Pfizer strategy for Lipitor fails to soothe
|
|
|
By Ransdell Pierson and Bill BerkrotNEW YORK (Reuters) - Pfizer Inc said on Wednesday it aims to expand in emerging markets and speed the pace of launching new drugs to offset looming generic competition for its $12 billion-a-year Lipitor cholesterol fighter.The world's largest drugmaker, whose shares fell more than 1 percent, also said during a meeting with analysts it will establish a new unit for cancer drugs and will significantly boost the number of drugs in late-stage trials by late next year.But industry analysts said Wednesday's review by top company executives of their strategy and pipeline of experimental medicines did little to allay concerns about flat Pfizer revenue and the drugmaker's failure to launch many big selling products over the past five years."It's more of the same," said Damien Conover, an analyst with Morningstar. "We are not seeing a dramatic shift that I think Pfizer needs to take."Morgan Stanley analyst Jami Rubin called Pfizer's pipeline "interesting," but said most of the products described in the 5-hour New York meeting were only in early stages of testing."There's no data and their track record does not inspire a lot of confidence, so it's more of a wait and see kind of story," Rubin said.Pfizer said its products are now sold in 110 cities in China, but they will eventually reach more than 650 of its cities. Moreover, the company plans to garner $1 billion in annual sales by 2012 from South Korea, and aims to also boost its sales in Latin America and Eastern Europe.But overseas markets are far less lucrative than the United States, which has no strict government price controls and allows drugmakers to widely advertise their products on television and other media.Pfizer said its aspirations for wider geographic reach and for more approved drugs are critical as it braces for U.S. generic competition, possibly by 2010, for Lipitor.The company is already grappling with U.S. generic competition for antidepressant Zoloft, blood pressure treatment Norvasc and its Zyrtec antihistamine. Dramatic sales declines for those one-time blockbusters are a big reason Pfizer has cut more than 10,000 jobs over the past year."We know we haven't been productive enough over the last few years," said Martin Mackay, Pfizer's research chief.But Pfizer said a reversal of fortune could come, as it aims to seek 15-20 regulatory approvals between 2010 and 2012 -- with about two-thirds of the submissions involving new products and the remainder to involve new uses of existing medicines.The company expects to have as many as 28 drugs in late- stage, or Phase 3 trials, by late 2009. They include a medicine called CP-751871 for a number of cancer types, a drug with potential to treat rheumatoid arthritis and transplant rejection and several pain medications.Seamus Fernandez, an analyst with Leerink Swann, said the company's ambitions were laudable, but will be tough to realize given the risks of drug development."My definition of success is not did you get a product through to Phrase 3; my definition of success is did you get a product approved," Fernandez said. "They have a very, very hard road ahead."The company's shares are at a 10-year low, and down 54 percent from their peak in the $48 range in early 1999, despite an industry-topping stock dividend. Pfizer said it intends to keep the dividend at current levels for the foreseeable future.The company projected 2008 revenue of $47 billion to $49 billion, or as much as 3.2 percent lower than in 2007.Even so, because of aggressive cost cuts, Pfizer affirmed it expects full-year 2008 earnings of $2.35 to $2.45 a share, reflecting growth of up to 11.3 percent from 2007 results.Pfizer shares were down 36 cents to $21.88 in early afternoon trading on the New York Stock Exchange.(Additional reporting by Lewis Krauskopf; Editing by Andre Grenon)
(c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
|
|
|
|
|
|
|
|
|
