Pfizer returns Exubera; no NKTR PR about this yet.
>>Pfizer 3Q Profit Falls on Exubera Charge
Thursday October 18, 8:46 am ET
By Damian J. Troise, AP Business Writer
Pfizer's 3rd-Quarter Profit Falls on Charge to Exit Its Exubera Investment, Lower Drug Sales
NEW YORK (AP) -- Pfizer Inc., the world's largest pharmaceutical company, said Thursday its third-quarter profit plunged due to a $2.8 billion pretax charge to end investment in inhaled insulin drug Exubera, and lower sales of blockbuster cholesterol drug Lipitor.
The company earned $761 million, or 11 cents per share, down sharply from profit of $3.36 billion, or 46 cents per share, during the same period a year ago. Excluding one-time charges, Pfizer said it earned 58 cents per share in the latest period.
Revenue fell 2 percent to $11.99 billion from $12.28 billion a year earlier.
The results still beat consensus estimates of analysts polled by Thomson Financial, who expected profit of 52 cents per share on revenue of $11.77 billion.
Sales of diabetes drug Exubera have been disappointing for both the company and Wall Street since its launch. The company said it will return licensing rights to partner Nektar Therapeutics Inc. and transition patients to other diabetes treatments over the next three months. The news sent Nektar shares plunging $1.93, or 24 percent, to $6.15 in premarket trading.
"We made an important decision regarding Exubera, a product for which we initially had high expectations," said Jeff Kindler, chairman and chief executive, in a statement. "Despite our best efforts, Exubera has failed to gain the acceptance of patients and physicians."
Pfizer said it stopped production of the drug at its western Indiana plant and placed between 650 and 750 workers on paid leave. The plant is the sole production center for Exubera.
Wall Street welcomed the announcement, citing the drug's difficulty on the market.
"Consistent with our bearish views on Exubera, we had predicted that Pfizer would give up on Exubera eventually but had not expected this to be so soon," said Morgan Stanley analyst Jami Rubin, in a note to investors.<<
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NKTR down to the $6 range in premarket. Now (or soon), perhaps, this is an interesting buy.
Cheers, Tuck |
