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news.Pfizer has beaten expectations with its third quarter, reporting a revenue increase of 9% and confirming full year guidance, but the pharmaceutical giant also announced a major cost-cutting program.
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Revenue grew to $12.28 billion in the quarter and the company said that its in-line products performed well in a tough operating environment. However, Pfizer warned its shareholders that with the loss of several major patents looming, revenues in 2007 and 2008 are likely to be comparable to 2006 rather than rising as previously forecast.
Pfizer said that it plans a major cost-cutting scheme to start in 2007, which will be over and above the $4 billion projected annual cost savings the company has already planned to make by 2008. However, Pfizer added that it would still be making investments, citing recent licensing agreements and the deal to acquire PowerMed as illustrations of its growth strategy.
Pfizer’s CEO Jeffrey Kindler said: “Our pipeline of new products and new approaches to discovery and development, coupled with our strategy of acquiring attractive new products and technologies externally, promise to deliver strong and renewed growth opportunities over time.”
The group said it remains on target to achieve its goal of full-year 2006 adjusted diluted EPS of about $2.