Pfizer Subtly Moves to Generics

by Johnny Debacle

Reader WrigleyDog pointed us towards a press release from Pfizer (NYSE: PFE) today, which was so generic that it can only mean one thing: the company will stop producing anything but generic pharmaceuticals. Here is the press release in its entirety:

Pfizer Focused on Delivering the Value Customers Expect and Shareholders Deserve, CEO Kindler Tells Shareholders

SOUTH BEND, Ind.–(BUSINESS WIRE)–In remarks at the annual shareholders meeting, Pfizer Chairman and Chief Executive Officer Jeffrey B. Kindler said, “We’re operating in an incredibly dynamic industry environment – one that, day in and day out, presents us with a whole range of promising opportunities. To succeed in this environment, we must fundamentally change the way we’ve done business in the past – and eventually transform just about every aspect of our company.

“We’ve accomplished a lot already. But it’s clear we need to do much more to get to where we want to be. All of our efforts are focused on achieving our ultimate goal – making significant improvements in the company’s performance and generating greater total returns for you, our shareholders.

“While it’s clear we’re operating in a very competitive business environment today, I also believe that we have a very wide and attractive set of opportunities to drive our success in the years ahead and enhance returns to our shareholders.

“We are focused on driving revenue growth, executing better, controlling costs, instilling greater accountability across the company and making sure we deliver the value our customers expect and our shareholders deserve.”

In other business, 12 of the company’s directors stood for and were re-elected to one-year terms. In other voting, shareholders ratified the selection of KPMG as Pfizer’s independent auditor for 2007. No shareholder resolutions received a majority vote.

Recommendation: There is not one thing in that entire speech which could not be recycled by 95% of public companies, which is amazing even for a press release. We think this is clear evidence that Pfizer will eschew its focus on patented pharmaceutical and switch entirely to generics. If Pfizer does this and if they can drive revenue growth, execute better, control costs, instill accountability and deliver value to shareholders, we rate the stock a “Buy this Stock in your Portfolio”.

Related: The Stalwart discusses the disappointing guidance provided by the most generically named company the Corporate Executive Board (NASDAQ: EXBD).

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