Pfizer drops after Q3 numbers; cuts FY earnings guidance

Pfizer shares fell in pre-market trade after the drug maker reported a drop in profit for the third quarter and downgraded its expectations for the full year.

Quarterly profit declined to $1.32bn, or $0.21 a share, down from $2.13bn or $0.34. Adjusted earnings per share came in at $0.61 from $0.60 and revenue was up 8% to $13.05bn. Analysts had expected adjusted earnings of $0.62 and revenue of $13.05bn.

The company now expects earnings per share for the year of between $2.38 and $2.43, down from a previous forecast of $2.38 to $2.48. However, it upped the lower end of its revenue forecast, which now stands at between $52bn and $53bn compared to a previous range of $51bn to $53bn.

Chief financial officer Frank D’Amelio said: “We raised the midpoint of the range for our 2016 Revenue guidance primarily to reflect our strong performance to date and the inclusion of legacy Medivation operations in fourth-quarter 2016. The midpoint of our range for our 2016 adjusted diluted EPS guidance was negatively impacted solely due to our decision to discontinue development of bococizumab.”

The company said it had decided to end the development of cholesterol treatment bococizumab after it found it was not likely to provide value to patients, physicians or shareholders as its ability to lower bad cholesterol weakened over time.

At 1215 GMT, Pfizer shares were down 2.7% to $30.84 in pre-market trade.