Pfizer, Merck 1Q Profits Decline On Merger Costs |
| Wall Street Journal - May 4, 2010 |
Pfizer Inc. (PFE) and Merck & Co. (MRK) reported declines in first-quarter profits as both drug makers incurred costs digesting large acquisitions and felt the early effects of the U.S. health-care overhaul.
Both companies' sales and earnings excluding certain costs, however, exceeded Wall Street expectations. The drug makers also issued forecasts for 2010 earnings that reflect new costs from the health-care overhaul. Pfizer's forecast range brackets current Wall Street expectations, while Merck's leaves open the possibility of falling short.
Pfizer shares rose 35 cents, or 2%, to $17.26, while Merck shares were up 69 cents, or 2%, at $35.96 in recent trading.
Both Pfizer and Merck are trying to overcome challenges by diversifying and growing larger through huge acquisitions that closed last year. Each company faces significant sales erosion due to patent expirations for top-selling drugs; the acquisitions were meant to help offset the losses by bolstering product pipelines and generating significant cost savings. Pfizer acquired Wyeth in October for about $68 billion and Merck bought Schering-Plough in November for $49.6 billion.
Read Full Article from Wall Street Journal
- Posted: 2010-05-04 11:12:40
| More Stock Investor Place Top Stories |
 |
|
|
|
| Stock Investor Place Top Stories Archive |
|
|
|
