Pfizer Profits Decline 70% from Same Quarter Last Year

Despite a third-quarter revenue increase of 39 percent due to the acquisition of Wyeth, the deal has meant the New York-based Pfizer recorded a drop of 70 percent profit due to substantial charges during the transaction.

Monetarily, the 70 percent drop equates to $866 million, or 11 cents per share, down from $2.88 billion, or 43 cents per share, a year earlier.

Utilizing new Wyeth products such as biologic drug Enbrel for rheumatoid arthritis, Prevnar vaccine against ear and blood infections, and Premarin hormone replacement pills increased Pfizer's biggest division, the sale of prescription drugs, which increased to $13.95 billion, a healthy leap of 31 percent.

Pfizer saw a reduction in sales of Lipitor, the world's top-selling drug - an 11 percent drop at $2.53 billion - due to the availability of generic variants on the market; namely the cholesterol drug Zocor.

Lipitor also loses patent protection in November 2011, and its sales are expected to fall sharply after that. Pfizer did confirm that it doesn't foresee a decline in sales, with estimated 2012 sales of $65.2 billion to $67.7 billion. As a failsafe, , the company announced it would acquire King Pharmaceuticals, a maker of pain medications, for $3.6 billion, possibly to offset the losses posed by Lipitor.

Pfizer's other top sellers included Enbrel, at $799 million; Prevnar and a successor vaccine that prevents more strains of pneumococcal disease, at $914 million; and Lyrica, up 7 percent at $757 million.

Those drugs seeing a decline included Viagra, Celebrex and Norvasc.

Pfizer's veterinary medicines saw an increase of 27 percent ($860 million). Capsugel, remained stagnant at $176 million. According to the Associated Press, Pfizer is considering selling that unit.

Pfizer raised its 2010 earnings forecast to $2.17 to $2.22 a share from $2.10 to $2.20, likely to reduce costs by up to $5 billion by the end of 2012.

Operations increased 37 percent, or $3.9 billion, from Wyeth products.

From January to September, over half of Pfizer's revenue was drawn from abroad, accounting for 57 percent; 43 percent of sales came from the US.

Despite the 70 percent decline in comparison to the same quarter last year, Pfizer Chief Executive Jeffrey Kindler said in a statement: "I am particularly pleased with the speed of the integration, the cost synergies achieved to date as well as our solid financial performance this quarter and year to date in this difficult economic environment. This combination clearly creates value for our shareholders."

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