Pfizer Revenue Growth Stalls as Company Mulls OTC Unit's Future--Update
May 01 2018 - 12:24PM
Dow Jones News
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)
Copyright (c) 2018 Dow Jones & Company, Inc.
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