Wyeth's (WYE) second-quarter profit rose 13% on cost cutting
while strong sales of its Prevnar pneumococcal vaccine nearly
offset declines for its top-selling antidepressant Effexor.
Earnings topped analysts' expectations, and the drug maker
became the latest in the industry this week to boost its 2009
profit outlook. It now expects $3.48 to $3.58 a share, excluding
costs related to its pending acquisition by rival Pfizer Inc. (PFE)
and work-force reductions, up from a prior of $3.33 to $3.53.
The drug maker is being acquired by rival Pfizer Inc. (PFE) in a
$66 billion deal expected to close by year's end. Wyeth
shareholders and European regulators both have backed the merger,
which still requires U.S. antitrust approval. Acquiring Wyeth will
give Pfizer access to fast-growing biotechnology drugs and vaccines
as its blockbuster cholesterol drug Lipitor faces the loss of U.S.
patent protections in 2011. The combined entity's work force is
expected to be cut 15%.
Wyeth, which also makes Advil pain reliever and Centrum
vitamins, reported earnings of $1.27 billion, or 94 cents a share,
from $1.12 billion, or 83 cents a share, a year earlier. Excluding
merger and restructuring costs, earnings rose to 98 cents from 91
cents.
Revenue fell 4.2% to $5.7 billion, but was up 2% excluding
foreign currency fluctuations.
Analysts were expecting earnings, excluding items, of 85 cents a
share on revenue of $5.59 billion.
Gross margin rose to 73.2% from 72.5% while overhead costs
declined 13%.
Effexor logged a 25% decline sales decline while Prevnar, a
vaccine against pneumococcal disease, rose 13%, or 24% excluding
currency effects. Rheumatoid-arthritis drug Enbrel, which Wyeth
co-markets with Amgen Inc. (AMGN), had a 7% sales jump for U.S. and
Canada and 6% rise outside those countries. Wyeth distributes the
drug internationally.
Wyeth shares closed at $46.86.
Tuesday, Pfizer posted a 19% profit drop, but earnings beat Wall
Street estimates despite currency impacts and lower Lipitor sales.
The world's largest drug maker by sales also boosted its 2009
profit view while projecting revenue at the high end of its
forecast.
-By Mike Barris, Dow Jones Newswires; 212-416-2330;
mike.barris@dowjones.com;