Pfizer cuts annual forecasts, blames strong dollar and loss of exclusivity

US drugs company Pfizer slimmed down its annual forecasts on Tuesday, despite reporting a 45% hike in quarterly profits.

Third-quarter revenues came in at $13.3bn, a 1% improvement on the same period last year, which Pfizer attributed to growth in key brands such as anticoagulant Eliquis and vaccine Prevnar 13, as well as a strong performance in emerging markets. Analysts had, however, been looking for revenues closer to $13.5bn.

Reported net income at the maker of Viagra and Advil rose to $4.1bn from $2.8bn, in part thanks to favourable tax changes. Adjusted diluted earnings per share was $0.78, a 16% improvement.

But the New York-based company said it was narrowing its guidance range for full-year revenues, to $53bn to $53.7bn from $53bn to $55bn.

It blamed lower-than-expected revenues from its Essential Health unit, which includes legacy drugs like Viagra which will soon lose, or have already lost, exclusively. It also pointed towards a supply problems at its sterile injectable facility in the US, and unfavourable foreign exchange rates on the back of a strong dollar. Pfizer gets over half its revenues from outside America.

Outgoing chief executive Ian Read, who will be replaced by Albert Bourla in January, called the third-quarter results “solid”, adding: “We believe we are well-positioned to develop and commercialise differentiated new medicines.”

Pfizer is to refocus under Bourla away from mergers and acquisitions towards developing a new pipeline of drugs. It will also divide into three core areas: Innovative Medicines; Established Medicines, for branded and generic drugs; and Consumer Health.

Read said: “Our new organisational structure allows us to focus on maximising the opportunity for our in-market products, advancing key pipeline programmes and accelerating growth in emerging markets.”