Pfizer profit misses mark, hurt by Lipitor fall

By Ransdell Pierson and Lewis Krauskopf

NEW YORK (Reuters) - Pfizer Inc on Thursday reported a worse-than-expected drop in quarterly earnings due to higher expenses and plunging U.S. sales of its flagship cholesterol fighter Lipitor, sending its shares down more than 3 percent.

The world's biggest drug maker said first-quarter net profit fell 18 percent to $2.78 billion, or 41 cents per share, from $3.39 billion, or 48 cents per share, a year earlier, when it took a big restructuring charge.

Excluding special items, Pfizer earned 61 cents per share. On that basis, analysts polled by Reuters Estimates had forecast 66 cents.

"The misses appear to be largely across the board, from the top line to the expenses," Morgan Stanley analyst Jami Rubin wrote in a research report. She said Lipitor sales were $300 million below her forecasts, and the main reason for the earnings shortfall.

Pfizer said it still expects earnings this year of $2.35 to $2.45 per share, excluding special items. That would represent growth of 6.8 percent to 11.3 percent, due largely to an ongoing aggressive cost-cutting program that has already eliminated more than 10,000 jobs.

"We see potential challenges in meeting this guidance," said Rubin, who noted the disappointing quarterly results highlight "potential cash-flow needs."

Shares of rival Swiss drugmaker Roche also fell 4.5 percent on Thursday, after it missed forecasts with weak sales gains, held back by sharply lower sales of its Tamiflu flu drug and waning sales growth for cancer drugs.