In its recent earnings report,Pfizer,the world's largest pharmaceutical company,posted 6% profit growth on cost-cutting and share buybacks.Sales declined 5% on patent expirations of cholesterol drug Lipitor and others taking effect.
Despite the loss of patent protection,Pfizer isn't giving up promoting its cardiovascular blockbuster.Lipitor is still being marketed with a 4 dollar copay card and television advertising.Sales of the drug dropped 40% in Q4 when its patent expired.The company says it hasn't yet decided whether the ad campaign will continue long term.Liptior was advertised on television more than any other prescription drug last year.
Pfizer has promising new drugs in its pipeline,such as lung cancer treatment Xalkori,rheumatoid arthritis drug tofacitinib,and atrial fibrillation medicine Eliquis.
Eliquis was granted priority review by the Food and Drug Administration.Morninstar Associates projects an 80% chance of approval for the medicine,with a potential for 3 billion dollars in sales.Profits from it would be shared with Bristol-Myers Squibb.
Pfizer continues its aggressive cost-cutting,and is well on the way to its goal of 4 billion dollars annually.The company is expected to finalize the divestiture of its animal health and nutritional segments later in 2012.Morningstar values these businesses at 11 and 7 billion dollars,respectively,says Damien Conover,CFA,Associate Director at Morningstar.
Pfizer(PFE),Bristol-Myers Squibb(BMY)
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