Pfizer shakes up drug development staffing

Posted May 21st 2007 2:01PM by Tom Barlow
Filed under: Products and Services, Management, Pfizer (PFE)

The boomer generation is limping toward retirement with pockets full of cash and bodies full of ailments, putting any drug company with top-drawer medications and solid patents in line for a windfall. Today's shakeup at Pfizer's (NYSE: PFE) drug-pipeline management, with the announced retirement of R&D president John LaMattina [~~subscription required],~~ suggests the company isn't happy with the lack of success in restocking its shelves.

Pfizer, the largest pharmaceutical company in the world, realized 64% of its 2006 revenue from its top nine sellers. Unfortunately, the patents for those brands are rapidly expiring:

Norvasc: 2007
Zyrtec: 2007
Lipitor: 2010
Viagra: 2012
Detrol: 2012
Cardura X: 2008

Pfizer's patent on Zithromax expired in 2005, Zoloft in 2006, and the Cox-2 drug Celebrex has been caught up in controversy over the safety of that class of drug.

The company's fortunes suffered a setback recently; its best hope for revenue pickup once the Lipitor patent expires, torcetrapib, failed in trials. While the company has brought new cancer, diabetes and smoking-cessation drugs to market, it'll need some more big hitters to replace the lost income of the top nine when they come off patent.

With Pfizer's poor first-quarter report -- EPS was down from $0.56 a year ago to $0.48 -- the market has shown skepticism about the company's direction. The staff shakeup, along with ongoing cost-cutting measures to meet CEO Jeffrey Kindler's plan to shave $500 million or more from the bottom line this year, should reassure shareholders the company isn't pleased with business as usual. This may also be a reason to expect Pfizer to step outside the organization to draft McLa Mattina's replacement.

Tags: cardura, detrol, drug companies, drug companis, DrugCompanies, DrugCompanis, Jeffrey Kindler, JeffreyKindler, Kindler, lijpitor, McMattina, norvasc, pfe, pfizer, pharmaceuticals, viagra, zyrtec