Pfizer plans to implement a company-wide cost-reduction initiative to lower its cost base in 2007 and 2008, in an effort to provide more flexibility in the face of changing market conditions. This new initiative is in addition to the Adapt to Scale (AtS) initiative. By 2008, these savings will be more than $4 billion and as a result, the company expects an average annual growth to be in the high single digits over 2007-08, though revenues are expected to stay flat during that span. According to the company, by 2009 it expects a return to revenue growth as the impact of major patent expirations declines and the performance of new products becomes more significant in the marketplace.
Pfizer's chief executive officer, Jeffrey B. Kindler said, "Pfizer is a strong company with a bright future. We will continue to invest in a wide and promising range of opportunities for growth. Our pipeline of new products and new approaches to discovery and development, coupled with our strategy of acquiring attractive new products and technologies externally, promise to deliver strong and renewed growth opportunities over time. By moving quickly now to transform our company, we will enhance our competitive strength and put ourselves in the best possible position to capitalize on all the opportunities available to us."
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