Oct. 20 (Bloomberg) -- Pfizer Inc. said third-quarter profit rose 26 percent, beating analysts’ estimates, as the world’s biggest drugmaker continued to cut jobs in preparation for its acquisition of Wyeth.

Net income increased to $2.88 billion, or 43 cents a share from $2.28 billion, or 34 cents, a year earlier, the New York- based company said today in a statement. Profit excluding certain items was 51 cents a share, beating by 3 cents the average estimate of 15 analysts surveyed by Bloomberg.

Revenue declined 3 percent to $11.6 billion, topping analyst estimates by $200 million. Pfizer completed its $68 billion purchase of Wyeth this month adding the pneumonia vaccine Prevnar and expanding its business into over-the-counter medicines. Pfizer is counting on products gained from Wyeth to help offset losses in two years when generic copies of its top- selling Lipitor cholesterol pill enter the market.

“The Wyeth acquisition has investors focused on the future,” said Catherine Arnold, an analyst with Credit Suisse Group AG in New York, in a note before the release of earnings. “Pfizer brands are under pressure as expected, illuminating the strategic importance of the Wyeth deal. Cost saving efforts will be closely watched as they portend synergy potential.”

Pfizer shares rose 2 percent to $18.36 in trading before the open of New York Stock Exchange.

19,000 Workers

Chief Executive Officer Jeffrey Kindler plans to fire more than 19,000 workers to trim costs. The drugmaker has already eliminated more than 5,400 positions this year. Since acquiring Wyeth on Oct. 15, Pfizer said it will close three Wyeth sites in Pennsylvania and one in New Jersey. Pfizer also plans to make research cuts in the next 30 to 60 days.

The drugmaker raised its earnings forecast to between $1.45 and $1.50 a share, the statement said. The new guidance includes the impact of the Wyeth purchase. Excluding certain items, the company expects to report earnings per share of $2 to $2.05, compared to a previous estimate of $1.90 to $2.

Sales of Lipitor, the world’s best-selling medicine, fell 9 percent in the quarter to $2.85 billion. Demand for the cholesterol drug has been falling since 2006 when generic copies of a rival pill, Merck & Co.’s Zocor, came on the market.

Pfizer’s second best-selling treatment, the pain pill Lyrica, generated $708, an increase of 5 percent.

Revenue from Chantix, used to quell nicotine cravings, dropped 15 percent to $155 million. Use of the drug has declined since U.S. regulators issued their strongest warning saying Chantix can cause suicidal behavior and other mood disorders.

Viagra sales fell 8 percent to $466 million. Pfizer has started a new advertising campaign for the erection drug that focuses on getting men over the fear of talking to their doctor about the condition.

To contact the reporters on this story: Shannon Pettypiece in New York at spettypiece@bloomberg.net.

Last Updated: October 20, 2009 07:39 EDT