Pfizer (PFE) lowered its full-year earnings guidance Tuesday after it narrowly missed estimates for its third quarter and announced the discontinuation of its potential blockbuster drug Bococizumab.
The New York-based group said adjusted earnings for the three months ended in September were 61 cents a share, modestly lower than the 62 cents expected by analysts. Third-quarter revenue, the company said, was roughly $13 billion, largely in-line with market forecasts.
Pfizer said it now sees full-year revenue of between $52 billion and $53 billion (compared to $51 billion to $53 billion) and adjusted EPS of between $2.38 to $2.43, down from a previous forecast of $2.38 to $2.48.
The company said dropping bococizumab would trim 4 cents a share from its earnings on both a GAAP and an adjusted basis.
"Pfizer will record this as a research and development charge in the fourth quarter of 2016 and is incorporating this estimated impact into its updated 2016 financial guidance, which will be provided in conjunction with its third quarter earnings release to be issued this morning," the company said in a statement.
Two months ago, Pfizer abandoned plans to split itself into two separate companies after a two-year process that cost more than $600 million to evaluate. The company also failed in its attempted $160 billion merger with Allergan earlier this year that could have added significant tax advantages to its bottom line.
Shares in the group have fallen 14% in the past three months -- against a 3.9% gain for the S&P Health Care Sector Index -- and closed at $31.90 Monday in New York.
The stock fell 2.2% in premarket trading on Tuesday.