May 5 - Profit and revenue fell at Pfizer as generic drugs ate away at Lipitor and other products whose patents have expired. Fred Katayama reports.
Pfizer could use some Viagra. The company pursuing AstraZeneca saw its profit and revenue fall in the latest quarter. And those results show why it badly needs the British drugmaker: patent expirations on its key drugs are hammering away at revenue. Generic drugs keep eating away at its cholesterol fighter, Lipitor. And revenue fell at its consumer healthcare business because the cold and flu season turned out to be mild in North America. The earnings statement did not mention its drive to buy AstraZeneca, except to say that it could not confirm or update its per share earnings forecast due to UK regulations. Three times Pfizer has proposed, and three times, AstraZeneca has said no. It said Pfizer's latest sweetened offer "substantially undervalued" the company. Here's Bill Smead, whose Smead Capital Management holds nearly 90,000 Pfizer shares: SOUNDBITE: BILL SMEAD, CEO, SMEAD CAPITAL MANAGEMENT (ENGLISH) SPEAKING: "So far the dance steps you see are the ones you see in the process of not a hostile deal but one that ultimately gets done. So you start out and say, you know we think you're kind of attractive and we think $100 billion. And then you say, we don't only think you're attractive but you've got a nice smile, here's 106 and you keep moving up." Pfizer's stock hasn't danced well. It has underperformed its rivals this year, and it fell at the start of trade.