Pfizer Inc.(NYSE:PFE), the world's largest pharmaceutical, is reporting a 77% drop in 3rd quarter profit today after it decided to write off a multibillion dollar charge to divest itself of its Exubera franchise. Lower than expected sales of the company's blockbuster cholesterol drug, Lipitor, is also a factor in the loss. Add in financial woes from generic competition of both blood pressure medication Norvasc and antidepressant Zoloft and the pharma company took a huge hit.
Pfizer shares rose 15 cents today to $24.70 which is only a little more than $1 above its 52-week low of $23.13 in August.
Phasing out Exubera is part of the company's strategy to be "realistic, listen to customers and be disciplined on evaluating investments," said Jeff Kindler, chairman and chief executive, in a conference call. "We will, of course, carefully evaluate what happened in order to apply the lessons learned."
To counter the expected huge loss Pfizer has already been cutting jobs and closing facilities. Looking ahead the company lowered its outlook for 2007 to account for the Exubera charge.
[Source: Yahoo News Finance]
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