 75 cents.
The results come as the company’s incoming chief executive Albert Bourla has rejigged the management team as Pfizer moves its focus from dealmaking to developing a new pipeline of drugs.
Following a failed attempt to sell its consumer healthcare business., Pfizer said over the summer that starting 2019 it would be divided into three divisions: Innovative Medicines, Established Medicines, for its branded and generic drugs business and Consumer Health, which sells well-known brands like Advil pain killers.
“We believe we are well-positioned to develop and commercialise differentiated new medicines, creating sustainable value for shareholders and patients,” said chief executive Ian Read. “Our new organisational structure allows us to focus on maximising the opportunity of our in-market products, advancing key pipeline programs and accelerating growth in emerging markets.”
Earlier this year, the company postponed a series of price increases on 100 products after President Donald Trump said the company should be “ashamed” of the move and the company engaged in an extensive discussion with the president.
Pfizer also tweaked its earnings outlook for the year and now projects adjusted earnings of $2.98 to $3.02 a share, compared with $2.95 to $3.05 a share previously. However, the midpoint of the outlook continued to imply 13 per cent growth compared to last year.
Pfizer shares, which are up nearly 20 per cent year-to-date, slid 2.8 per cent to $42.01 in pre-market trade.
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