Pfizer Inc beat analysts’ estimate for adjusted profit

Pfizer’s shares, which traded at a near 16-year high ahead of fourth-quarter results, were down 1.3 percent premarket on Tuesday.

Pfizer Inc beat analysts’ estimate for adjusted profit on Tuesday, helped by strong demand for its pneumonia vaccine Prevnar and rheumatoid arthritis drug Xeljanz while reporting an $11 billion gain from the new tax law.

The largest U.S. drugmaker also forecast full-year earnings and revenue well ahead of Wall Street estimates and said it would invest about $5 billion in the United States over the next five years.

Pfizer’s shares, which traded at a near 16-year high ahead of fourth-quarter results, were down 1.3 percent premarket on Tuesday, reports Reuters.

The Pfizer logo is seen at their world headquarters in New York

The drugmaker said it would pay about $15 billion in taxes over eight years to bring funds kept overseas back to the United States under the new tax laws.

Pfizer said the 2018 forecast reflected a full-year contribution from the consumer healthcare business, which the drugmaker plans to divest or spin-off this year.

The company said it booked a gain of $11.34 billion from the new tax law, leading to a surge in fourth-quarter profit to $12.27 billion, or $2.02 per share.

Excluding the tax gain and other items, the company earned 62 cents per share. Revenue rose marginally to $13.70 billion.

Prevnar raked in sales of $1.53 billion, up 8.3 percent from a year earlier, and above estimates of $1.4 billion, according to a consensus estimate from Barclays. Xeljanz sales jumped 47.5 percent to $410 million, beating estimates of $393 million.

However, sales of the company’s breast cancer treatment Ibrance came below consensus estimate, despite an 11.4 percent increase to $716 million.

Pfizer forecast full-year adjusted earnings per share between $2.90 and $3 and revenue of $53.5 billion to $55.5 billion.

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