Pfizer profit falls owing to strong dollar and Wyeth acquisition

Drug giant Pfizer saw its second-quarter profit fall 19% as the strong dollar, higher taxes and costs incurred in connection with the pending acquisition of Wyeth had a negative impact on its bottom line. Net income in the second quarter to 28 June was US$2.3bn.

For the first half, Pfizer reported net income of US$5bn, a decline of 10% compared with the same period in 2008. Revenues dropped 9% to US$11bn in Q2 and by the same percentage in the first-half to US$22bn. The company blamed the strong dollar, which weakened the value of overseas sales. International sales represented 59% of Pfizer's overall revenue in the second quarter.

The loss of US exclusivity for allergy treatment Zytec and cancer drug Camptosar and the loss of exclusivity in Japan for blood pressure treatment Norvasc had a negative impact on sales, while cholesterol drug Lipitor saw sales fall 10% to US$2.7bn amid increasing competition. Sales of smoking cessation drug Chantix/Champix fell by 7% to US$192m, mainly due to US warnings about possible side effects. There were some brighter spots as sales of Pfizer's Lyrica drug for neuropathic pain grew 2% to US$629m and cancer drugs Sutent and Aromasin performed strongly in international markets.

"Our results this quarter demonstrate our ability to continue to deliver solid operational performance despite a challenging and dynamic economic and operating environment," said Jeff Kindler, chairman and ceo of Pfizer.

He added that "significant progress" has been made in connection with its US$68bn purchase of Wyeth, which should be completed by the fourth quarter.

"At the same time, we remain focused on meeting our commitments - generating revenues consistent with our expectations and continuing to streamline our cost structure," he said.

Pfizer has been cutting spending on r&d and reducing headcount. More than 10,000 jobs have been cut and several plants closed since January 2008.