US pharmaceutical giant Pfizer reported higher earnings but also a nine percent drop in revenues as some of its most popular drugs became generics.
Pfizer reported net income of $2.75 billion, up 53 percent from $1.79 billion in the year-earlier period. Revenues came in at $13.50 billion, down from $14.89 billion in the year-earlier period.
Pfizer’s per-share earnings came in at 38 cents. It had been forecast by analysts to report 56 cents per share.
Pfizer said the drop in revenue was primarily the result of losses of exclusivity of its Lipitor anti-cholesterol drug in the second quarter of 2012 in Europe and Geodon, a schizophrenia drug, in March 2012 in the US.
Pfizer’s profits were boosted by a $490 million gain related to an investment in China and by the absence of a $450 million charge related to litigation in the prior year.
Pfizer also reported lower research and development expenses and selling and administrative expenses.
Pfizer executives noted the company spent $8 billion on dividends and share repurchases so far in 2013. They said recent product launches have set the company up to benefit further.
“We remain focused on driving innovation and managing the business in the context of the challenging operating environment to ensure Pfizer remains well-positioned for long-term value creation,” said chief executive Ian Read.
Pfizer shares were down 4.5 percent in pre-market trading.
Pfizer profits up despite 9 percent revenue drop
