Pfizer earnings fall as effect of publicity over painkillers is felt

By Stephanie Saul The New York Times

Thursday, April 21, 2005

Pfizer, the world's largest drug maker, has reported sharply lower first-quarter earnings, partly because of the fallout over its controversial Cox-2 inhibitor painkillers, Bextra and Celebrex. The company said on Tuesday that it took a $766 million charge related to the withdrawal of Bextra from the market and reported lower sales of its other arthritis drug, Celebrex.

A rival health care company, Johnson & Johnson, meanwhile, reported a doubt-digit earnings increase on record sales, driven largely by strong growth in its medical devices business. Johnson & Johnson also increased its earnings guidance for the year.

Pfizer, which is based in New York, earned $301 million, or 4 cents a share, a drop of 87 percent from the $2.33 billion, or 31 cents a share, it earned in the first quarter of 2004. The company said that in addition to its Cox-2 problems, results this year would be affected by the loss of U.S. exclusivity on four major drugs - Diflucan, Neurontin and Accupril last year and Zithromax in 2005.

But the picture was not all gloomy, thanks largely to continuing double-digit growth of the cholesterol-lowering drug Lipitor, one of the world's top-selling medicines. Sales increased 23 percent, to $3.075 billion, in the first quarter.

Pfizer's overall sales increased nearly 5 percent, to $13.09 billion. Without one-time charges, its earnings were $4 billion, or 54 cents a share, exceeding Wall Street expectations by 1 cent.

