Pharmaceutical Companies Post Mixed Earnings
Pfizer Inc. swung to profitability in the second quarter, but earnings fell at Merck & Co. and Wyeth, and Schering-Plough Corp. on Wednesday reported its fourth straight loss -- all signs that the pharmaceutical industry’s struggles with patent losses, lawsuits and increased competition continue.
Pfizer, the world’s largest drug company, reported net income of $2.86 billion, or 38 cents a share, contrasted with a loss of $3.59 billion, or 48 cents, a year earlier. The loss stemmed from its purchase of Pharmacia Corp. last year.
After acquisition-related costs, discontinued operations and other unusual items, Pfizer earned $3.61 billion, or 47 cents a share, up from $2.34 billion, or 30 cents, a year earlier.
Revenue rose 24% to $12.3 billion. Revenue from impotence pill Viagra fell 7% to $389 million.
Pfizer shares fell 33 cents to $32 on the New York Stock Exchange.
Schering-Plough reported a net loss for the quarter of $65 million, or 4 cents a share, contrasted with net income of $182 million, or 12 cents, a year earlier.
Excluding one-time charges totaling $122 million, or 6 cents a share, the company earned 2 cents a share.
Schering-Plough shares rose 21 cents to $19 on the NYSE.
Merck reported a 1% drop in second-quarter profit as higher costs for production and research and development outweighed increased sales.
The maker of osteoporosis treatment Fosamax and cholesterol drug Zocor said net income was $1.77 billion, or 79 cents a share, down from $1.78 billion, or 79 cents, a year earlier. Revenue totaled $6.02 billion, up 9%.
Merck shares fell 24 cents to $44.59 on the NYSE.
Wyeth reported a 4% drop in second-quarter profit, citing increased research and development costs as it worked to improve its pipeline in the face of lawsuits over its diet drugs.
The maker of antidepressant Effexor and arthritis drug Enbrel said net income was $827.3 million, or 62 cents a share, compared with $864.4 million, or 65 cents, a year earlier. Revenue increased 13% to $4.2 billion.
Wyeth shares rose 44 cents to $34.70 on the NYSE.
