Pfizer has raised the bottom end of its 2008 outlook after exceeding profit expectations for the fourth quarter of 2007. The favorable impact of foreign-exchange rates and cost-cutting initiatives helped the pharmaceutical giant weather the loss of exclusivity of some of its drugs.

While its fourth-quarter income sank 70 percent, to $2.9 billion—when Pfizer's 2006 sale of its consumer health-care business was taken into account—excluding one-time items, the company's adjusted income was up 17 percent.

Pfizer earned an adjusted 52 cents per share for the period ending December 31, besting analyst expectations of 47 cents.

Fourth-quarter revenues at Pfizer were up 4 percent, to $13.1 billion, while full-year revenues rose 1 percent, to $48.6 billion, despite the March 2007 loss of U.S. exclusivity of its drugs Norvasc and Zoloft.

For full-year 2007, Pfizer's net income sank 57 percent, to $8.3 billion, though excluding one-time items, the company posted an adjusted diluted E.P.S. up 7 percent, to $2.20 on net income of $15.3 billion.

“We are executing against a broad plan to position Pfizer to deliver long-term value,” said Jeff Kindler, the company's chief executive. “Our new products—Lyrica, Chantix, and Sutent—are performing well.”

Pfizer’s success in the face of expiring patents comes not only thanks to strong sales of new products, but aggressive belt-tightening as well. In 2007, the drugmaker reduced its head count by more than 11,000, exited six manufacturing sites and two R&D sites, and continued to streamline the organization.

Pfizer increased its full-year 2008 revenue guidance to a range of from $47 to $49, but said first-quarter 2008 revenues might not be comparable to the first quarter of 2007 because of the loss of U.S. exclusivity of key drugs, such as Norvasc, Camptosar, and Zyrtec. Collectively, these products contributed U.S. revenues of about $1.1 billion in the first quarter of 2007 and $2.7 billion for the full year.