Pfizer Inc.’s first-quarter profit slipped by 18 percent and the world’s largest drugmaker lowered its 2007 outlook, as fierce competition from cheaper drugs has considerably damaged two of its best-selling products, Norvasc for blood pressure and Zoloft for depression. The result still beats Wall Street’s anticipation, and some experts are of the view that the performance shows the pharmaceutical giant is on solid ground.
For the quarter ended March 31, the drugmaker has reported a gross income of $3.39 billion, or 48 cents a share, compared with $4.11 billion, or 56 cents a share, in the corresponding period last year. This year’s quarter included charges related to an ongoing restructuring and the acquisition of BioRexis Pharmaceutical Corp. and Embrex Inc.
As a matter of fact, Pfizer is still stumbling from the Food and Drug Administration’s decision announced yesterday to allow Mylan’s generic version of the blood-pressure medication Norvasc to stay on the market, ending the exclusivity of Pfizer’s drug six months earlier than expected. Apparently the early patent loss for its second best-selling drug, Norvasc has hit the firm with a heavy blow.
The agency however, denied endorsement to formulations from other generic competitors, on the contrary the availability of Mylan’s drug alone could translate a loss of more than $1 billion to Pfizer. Goldman Sachs analyst James Kelly has said that despite the Norvasc surprise, the sound first-quarter numbers could help boost investor confidence in the stock.
In addition, Pfizer also cautioned that a recent lower court verdict in Canada against the firm could endanger the company’s patent protection for Lipitor in that country.
Attending a call with investors, Pfizer management had said that Canadian sales of Lipitor were about $800 million to $900 million a year and the firm is contemplating to go in for appeal against the decision.
