Pfizer (NYSE:PFE) may not be getting a powerhouse revenue driver in Wyeth (NYSE:WYE), but at least its bride knows how to make the bottom line look pretty.
In the second quarter, revenue decreased 4% compared to the year-ago quarter. The stronger dollar hurt revenue a little, but even excluding the currency changes, revenue was up only 2% year over year.
There were the usual standouts: Vaccine Prevnar was up 24% and anti-inflammatory Enbrel, which it sells with Amgen (NASDAQ:AMGN), was up 21%, both excluding currency changes. The latter never ceases to amaze me, because there are two other anti-inflammatory drugs that target the same molecule -- Abbott Labs' (NYSE:ABT) Humira, and Remicade sold by Johnson & Johnson (NYSE:JNJ) and Schering-Plough (NYSE:SGP) -- and yet they all continue to record double-digit growth.
But Wyeth was really hurt by plummeting sales of previous-top-seller Effexor, which is facing generic competition in several countries.
The lipstick for the quarter came from decreased selling, general, and administrative expenses that were down nearly 13% (4% excluding currency effects) compared to the second quarter last year. That's the kind of cost savings that Pfizer is going to have to institute in order to make this acquisition work financially. Pfizer's shareholders shouldn't be at all disappointed that Wyeth has started the party without it.
The reduced expenses helped bring adjusted earnings per share up 8% for the quarter.
On the back of the solid quarter, Wyeth raised adjusted earnings per share guidance to $3.48 to $3.58 for the year. Not that it expects to be a stand-alone company for that long. After all, the acquisition by Pfizer is expected to close this quarter or next.
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