Pfizer Narrows Full-Year Forecast

Pfizer (PFE Quote) reported a better-than-expected quarterly profit on Tuesday, but the drugmaker lowered the upper end of its earnings guidance for the year as it continues to work on its cost-cutting initiatives.

The New York-based company said it earned $2.28 billion, or 34 cents a share, in the third quarter, up from $761 million, or 11 cents a share, in the year-ago quarter. The prior year includes a charge of $2.1 billion related to Pfizer's decision to drop the inhaled insulin product Exubera.

The recent quarter had a $640 million charge for costs to resolve litigation surrounding its pain drugs .

On an adjusted basis, the company earned 62 cents a share in the latest quarter. Revenue edged down to $11.97 billion from $11.99 billion a year ago. Analysts surveyed by Thomson Financial had predicted a profit of 60 cents a share on $12.01 billion in revenue.

U.S. revenue decreased 15% to $4.9 billion, while international revenue increased 13% to $7.1 billion. Favorable foreign-exchange translations boosted third-quarter sales by $620 million. However, the loss of U.S. patent exclusivity for Zyrtec and Camptosar deducted $549 million from Pfizer's revenue.

Pharmaceutical sales decreased 1% year over year to $11 billion. Sales of the cholesterol drug Lipitor decreased 13% in the U.S., and 1% worldwide, to $3.1 billion.

Meanwhile, sales of the pain drug Lyrica rose 40% in the U.S. to $379 million, and 45% globally to $675 million. Revenue from arthritis drug Celebrex increased 8% to $625 million, including a 4% increase in the U.S. Sutent revenue rose 49% to $226 million.