Pfizer announces second quarter results

Pfizer has reported its financial results for the second quarter of 2005.

Revenues grew by 1% in comparison to the same period in 2004, amounting to $12.425bn. Net income was $3.463bn; merger-related costs totalled $178m, while $39m was spent in relation to the new 'Adapting to Scale' productivity initiative, a multi-year scheme to 'increase efficiency and streamline decision making', which is expected to yield $4bn in cost savings on an annual basis by 2008, based on a top-to-bottom business review completed during the first half of 2005. First announced in April, it follows the integration of Warner-Lambert and Pharmacia, which resulted in the tripling of Pfizer's revenues over the past five years.all on an after-tax basis. Excluding these items and the impact of discontinued operations of $9m, 'adjusted income' in the second quarter of 2005 fell by 5%, relative to the same period in 2004, to $3.424bn.

Its Human Health business generated revenues of $10.638bn, down 1%, reflect growth in the in-line portfolio, offset by sales declines associated with Celebrex and Bextra and generic competition to Neurontin, Diflucan, and Accupril. Big climbers were the Consumer Healthcare business, which made a 12% jump to $969m, while Animal Health revenues in-creased by 19% to $578m.

Nine of Pfizer's 'top 10 products' showed second-quarter growth as measured year to year, most markedly Camptosar, which rose 58% as a result of recent acquisition of rights in Europe; Detrol/Detrol LA, which was up 22%; and Lipitor, up 21%. Other strong performers were Aromasin, Zyvox and Relpax , which rose by 86, 39 and 34% respectively.

The company is in the process of launching at least three new medicines in 'important disease categories' in the US: Lyrica; Revatio; and Zmax. Revatio (sildenafil citrate) has already received FDA approval for the treatment of adult pulmonary arterial hypertension, as has Zmax (azithromycin extended release), a patented microsphere Zithromax formulation that provides a single-dose treatment for mild-to-moderate acute bacterial sinusitis and community- acquired pneumonia in adults. Meanwhile Macugen undertook a successful launch, attaining the number one rank in Verispan monthly physician claims share for neovascular age-related macular degeneration (AMD) within three months.

Several key milestones in the development of new products were achieved: the filing for Indiplon Immediate Release capsules was accepted in June by the FDA; production of torcetrapib/atorvastatin, a new medicine candidate under development to lower LDL cholesterol and raise HDL cholesterol, began at a $90m plant expansion in Loughbeg, Ireland; and supplemental filings were submitted in the US for the use of Genotropin, the human recombinant growth hormone, in the treatment of short stature and growth problems resulting from Turner's syndrome; for a new powder for oral suspension formulation of Vfend; and in the EU for use of Fragmin in treating deep vein thrombosis.