CNNMoney.com
Companies Economy International Corrections Pre-market Trading After-hours Trading Winners/Losers/Actives Bonds Currencies Commodities World Markets Money Magazine Real Estate Taxes Jobs Ask the Expert Money 101 Autos Mutual Funds The Help Desk Loan Center Best Places to Live Ask the Expert Ultimate Guide to Retirement Retirement Calculators Rules of Retirement Best Funds Best Places to Retire Fortune Brainstorm Tech Apple 2.0 Blog Big Tech Blog Sectors and Stocks Tech Talk Resource Guide Small Business Makeovers Questions & Answers Small Business Video 100 Best Places to Launch FSB 100 Fortune Small Business Fortune 500 Brainstorm Tech Investing Management C-Suite Rankings Main Create Portfolio Edit Portfolio Create Alerts Edit Alerts
Lipitor: cause for concern?
Sales growth slows for the world's top-selling drug in 4Q, but new Medicare coverage could help, Pfizer says.
By Aaron Smith, CNNMoney.com staff writer


NEW YORK (CNNMoney.com) - Lipitor, the world's top-selling drug from the world's biggest drug company, created cause for concern in Pfizer's 2005 fourth quarter.

Pfizer triumphantly announced Thursday that worldwide sales for Lipitor, a cholesterol-reducing statin, surged 12 percent in 2005 to $12.2 billion, a record high for annual revenue from any drug. Pfizer (up $0.86 to $24.95, Research) stock was up almost 4% in afternoon trading on the New York Stock Exchange.

However, analysts tuning into Pfizer's earnings webcast this afternoon were more concerned about where Lipitor sales are going in 2006. In the fourth quarter, 2005, Lipitor sales grew 3 percent from the fourth quarter, 2004, arousing concerns among analysts that sales growth is slowing.

Peter Brandt, senior vice president for Pfizer Global Pharmaceuticals Finance, told analysts "it's too early to tell whether we have a trendable event" in the slowing of Lipitor sales.

Brandt and chief executive officer Henry McKinnell also said that Lipitor sales could benefit from coverage in the newly enacted Medicare prescription drug benefit and from increased popularity in Germany. However, Brandt and McKinnell declined to provide more detail, saying that such questions will be answered at an investor's conference on Feb. 10.

"The Medicare prescription drug benefit is certainly a positive," said Brandt. "That's something, as Hank said, that we hope to have a better handle on sometime in February."

Pfizer also plans to release financial forecasts at its Feb. 10 meeting. Last October, Pfizer pulled guidance for 2006 and 2007, triggering a loss of about one-quarter of its value. Pfizer's stock has since recovered from the financial guidance fallout.

In fourth quarter, 2005 earnings announced today, Pfizer said quarterly sales for the company fell 9 percent to $13.6 billion. Net income also slipped in the fourth quarter, to $2.7 billion, or 37 cents per share, from $2.8 billion, or 38 cents, in the same period the year before.

----------------------------------------------------

To read more about Pfizer's fourth quarter earnings, click hereTop of page

YOUR E-MAIL ALERTS
Follow the news that matters to you. Create your own alert to be notified on topics you're interested in.

Or, visit Popular Alerts for suggestions.
Manage alerts | What is this?
© 2009 Cable News Network. A Time Warner Company. All Rights Reserved. Terms under which this service is provided to you. Privacy Policy. Advertising Practices.
Copyright © 2009 BigCharts.com Inc. All rights reserved. Please see our Terms of Use.
MarketWatch, the MarketWatch logo, and BigCharts are registered trademarks of MarketWatch, Inc.
Intraday data provided by Interactive Data Real-Time Services and subject to the Terms of Use.
Intraday data is at least 20-minutes delayed. All times are ET.
Historical, current end-of-day data, and splits data provided by Interactive Data Pricing and Reference Data.
Fundamental data provided by Morningstar, Inc..
SEC Filings data provided by Edgar Online Inc..
Earnings data provided by FactSet CallStreet, LLC.