This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Pfizer Takes a Flogging

"Revenues in the third quarter of 2005 reflected lower prescription growth and increased competition in key therapeutic markets in the U.S., such as the lipid-lowering market, where the rate of growth in the third quarter declined significantly versus the first half of the year; and the erectile-dysfunction market, which has been in decline compared to 2004," Pfizer said. "The effects of these considerations are expected to temper fourth-quarter revenues as well."

Pfizer doesn't know if the lower prescription growth is a temporary or chronic condition, said Hank McKinnell, chairman and chief executive, in a meeting with analysts after the earnings report. He said Pfizer will need several more months of data to better evaluate the trends.

"Our belief is that we will see a recovery" in the fourth quarter, said McKinnell, adding that "I share your disappointment" at the decline in third-quarter revenue. McKinnell said Pfizer had endured the "greatest magnitude" of patent expirations in the shortest time in the history of the drug industry.

Pfizer will continue to be affected by patent expirations on major drugs into 2007, even if Lipitor survives a U.S. patent challenge. McKinnell reaffirmed his belief that a U.S. court would repel a challenge by India's Ranbaxy Laboratories. A federal judge's decision could come later this year or early next year. McKinnell said Pfizer won't settle the case to make Ranbaxy go away.

Thursday's financial announcement didn't prompt any immediate ratings changes on Wall Street, but it certainly provoked a lot of discussion.

The third quarter was fair, but "the rest is a mess," says Tim Anderson of Prudential Equity Group in a brief research note to clients. He's neutral on Pfizer. His firm doesn't have an investment banking relationship with Pfizer, but his report says Anderson, a member of his research team or a member of his household owns the company's shares.
2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PFE $29.36 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%
TSLA $151.04 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs