Pfizer, Merck Weather Weak Quarter

Big Pharma is still relying on belt-tightening to prop up financial results. Pfizer and Merck & Co said on Tuesday their quarterly results were again hit by generic competition for once top-selling products and the toll of a strong dollar on overseas revenue. Controls on marketing and administrative expenses, and other costs, helped them report earnings slightly above Wall Street estimates.

But neither company offered investors a quick return to growth based on new products, even if the worst of the patent cliff for best-selling drugs that have lost marketing exclusivity is behind them.

Merck said full-year sales were likely to be about 5 to 6% below last year's levels, even so, it stuck to its full-year profit outlook of $3.45 to $3.55 per share, excluding special items.

Pfizer, the largest U.S. drug maker, said second quarter revenue fell 7% to $12.97 billion, with 3% of the decline due to an unfavorable foreign exchange rate.

But Pfizer also trimmed costs and expenses by 3% and reiterated its full-year earnings forecast of $2.10 to $2.20 per share.

Pfizer said income, excluding special items, fell 10% to $4 billion, or 56 cents a share, from $4.45 billion, or 59 cents a share, a year earlier.

Merck earned $906 million, or 30 cents per share, down from $1.79 billion, or 58 cents per share, a year earlier. Excluding special items, Merck earned 84 cents a share.