A relative outsider to Pfizer, the company's new CEO Jeffrey B. Kindler previously practiced law and has never sat on a corporate board before. But in less than a year on the job, he has earned high marks from Pfizer's board for his willingness to make deep spending cuts and his unconventional views of how to run one of the world's top pharma companies. Monday, Kindler is expected to announce a drastic overhaul of Pfizer's budget during a conference call with analysts, though the company has been tight-lipped as to the form such cuts may take. After already cutting its U.S. sales team by 20% in November, it is felt Pfizer's European team can expect more of the same. "There will be facilities closures," according to someone with knowledge of the situation.
• Sources: Wall Street Journal, Forbes
• Related commentary: Pfizer's Sales Force Cut: Like 'The End of an Arms Race', Pfizer Trading Well Below Its Intrinsic Value, Pfizer Investors to Suffer from Halting of Lipitor Replacement; Big M&A to Come?, Searching for Value Investments in the Drug Stock Universe, Pfizer Failed: So What?
• Potentially impacted stocks and ETFs: Pfizer (PFE). Competitors: Amgen (AMGN), Biogen (BIIB), Bristol Myers Squibb (BMY), Glaxosmithkline (GSK), Eli Lilly (LLY), Merck (MRK), Schering-Plough (SGP), Sanofi-Aventis (SNY), AstraZeneca (AZN). ETFs: iShares Dow Jones US Pharmaceutical Indx (IHE), Pharmaceutical HOLDRS (PPH), Vanguard Health Care ETF (VHT)
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