4. August 2011 14:56
Pfizer’s CEO Ian Read has ruled out any major mergers or acquisitions to replace the company’s falling revenue.
Annual sales are down some 60% after the loss of patent exclusivity on several key products.
But the CEO, who has been downsizing Pfizer since starting his role in December last year, told Bloomberg he is “not going to chase revenue at the destruction of capital” by selling units and buying back shares, since coming to the post in December 2010.
This shrinking style contrasts to the work of his predecessors Jeffrey Kindler, who bought Wyeth for $64bn in 2009, and Henry McKinnell, who bought Pharmacia for a similar price in 2002.
Mr Read stated that Pfizer will still look for licensing deals through partnerships with companies with treatments in mid- to late-stage testing.
Pfizer shares have climbed by approximately 14% since Mr Read took over.
Pfizer, based in New York, currently faces competition from cheaper generic medicines, led by cholesterol pill Lipitor.