What's next for Pfizer?

In the wake of yesterday's announcement that Pfizer would halt development of its potential blockbuster drug Torcetrapib, shares of the company plummeted $2.96, or 10.6 percent, to close Monday at $24.90--that represents a $21 billion market value loss. Now analysts are speculating about how the drug giant plans to turn things around. For one thing, Pfizer will hit the acquisition road to fill gaps in its pipeline with new drugs and new companies. No doubt this will come at a steep price, as potential partners will sense desperation and capitalize on it. But don't expect the drug giant to acquire another large company, especially since many analysts feel Pfizer is already too large. In a meeting with investors prior to the Torcetrapib debacle, company execs said Pfizer would fill gaps in its pipeline with acquisitions in the area of "diabetes, neurology, infectious disease, and oncology that combined have a worldwide market potential significantly in excess of $200 billion."

Pfizer will also have to cut the fat as it did last week when it axed 2,200 jobs from its U.S. sales force. Two months ago the company announced that it would reveal plans in January to make the company more "nimble." And Deutsche Bank analyst Barbara Ryan speculated that the company may lay off as many as 10,000 of its employees. Whatever happens, all eyes will be on CEO Jeffrey Kindler (photo) as he steers the world's largest drug maker through one of the toughest periods it has ever faced.

- read this article from The Street
-
here's last week's release on future plans for the company

Pfizer halts Torcetrapib development. Report
Pfizer told to pack up presentation on Torcetrapib. Report
Pfizer prepares red carpet for market analysts. Report

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