Pfizer's quarterly revenue soared on strong sales of a breast cancer treatment and the acquisition of Hospira's drugs. But profit dropped as Fred Katayama reports.
Pfizer's quarterly revenues zoomed higher, bolstered by strong sales of its new breast cancer drug Ibrance and treatment to relieve pain, Lyrica. Also boosting revenue: its acquisition of Hospira whose injectible drugs and devices are used at hospitals. Pfizer, which makes Viagra and Advil, has been acquiring companies to boost its product pipeline as its drug patents face expirations. Profit dropped. It was partly hurt by restructuring and impairment charges and the $150 million breakup fee it paid Allergan. Pfizer planned to buy the Botox maker so it could move its headquarters to Ireland where Allergan is based to save on its tax bill. It dropped the bid after facing resistance from the U.S. Treasury. Credit Suisse analyst Vamil Divan said, "We expect investors to view the quarter as a positive but maintain their focus on the strategic outlook of the company." Pfizer's profit and revenue beat Wall Street's expectations, but investors took profit on their shares in early trading, chipping away at the stock's nearly 16 percent gain this year.