Pfizer profit beats forecast

Pfizer yesterday reported profit that beat analysts’ estimates after sales of Lyrica, a pain drug, and Ibrance, a breast cancer treatment, outperformed expectations. The company also raised its 2015 sales and profit outlook.

Adjusted earnings of 60 cents a share topped the average analyst estimate of 51 cents. Revenue dropped 2.2% to $12.1 billion (€10.9bn), the New York-based drug maker said in a statement yesterday.

Pfizer is looking for its next big hit after the expiration of patents on blockbusters including cholesterol treatment Lipitor and arthritis drug Celebrex.

New cancer drug Ibrance’s $230 million in revenue compared with the $207m average estimate. Pneumococcal vaccine Prevnar sold $1.58bn, compared with the average estimate of $1.44bn.

Pain drug Lyrica brought in $1.22bn, beating estimates of $1.11bn. Rheumatoid arthritis drug Enbrel garnered $844m, compared with estimates of $816m.

Pfizer raised its 2015 profit forecast to $2.16 to $2.20 a share, excluding some items, up from the $2.04 to $2.10 a share the company provided in September after completing its $17bn acquisition of intravenous drug maker Hospira. Sales will be $47.5bn to $48.5bn, up from $46.5bn to $47.5bn.

The company reported third-quarter net income of $2.13bn, or 34 cents a share, compared with $2.67bn, or 42 cents a share, a year earlier.

Hospira makes generic injectable drugs and devices to deliver them, a business that will boost Pfizer’s established drugs business, which includes off-patent medicine with slower growth and strong cash flow.

The deal bolsters the division ahead of a potential split of the company, which executives have yet to make a final decision about.

Pfizer has said that any further deal making would probably be designed to improve the innovative side of the business, in which new drugs are discovered and developed.

Pfizer walked away from a deal with AstraZeneca valued at about $120bn last year after the two sides couldn’t reach an agreement on price.

The third-quarter results strengthen the argument for a breakup of Pfizer, said Alex Arfaei, an analyst at BMO Capital Markets.

The performance of Prevnar, Ibrance and Lyrica show the “trapped value” in the new-drugs division, he said in a note.

Pfizer said it decided against developing arthritis drug Xeljanz for Crohn’s disease and ankylosing spondylitis, potentially limiting demand for the drug.