Second quarter a good one for Pfizer
Pfizer Inc. profits soared in the second quarter, spurred by the spin-off of the company's animal-health business and a patent-infringement settlement, the company announced Tuesday.
Reported profits of $14.1 billion from April through June more than quadrupled gains of $3.3 billion in the same period last year for the New York-based pharmaceutical giant, which has a major research campus in Groton.
Pfizer said it recorded a $10.5 billion gain related to the sale of its animal health group, now called Zoetis Inc. The company also booked a $1.4 billion gain after winning a patent-infringement suit against Teva Pharmaceuticals Industries Ltd. and Sun Pharmaceutical Industries Ltd. over a generic form of the heartburn medicine Protonix, which the companies marketed before Pfizer lost its rights to exclusivity.
Adjusted earnings per share of 56 cents for the quarter were slightly above Wall Street expectations. Pfizer's stock price jumped in early morning trading to $30.07 a share, up 53 cents.
"We are tracking to our expectations for the full year," Ian Read, Pfizer's chairman and chief executive, said in a statement.
Despite the upbeat report, revenues for the quarter were off 7 percent from a year ago. Adjusted income, taking out one-time gains from Zoetis and the legal settlement, fell 10 percent.
The biggest hits were seen in Pfizer's primary care unit, which was off 15 percent operationally, and established products, down 7 percent.
On the plus side, Pfizer's oncology sales rose 28 percent in the second quarter compared with the same period last year.
The loss of patent protection on the cholesterol medication Lipitor and patients' resulting migration to generic alternatives continued to hurt overall sales. Lipitor sales declined 55 percent in a quarter-over-quarter comparison, reducing overall revenues by more than $600 million.
Despite revenue losses, Pfizer announced that it planned to buy back its stock aggressively in the last half of the year, perhaps more than doubling the $8.7 billion it had spent on share repurchases so far this year. The company also reaffirmed its outlook for full-year adjusted earnings of $2.10 to $2.20 a share.
"I am pleased with our financial performance so far this year," Frank D'Amelio, chief financial officer at Pfizer, said in a statement.
Pfizer released its financials one day after announcing a restructuring of the company that will divide its commercial operations into three distinct business segments. Two of the segments will focus on new medicines, while the third will oversee generic medicines and drugs about to lose patent protection.
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Pfizer's key second-quarter revenue drivers and notable drugs:
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|Source: Pfizer Inc.|
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