NEW YORK (Reuters) - Pfizer Inc should report quarterly earnings slightly lower Tuesday, but investors will be more focused on the largest drugmaker signs world will itself still decrease competition threatening weather of generic drugs for its Lipitor cholesterol fighter.
"We will be be listening to comment on potential divestments and any color on potentials for more big moves," as the breakdown of its pharmaceutical business, analyst for JP Morgan Chris Schott said Monday.
Many investors fear Pfizer, which bought three of the largest cash U.S. during the last decade, will be much too large for profit growth once its Lipitor 10.7 billion per year is facing cheaper generics in November and more than half dozen other Pfizer drugs lose patent U protection.In the next few years.
Wall Street expects new head of Pfizer, Ian Read, to eventually sell shares of the company or cut Pfizer to a size corresponding to its expected revenue of narrowing base.
In addition to its core pharmaceuticals business, Pfizer has a products animal health company, nutritional products businesses and consumers who could liquidate auction.
Three months ago read delighted investors by promising to slash the company research budget by up to $ 2 billion to 6.5 billion and $ 7 billion, the Elimination of thousands of research positions.
The Pfizer authorized move, which turned the reins to read in December after the sudden departure of Jeffrey Kindler, stick to its profit forecast earlier 2012 from $ 2.25 to $ 2.35 per share. That would reflect a real growth on earnings of $2.23 per share last year and $2.24 per share expected this year by Wall Street.
Entrusted attracted such Pfizer more gestures itself to investors in early April by announcing plans to sell its unit Capsugel, large manufacturer most hard capsules, to private equity firm KKR & Co 2.38 billion. The agreement will help Pfizer make additional share repurchases this year beyond its previous plans to 5 billion in bailouts for 2011.
Its shares have increased by 12% since February 1, when Read stressed his axe to the budget of the R & D company.
SCHOTT said Pfizer, even more than other cash which have already reported the results of the first quarter, should get boost of remuneration of the weakness of the dollar.
Despite this, Schott and other Wall Street analysts expect Pfizer gains to be slightly less than the period year - it there, hurt by tumbling sales of drugs already face competition from generics. They include the antidepressant that effexor acquired by Pfizer in 2009 of rival U.S. drugmaker Wyeth purchase.
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