Page 24 - aruba-today-20170503

Wednesday 3 May 2017 BUSINESS
A24

Pfizer beats Wall Street 1Q profit forecasts, but sales slip

LINDA A. JOHNSON 2016. cer drugs are in testing and income of $3.12 billion, or tected newer drugs rose 5
AP Medical Writer Its $14 billion buyout of can- it expects steady approvals 51 cents per share, up from percent to $7.42 billion.
Pfizer beat Wall Street ex- cer drug developer Medi- over several years. $3.04 billion, or 49 cents per Sales of Prevnar 13, the top-
pectations for first-quarter vation last September gave CEO Ian Read said Tuesday share, a year earlier. Adjust- selling vaccine ever, fell 7
profit thanks to reduced percent to $1.4 billion. The
spending on operations company made $1.13 bil-
and legal costs, plus strong lion from fibromyalgia and
sales of key new drugs and pain treatment Lyrica, up
longtime blockbuster pain 7 percent, and $679 million
treatment Lyrica. from new breast cancer
But revenue at the top U.S. drug Ibrance, up 59 per-
drugmaker dipped 1 per- cent. Sales of older drugs
cent as competition inten- with expired patents fell
sified from rival brands and 10 percent, to $5.36 billion;
generic copycats. Pfizer is consumer health sales in-
near the end of a years- creased 3 percent, to $848
long stretch in which ge- million.
neric competition cut into Pfizer Inc. reaffirmed its Jan-
revenue from its one-time uary forecast for full-year
blockbuster drugs, includ- earnings between $2.50
ing cholesterol, heart and and $2.60 per share, with
pain drugs. Near-copies of revenue between $52 bil-
Enbrel, an injected immune lion and $54 billion.
disorder drug it sells over- Edward Jones analyst
seas, cut sales 18 percent Ashtyn Evans called it a
to $588 million in the quar- mixed quarter, with dis-
ter, for example. appointing sales of some
This year, drugs with sales of Flags fly in front of Pfizer World Headquarters, in New York. Pfizer Inc. reports earnings, Tuesday, new medicines but prom-
about $2.5 billion face ge- May 2, 2017. Pfizer beat Wall Street expectations for first-quarter profit thanks to reduced spending ise from a “solid portfolio of
neric competition, includ- on operations and legal costs. (AP Photo/Mark Lennihan) new products.”
ing Viagra, which gets its “We believe the compa-
first U.S. generic competi- ny will need to add to its
tion late this year. it prostate cancer drug that the company will con- ed earnings were 69 cents new drug portfolio to drive
Pfizer, which has boosted Xtandi, which had sales of tinue to look for deals, but per share, two cents more growth,” Evans wrote, add-
sales and its pipeline of fu- $131 million in the quarter. is also monitoring potential than expected. ing that’s likely if U.S. corpo-
ture drugs through acquisi- That helped boost Pfizer’s changes in tax law and Revenue totaled $12.78 bil- rate tax reform happens.
tions in the past, complet- oncology sales 36 percent, health care policy. lion, missing forecasts for In early-afternoon trading,
ed two purchases and an to $1.35 billion. The compa- The New York company $13.04 billion. Pfizer shares fell 28 cents to
asset sale since January of ny told analysts more can- on Tuesday reported net Sales of Pfizer’s patent-pro- $33.50. q

Aetna takes 1Q loss on failed Humana bid, ups 2017 forecast

TOM MURPHY while also cutting back on help the poor. na, like other insurers, has Corp. last summer. Federal
AP Health Writer troublesome products like Premiums collected from drastically scaled back the judges then rejected both.
Aetna booked a $381-mil- individual insurance that that business jumped 9 per- coverage it sells on the Af- Days after calling off the
lion, first-quarter loss mainly complies with the Afford- cent to more than $7 bil- fordable Care Act’s public Humana deal, Aetna told
due to its failed bid for rival able Care Act. lion for Aetna in the quar- exchanges after incurring shareholders it was dou-
Humana, but the nation’s Aetna and other insurers ter, surpassing commercial deep losses. The insurer sold bling its quarterly cash divi-
third largest health insurer have been expanding their coverage for the first time. coverage on exchanges in dend to 50 cents a share
still beat earnings expec- government business in re- Chairman and CEO Mark only four states this year, and that it would buy back
tations and raised its 2017 cent years as more people Bertolini told analysts that compared with 15 last year. more shares.
forecast. become eligible for Medi- government business con- Its individual commercial Aetna Inc. also said Tues-
The company said Tues- care Advantage plans that tinues to be “the predomi- coverage, a small part of day that it now expects
day that it is relying more care for those over age 65 nant driver of our growth.” overall business, still causes 2017 adjusted earnings of
on government-funded and as state governments Overall, Aetna reported problems. Aetna said Tues- $8.80 to $9 per share, up
Medicaid and Medicare turn to insurers to manage earnings of $2.71 per share, day that it set aside $110 from its previous projection
Advantage coverage Medicaid programs that adjusted for one-time gains million in the quarter for for at least $8.55 per share
and costs, on $15.24 bil- greater than expected and more in line with Wall
lion in operating revenue, losses in 2017. Street forecasts.
which excludes investment Aetna also recorded $1.2 Analysts expect, on aver-
income. Analysts expected billion in breakup and ter- age, earnings of $8.88 per
adjusted earnings of $2.36 mination fees in the quar- share for 2017, according
per share on $15.48 billion ter after ending a roughly to FactSet.
in revenue, according to $34-billion purchase of Shares of Hartford, Con-
Zacks Investment Research. Medicare Advantage pro- necticut-based Aetna hit
The insurer’s revenue vider Humana Inc. a new all-time high price of
slipped in the first quarter Antitrust regulators had $139.44 before retreating
due partly to the suspen- sued last summer to stop to $138.50 by midday. The
sion of a health insurance that deal and a separate stock has climbed about
fee and a drop in com- combination of the insur- 10 percent since the start
mercial enrollment. Aet- ers Anthem Inc. and Cigna of the year. q