Pfizer Sales Miss Expectations on Increased Competition

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.

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.

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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.

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)