The world's largest seller of medications had a rough third
quarter as profits plunged 70 percent because of complications
attributed to mergers and asbestos,
the Wall Street Journal reports
Revenue at Pfizer (
) increased 39 percent, attributable to its $68 million acquisition
of Wyeth, which aimed to cut costs, strengthen its research
capabilities, and widen operations after losing exclusive rights to
manufacture cholesterol drug Lipitor, whose sales plunged in the
double digit percentage.
"Since the Wyeth deal, we are reporting solid operating
performance," chief executive Jeffrey Kindler said during a Tuesday
News of Pfizer profits plunging sent its share prices down as well.
Shares dropped 0.13 cents to $17.49, a 0.8 percent reduction.
The drug company's third quarter earnings were damaged by a charge
of $1.5 billion pertaining to the deal to acquire Wyeth as well as
a $701 million charge for another unit's asbestos litigation.
In October, Pfizer agreed to pay $3.6 billion cash for King
Pharmaceuticals (KIG), seller of painkillers. The company also
announced in October it's reviewing
for its Capsugel business, which could include selling the unit
that develops capsules and other systems that deliver drugs.