Transcript for Pfizer Fizzles: Drug Company Has Rough First Quarter
Look when I'm down Cutler and as a financial. This Monday may fifth this a story stock. Today a look at the pharmaceutical giant Pfizer maker of everything from add bill to -- -- for Max Viagra in between. -- -- its first quarter earnings but little soft Soto explain what is getting -- it fits or bring -- Jeff -- from finance on this Monday afternoon mr. MacKey. What happened to give -- this headache. God stinks to get all -- on the other and the pipelines get an old Pfizer makes bunch of drugs. And that's fantastic -- -- under -- you can charge an arm and a leg in steel people blind to men get charged more to kill those sales -- and yet now here we are. Programs expire earnings -- then suddenly Pfizer Astra hat -- hand and start looking around for someone else to buy. Which we're gonna -- with Dennis Miller for thought they look at the company's stock reports in the most recent days not that great I think we've got that chart there. Of how it's been doing eleven billion in revenue down 9%. Just from last year. And you can see a pretty big precipitous drop there -- -- -- time I mean really what does -- have to do at this point. Well -- needs to replenish the pipeline that as we said they got drugs that come off pat things like Lipitor Viagra is getting -- launched. By by a bunch generics and when those -- opt out in the margins shrink and suddenly you don't really no -- -- -- of Pfizer's gone out. And they're looking for acquisitions they went out and and the Robert 106 billion dollars and counting. For -- UK company called AstraZeneca and then buys -- wants to. Moved their headquarters or at least sort of symbolically see this is this is what in financing -- -- there are trying to move -- for tax purposes to the UK. They -- dodge American taxes pay lasts over in the UK and then they would get AstraZeneca us pipeline and so really. -- kind of developing drugs as fast they can but at the same time shop around by someone else. Okay so it takes it's medicine and ups its bid for British drugmaker AstraZeneca right and now a 106 billion dollars. 106 billion and counting now AstraZeneca because they're not view entirely -- -- if they are from the UK. -- saying you know it seems like Pfizer seems a little desperate to buy and sell what they've done is just turned down. -- -- cold and they're gonna go ahead and they say they're gonna go it alone and that the did dramatically undervalues the drugs and -- pipeline so they literally are promising to cure cancer and and saying that their drugs will. Turn the trick and -- -- should pay more or simply go away. I'm not social what's gonna happen AstraZeneca shares lower today along with Pfizer because presumably shareholders for Pfizer even though they're desperate parent dolls -- they're not -- Get all crazy here either and they're not gonna tolerate a much higher bid in this honors its billion is pretty rich yet when it is absolutely -- -- -- Heidi Sussex. The fight matters like any pharmaceutical those facing that same kind of a challenge were obviously where you're talking about those of those patents come off line. This is just gonna -- -- -- just becomes so few. Few pharmaceuticals out there now that you don't have candidate ingenuity from from forms and several smaller companies. Let. Wait we've seen in New York I've spoken in the past about the Biotech switches. The other side of this and so why wanna say do it so onerous for companies to get drugs and of that pipeline. That it would stifle innovation but then -- the Biotech and nothing but a series of companies that are all about innovation all about these one -- drugs. That once the counter drugs get approved want to go through the FDA process here in the states how -- -- that is. It actually it seems to be working relatively well at least in a bull market so. I'm not so sure they're stifle innovation but you know do -- not released by Israel to make drugs in your garage as a whole different underground economy for -- and slowed the you know -- criticize the Pfizer -- they have to go out and make these huge acquisitions or they simply can't grow organically it's it's not a matter just one -- two blockbuster drugs. They got -- to keep a steady flow of these things coming through. And it becomes a very expensive game -- I am the pharmaceuticals. Bodies are created a series and caught breaking bad right I mean -- yes that has been up front Jeff MacKey takes your calls in the morning from Yahoo! -- bags -- your time. You've been watching story stock of course it was abcnews.com for latest headlines I'm Dan Cutler New York.
This transcript has been automatically generated and may not be 100% accurate.