Pfizer on Tuesday projected 2018 earnings above analyst expectations following US tax reform as it offset the hit from patent expirations with higher sales from other drugs. Excluding a one-time lift from US tax reform that boosted reported profit by more than $11 billion, net income in the fourth quarter was $3.8 billion, up 30 percent from the year-ago period.
Revenues were up one percent at $13.7 billion. Products that experienced strong growth included Eliquis, which is used to treat irregular heartbeat, the vaccine Prevnar and the cancer drug Ibrance. These gains helped offset a $2.1 billion impact from lost marketing exclusivity in 2017 on other products, said Pfizer chief financial officer Frank D'Amelio.
Pfizer praised US tax reform, which it expects to lead to a 17 percent tax rate in 2018 on adjusted earnings, down from the previous expectation for 23 percent. That will allow it to report 2018 adjusted earnings per share of $2.90 to $3.00, above the $2.78 projected by analysts.
Pfizer reported net income in the fourth quarter of $12.3 billion, compared with $775 million in the year-ago period. The huge jump was due to a one-time $11.3 billion boost from US tax reform based on Pfizer's "provisional" analysis of US tax reform effects on deferred tax liabilities "and subject to further analysis." Shares of Pfizer fell 1.9 percent to $38.30 in pre-market trading.
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