Pfizer upbeat at analysts meeting but EPS growth forecast for 2006 disappoints

Speaking to analysts in New York, USA, global pharmaceutical behemoth Pfizer has forecast strong growth for its key in-line prescription drugs in 2006, but its projections for profit and earnings per share disappointed, as did its recent 2005 financial results presentation (Marketletter January 30,) leading to a 2.5% drop to $25.68 in the company's share price on the day of the meeting, on February 10.

Pfizer said 2006 reported diluted EPS is expected to be $1.52-$1.56, or $2.00 excluding special items. This compares with analysts' consensus forecasts of $2.04 a share. Also, the company said it expects to see turnover on a par with 2005, due to the loss of exclusivity on some of its drugs and adverse foreign exchange rates, with revenue growth resuming in 2007.

Karen Katen, vice chairman and president of Pfizer Human Health, told analysts that strong growth is forecast for Lipitor (atorvastatin), the leading cholesterol-lowerer and the world's biggest-ever-selling drug, for which sales are projected at $13.0 billion in 2006. The company anticipates that sales of Celebrex (celecoxib) will increase to more than $2.0 billion and those of Lyrica (pregabalin) will triple to over $900.0 million in 2006.