This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Pfizer Gropes for Answers

Right after Pfizer (PFE - Get Report) ended the development of what was its most important experimental drug, Chief Executive Jeffrey Kindler said he would accelerate his plans for transforming the company.

On Wall Street, inquiring minds weren't quite sure what that would mean. Will Pfizer fire more people? Will it buy more products, or maybe acquire more companies?

Kindler has promised that he will reveal details of his vision in January. Based on his recent announcement that 20% of the 11,000-member U.S. sales force will be fired by year-end, it's apparent that more payroll reductions and cost-cutting are probably going to be part of Pfizer's strategy.

However, Kindler must add sources of sales and profit, and he has several options, even if what's ultimately chosen isn't immediately known.

What is certain is that Pfizer has decided to stop work on torcetrapib , a drug designed to raise levels of so-called good cholesterol in order to improve cardiac health. Pfizer cancelled the project on Saturday after an early look at a clinical trial showed a higher death rate for patients taking a combination pill of torcetrapib and Lipitor than those on Lipitor alone.

Lacking specific guidance, analysts let their imaginations wander, with speculation ranging from massive firings to Pfizer acquiring a big biotech company or even one of its Big Pharma brethren.

Megamergers, a staple of Pfizer's past, isn't exactly what Kindler had in mind when he told analysts recently that he would look at "strategic" acquisitions. Company executives talked about modest-sized deals in which Pfizer would be a buyer, licensee or collaborator on products or technologies, if not an acquirer of other health care firms.

1 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
PFE $34.53 0.00%
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs