In this photo from Monday, Jan 31, 2011, the Pfizer logo is displayed at the drug company’s world headquarters in New York. (Photo: AP)

New Jersey, United States

Pfizer Inc said yesterday its fourth-quarter profit nearly quadrupled from a year ago when it was weighed down by restructuring charges, as revenue rose six per cent, thanks to the addition of products from fellow drugmaker Wyeth, acquired late in 2009.

The results narrowly beat Wall Street expectations. Pfizer also approved a US$5 billion stock buyback plan and said it was cutting spending on research and development.

Pfizer, the world’s biggest drugmaker by revenue, said its net income was US$2.89 billion, or 36 cents per share, compared with US$767 million, or 10 cents per share, a year earlier.

Adjusted net income was US$3.77 billion, or 47 cents per share, down one per cent from US$3.83 billion a year earlier.

Numerous one-time items brought a total gain of 11 cents per share. Those include US$910 million in restructuring and other costs related to integrating Wyeth, US$1.18 billion in write-offs of intangible assets acquired from Wyeth, US$860 million in legal costs, and a gain of about US$2 billion from an IRS tax settlement related to audits covering the years 2002 through 2005.

Revenue totaled US$17.56 billion, up from US$16.54 billion in 2009’s fourth quarter.

Analysts surveyed by FactSet expected earnings per share of 46 cents and revenue of US$16.99 billion.

The maker of cholesterol blockbuster Lipitor and impotence pill Viagra reported a 3 percent increase in sales of its prescription drugs, to US$15.05 billion. Sales of veterinary medicines rose eight per cent, to US$976 million, while the smaller consumer healthcare and nutrition businesses posted larger jumps, due to the addition of those Wyeth businesses.

Pfizer bought Wyeth for US$68 billion in October 2009, but only recorded its revenue for part of that quarter.

Pfizer gave its first 2011 financial forecast, saying it expects earnings per share of US$2.16 to US$2.26, excluding just over US$1 in one-time items. It expects revenue of US$66 billion to US$68 billion.

Analysts forecast earnings per share of US$2.30 and revenue of US$66.55 billion, on average.

Pfizer reduced its prior revenue forecast for 2012 — key Lipitor, the world’s top-selling drug at US$12.5 billion a year, loses patent protection at the end of November — to US$63 billion to US$65.5 billion. That’s down from US$65.2 billion to US$67.7 billion. But because it expects to reduce 2012 research spending by US$1.5 billion, to about US$8.25 billion, it still expects earnings per share of US$2.25 to US$2.35, excluding about 65 cents worth of one-time items.

For 2012, analysts forecast a profit of US$2.22 per share and revenue of US$62.72 billion.

“I am pleased with our solid financial performance again this quarter and this year despite continued challenging market conditions,” new CEO Ian Read said in a statement.

Read took over after Pfizer’s board unexpectedly pushed out CEO Jeffrey Kindler on Dec. 6, apparently due to the poor performance of Pfizer’s stock and other issues during his 4 1/2-year tenure.

Pfizer has been stung by a series of promising experimental drugs failing in late-stage testing over the last couple years.

US revenue fell three per cent, to US$7.24 billion, while international revenue jumped 13 percent, to US$10.32 billion. The international revenue was reduced by one per cent due to unfavourable currency exchange rates.

The company said it is still on track to cut annual spending by US$4 billion to US$5 billion by the end of 2012, compared with 2008 levels, as it continues to shed thousands of jobs and close numerous factories and research sites since buying Wyeth. Pfizer said it met its target of more than US$2 billion of those cuts in 2010.

For all of 2010, Pfizer reported a four per cent decline in net income, to US$8.26 billion, or US$1.02 per share. Revenue totaled US$67.81 billion, up 36 per cent, thanks to US$18.1 billion from sales of Wyeth products.