Pfizer sales way off mark as company pursues AstraZeneca

(Reuters) - PFIZER (PFE.NY)Inc reported revenue well below Wall Street expectations on falling sales of generic medicines, underscoring its interest in pursuing a $106 billion bid for rival ASTRAZENECA (AZN.LO) to promote new business growth.

Pfizer said on Monday it hoped its sweetened offer for AstraZeneca, which was made on Friday, would help the British drugmaker "engage with Pfizer and enter into discussions relating to a possible combination of the two companies."

AstraZeneca quickly rejected the sweetened bid, saying it "substantially" undervalued the company.

Pfizer said total first-quarter revenue fell 9 percent to $11.35 billion, which was $730 million below Wall Street expectations.

The largest U.S. drugmaker earned $2.33 billion, or 36 cents per share, in the quarter. That compared with $2.75 billion, or 38 cents, in the year-earlier period, when the company reported gains from the transfer of product rights.

Excluding special items, Pfizer earned 57 cents per share.

Analysts, on average, expected 55 cents, according to Thomson Reuters I/B/E/S.

Pfizer still expects 2014 adjusted earnings of $2.20 to $2.30 per share, but said its full-year net forecast was no longer valid.

If the merger goes through, it would be the largest acquisition of a British company by a foreign business.

Pfizer first approached AstraZeneca in January with an offer that valued AstraZeneca at 46.61 pounds per share. It made its second spurned approach on April 26, with an offer valued at 50 pounds a share.

Under British takeover rules, Pfizer has until May 26 to announce a firm intention to make an offer or give up.

(Reporting by Ransdell Pierson; Editing by Jeffrey Benkoe)

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