By Edward Tobin and Ransdell Pierson
NEW YORK (Reuters) - Pfizer Inc's (PFE.N: Quote, Profile, Research, Stock Buzz) top executive is counting on higher sales in emerging markets and revenue from older medicines to generate enough revenue in the next three years to help offset an expected plunge in sales of its top selling Lipitor cholesterol drug.
Jeff Kindler, speaking at the Reuters Health Summit on Thursday, also expects the company's new organizational structure to take hold and make a difference before $12 billion-a-year Lipitor faces generic competition in 2011.
Kindler's game plan comes at a critical time for the world's largest drug maker and does not necessarily include the kind of big acquisition that many investors are hoping for. The shares at $14.45 are trading at 11-year lows.
The CEO said his strategy to prepare for the loss of Lipitor also includes maximizing sales of current products, launching new medicines, and cost cutting.
And its new corporate structure focused on five business units will help the company be more efficient, he said.
"Many of these strategies were just adopted in March of this year. It's early days. But I think we are demonstrating with every quarter that we are in fact executing on this," Kindler told Reuters reporters.
Pfizer was built in the last 10 years on two of the biggest deals in the sector -- the purchase of rivals Warner Lambert and Pharmacia. But when asked about acceding to pleas from some analysts and investors to make another acquisition to obtain products to replace Lipitor, Kindler expressed caution.
"Business development -- whether it is a small deal, a medium-sized deal or a large deal, is an enabler for strategies. It is not a strategy in and of itself," he said.
Building on Pfizer's strength in emerging markets is a priority. The CEO said Pfizer is achieving "enormous growth" in China, Brazil, Turkey, India, Korea and Russia. In developing markets in Asia, he noted there will be $80 billion of additional growth between now and when Lipitor goes off patent.
"We have a 3-4 percent share of that market today. If we just hold our share and capture our share of the $80 billion growth -- that is a significant opportunity for us. If we grow that share -- it's even more significant."
But Kindler declined to forecast how much its market share might grow overseas.
He also touted Pfizer's strength in the "established product business," meaning sales of its branded drugs that have lost patent protection as well as its own generics.
"Even today, Lipitor off-patent in some markets is competing successfully against generic" forms of the drug, he said. "Because in many of these markets the patient and physician are focused on quality and the brand they know ... and Lipitor is a very successful competitor."
Kindler declined to outline any plans to use its large cash position to boost the company's industry-topping dividend, or a share buyback plan, either of which might entice investors and provide a boost to its slumping share price.
"We are positioning ourselves very well for the period after Lipitor loses exclusivity to be a strong and profitably growing company," Kindler said. Continued...
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