Pfizer missed Wall Street estimates today as sales fell for its blockbuster pneumonia vaccine Prevnar and it faced increasing competition from generic drugs.
The maker of Viagra revealed second-quarter revenue fell to $12.9bn (£9.8bn) from $13.15bn in 2016. Analysts were predicting an average of $13.08bn, according to Thomson Reuters.
Adjusted income increased three per cent to $4bn from $3.9bn the previous year.
Shares in the US-listed company edged down 0.2 per cent to $33.10.
Why it's interesting
Pfizer noted strong sales of newer products like Xeljanz for rheumatoid arthritis, breast cancer treatment Ibrance and blood clot preventer Eliquis, which it shares with Bristol-Myers Squibb, which had all outperformed analysts' forecasts.
However, they failed to boost its overall revenue.
"These results show that Pfizer's growth drivers are still insufficient to drive meaningful sales growth against the backdrop of generic erosion," Berenberg analysts said.
What Pfizer said
Ian Read, chairman and chief executive, said:
We have a strong pipeline with a steady flow of scientific innovation coming from all of our key therapeutic areas. Over the next five years, we project the potential for approximately 25 to 30 approvals of which up to 15 have the potential to be blockbusters, and we believe half of these potential blockbusters could receive approval by 2020.
Our strategy remains focused on maximising in-market opportunities while continuing to advance the pipeline and managing our cost structure to deliver attractive financial performance over time.