Shares of Pfizer Inc. (NYSE:PFE) [Detail Analytic Report] inched up 0.06% in last trading session on Wednesday as the firm raised its earnings outlook for the year, and reported that it isn’t planning to pursue another tax-inversion merger due to White House opposition, according to WSJ. Last month, Pfizer and Allergan PLC terminated their planned $150 billion merger after the US Treasury Department issued new rules designed to stymie such tax-lowering deals, known as inversions, which move the tax residences of firms to nations with lower corporate tax rates.
Ian Read, Chief Executive of Pfizer stated that the firm isn’t planning to seek another such deal in the near term, citing the Obama administration’s opposition. Read added Pfizer remains on the lookout for other deals, but doesn’t need one if it decides to break up the firm something Pfizer has long reported it is considering. The businesses are strong enough to be stand-alone firms without business development, he added. Pfizer has disclosed it would decide whether to break up into new-drug and established-product firms by the end of 2016. For the first quarter, Pfizer announced a profit of $3.02 billion, or 49 cents a share, increased from $2.38 billion, or 38 cents a share, a year ago.
Pfizer reported that its strong performance so far 2016, an improved business outlook and more favorable foreign exchange rates led the firm to boost its outlook. Pfizer now expects to earn between $2.38 and $2.48 a share in 2016, excluding special items, increased 18 cents from the previous muted guidance that was below analysts’ anticipations at the time. Analysts polled by Thomson Reuters had forecast $2.30 a share in earnings. The firm forecast $51 billion to $53 billion in revenue, increased $2 billion from the prior range.
Chief financial officer of Ionis Pharmaceuticals, Inc. (NASDAQ:IONS) [Detail Analytic Report] Elizabeth L. Hougen, commented after the firm announced first quarter results that their Q1 financial results were in line with their estimates and they are on track to meet their 2016 guidance of a pro forma NOL in the low $60 million range and a year-end cash balance in excess of $600 million. Their pro forma operating expenses for the Q1 were $71 million, a significant portion of which were associated with the five Phase III studies and three open-label extension studies related to these Phase III studies, they are conducting.
In addition, Akcea continues to build its infrastructure and conduct the pre-commercialization activities necessary to launch volanesorsen. They are doing all of this while managing their expenses prudently. On a GAAP basis, their operating expenses were $92 million, Hougen added. Ionis Pharmaceuticals declared a loss of $62.9 million in its first quarter. The California-located firm reported that it had a loss of 52 cents a share. Losses, adjusted for stock option expense, came to 35 cents per share.
The results surpassed Wall Street expectations. The average estimate of experts polled by Zacks Investment Research was for a loss of 50 cents a share. The drug discovery and development firm announced revenue of $36.9 million in the quarter, missing Street forecasts. According to Zacks, analysts have expected $39.9 million. Shares of Ionis Pharmaceuticals have plunged 38 percent since the starting of the year. The stock has slumped 36 percent in the previous twelve months.