Pfizer beats forecasts, helped by cost cuts

Pfizer Inc reported higher-than-expected quarterly earnings, helped by cuts in research spending and other costs, and affirmed its 2012 profit forecast despite the negative impact of the stronger dollar.

The largest US drugmaker, whose shares rose 1.6% in premarket trading, said on Tuesday that it earned USD 3.25 billion, or 43 cents per share, in the second quarter. That compared with USD 2.61 billion, or 33 cents per share, a year earlier.
Excluding special items, Pfizer earned 62 cents per share. Analysts, on average, expected 54 cents, according to Thomson Reuters I/B/E/S.
Pfizer's global revenue fell 9% to USD 15.06 billion, hurt by generic competition against its Lipitor cholesterol fighter, but topped Wall Street expectations of USD 14.87 billion.
The company said its earnings beat was fueled by better-than-expected sales of Lipitor, nerve pain treatment Lyrica and its Enbrel drug for rheumatoid arthritis. It also cited declines in research spending, selling and administrative expenses, and costs of goods sold.
Pfizer in June said it planned to separate its animal health unit into a standalone company, allowing it to focus on its core pharmaceuticals business.
On Tuesday Pfizer said it plans by mid-August to ask regulators to approve a potential initial public offering of up to a 20% ownership stake in the new animal health business, to be called Zoetis.
Pfizer's animal health unit, with USD 4.2 billion in revenue last year, has more than 9,000 employees and sells medicines, vaccines and other products for livestock and pets.