Pfizer planning $500 million to $1 billion in cost cuts

Posted Jan 22nd 2007 6:40PM by Joseph Lazzaro
Filed under: International Markets, Forecasts, Bad News, Pfizer (PFE), India, China, Brazil, Russia, Middle East, Venezuela, Thailand, Allergan (AGN), Medicis Pharmaceutical (MRX), Abbott Laboratories (ABT), Altria Group (MO), Novartis AG ADS (NVS), Bristol-Myers Squibb (BMY), Merck and Co (MRK), Genentech Inc (DNA), Amgen Inc (AMGN), Watson Pharmaceuticals (WPI), Lilly (Eli) (LLY), Mexico, Canada, Japan, Teva Pharm Indus ADR (TEVA), Gilead Sciences (GILD)

Pfizer (NYSE:PFE) announced Monday it would cut 10,000 jobs in a plan to lower costs by $500 million to $1 billion per year.

Wall Street had anticipated some amount of restructuring/job cuts, but the size appeared to be larger than many analysts had anticipated.

Simultaneously, Pfizer said it now expects 2007 EPS of $2.18 to $2.25 compared to the Reuters consensus estimate of $2.20. Pfizer's shares were down about 50 cents to $26.70 in afternoon trading Monday.

The emerging consensus on Wall Street appeared to be that the Pfizer announced cuts represented the first of a series of steps the company will undertake to offset revenue losses when patents for key drugs expire. One example: Lipitor, from which PFE said it will lose an estimated $14 billion in revenue in 2011 to 2012 after its patent expires.

Tags: Pfizer

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1-23-2007 @ 12:33PM

Nick Davich said...

AeroVironment 6.7-mln-share IPO prices at $17 each. It took NASD 3 HOURS before ABY QUOTE WAS OFFER TO THE PUBLIC (AAVN). BY THIS TIME WHEN FINALLY QUOTED WHO MADE ALL THE MONEY WHEN IT WAS QUOTED >$25???????????/ The SEC ought to look into and investigate this long delay!!!!!!!!!!!! Shutting out othere investors for 3 hours????????? Hedge Funds???