(Reuters) - U.S. drugmaker Pfizer Inc (N:PFE) on Tuesday forecast 2016 revenue and earnings below analysts' estimates, largely because of the strong dollar.
The company's shares fell 1.5 percent to $29.70 even though soaring Prevnar pneumonia vaccine sales led to a stronger-than-expected fourth quarter.
Pfizer, which plans to buy Botox maker Allergan Inc (N:AGN) later this year in a $160 billion deal, said it expected earnings of $2.20 to $2.30 per share in 2016. That would not be much different from $2.20 reported for 2015 and below Wall Street forecasts of $2.36.
Evercore ISI analyst Mark Schoenebaum said Pfizer attributed its cautious 2016 forecast largely to the stronger dollar, which hurts the value of sales outside the United States.
Pfizer forecast 2016 revenue of $49 billion to $51 billion, up from $48.9 billion in 2015 but shy of Wall Street expectations of $52.49 billion.
The company's forecasts do not include the planned purchase of Allergan in the second half of the year.
Revenue rose 7 percent to $14.05 billion in the fourth quarter, ahead of the average analyst estimate of $13.56 billion, according to Thomson Reuters I/B/E/S.
Global vaccine revenue rose 45 percent to $1.92 billion, with sales of Prevnar 13 doubling in the United States. Pfizer said Prevnar benefited from increased use by adults and the timing of government purchases of the product for children.
Pfizer's net income fell to $613 million, or 10 cents per share, from $1.23 billion, or 19 cents per share, a year earlier.
Excluding special items, the company earned 53 cents per share, topping the analysts' average estimate of 52 cents.
Pfizer said on Nov. 23 that it would buy Allergan to slash its U.S. tax bill and obtain faster-growing medicines.
The combined company would be based in Dublin and have an expected tax rate of 17 percent to 18 percent by 2017, well below Pfizer's current corporate tax rate of about 25 percent.
Allergan shares are trading at about a 17 percent discount to their value under the all-stock deal as some investors still fear the U.S. government could stop the tax-inversion deal.