Pfizer 4th-Qtr Profit Rises 42% on Viagra, Zithromax
New York, Jan. 19 (Bloomberg) -- Pfizer Inc. said its fourth- quarter profit from continuing operations rose 42 percent as it introduced its impotence pill Viagra in more European countries.
Profit before charges and discontinued operations rose to $711 million, or 54 cents a share, from $500 million, or 38 cents, a year earlier. Pfizer was expected to earn 52 cents a share, the average estimate of analysts polled by First Call Corp. Revenue rose 26 percent to $3.87 billion, with $236 million in Viagra sales.
In the fourth quarter, Pfizer sold the last of its medical- device businesses and stepped up spending on research and sales. These moves were part of Pfizer Chief Executive William Steere's intention to focus the company on two goals, getting new drugs on the market and building the sales force needed to sell them.
''It was a blowout quarter,'' said Charles Engelberg, an analyst with AmeriCal Securities, who has an ''outperform'' rating on Pfizer. ''There's nothing not to like.''
Pfizer, based in New York, rose 1/2 to 116 1/8 in midafternoon trading. Fourth-quarter sales and administration spending rose 33 percent to $1.68 billion. Research and development spending rose 29 percent to $698 million.
Pfizer stepped up its marketing ahead of the introduction this year of a new potential blockbuster arthritis drug, Monsanto Co.'s Celebrex. Pfizer has agreed to market the drug with Monsanto. Celebrex could top annual sales of $1 billion because it appears to irritate the stomach less than other painkillers, such as aspirin.
Drug Sales Boosted
In the fourth quarter, Pfizer boosted sales of its own drugs. Sales of Zithromax, an antibiotic, rose 42 percent to $379 million. Trovan, also an antibiotic, had $55 million in sales. The drug was introduced in the first quarter of 1998.
Sales of Norvasc, a heart medicine, rose 15 percent to $719 million and sales of the antidepressant Zoloft rose 24 percent to $489 million.
Viagra sales rose to $236 million from $141 million in the third quarter as Pfizer introduced the drug in much of Europe. Viagra won European Union approval in September, allowing for fourth-quarter introductions in some of the union's 15 member countries. Viagra sales began in France, Germany and Italy in October. Viagra already was sold in some European countries outside of the union, such as Switzerland.
Celebrex could give Pfizer the third ''rookie of the year'' product, the best drug introduction for 1999 following similar success in 1997 and 1998, said Leonard Yaffe, an analyst with NationsBanc Montgomery Securities.
In 1998, Viagra set a record for U.S introduction with $411 million in sales in the second quarter, its first three months on the market.
Lipitor Introduction
In 1997, Pfizer helped Warner-Lambert Co. introduce the cholesterol reducer Lipitor. The drug quickly stole market share from older, more-established rival products from Merck & Co. and Bristol-Myers Squibb Co. because it appears to lower LDL cholesterol more. High levels of LDL, or so-called bad cholesterol, have been linked to heart disease.
Lipitor's 1998 sales are expected to top $2 billion. Warner- Lambert will report its full 1998 results Monday.
''Merck and Bristol convinced everyone that lowering LDL was good and then Warner-Lambert came out with a drug that lowers LDL even more,'' said Alex Zisson, an analyst with Hambrecht & Quist.
In the fourth quarter, Pfizer's revenue from its alliances with Warner-Lambert and Japan's Eisai Co. rose 83 percent to $299 million. Pfizer helps sell Eisai's Alzheimer's disease medicine, Aricept.
In the quarter, Pfizer had charges of $405 million for exiting certain product lines, severance payments and other items. It had a loss of $33 million on discontinued businesses. Combined with a gain of $361 million on the sales of medical- device units, these items made net income $634 million, or 49 cents. There were no gains or charges in the year-ago quarter |
