Leadership

Pfizer reports massive jump in Q4 profits

03.02.2010
Drug company Pfizer has reported a massive jump in its fourth-quarter earnings, although its Q4 profit figure was slightly below analyst expectations.

Pfizer said it had made a profit of US$767m in Q4 2009, or earnings per share of US$0.10, compared to profits of US$266m, or earnings per share of US$0.04, made during the same quarter in 2008.

Earnings excluding one-time items were 49 cents a share, falling short of the 51-cents average estimate of 14 analysts surveyed by Bloomberg.

The world’s largest drug maker said increased revenues had driven its profits higher in the final three months of 2009. Its results were also boosted by the fact that it had incurred a charge of US$2.3m relating to the marketing of its Bextra painkiller during the fourth quarter of 2008.

For the full-year 2009, Pfizer posted reported net income of US$8.6bn, an increase of 7pc compared with US$8.1bn reported in 2008, and reported diluted EPS of US$1.23, an increase of 3pc compared with US$1.20 in 2008.

Full-year forecast disappoints
The maker of Viagra also gave a full-year profit forecast that was below Wall Street forecasts. The company said it expects full-year 2010 earnings of US$2.10 per share to US$2.20 per share.

Analysts polled by Thomson Reuters had expected US$2.27 per share.

Wyeth acquisition
“During the fourth quarter, we closed the Wyeth acquisition and immediately began the integration of our operations, advancing the transformation of the company,” said Jeff Kindler, Chairman and Chief Executive Officer. “We are pleased with the rapid pace of the integration and our ability to quickly realise the benefits of our combined organisation.”

“Our results this quarter clearly demonstrate the ability of our colleagues to remain focused and deliver solid operational performance, while working to close the Wyeth acquisition and to ensure a successful integration,” Kindler continued.

“We remain excited about our more diverse in-line product and pipeline portfolio, which we expect will result in improved opportunities for the company in 2010 and beyond.”

Pfizer completed its US$68bn acquisition of rival pharmaceutical company Wyeth in October. More than 5,000 people in Ireland are now employed under the new combined entity, making Pfizer the country’s biggest foreign direct investment employer.