Pfizer, the world's largest drug maker, cut full-year revenue forecasts because generics could cut into sales of its anti-arthritis drug, Celebrex. Fred Katayama reports.
Pfizer's quarterly revenue fell as generic competition over blockbuster drugs like Viagra cut into sales. And the world's largest drug maker cut its revenue outlook for the full year because it foresees further generic competition eating into another big seller, its $3 billion anti-arthritis drug, Celebrex. It had lost a court ruling that now makes it possible for generic makers like Teva and Mylan to launch their versions in December. But with earnings and revenue topping estimates, Pfizer's stock rose slightly in early trading. The report did not elaborate on Pfizer's future plans for growth. It had withdrawn its $120 billion bid to acquire its British rival, AstraZeneca, in a move that would've beefed up its pipeline and enabled it to take advantage of the UK's lower tax rates. But under Britain's merger rules, Pfizer will be free to resume talks next month and pursue another bid in November. J.P. Morgan analyst Chris Schott said, "Absent an eventual friendly Astra deal, we would not be surprised to see Pfizer pursue other business development transactions to achieve greater critical mass in its operating segments as well as address its tax structure."