Pfizer share price down, projects lower sales on stronger dollar

Pfizer Inc announced on Tuesday it expects a drop in sales this year as the largest US drugmaker reported a decline in revenue during the fourth quarter.

Pfizer stated a revenue of $13.12 billion during the three months ended December 31, down 3.3% from last years $13.55 billion.

Net income for the quarter stood at $1.23 billion, or $0.19 per share, compared to $2.57 billion, or 29 cents a share, a year earlier. Excluding some items, earnings per share dropped to $0.54.

According to a survey conducted by Thomson Reuters, analysts had projected per-share earnings of $0.53 on a $12.9 billion revenue.

New York-based Pfizer is looking for new ways to generate revenue after patent for its great-selling medicines expired, including Celebrex and Lipitor. The company has hinted it is looking to make a significant purchase, following last years failed $120-billion acquisition of AstraZeneca.

The deal with the UK drugmaker would have given Pfizer access to AstraZenecas oncology pipeline, while also providing the opportunity of reducing its tax expenses by moving its headquarters outside of the US.

However, after a boom of the so-called inversion deals the US Treasury Department introduced restrictions in order to limit the tax gains of such deals.

Since then, Pfizer has been rumored to have engaged in talks with Actavis over a possible takeover. Speculations have also linked Pfizer to Teva Pharmaceutical Industries, but the Israeli company rebuffed its offer almost immediately.

Pfizer reported a 11% revenue decline to $6.41 billion in its global established products, which accounted for more than half of the companys revenue during the three months. Revenue from global innovative products edged up 3% to $3.75 billion, while global vaccines climbed 18% to $1.32 billion.

Total expenses increased 4% and reached $8.54 billion, as the company spent 14% more, or $2.04 billion, on research and development efforts.

For the full-year of 2014 Pfizer stated revenue of $49.6 billion and profit of $2.26 per share, while also projecting revenue figures to range between $44.5 and $46.5 billion for 2015 accompanied with between $2.00 to $2.10 per share earnings. In comparison a Thomson Reuters survey showed expectations of $2.18 per-share earnings with a revenue of $47.56 billion.

The company also said it expect its full-year 2015 results to be reduced by $2.8 billion due to the stronger dollar and $3.5 billion because of product losses.

“We remain in a strong financial position that will enable us to invest in our business at appropriate levels, continue to pursue attractive business development activities and also continue to return meaningful capital directly to our shareholders,” said Chief Executive Officer Ian Read.

Pfizer Inc gained 1.08% on Monday and closed at $32.80 in New York, marking a one-year increase of 9.01%. The company is value at $206.66 billion. On Tuesday the stock lost 1.07% at 14:22 GMT during pre-market trading.

According to CNN Money, the 19 analysts offering 12-month price forecasts for Pfizer have a median target of $35.00, with a high estimate of $40.00 and a low estimate of $29.00. The median estimate represents a 6.71% increase from the last close price.