Wyeth, a US pharma major, has reported positive results during the quarter ended September 2004 as it earned a net profit of $1421.3 million as against a net loss of $ 426.4 million in the corresponding period of last year. The sharp improvement is due to favourable income tax adjustment of $ 407.6 million. Diluted earnings per share for the 2004 third quarter increased to $1.06 compared with a diluted loss per share of $0.32 in the prior year.
Net income and diluted earnings per share, before certain significant items, were $1,013.7 million and $0.76, respectively, for the 2004 third quarter compared with $873.6 million and $0.65, respectively, for the 2003 third quarter. The increases in net income and diluted earnings per share, before certain significant items, for the 2004 third quarter were due primarily to higher net revenue and lower cost of goods sold, as a percentage of net revenue, partially offset by higher research and development spending.
While commenting on the company's performance, Robert Essner, chairman, president and CEO said, "The company's business showed strong performance on many fronts during the third quarter ended September 2004. Its growth was driven by Effexor XR, Enbrel, Prevnar, Zosyn and Rapamune, which grew over 39 per cent for the quarter. The company has made enhancements in Prevnar manufacturing this year resulting in increased production, increased sales and a return to a full, four-dose vaccination series recommendation by the key global regulatory authorities."
"Just as important, our key R&D projects, which were outlined at our June analyst meeting, continue on track and we expect to meet our goals for the year," Essner continued.
The company's net profit for the first nine months ended September 2004 increased to $2,998.3 million compared with $1,715.9 million in the prior year. The 2004 first nine months included a charge of $145.5 million ($94.6 million after-tax or $0.07 per share-diluted) within Research and Development Expenses related to an upfront payment to Solvay Pharmaceuticals (Solvay) and a favorable income tax adjustment of $407.6 million. The upfront payment was made in connection with an agreement entered into between Wyeth and Solvay to co-develop and co-commercialize four neuroscience compounds, most notably, bifeprunox.