PFE Pfizer Inc

By Jonathan D. Rockoff and Cara Lombardo 

Pfizer Inc.'s revenue was little changed in its latest quarter as the drug company shifts focus to a new generation of products and sorts out what to do with its over-the-counter medicines unit, which hasn't attracted a buyer.

In the quarter, rising sales of newer drugs including cancer treatments Ibrance and Xtandi and blood-thinner Eliquis offset falling revenue for longtime products such as male-impotence pill Viagra, which is facing lower-priced generic competition.

But the double-digit sales increases for some of the newer products weren't enough to move the needle on the company's overall revenue, which rose 1% from a year ago to $12.9 billion.

Chief Executive Ian Read said revenue will grow at a higher rate as the company brings to the market drugs under development, including what he said were 15 compounds each with the potential for $1 billion in yearly sales. The drugs will require regulatory approval before hitting the market.

"I'm really looking forward to the growth rates we will produce," Mr. Read said during a conference call with analysts and investors.

Both Mr. Read and Chief Financial Officer Frank D'Amelio downplayed the possibility of finding growth by splitting up the company or doing a major deal, moves for which they had previously expressed more support.

"I don't see we need a transformative deal," Mr. Read said during the call. "The best investment we have now is in our own pipeline."

Pfizer has been exploring since late last year selling or spinning off its consumer-health business, which sells products such as Advil pain pills, Chapstick lip balm and Centrum vitamins.

Analysts had predicted Pfizer could sell the business for $10 billion or more. But so far, potential buyers have opted to make other deals.

GlaxoSmithKline PLC, which had been interested in Pfizer's business, opted instead to buy Novartis AG's share in a joint venture for $13 billion.

Reckitt Benckiser Group PLC, a U.K.-based consumer-products maker, pulled out of talks for Pfizer's business in March, saying it wasn't possible to buy only the parts it wanted.

Meantime, Procter & Gamble Co. agreed to buy Merck KGaA's consumer-health business for $4.2 billion.

Mr. Read said Pfizer will decide by the end of the year what to do with the consumer-health business. "If we can't get good value, we will retain it," he said.

In the quarter, Pfizer's results were hurt by supply shortages for some of the company's sterile injectable drugs. Overall, Pfizer reported a first-quarter profit of $3.56 billion, up from $3.12 billion a year ago.

Pfizer shares, up 1% so far this year, slid 4.4% in trading Tuesday.

Write to Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com and Cara Lombardo at cara.lombardo@wsj.com

(END) Dow Jones Newswires

May 01, 2018 12:09 ET (16:09 GMT)

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