Pharma Stocks Dive On Missed Expectations

Pharma stocks headed south after a couple of top global drugmakers posted depressed results and announced lackluster forecasts today. Pfizer Inc (NYSE: PFE) and Roche Holding AG (VTX: ROG) announced disappointing figures.

Pfizer, the world's largest drugmaker, projected its 2010 revenues between $67 billion and $69 billion, with earnings in a range of 95 cents to $1.10 a share. Adjusted earnings were forecasted at between $2.10 and $2.20 a share. For 2012, PFE said it will target revenues between $66 billion and $68.5 billion, with earnings in the range of $1.58 to $1.73 a share. Adjusted earnings were seen at $2.25 to $2.35 a share.

The Street had been expecting adjusted earnings of $2.27 per share on revenues of $67.47 billion for 2010 and adjusted earnings of $2.22 a share on revenues of $60.79 billion for 2012.

Roche Holding announced a 22% downturn in its full-year earnings to 8.51 billion Swiss francs (or $8.06 billion). Excluding one-off expenses, ROG’s net profits were down 9% to 9.8 billion francs. The onetime expenses were mainly linked to the Genentech takeover. The results were, nonetheless, short of analyst expectations.

PFE’s shares were down 2.57% to $18.57 at 11:02am ET. Eli Lilly Co (NYSE: LLY) fell 1.21% to $35.19 at 11:04am ET. Rivals Myriad Genetics (NASDAQ: MYGN) and Genzyme Corporation (NASDAQ: GENZ) rose. MYGN beat expectations and its shares were up 3.29% to $24.77, while GENZ’s shares were up 2.05% to $56.80 at 11:09am.

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