Pfizer also said it plans to cut its workforce by about 10%, reduce the number of manufacturing sites to 41 from 46, and slash its dividend. The drugmaker also cut its forecast for 2009 earnings.
Revenue in the fourth quarter fell 4% to $12.4 billion from $12.9 billion a year earlier.
Excluding about $2.3 billion in legal charges for investigations into off-label marketing practices, profit rose to 65 cents a share, Pfizer said, topping the estimate of analysts surveyed by Thomson Reuters of 59 cents a share.
Wyeth also released its results, saying it earned 78 cents a share in the fourth quarter, before items were factored in. Revenue fell to $5.35 billion from $5.76 billion a year earlier. Analysts were expecting a profit of 79 cents a share and sales of $5.79 billion.The news of the Wyeth agreement effectively puts an end to speculation that Pfizer might make a move on one of the big biotech companies such as Amgen (AMGN), Biogen Idec (BIIB) or Gilead (GILD), but it will also likely keep M&A as a front-and-center topic in the drug sector.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV