Pfizer Inc. (PFE) reported a surge in fourth-quarter profit on a gain from the sale of its nutrition unit, while generic competition for cholesterol-lowering drug Lipitor contributed to a 7% sales decline.

The drug maker's quarterly results exceeded Wall Street expectations, and Pfizer issued an initial 2013 financial forecast that roughly bracketed analysts' current estimates.

Pfizer shares rose 66 cents, or 2.4%, to $27.50, in recent trading and earlier touched a multi-year high. The stock is up 28% over the past 12 months.

Pfizer is trying to bounce back from the late 2011 loss of U.S. exclusivity for its cholesterol-lowering pill Lipitor, which triggered generic competition that eroded sales of what was once the best-selling prescription drug in the world.

The company has tried to overcome the Lipitor loss by expanding sales of other drugs that remain patent-protected, such as the pain drug Lyrica, as well as introducing new products with sizeable market potential.

These include Xeljanz, a new treatment for rheumatoid arthritis that was approved by the U.S. Food and Drug Administration in November, and Eliquis, an anticlotting drug co-developed with Bristol-Myers Squibb Co. (BMY) that was cleared by FDA in late December. Analysts expect the drugs to eventually generate billions of dollars in annual sales.

At the same time, Pfizer has taken steps perceived to be "shareholder friendly" over the past two years, including share buybacks, spending cuts, as well as the divestitures of certain non-pharmaceutical assets. Pfizer sold its nutrition business to Nestle for $11.85 billion cash in November, and it will soon stage an initial public offering of up to a 19.8% stake in its animal health unit, Zoetis, with the potential to shed its remaining stake at a later date.

The Zoetis IPO is expected Friday in what would be the largest IPO from a U.S. company since Facebook Inc.'s (FB) last May.

During a conference call Tuesday morning, Pfizer Chief Executive Ian Read reiterated comments suggesting the company could conduct further splits. He said Pfizer was evolving toward two business models, each with separate management: one with patented, innovative drugs and the other with off-patent drugs. He said Pfizer would eventually have to decide whether shareholders want to invest in these as two distinct companies, but that such a decision wasn't a near-term priority.

Mr. Read also said he expected the company to continue to pursue "bolt-on" acquisitions and other business-development deals to supplement the company's internal research-and-development efforts. He didn't, however, set a maximum value for potential deals, and said the company wouldn't rule out any deal that adds to shareholder value.

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Pfizer 4th-Quarter Profit Surges Amid Gain From Nutrition Unit Sale