The U.S.' largest drugmaker scaled back its profit outlook for the year and said it's stopping development of the cholesterol drug, bococizumab. Fred Katayama reports.
A bitter pill for Pfizer investors. The U.S.' largest drugmaker saw quarterly profit plunge 38 percent. Slamming the bottom line: a 39 percent spike in expenses, partly owing to restructuring charges and costs related to the acquisitions of Hospira and Medivation. What's more, Pfizer scaled back its profit outlook for the year. It also said it's abandoning development of its cholesterol drug, bococizumab. Pfizer said the drug became less effective over time in lowering "bad" cholesterol. Two rival drugs had hit the market earlier. Credit Suisse analyst Vamil Divan said, "We view the boco termination as a modest negative." One bright spot: revenue rose, but thanks mostly to the Hospira acquisition. Wall Street is focused on what the company will do now that it has decided not to split itself into two parts - the faster growing newer drugs business led by pain drug Lyrica and its business of established treatments like anti-cholesterol drug Lipitor. Pfizer's shares have fallen nearly 6 percent since it made that decision in September, and they lost further ground at the market open on Tuesday.