Pfizer tackles uncertain profit growth
by Brian Turner
The world’s largest drug company has announced a program of $4 billion in cost cutting measures in a climate of uncertain profit growth and changes in the industry.
Pfizer predicted that its earnings will fall this year, coming in below Wall Street expectations. Among other problems, many of Pfizer’s patents on drugs are due to expire soon.
There are also concerns over pricing, safety, and regulation issues, as well as over government intervention in the operations of drug companies.
Cost cutting measures were announced to include streamlining of world operations, reorganization of its sales operations, and the introduction of greater efficiency in its research operations.
Numerous layoffs are not expected, with downscaling expected to come through reorganization to reflect the greater importance currently of government purchase of drugs through Medicare and through not replacing employees who quit or retire.
There will also be more emphasis on preventative health activities in concert with large employers and Medicare.
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