Business

Newer drugs help Pfizer beat profit forecast

Company still expects to make a decision on its consumer health unit during the year

Quarterly profit topped Wall Street forecasts at the largest US drug group, Pfizer, driven by stronger-than-expected sales of pneumonia vaccine Prevnar. Photograph: Andrew Kelly/Reuuters

Tue May 1 2018 - 12:49

Pfizer’s newer medicines were the bright spot again last quarter amid sluggish overall sales, buying the drugmaker some time as investors keep the pressure on making a deal and replenishing its pipeline.

Quarterly profit still topped Wall Street forecasts, driven by stronger-than-expected sales of pneumonia vaccine Prevnar. The largest US drugmaker said on Tuesday that Prevnar had recorded sales of $1.38 billion in the first quarter of 2018.

Analysts on average had expected sales of $1.37 billion for the drug.

The company said it still expects to make a decision on its consumer health unit during the year. The future of the business, which was valued at $20 billion, has been unclear since March when two potential buyers pulled out of the bidding process.

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Pfizer began reviewing the business, whose products include Advil and heartburn reliever Nexium, in October.

Overall, first-quarter earnings per share were 77 US cents, excluding some items, Pfizer said in a statement, ahead of the 75-cents average of analyst estimates. Net profit rose to $3.56 billion or 59 cents per share, from $3.12 billion or 51 cents per share a year earlier.

Revenue rose just 1 per cent to $12.9 billion, lower than the $13.1 billion predicted by analysts.

Sales from Pfizer’s innovative health segment, which includes the newest drugs, rose 6 per cent from a year earlier. Revenue from the consumer unit under review gained 7 per cent.

Shares were down less than 1 per cent at $36.36 in pre-market trading in NewYork.

Pfizer employs around 3,300 people in Ireland at seven different sites.

Pfizer has faced pressure from investors to make deals and expand its pipeline of research. A proposed $160 billion merger with Allergan was scrapped after the Obama administration cracked down on so-called inversion deals. Pfizer also attempted a $120 billion deal with British drugmaker AstraZeneca. – Bloomberg

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