Pfizer Cuts 20% Sales Force

Elena
29 Nov, 2006
New York City

The cuts are most likely to affect sales representatives as well as management and support staff. Pfizer said its sales force cuts won''t effect its ability to market its major products including cholesterol-lowering drug Lipitor and new drugs such as cancer treatment Sutent.

[R]8:00AM Pfizer announced it will cut 20% of its work force.[/R]
Pfizer Inc. ((PFE)) announced it will cut its U.S. sales force by 20%, or 2,200 people by the end of the year, as part of a cost-cutting program. The cuts are most likely to affect sales representatives as well as management and support staff. The drug company has 11,000 sales representatives. In October, Pfizer said it would slash costs beyond the program announced last year, designed to cut $4 billion in expenses by 2008.

Recently, Pfizer has lost patents on a number of drugs, including blockbuster antidepressant Zoloft. Other drugs, like blood pressure medicine Norvasc, are slated for generic competition in 2007. Pfizer said in October that sales would be flat for the next two years, down from an earlier forecast of moderately higher sales. Pfizer said its sales force cuts won't effect its ability to market its major products including cholesterol-lowering drug Lipitor and new drugs such as cancer treatment Sutent.

On Thursday, Pfizer will highlight its pipeline of new drugs at an analyst meeting it is hosting. The cholesterol treatment Torcetrapib will be a major focus, although a recent study showed it raises blood pressure, raising fears about its future.


[R]7:30AM Asia finished higher boosted by Tokyo rally spurred by industrial data.[/R]
Asian markets finished broadly higher. The Nikkei 225 Average in Japan ended 1.4% higher at 16,076.20, marking its first close above the 16,000-point level in more than a week. Shares of Toyota gained 1.5% while tire maker Bridgestone rose 2.9%.

Camera and copier maker Canon Inc added 1.7% while electronics conglomerate Toshiba surged 3.1%. Sumco Corp moved 5.9%, higher, reversing early losses, after the business daily Nihon Keizai Shimbun reported the second biggest manufacturer of silicon wafers in the world plans to issue 60 billion yen of new shares in a bid to raise investment capital.

The Hang Seng Index in Hong Kong ended 0.8% higher at 18,780.93, rebounding from its biggest one-day plunge in more than five years in Tuesday session. The Hang Seng China Enterprises Index, which tracks 37 mainland-incorporated companies, rose 3.3% to 8,402.26. Property developer Cheung Kong Holdings gained 0.6% while Sun Hung Kai Properties, largest developer in Hong Kong by market capitalization, put up 0.8%.

Australian leading share index, the S&P ASX/200, was up 1.3%, to end 5,432.50. Shares of Australian energy firm Woodside Petroleum rose 1.2%. South Korea Kospi gained 0.8% to end at 1,422.55. LG.Philips LCD Co. rose 1.4%, as Japanese higher industrial production data eased worries of a slowing in global consumption. Singapore Straits Times Index rose 1.2%, and Malaysia''s KLSE Composite was up 0.7%. Taiwan Weighted Price Index added 0.4%.


[R]6:30AM European stocks advance in early session Wednesday on relieved worries.[/R]
European markets were higher in early trading on Wednesday. The U.K. FTSE 100 index rose 0.52% at 6,057.30, the German DAX Xetra 30 index rose 0.47% at 6,311.60, and the French CAC-40 index increased 0.54% at 6,554.67.

Advancers

GlaxoSmithKline traded 2.3% higher after U.S. rival Pfizer said that it would cut 20% of its U.S. salesforce as part of a cost-cutting drive. Exporters such as automakers Volkswagen and DaimlerChrysler each rose more than 0.5% while technology shares such as chip maker Infineon Technologies advanced 0.79%.

Shares in steelmaker Corus Group rose 0.3% after it said its third-quarter net profit almost tripled to 142 million pounds, from 50 million pounds a share, a year ago. shares in U.K. building materials company Wolseley rose 3.6% after declining more than 10% in the past month. Morgan Stanley upgraded Credit Suisse to overweight from equal-weight. Credit Suisse shares rose 1.5%

Decliners

Morgan Stanley downgraded several European banks including UBS and Northern Rock. UBS shares dipped 0.5%, Northern Rock shares lost the same amount.

Oil and gold

Oil rose to a one-month high as cold weather swept eastward across the U.S., the world biggest energy user, spurring demand for heating fuel. Crude oil for January delivery rose 54 cents to $61.53 a barrel in after-hours trading on the NYME. The contract traded at $61.43 in early trading in London. Brent crude oil for January rose 49 cents to $61.70 a barrel in electronic trading on the ICE Futures exchange in London. Gold traded in London at $638.25 per troy ounce, up from $636.00 late Tuesday.

Currencies

The U.S. dollar was higher against other major currencies in European trading Wednesday morning. The euro was quoted at $1.3160, down from $1.3189 late Tuesday. The British pound was at $1.9490, down from $1.9509. The dollar bought 116.19 Japanese yen, up from 116.10.