Pfizer 3rd-Qtr Profit From Ops Up 15%: Earnings Instant Insight
Bloomberg News
October 13, 1998, 4:12 p.m. ET
Expected Market Reaction
Limited. Pfizer Inc.'s third-quarter profit from operations
rose 15 percent to $667 million, or 51 cents a share, from $579
million, or 45 cents a share. The results for the maker of the
impotence drug Viagra compares with the 57-cent average estimate
of analysts polled by First Call Corp.
Behind the Numbers
Pfizer introduced two drugs this year, Viagra and the
antibiotic Trovan. It also has been able to boost sales of its
other drugs, such as the depression medicine Zoloft. Pfizer also
helps market Warner-Lambert Co.'s blockbuster drug, the
cholesterol reducer Lipitor. Introduced in 1997, Lipitor had
second-quarter sales of $533 million.
New York-based Pfizer intends to shed its medical-device
businesses to focus on the more profitable drug business. Last
month, Pfizer sold two of these units for a combined $2.23
billion. It intends to sell a third medical-device business for
$1.9 billion.
What the Experts Say
''Look at the fundamentals of Pfizer,'' said Robert Flamm,
an analyst with Evergreen Asset Management, which holds about
214,000 shares of the company. ''They're a marketing machine,
they're a research machine. They know how to get products out.''
Previous Market Reaction
Pfizer rose 2 1/2 to 116 on July 9 when it reported a 38
percent increase in profit, topping estimates. Viagra, introduced
in April, achieved unprecedented success for a new drug. Second-
quarter sales reached $411 million as pharmacies stocked up on
the drug and magazine and news reports helped raise demand.
Market Trend
Pfizer has dropped 20 percent to 93, Monday, since reporting
second-quarter results. In the same period, the Standard & Poor's
Drugs Index fell 5.5 percent and the Standard & Poor's 500 Index
fell 15 percent.
Pfizer fell as reported U.S. Viagra sales declined. Sales
peaked at 308,631 prescriptions in the week ended May 8,
according to NDC Health Information Services, which monitors
pharmacy sales. Viagra sales seem to be increasing again, NDC
said. In the week ended Oct. 2, 190,538 Viagra prescriptions were
filled, up from 169,946 a week earlier, said NDC, a unit of
Atlanta-based National Data Corp.
--Kerry Dooley in the Princeton newsroom (609) 279-4016 /mfr |
