Pfizer swings to fourth quarter loss due to restructuring, asset writedowns

  • Bizline
New York

Feb 2, 2019-

Pfizer lost $394 million in the fourth quarter as it booked billions in charges for layoffs and losses related to the acquisition of a trouble-plagued business that makes sterile injectable medicines. Pfizer edged past Wall Street’s profit expectations, but its 2019 financial forecast was far below what analysts anticipated. Shares were under pressure in early trading, but rose 2 percent by Tuesday afternoon. The biggest US drugmaker posted a $12.3 billion profit in the same period last year thanks to a $10.7 billion benefit from the US tax overhaul. Tuesday’s weak forecast, the first under new Chief Executive Albert Bourla, caught some off guard after Pfizer’s impressive streak of getting four new cancer drugs, all likely billion-dollar sellers, approved in the final 14 weeks of last year. Bourla said in an interview that Pfizer’s revenue will return to growth starting in 2021, driven by its cancer treatment franchise, drugs including stroke-preventer Eliquis and Xeljanz for rheumatoid arthritis and colitis, and anticipated approvals of new vaccines and a non-opioid pain reliever targeting roughly 50 million Americans with chronic back pain and osteoarthritis. Bourla said drug price increases, which have brought Pfizer intense criticism along with billions in extra revenue, will no longer drive growth. He expects net drug prices to be down about 1 percent in the US this year. (AP)

Published: 02-02-2019 12:26

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