Pfizer Inc on Tuesday reported a 9 per cent increase in second-quarter profit, trouncing Wall Street expectations as its revenue jumped sharply due to its mega-acquisition of fellow drugmaker Wyeth last October.
The maker of cholesterol blockbuster Lipitor and impotence pill Viagra said net income for the three months ending July 4 rose to $2.48 billion, or 31 cents per share, from $2.26 billion a year earlier.
Earnings per share were 34 cents in the year-ago period; Pfizer had fewer shares then because it sold new stock to help fund the Wyeth purchase.
Pfizer, the world's biggest drugmaker by sales, said revenue totaled $17.33 billion, up 58 per cent from $10.98 billion in 2009's second quarter.
Excluding 31 cents worth of one-time items, income was $4.96 billion, or 62 cents a share.
Those items included $1.1 billion before taxes for integration of Wyeth's systems, employee severance and other restructuring, along with $2.1 billion before taxes for asset write-downs and other accounting charges related to the Wyeth purchase.
Analysts expected earnings per share of 52 cents on revenue of $16.65 billion, according to a survey by Thomson Reuters.
The company reaffirmed its profit forecast for 2010, saying it expects revenue of $67 billion to $69 billion and earnings per share of 95 cents to $1.10, or $2.10 to $2.20, excluding one-time items. Analysts expect $2.16 per share, on average.
"We continue to make solid progress on the Wyeth integration while we remain focused on delivering strong business performance," Chief Executive Jeff Kindler said in a statement.
Pfizer bought Wyeth for $68 million in a move to diversify the company by adding Wyeth's prized biologic drug operation, consumer health products such as Centrum vitamins and an animal health business to bolster Pfizer's existing one.
In premarket trading, Pfizer shares added 3.9 per cent to $16.08. Sales were up sharply in Pfizer's four biggest prescription drug divisions.
The primary care business had revenue of $5.92 billion, followed by $3.77 billion for specialty care products, including Wyeth's blockbuster biologic drug for rheumatoid arthritis, Enbrel.
Sales in emerging markets were up 55 per cent to $2.25 billion, and sales of established products that have lost patent protection in some countries jumped 63 per cent to $2.73 billion. Cancer drug sales slipped 2 per cent to $349 million.
Altogether, prescription drugs brought in $15.02 billion, up 49 per cent. Revenue for animal health products totaled $893 million and consumer health products brought in $678 million.
For the first six months, Wyeth posted net income of $4.5 billion, or 56 cents per share, down 10 per cent from $4.99 billion, or 74 cents a share, in the first half of 2009.
Revenues climbed 56 per cent, to $34.08 billion from $21.85 billion.