Drug manufacturers find portfolios age and shrink in sales value

Manufacturing News, Source : The Manufacturer US
Published : 20 Jan 2006 17:20

Both Pfizer Inc. and Novartis AG reported slower fourth-quarter earnings than they’d expected in 2005. Bloomberg blames it on competition from generics, and expired patents, the bane of a pharmaceutical manufacturer’s toehold in a given market.

Pfizer’s net income fell three percent, and revenue nine percent, to $2.73 billion. Pfizer’s Lipitor sales rose three percent, way down from 23 percent in 2004. Pfizer has no lock on cholesterol drugs, as Lipitor faces competition from Merck & Co.’s Zocor. Elsewhere in its portfolio, sales of Pfizer’s Neurontin epilepsy treatment fell 71 percent owing to generic competition. Sales of the Zithromax antibiotic, the Diflucan anti-infective and the Accupril high blood pressure drug also declined. The four products had combined 2004 sales of about $6 billion.

Novartis reported earnings unchanged at $1.35 billion, but sales rose less than forecast; revenue from the companys angifungal drug Lamisil fell 17 percent.

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