Pfizer backs 2008 profit, sales outlook but seeks cost cuts
NEW YORK — Pfizer Inc. executives sought to reassure investors on Wednesday that it was prudently planning for the loss of Lipitor profits by outlining plans to cut costs and expand in China.
The world’s largest drugmaker said that to cut costs, it will outsource more of its manufacturing in preparation for competition from generic versions of its cholesterol medicine Lipitor, the world’s best-selling drug. The key patent on Lipitor, which had sales of $3.4 billion in the fourth quarter, expires in November 2011.
"We are proactively managing our total cost structure to do what is necessary to size the company appropriately to align with our revenues so that we deliver growing profitability after the Lipitor loss of exclusivity," Chief Financial Officer Frank D’Amelio said in a statement.
Pfizer shares rose 10 cents to $22.34 in late morning trading.
In addition to cutting costs, the company also plans to deal with the Lipitor patent expiration by expanding the number of products it pursues in other areas.
Pfizer announced it would expand the number of drugs in late-stage development by 50 percent to 75 percent by the end of next year; create a new business unit that is focused exclusively on cancer medicines; and increase research on drugs to treat arthritis, pain and diabetes.
New York-based Pfizer also reaffirmed its outlook for 2008 profit and sales on Wednesday, still forecasting adjusted profit of $2.35 to $2.45 per share and revenue of $47 billion to $49 billion direct payday loan cash advance. Analysts surveyed by Thomson Financial expect earnings of $2.37 per share on revenue of $48.08 billion.
The company wants to boost its market share in Asia to 6 percent by 2012, up from 4 percent currently, and will expand operations in China from the 110 cities it now serves to more than 650 cities.
Pfizer, which now has 16 drugs in late-stage trials, said that number will grow to a range of 24 to 28 by December 2009. Pfizer has a goal of submitting 15 to 20 potential drugs to regulators between 2010 and 2012.
Three projects that are now entering late-stage development are designed to treat gastrointestinal, genitourinary, lung and breast cancer; rheumatoid arthritis, transplant rejection, psoriasis, Crohn’s disease, and asthma; and diabetes.
Pfizer said it currently has 26 biotech drugs spanning eight treatment areas.
The new unit focused solely on cancer drugs is designed to tap a market that is expected to more than double in the next decade. The oncology business will help Pfizer launch new cancer agents, and focus on cancers common in Asia, such as cancers of the liver, esophagus and nasopharynx.