Shares of pharmaceutical companies Pfizer and Merck rose in pre-market trading Tuesday on positive quarterly earnings results.
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“Our research pipeline continues to advance with a focus on therapeutic areas of high unmet need”, said Pfizer chief executive Ian Read, adding that recent advances “could support the development of potential important new therapies to further strengthen our innovative products business”.
During the quarter, Pfizer completed its $16 billion deal to buy its smaller rival, which has transformed New York- based Pfizer into a leading player in the emerging market for lower-priced versions of costly biotech drugs.
Both Pfizer and Merck are also struggling with unfavorable currency exchange rates, they said.
But a 16% decline in the established drug business, or an 8% decrease on an adjusted basis, offset that strength. Earnings, adjusted for one-time gains and costs, came to 60 cents per share.
Net income fell to $2.13 billion, or 34 cents per share, in the third quarter, from $2.67 billion, or 42 cents per share, a year earlier.
Pfizer topped analyst expectations for the third quarter and raised its 2015 earnings forecast again, as sales growth from several products helped the world’s second-largest drugmaker counter costs tied to a $17-billion acquisition and pressure from foreign exchange rates.
Pfizer sells the pain and fibromyalgia treatment Lyrica and the erectile dysfunction drug Viagra among many other drugs. The average estimate of 10 analysts surveyed by Zacks Investment Research was for earnings of 91 cents per share.
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Wyndham expects full-year earnings in the range of $5.06 to $5.09 per share, with revenue in the range of $5.45 billion to $5.55 billion. The company now predicts revenue of $47.5 billion to $48.5 billion, up from its previous guidance of $46.5 billion to $47.5 billion.
