Drugmaker Pfizer reported a quarterly revenue decline of seven percent on Tuesday after earlier this week saying that it would reorganize its existing businesses over the next few years.
The company had previously sold its infant nutrition business to Nestle and, in the second quarter, completed the spin off its animal health unit into a standalone company called Zoetis.
The new structure will have two units that concentrate on developing and selling medicine with patent expirations beyond 2015. Such products usually bring higher profits than those whose patents have expired and, thus, face generic competition. A third unit will handle the older products. The restructuring will begin in 2014 but might not be completed until 2017.
Pfizer is based in Manhattan, but has a big operation in Collegeville, Montgomery County.
In its statement Tuesday, Pfizer said revenue decreased $995 million or seven percent from the same period in 2012. The company said this reflected an operational decline of $603 million (4 percent) and the unfavorable impact of foreign exchange of $392 million (3 percent.). Pfizer started to face generic competition for its blockbuster cholesterol drug Lipitor in late 2011 in the United States, but the exclusivity in Europe occurred in the second quarter of 2013.
Pfizer's net income figure was skewed because much of the income from the sale of Zoetis shares was applied in this quarter. Including that money, the net income was $14.1 billion. The income from discontinued operations, such as Zoetis, amounted to $10.6 billion, according to the filing submitted to the Securities and Exchange Commission. A link is here.