DOW JONES NEWSWIRES
Wyeth (WYE) posted flat first-quarter net income as the stronger
dollar pushed sales down modestly, but earnings topped expectations
despite woes for its top-selling antidepressant Effexor.
The drug maker early this year agreed to be acquired by rival
Pfizer Inc. (PFE) in a deal currently valued at $62.5 billion. Some
big drug makers see mega-mergers as a way to survive a host of
industry obstacles including generic competition, difficulty in
developing new drugs and blockbuster drugs coming off patent.
The proposed combination of Pfizer and Wyeth, which has been
establishing a foothold in biotechnology and vaccines, would create
a behemoth selling everything from pills, biotech drugs and
vaccines to medicines for animals.
Wyeth reported net income edged up $1.3 million to $1.2 billion,
with per-share earnings flat at 89 cents. Excluding items such as
restructuring and merger-related charges, earnings rose to 95 cents
from 94 cents.
Revenue fell 6% to $5.4 billion, but was up 2% excluding the
stronger dollar's impact, amid growth of Enbrel outside the U.S.
and Canada, Prevnar and its nutritional products.
Analysts were expecting earnings, excluding items, of 88 cents a
share on revenue of $5.52 billion.
Gross margin rose to 75.6% from 73.8% on the stronger
dollar.
Pharmaceutical revenue dropped 6% to $4.49 billion and Effexor
logged a 20% decline. Prevnar, a vaccine against pneumococcal
disease, saw a 7% sales rise, and climbed 19% excluding currency
effects. Rheumatoid-arthritis drug Enbrel, which Wyeth co-markets
with Amgen Inc. (AMGN), had a 3% sales rise, but was up 23%
excluding currency effects.
Wyeth shares closed Tuesday at $42.25.
-By Mike Barris, Dow Jones Newswires; 201-938-5658;
mike.barris@dowjones.com