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 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.