Pfizer's Forecast Disappoints

Pfizer said sales of the arthritis drug Celebrex should surpass $2 billion in 2006, up from $1.73 billion in 2005. The company says sales of the nerve-pain and epilepsy treatment Lyrica will be more than $900 million, rising from $291 million last year. The company plans to launch six new products this year, and said it will file for approval of five more drugs this year and next, including medications for HIV, schizophrenia and cancer.

The company needs growth from existing products, as well as new drugs, to offset the loss of $3 billion in sales this year as generics eat away revenue from brand-name medicines whose patents are expiring. Last year, patent expirations affected products with $2.8 billion in sales.

Additionally, Pfizer said it plans to buy back at least $1 billion in stock this year. Given Pfizer's enormous size, that buyback represents 1 cent a share. Shedlarz said the buyback prediction is "very conservative," adding that he expects to revisit the strategy later in the year.

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