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Pfizer Expected to Cut Staff as Part of Overhaul
The Associated Press | January 19, 2007 | 11:55 AM EST

Pfizer may announce $2 billion in cost cuts including plant closings and slashing up to 10% of the work force when new chairman and CEO Jeffrey Kindler announces his plan next week for a strategic overhaul of the world's largest drugmaker, analysts say.

They also want to hear how he plans to boost revenue.

Already stung by numerous patent losses, Pfizer suffered a huge blow last November when it announced it was halting development of the star of its drug development pipeline, torcetrapib, because of patient deaths and complications.

Torcetrapib was expected to replace the revenues that will be lost when its top-seller, cholesterol treatment Lipitor, loses patent protection, which could happen in 2010. Other patent expirations will rob Pfizer of $14 billion in revenues annually between 2005 and 2007, and analysts said the company's current pipeline just doesn't have the muscle to forge major sales growth.

Pfizer declined to comment on Monday's announcement.

Beyond the particulars of the cost-cutting plan, analysts are looking for details of Pfizer's tactics to increase sales, including specifics on the types of acquisitions it is pursuing and how it will improve the productivity of its own research labs. Pfizer hasn't introduced a blockbuster it discovered since erectile dysfunction drug Viagra in 1998.

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