A nearly 3% pullback in Pfizer (NYSE: PFE) after the drug giant reported flat quarterly revenue pulled down exchange traded funds (ETFs) that track healthcare and pharmaceuticals stocks on Tuesday.
“Excluding the impact of foreign exchange rates, total sales fell 1% year over year as patent losses weighed on overall growth,” said Morningstar analyst Damien Conover in a note Tuesday.
“Pfizer’s diversified portfolio of drugs helped offset generic competition to several key drugs,” the analyst wrote. “We expect this trend to continue through 2012 as Pfizer faces several more patent losses.”
Pfizer stuck to its 2011 full-year earnings outlook.
The stock is a top holding in sector ETFs such as Health Care Select Sector SPDR Fund (NYSEArca: XLV) and iShares Dow Jones U.S. Pharmaceuticals Index Fund (NYSEArca: IHE). Both ETFs were in the red in midday trading Tuesday.
iShares Dow Jones U.S. Pharmaceuticals
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