Pfizer, which last month abandoned its $160 billion quest for Allergan, reported quarterly results that blew past analyst estimates on sales of its new cancer and arthritis treatments and the acquisition last year of hospital products company Hospira.
The largest US drugmaker also raised its revenue and earnings forecast for the year, helped in part by the weakening dollar. Shares of the company rose 2.4 per cent in morning trading on Tuesday.
Allergan deal
Global company sales jumped 20 per cent to $13 billion in the first quarter, which was $1 billion more tha expected. However the quarter included five more days of sales in the United States than the year-ago quarter, adding revenue of $900 million in the most recent period. Pfizer said sales would be hurt in the fourth quarter of 2016, however, when those added days will be offset by fewer days.
Credit Suisse analyst Vamil Divan said investors are eager to hear how Pfizer’s overall strategy might change, given its dashed hopes for Allergan.
Pfizer walked away from the deal after the US Treasury issued new rules curbing tax inversion deals, under which American companies move overseas to cut taxes.
Breast cancer treatment
Meanwhile, its recently launched breast cancer treatment, Ibrance, is on its way to becoming a mega-blockbuster product. Its sales jumped to $429 million, from $38 million in the year-ago quarter.
Sales of Pfizer’s generic medicines rose 17 per cent in the quarter to $5.97 billion, while sales of its array of patent-protected drugs jumped 23 per cent to $7.03 billion.
Pfizer in September 2015 completed its $16 billion purchase of Hospira, which makes a wide array of drugs and devices used in hospitals, especially sterile injectable products. Hospira products posted sales of $1.2 billion in the quarter.
Net income rose to $3.02 billion, or 49 cents per share, from $2.38 billion, or 38 cents per share, a year earlier.
Excluding special items, Pfizer earned 67 cents per share, well above the average analyst estimate of 55 cents per share.
Pfizer now expects 2016 revenue of $51 billion to $53 billion, from its earlier view of $49 billion to $51 billion, and earnings of $2.38 to $2.48 per share, from $2.20 to $2.30 per share.
Reuters
