Send a Tweet
Most Popular Choices
Share on Facebook Share on Twitter Share on LinkedIn Share on Reddit Tell A Friend Printer Friendly Page Save As Favorite View Favorites
Exclusive to OpEdNews:
General News

Pfizer profit down 48%, but lets put some lipstick on that pig!

By       Message Peter Rost       (Page 1 of 2 pages)     Permalink    (# of views)   1 comment

Related Topic(s): , Add Tags
Add to My Group(s)

View Ratings | Rate It

Author 3673
- Advertisement -

Reading financial reports is fun. I'm not kidding.

When you get into the nitty gritty detail you discover the stuff the company press release seldom mentions.

Take Pfizer Inc.'s most recent quarterly report, filed today.

Things are going downhill pretty fast, with patent losses happening even faster than expected. It may not be as bad as the 48% drop in quarterly profits indicated, but believe me, it is bad.

- Advertisement -

Let's for instance look at Pfizer's flagship, Lipitor.

In Pfizer's first quarterly report for 2007 the company proudly announced, ""We posted sales increases for Lipitor . . . (up 8 percent) . . . We have implemented comprehensive plans that we believe will strengthen Lipitor's marketposition . . . On March 5, 2007, Lipitor was approved by the FDA for five new indications . . . "

Pretty upbeat, huh?

- Advertisement -

Well that changed pretty rapidly.

In the most recent report, Pfizer says that, "In addition, Lipitor, our most prescribed product, did not meet our expectations for the quarter . . . 25% decline in the U.S. Our U.S. Lipitor performance in the second quarter was negatively impacted by two factors we had highlighted in the first quarter of 2007 as positively impacting the brand.

These two factors, changes in the U.S. wholesaler inventory levels and differences in reconciliation of internal and external data that are normally seen each quarter to varying degrees, (really? couldn't find either the word "U.S. wholesaler inventory" or "internal and external data" in that first report) accounted for approximately 50% of the revenue decline in the U.S. second-quarter 2007 results and are not expected to have a negative impact on U.S. performance over the second half of the year.

Other contributing factors to the second quarter's performance include the decreased level of prescriptions as well as increased rebates associated with our more flexible contracting activity."

OK, so lets take that again, what is Pfizer really saying?

Well apparently some of the earlier Lipitor sales appear to have been driven by good ol' fashioned channel stuffing, and now the chickens came home to roost, and the wholesalers got rid of some of that inventory. That's quite a bit of channel stuffing. Isn't that what BMS got caught doing and paid some big fines and had a court monitor appointed for doing?

- Advertisement -

As far as "reconciliation of internal and external data" that sounds to me like "oops, we didn't really record sales correctly and now we're fessing up." All of this accounted for a whopping 50% of the decrease in sales.

The other half?

A "decreased level of prescriptions" and "rebates" which Pfizer tries to put a positive spin on, calling it a "more flexible contracting activity."

Next Page  1  |  2


- Advertisement -

View Ratings | Rate It

Peter Rost M.D. Peter Rost, M.D., is a former Vice President of Pfizer. He is the author of "The Whistleblower, Confessions of a Healthcare Hitman" and "Killer Drug." He also writes the daily Pharma Law Blog and the Pharma Expert Witness (more...)

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon Share Author on Social Media   Go To Commenting

The views expressed herein are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact AuthorContact Author Contact EditorContact Editor Author PageView Authors' Articles
Related Topic(s): , Add Tags

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Daniela Cicarelli's beach lover: Stud or dud?

Anna Nicole Smith Autopsy: Abused Growth Hormone, Killed by Sleeping Aid.

Cannibalism in America: The placenta recipes.

The forbidden Daniela Cicarelli video.

The Michelle Manhart Video: U.S. Air Force Recruitment Tool?

The Michelle Manhart Affair: The US Air Force Listens!