Pfizer Inc. (PFE) reported a drop of 70% in its fourth-quarter net income. Pfizer (PFE) also posted its first yearly sales decline with its top drug, Lipitor. The world’s largest drug maker recorded a net income of $2.88 billion (42 cents a share). This is down from the prior year’s recorded net income of $9.45 billion ($1.32 a share). Last year’s $7.9 billion gain was due to the sale of its consumer health care unit to J&J (JNJ).
This New York company; however, did exceed Wall Street Journal’s expectations in adjusted earnings and sales and in the revised forecast for 2008. Pfizer (PFE) stated that purchase-accounting adjustments, restructuring charges, prosperous foreign exchange rates and an increase in new product sales created encouraging results.
However, Pfizer (PFE) has faced many challenges due to the recent expirations of its exclusivity for its top drugs. Zyrtec, which brought in $1.5 billion in sales last year, will no longer be sold by Pfizer (PFE). In fact, Johnson & Johnson (JNJ) will be selling the over-the-counter version of Zyrtec. Millions of people on this medication have been anxiously waiting for this version. However, investors stock investing or stock trading in these will need to review their personal stock portfolio to make any changes. Visit PowerOptions website for help with options for making informed decisions for your personal stock portfolio.
It appears that Pfizer’s (PFE) experimental drugs will not be able to replace it lost revenue in the next term. Its shares have fallen 17% over the past 52 weeks, along with the 11.1% drop in the Amex Pharmaceutical Index (DRG).
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However, Pfizer (PFE) shares went up to $22.35, which is up 12 cents on the day where many stocks were in the red. Per-share earnings rose to 52 cents from 43 cents. Fourth-quarter sales also rose 4% to $13.1 billion from $12.6 billion. Stock investing or trade investing in these shares would be a wise decision.
Although total pharmaceutical sales rose 2% to $11.9 billion, sales growth was diminished because of the loss of Pfizer’s (PFE) exclusivity for Norvasc, and anti-hypertension drug and the antidepressant, Zoloft.
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The company’s best selling prescription drug in the world, Lipitor, is facing intense competition in the cholesterol market, including generic brands. Due to this, Lipitor’s sales in fourth-quarter declined in the U.S. by 4%, but rose worldwide 3% to $3.4 billion. Sales for the entire year of 2007 for Lipitor declined 2% to $12.7 billion. Investors should probably not expect high returns on investment in the short term for Pfizer.
Its arthritis drug, Celebrex, rose 18% to $637 million in fourth-quarter. Viagra, an erectile dysfunction, rose 10% to $498 million.
Some newer products helped Pfizer’s (PFE) fourth-quarter. Chantix, an anti-smoking drug, more than quadrupled sales to $280 million. Overseas, this same drug is called Champix. It posted a gain, despite its recent concerns about potential behavioral side effects. Last week, Pfizer (PFE) updated the product label to warn people to be observed for “neuropsychiatric symptoms, including changes in behavior, agitation, depressed mood, suicidal ideation and suicidal behavior.” Another new product is Lyrica, a treatment for nerve pain. Its sales rose 60% to $564 million. Advertisements on television promoting this drug as a treatment for fibromyalgia expect to help sales. Careful consideration should be taken with stock market investment strategies and stock trading strategies for Pfizer at this time.
Predictions for 2008 – Pfizer expects to earn $1.78 to $1.93 a share, compared to $2.66 a share in 2007. Excluding certain items, they expect to see earnings in 2008 of $2.35 to $2.45 a share versus $2.20 a share n 2007. Pfizer (PFE) expects 2008 revenue forecast of $47 billion to $49 billion, from a previous $46.5 billion to $48.5 billion. Pfizer had a $48.6 billion in revenue in 2007.
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