Pfizer Misses Q4 Earnings Forecast

Pfizer said sales of its Lyrica pain treatment, which lost patent protection last year, fell by more than two thirds, clipping overall group revenues ahead of the combination of its generic branded drugs division with Mylan.

Pfizer Inc.  (PFE) - Get Report posted weaker-than-expected fourth quarter earnings Tuesday as sales from its UpJohn  division, as well as a key pain treatment, fell sharply from last year.

Pfizer said adjusted earnings for the three months ending in December were pegged at 55 cents per share, down 13% from the same period last year and 3 cents shy of the Street consensus forecast. Group revenues, Pfizer said, fell 9% to $12.688 billion but came in just ahead of analysts' estimates of a $12.6 billion tally.

Looking into 2020, Pfizer said it sees revenues in the region of $40.7 billion to $42.3 billion, and adjusted earnings in the range of $2.25 to $2.35 per share. 

  “2020 is expected to be an exciting year for Pfizer with the close of the Upjohn-Mylan transaction anticipated by mid-year, leaving New Pfizer positioned to deliver revenue and Adjusted diluted EPS growth that is expected to be among the industry leaders," said CEO Albert Bourla."New Pfizer will be a smaller, science-based company with a singular focus on innovation while also continuing to allocate significant capital directly to shareholders, primarily through dividends."  

Pfizer shares were marked 2.27% lower in early Tuesday trading following the earnings release to change hands at $39.26 each. 

Lyrica, Pfizer's pain treatment which lost patent protection last year, saw sales tumble by more than two thirds to $433 million. 

Pfizer also said revenues from Upjohn, its wholly-owned business that will be combined with Mylan, fell 32% to $2.156 billion, while biopharma revenues rose 7% to $10.532 billion, driven mostly by a strength in the group's Ibrance breast cancer treatment and its Xeljanz drug used by patients with rheumatoid arthritis. 

Pfizer said it expects the Mylan combination to close later this year.