Pfizer Sales Disappoint

Pfizer, the New York-based company reported lower than expected first quarter sales due to reduced demand for Viagra and Lipitor.

The drug maker’s revenue dropped by 9% to $11.4 billion against analysts’ expectation of $12.1 billion. First quarter earnings, without one-time items, were 57 cents per share.

The company is pursuing to acquire London-based AstraZeneca in one of the biggest ever industry deals which would make it the world’s biggest pharmaceutical producer.

Pfizer’s bid of $106 billion was rejected by AstraZeneca on May 2. The U.K. government is concerned that the deal might cut jobs in the British pharmaceutical industry.

Net Results

Net income dropped from $2.75 billion to $2.33 billion. Total drug sales in the first quarter decreased by 9% to $10.5 billion. Sales of Pfizer’s pneumonia vaccine, Prevnar, were very little changed at $927 million. Sales of Pfizer’s pill for erectile dysfunction, Viagra, fell by 19% to $374 million.

Pfizer’s biggest business is the Global Establish Products business consisting of older and off-patent drugs, including Lipitor, recorded $5.99 billion sales. Lipitor revenue decreases 27% to $457 million. The Global Innovative Products business, a unit of brand drugs, saw sales decrease by 7%, because Pfizer lost revenue from a rheumatoid arthritis treatment, Enbrel. Sales of the 3rd unit, vaccines and cancer increased.

Results of the quarter were assisted by 11% fall in cost of sales that reduced to 2.05 billion. Administrative expenditures decrease 6% to $3.04 billion, and research and development expenses declined 5% to $1.62 billion.