Pfizer reduces revenue forecast due to supply difficulties and the strength of the dollar

(Reuters) – Pfizer Inc (PFE.N) cut the peak of its annual sales forecast due to the strength of the dollar and lower revenue from its sterile injection business, resulting in a 3% decline in the shares of the largest US drug manufacturer.

Pfizer also missed Wall Street's third-quarter business estimates, affected by supply issues in its Essential Health unit, which houses sterile injections as well as traditional medicines such as the drug for Premarin menopause.

Essential Health sales in the third quarter fell 4.4% to $ 4.83 billion, partially penalized by competition from cheaper generic drugs in the United States.

Pfizer continues to "manage its way through" the challenges associated with patent expiry, said Tuesday Citi analyst Andrew Baum, citing the impending competition of generic drugs.

But unlike previous quarters, sales of Pfizer's "growth-generating drugs," including Ibrance and Xeljanz, were lower than Wall Street estimates, he added.

In the third quarter, Pfizer's anti-cancer drug, Ibrance, generated $ 1.03 billion in sales, which is estimated at $ 1.07 billion. Xeljanz, a rheumatoid arthritis drug, also missed income estimates.

Pfizer, who appointed the insider Albert Bourla to the post of CEO next year, is now expecting an annual turnover of between 53 and 53.7 billion dollars, against an earlier forecast of $ 53 to $ 55 billion.

The pharmaceutical group, which derives just over half of its revenue from outside the US, said the dollar's stronger against the euro and some emerging market currencies hurt earnings expectations .

The company also updated its adjusted earnings target for 2018 between $ 2.98 and $ 3.02 per share, from $ 2.95 to $ 3.05 per share.

Excluding non-recurring items, Pfizer earned 78 cents per share, an estimate higher than the average estimate of 75 cents by analysts, according to Refinitiv data.

Net income rose 45% to $ 4.11 billion in the three months ended September 30, partly due to the lower tax rate.

Overall revenues increased by almost 1% to $ 13.30 billion. Analysts were expecting $ 13.53 billion.

Pfizer shares fell 3.4% to $ 41.75 in pre-market.