Pfizer Inc. (NYSE: PFE) saw Q4 net income decline by 70%, according to numbers released this morning. Despite the drop in income, profits were 52 cents a share, beating analyst estimates by five cents.Pfizer generated $2.9 billion in net income in its fourth quarter, or $0.42 per share. In the year-ago period, net income piled up to $9.5 billion, or $1.32 per share. The drug-making giant sold its consumer healthcare division to Johnson & Johnson, Inc. (NYSE: JNJ) in the year-ago quarter, which helps explain the income plunge. Also, competition for Pfizer's Lipitor cholesterol blockbuster product (the world's best-selling pharmaceutical drug) has increased, and its Norvasc drug saw increased competition from generic alternatives.
Pfizer said that it would be purchasing another $5 billion in stock on top of the $10 billion it purchased in the open market in 2007. CEO Jeff Kindler continues to shave jobs and execute other cost-cutting measures in preparation for losing Lipitor patent protection in 2010. Currently, Lipitor comprises about a third of the company's revenue base.
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