Summary
Pfizer Inc. reported a 5% decrease in revenues for the first quarter of 2008, reaching $11.8 billion, down from $12.5 billion in the prior year's comparable quarter. This decline was primarily driven by the loss of exclusivity for key drugs such as Norvasc, Zyrtec/Zyrtec D, and Camptosar, which significantly impacted U.S. sales. Despite revenue pressures, the company's net income saw a more substantial decrease of 18%, falling to $2.78 billion from $3.39 billion year-over-year. This was influenced by increased acquisition-related charges and the ongoing impact of cost-reduction initiatives. Pfizer continued its strategic acquisitions, notably acquiring CovX and Coley Pharmaceutical Group, while also engaging in share repurchases, though at a lower rate than the previous year.
Key Highlights
- 1Total revenues decreased by 5% to $11.8 billion, impacted by patent expirations and generic competition on key products like Norvasc and Zyrtec/Zyrtec D.
- 2Net income declined by 18% to $2.78 billion, reflecting higher acquisition-related in-process R&D charges and restructuring costs.
- 3Earnings per diluted share (EPS) decreased to $0.41 from $0.48 year-over-year.
- 4Research and Development expenses increased by 8% to $1.79 billion, partly due to implementation costs from cost-reduction initiatives.
- 5The company completed strategic acquisitions of CovX and Coley Pharmaceutical Group, incurring $398 million in acquisition-related in-process R&D charges.
- 6Cost-reduction initiatives are progressing, with significant progress reported in plant network optimization and workforce reductions.
- 7Cash provided by operating activities significantly increased to $3.3 billion, compared to $1.2 billion in the prior year's quarter, mainly due to lower tax payments.