Wyeth moves into profit but disapoints

US health care major Wyeth has reported a swing to a $731.7 million profit, or $0.54 per share, for the fourth quarter of 2005, compared with a loss of $1.76 billion, or $1.32 a share in the like, 2004 period. Excluding restructuring charges, the firm's profit would have been $805.5 million, or $0.59 a share. However, the figures were weaker-than-expected due to lower turnover of the group's antidepressant Effexor (venlafaxine) and higher research costs, the latter jumping 36% to $876.0 million as the company prepared for New Drug Applications on a number of new compounds.

Worldwide revenues grew 2% to $4.7 billion for the quarter and 8% to $18.8 billion for the 2005 full year, when its net income reached $3.66 billion, or $2.73 a share, compared with $1.23 billion, or $0.93 per share, for 2004, the company said.

"Wyeth demonstrated strong product performance and 2005 was a year of significant strategic accomplishment," said Robert Essner, chief executive, adding that, "with strong growth from biotechnology products such as Enbrel (etanercept) and our vaccine, Prevnar, and contributions from our core pharmaceutical products such as Effexor and Protonix (pantoprazole), Wyeth is in the strongest competitive position in its history with five product franchises exceeding one billion dollars in annual revenues."