NEW YORK (TheStreet) --Pfizer (PFE) reported weaker-than-expected 2016 third-quarter earnings results before the market open on Tuesday. The largest U.S. drugmaker posted earnings of 61 cents per share, below analysts' estimated 62 cents per share. Revenue came in at $13 billion, largely in-line with Wall Street's projections.
Pfizer lowered its full-year earnings guidance to between $2.38 and $2.43 per share, down from $2.38 to $2.48 per share. The discontinuation of the drug Bococizumab would cut 4 cents a share from its earnings on both GAAP and an adjusted basis.
Barbara Ryan Advisors founder Barbara Ryan discussed some of the reasons Pfizer lowered its full-year earnings guidance, during Tuesday morning's "Squawk Box" on CNBC.
"I think there're a couple of things. If you have noticed, very recently, the biotech sector has come under an enormous amount of pressure; the whole healthcare industry has not done terribly well this year. Some rotation, some election concern, they've become more pronounced more recently," she explained.
Then came issues and discrepancies over drug pricing brought about with the Mylan (MYL) EpiPen controversy.
"I think the other piece is there was a strategic component to Pfizer, the sum of the parts analysis, which was that they were going to break into separate business units and they have made the decision to not do that," Ryan said.
The poor performance in the stock, as well in Pfizer's specialty pharma sector can be potentially linked to the decision to remain one company, she noted.