Pfizer Inc.'s (NYSE:PFE) second-quarter profit rose as accounting associated with a major restructuring helped offset worse-than-expected revenue and a continuing slide in sales of the cholesterol-lowering drug Lipitor, which no longer has patent protection.
The largest U.S. drugmaker beat analysts' forecasts slightly for its second-quarter earnings as it prepares to separate its business into three divisions.
Adjusted income fell 10 percent to $4 billion, or 56 cents a share, from $4.45 billion, or 59 cents a share, in the same period last year. Revenue fell 7 percent to $12.97 billion.
Analysts polled by Thomson Reuters expected an income of 55 cents a share, on revenue of $13.01 billion.
On Monday, the company announced that it would restructure into three parts. One business segment will include therapeutic areas like inflammation and immunology, cardiovascular and metabolic, neuroscience and pain, rare diseases and gender-based health products.
A second segment include vaccines, cancer medication and consumer health-care offerings.
And, a third group will focus on major-market drugs that will lose patent exclusivity over the next two years, allowing the company to try positioning itself in growing markets like China and Brazil.
The split will likely dominate many analysts’ questions during the earnings call, set for 10 a.m. on Tuesday.
“Our new commercial operating model will provide each business with an enhanced ability to respond to market dynamics, greater visibility and focus, and distinctive capabilities optimized to deliver value to patients and shareholders in the coming years,” Ian Read, the chief executive and chairman, said in a statement on Monday.