Big pharma Q3 results = big smiles?

The results compare favourably to some posted by companies in consumer-related sectors, giving credence to the idea that the drug industry is equipped to ride out financial uncertainties.

Both companies posted reasonably healthy, if unspectacular, results, which their respective CEOs cited as evidence of their ability to prosper even in a turbulent global economy.

A standout figure from Pfizer’s results is the tripling of profits but this rise is less impressive than it initially appears. The increase occurred despite sales flatlining and can largely be attributed to the financial blip that occurred in the third quarter of 2007.

Over that period Pfizer’s profits were severely diminished by the $2.1bn charge it incurred for withdrawing the inhaled insulin product Exubera from the market.

Meanwhile, Schering saw its profits drop by 23 per cent, which it attributed to higher expenses and charges.

A difficulty for both companies is that sales of their cholesterol drugs, which have been their engine rooms for many years, are on the decline, especially in the US.

Sales of Lipitor fell by 13 per cent in Pfizer’s home territory, with Schering’s Vytorin and Zetia declining by 29 per cent after a report found them to be no more effective than the generic Zocor.

However, overseas markets are still proving fruitful, with international sales of Schering’s two drugs rising by 37 per cent and Lipitor increasing by 16 per cent.

Pfizer has already acknowledged that growth will be increasingly hard to come by in the sector and has made the decision to refocus its developmental efforts on other fields.

Q3 at Roche and Lilly ​

Roche also gave an update prior to the release of its full figures at the end of the year, with the company saying that worldwide sales rose to $9.8bn.

MabThera, Herceptin and Avastin, which were developed with Genentech, contributed significantly to this and Roche reaffirmed its commitment to buying the biotech.

Meanwhile Eli Lilly may see all its profits wiped out when it posts its results having been hit by a $1.4bn charge over its marketing of Zyprexa.