Pfizer Inc. (NYSE:PFE) confirmed that the settlement for the lawsuit involving pain drugs Bextra and Celebrex it had agreed on last week costs $486 million.
After more than a decade, Pfizer has finally agreed on a settlement to rid itself of further litigation, enabling it to focus more on its core business. However, the company executives still do not acknowledge the accusations against the pharmaceutical giant.
The lawsuit was filed in 2004 with shareholders claiming that the company’s stock price had taken a hit because Pfizer purportedly failed to disclose the cardiovascular risks associated with Bextra and Celebrex. A year later, the company was prompted to pull out Bextra from the US market.
Q2 Financial Highlights
Pfizer issued its second quarter earnings report on Monday, along with its financial guidance for the full-year 2016.
For the period, the New-York-based company posted an 11% year-over-year increase in revenue to $13.15 billion from $11.85 billion. The Innovative Health (IH) segment, formerly known as Innovative Products segment, had a revenue of $7.11 billion, up year-over-year from $6.63 billion. On the other hand, the Essential Health (EH) segment, formerly known as Established Products segment, had a revenue of $6.04 billion, up from the revenue of $5.22 billion seen during the same period last year.
However, net income declined 23% year-over-year to $2.02 billion from $2.63 billion. Similarly, Pfizer had a diluted earnings per share (EPS) of $0.33, down 21% from last year’s diluted EPS of $0.42. Meanwhile, from the same quarter in 2015, adjusted net income and adjusted diluted EPS rose 11% to $3.90 billion and 14% to $0.64, respectively.
Ian Read, Pfizer Chairman and CEO, noted that the pharmaceutical company had a strong performance not only for the second quarter but also for the entire first half of 2016. He cited the company’s exceptional pipeline of products and sound business decisions as integral keys to the continuous success of Pfizer.
FY 2016 Outlook
Pfizer maintained its financial guidance for the fiscal year (FY) 2016. The company projects a total revenue of $51 billion to $53 billion and an adjusted diluted EPS of $2.38 to $2.48.