Pfizer Sales Miss Expectations on Increased Competition

By Imani Moise Features Dow Jones Newswires

Pfizer Inc.'s sales continued to fall in the second quarter as its drugs faced increased competition from biosimilars, but the company still gave a rosy earnings outlook for the year.

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The drugmaker raised the low end of its full-year adjusted earnings guidance, citing reduced expenses and higher-than-expected royalty income from certain products. The company now expects earnings of $2.54 to $2.60 per share, compared with prior guidance of $2.50 to $2.60 per share. Analysts polled by Thomson Reuters had forecast earnings of $2.55 per share for the year.

Pfizer said revenue in its essential health unit, which includes the antidepressant Pristiq and antiepileptic drug Lyrica, slid 14% as the company continued to face competition from cheaper knockoff drugs as its products have lost patent protection.

Sales at its innovative health unit jumped 8%, driven by Ibrance and Eliquis brands.

In all, Pfizer reported earnings of $3.07 billion, or 51 cents per share, up from $2.05 billion, or 33 cents per share, a year earlier. Excluding certain items, earnings rose by 3 cents to 67 cents. Revenue fell 1.9% to $12.9 billion. Excluding the impact of a recent divestiture, the company says revenue rose 2%.

Analysts were looking for earnings of 66 cents on $13.08 billion in sales.

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Shares edged up 0.7% to $33.39 in premarket trading after gaining 2.1% this year through Monday's close.

Write to Imani Moise at imani.moise@wsj.com

(END) Dow Jones Newswires

August 01, 2017 07:37 ET (11:37 GMT)