Pfizer earnings fall as effect of publicity over painkillers is felt
New Feature

Powered by Ultralingua

By Stephanie Saul The New York Times

Thursday, April 21, 2005
Pfizer, the world's largest drug maker, has reported sharply lower first-quarter earnings, partly because of the fallout over its controversial Cox-2 inhibitor painkillers, Bextra and Celebrex.
.
The company said on Tuesday that it took a $766 million charge related to the withdrawal of Bextra from the market and reported lower sales of its other arthritis drug, Celebrex.
.
A rival health care company, Johnson & Johnson, meanwhile, reported a doubt-digit earnings increase on record sales, driven largely by strong growth in its medical devices business. Johnson & Johnson also increased its earnings guidance for the year.
.
Pfizer, which is based in New York, earned $301 million, or 4 cents a share, a drop of 87 percent from the $2.33 billion, or 31 cents a share, it earned in the first quarter of 2004. The company said that in addition to its Cox-2 problems, results this year would be affected by the loss of U.S. exclusivity on four major drugs - Diflucan, Neurontin and Accupril last year and Zithromax in 2005.
.
But the picture was not all gloomy, thanks largely to continuing double-digit growth of the cholesterol-lowering drug Lipitor, one of the world's top-selling medicines. Sales increased 23 percent, to $3.075 billion, in the first quarter.
.
Pfizer's overall sales increased nearly 5 percent, to $13.09 billion. Without one-time charges, its earnings were $4 billion, or 54 cents a share, exceeding Wall Street expectations by 1 cent.
.
In a news release, the chief executive, Henry McKinnell Jr., characterized the company's performance as steady, but he said 2005 would be a transitional year.
.
Bextra was withdrawn from the market this month, but negative publicity surrounding the Cox-2 inhibitors had already led to a sales decline in the first quarter. Bextra revenue dropped to $56 million, 79 percent less than the $270 million in the first quarter of 2004.
.
The Food and Drug Administration asked Pfizer to stop selling Bextra because of its link to a rare but serious skin disorder. Pfizer said it disagreed with the agency's risk-benefit analysis of Bextra and was meeting with regulators in an effort to resume sale of the drug.
.
Celebrex remains on the market, but its sales were down to $411 million, the company said, as consumers and physicians focused on reports about heart risks associated with drugs in the Cox-2 class. In the first quarter of 2004, Pfizer sold $769 million of Celebrex.
.
Johnson & Johnson's record sales of $12.83 billion, up 11 percent, reflected stronger performance by medical devices as well as continued growth in some of its pharmaceutical products. Net income was $2.93 billion, or 97 cents a share, compared with $2.49 billion, or 83 cents a share, in the year-earlier period.
.
Sales of Remicade, used to treat autoimmune disorders, were up 22 percent, to $501 million. Sales of the company's antipsychotic drug Risperdal grew 16 percent, to $844 million. Revenue from its epilepsy drug Topamax increased 24 percent, to $406 million.
.
.
See more of the world that matters - click here for home delivery of the International Herald Tribune.
.
< < Back to Start of Article
Pfizer, the world's largest drug maker, has reported sharply lower first-quarter earnings, partly because of the fallout over its controversial Cox-2 inhibitor painkillers, Bextra and Celebrex.
.
The company said on Tuesday that it took a $766 million charge related to the withdrawal of Bextra from the market and reported lower sales of its other arthritis drug, Celebrex.
.
A rival health care company, Johnson & Johnson, meanwhile, reported a doubt-digit earnings increase on record sales, driven largely by strong growth in its medical devices business. Johnson & Johnson also increased its earnings guidance for the year.
.
Pfizer, which is based in New York, earned $301 million, or 4 cents a share, a drop of 87 percent from the $2.33 billion, or 31 cents a share, it earned in the first quarter of 2004. The company said that in addition to its Cox-2 problems, results this year would be affected by the loss of U.S. exclusivity on four major drugs - Diflucan, Neurontin and Accupril last year and Zithromax in 2005.
.
But the picture was not all gloomy, thanks largely to continuing double-digit growth of the cholesterol-lowering drug Lipitor, one of the world's top-selling medicines. Sales increased 23 percent, to $3.075 billion, in the first quarter.
.
Pfizer's overall sales increased nearly 5 percent, to $13.09 billion. Without one-time charges, its earnings were $4 billion, or 54 cents a share, exceeding Wall Street expectations by 1 cent.
.
In a news release, the chief executive, Henry McKinnell Jr., characterized the company's performance as steady, but he said 2005 would be a transitional year.
.
Bextra was withdrawn from the market this month, but negative publicity surrounding the Cox-2 inhibitors had already led to a sales decline in the first quarter. Bextra revenue dropped to $56 million, 79 percent less than the $270 million in the first quarter of 2004.
.
The Food and Drug Administration asked Pfizer to stop selling Bextra because of its link to a rare but serious skin disorder. Pfizer said it disagreed with the agency's risk-benefit analysis of Bextra and was meeting with regulators in an effort to resume sale of the drug.
.
Celebrex remains on the market, but its sales were down to $411 million, the company said, as consumers and physicians focused on reports about heart risks associated with drugs in the Cox-2 class. In the first quarter of 2004, Pfizer sold $769 million of Celebrex.
.
Johnson & Johnson's record sales of $12.83 billion, up 11 percent, reflected stronger performance by medical devices as well as continued growth in some of its pharmaceutical products. Net income was $2.93 billion, or 97 cents a share, compared with $2.49 billion, or 83 cents a share, in the year-earlier period.
.
Sales of Remicade, used to treat autoimmune disorders, were up 22 percent, to $501 million. Sales of the company's antipsychotic drug Risperdal grew 16 percent, to $844 million. Revenue from its epilepsy drug Topamax increased 24 percent, to $406 million.
.
.
See more of the world that matters - click here for home delivery of the International Herald Tribune.
.
< < Back to Start of Article
Pfizer, the world's largest drug maker, has reported sharply lower first-quarter earnings, partly because of the fallout over its controversial Cox-2 inhibitor painkillers, Bextra and Celebrex.
.
The company said on Tuesday that it took a $766 million charge related to the withdrawal of Bextra from the market and reported lower sales of its other arthritis drug, Celebrex.
.
A rival health care company, Johnson & Johnson, meanwhile, reported a doubt-digit earnings increase on record sales, driven largely by strong growth in its medical devices business. Johnson & Johnson also increased its earnings guidance for the year.
.
Pfizer, which is based in New York, earned $301 million, or 4 cents a share, a drop of 87 percent from the $2.33 billion, or 31 cents a share, it earned in the first quarter of 2004. The company said that in addition to its Cox-2 problems, results this year would be affected by the loss of U.S. exclusivity on four major drugs - Diflucan, Neurontin and Accupril last year and Zithromax in 2005.
.
But the picture was not all gloomy, thanks largely to continuing double-digit growth of the cholesterol-lowering drug Lipitor, one of the world's top-selling medicines. Sales increased 23 percent, to $3.075 billion, in the first quarter.
.
Pfizer's overall sales increased nearly 5 percent, to $13.09 billion. Without one-time charges, its earnings were $4 billion, or 54 cents a share, exceeding Wall Street expectations by 1 cent.
.
In a news release, the chief executive, Henry McKinnell Jr., characterized the company's performance as steady, but he said 2005 would be a transitional year.
.
Bextra was withdrawn from the market this month, but negative publicity surrounding the Cox-2 inhibitors had already led to a sales decline in the first quarter. Bextra revenue dropped to $56 million, 79 percent less than the $270 million in the first quarter of 2004.
.
The Food and Drug Administration asked Pfizer to stop selling Bextra because of its link to a rare but serious skin disorder. Pfizer said it disagreed with the agency's risk-benefit analysis of Bextra and was meeting with regulators in an effort to resume sale of the drug.
.
Celebrex remains on the market, but its sales were down to $411 million, the company said, as consumers and physicians focused on reports about heart risks associated with drugs in the Cox-2 class. In the first quarter of 2004, Pfizer sold $769 million of Celebrex.
.
Johnson & Johnson's record sales of $12.83 billion, up 11 percent, reflected stronger performance by medical devices as well as continued growth in some of its pharmaceutical products. Net income was $2.93 billion, or 97 cents a share, compared with $2.49 billion, or 83 cents a share, in the year-earlier period.
.
Sales of Remicade, used to treat autoimmune disorders, were up 22 percent, to $501 million. Sales of the company's antipsychotic drug Risperdal grew 16 percent, to $844 million. Revenue from its epilepsy drug Topamax increased 24 percent, to $406 million.