Soon arrived at the head of Pfizer, Jeffrey Kindler is confronted with one of the most serious crises in the history of the U.S. laboratory. Penalized by the loss of patents who stagnate sales, the number one global pharmacy reduced its costs. The Group yesterday announced 10,000 deletions of positions in the world by end of 2008, representing 10 of its workforce. Objective: save 1.5 to 2 billion dollars per year and reorganize a R & D which is struggling to develop new drugs. This figure includes the deletions of posts of medical visitors 2,200 in the United States announced in November. "We must fundamentally change the way we manage our group to respond to significant challenges," explained Jeff Kindler.
Giant with feet of clay
Medical, production, R & D, all trades are hardest hit. Pfizer will reduce its commercial staff in Europe "more than 20 ". In France, 350 positions will be affected, mainly medical visitors, to promote drugs to physicians. The group will close or sell three sites for the production of drugs in the United States and Germany. In the field of R & D, Pfizer stops research in dermatology and gastroenterology. Three American and one Japanese will be closed. In France, Pfizer announced the closure of the only R & D site which remained, Amboise (Indre-et-Loire). Specialized in the studies on the toxicity of the drugs, he employs 154 people. In total, are therefore 500 deletions of posts which are announced in the Hexagon, a total of 3.
A world of pharmacy, Pfizer is a giant with feet of clay. Apparently, the situation is catastrophic. In 2006, the company recorded a turnover of $ 48.4 billion and a net profit of more than 19 billion! But these impressive figures, published yesterday, hide a degradation of the activity. Revenues gained only 2, and the result excluding items outstanding 3. And over the next ten years, the revenue should grow by an average of 1 to 2 per year, say Citigroup and Goldman Sachs. Is three to four times slower than the world market for the drug.
The "black hole" of 2011
Most importantly, Pfizer will face, in 2011, that Goldman Sachs analysts describe as a "black hole". That year, the laboratory will lose the protection of his patent for Lipitor, the best-selling drug in the world, that represents only a quarter of its income to him. A few months, this cholesterol-lowering, known in France under the brand name Tahor, will see his income as a result of competition from generic drugs.
To deal with this collapse, Pfizer researchers had developed a new cholesterol-lowering, the torcetrapib. Las, Jeff Kindler had to abandon this project in December death linked to the drug in clinical trials. Pfizer has other molecules in development in its labs, but none will not compensate for the loss of Lipitor. Sales should decline by 10 between 2010 and 2012 if nothing is done, and the benefits of a third party. Beyond cost reductions announced yesterday, Pfizer could make acquisitions of companies or molecules in development to replenish its product portfolio.