Recognizing the need to rejuvenate its lackadaisical pipeline, Pfizer Inc. (PFE) is making leadership changes to a key position in research.The drug maker said President of Pfizer global research and development, John LaMattina, will retire by this year end, after a 30-year stint with the company. LaMattina, 57, who leads Pfizer's 12,500 researchers, will step down once the company zeros in on a replacement.One of the most recent embarrassing failures for Pfizer is its experimental cholesterol drug Torcetrapib. The drug, which was touted as Pfizer's replacement for its blockbuster cholesterol treatment - Lipitor, was killed in clinical studies last year on safety concerns. Lipitor runs off patent in 2010.Pfizer spends about $7 billion annually on research, yet the company has not been able to bolster its pipeline to quickly replace blockbusters like blood pressure pill Norvasc, antidepressant Zoloft and antibiotic Zithromax - that have lost patent protection.The loss of patent exclusivity on Norvasc, Pfizer's second best seller next to Lipitor, is expected to erase an estimated $1.2 billion from the company's 2007 revenue. This is however expected to be offset in part by a $450 million addition to the top line due to a weaker dollar.In view of the generic competition for Norvasc, Pfizer cut its 2007 adjusted earnings forecast to $2.08-$2.15 per share from prior projections of $2.18-$2.25 per share. Revenues are now seen between $47 billion and $48 billion, compared to previous forecasts that pitched revenues to be flat with year-ago $48.37 billion. Analysts foresee 2007 earnings of $2.15 per share on revenues of $ 47.76 billion.Disappointing revenue performance of Exubera, inhaled insulin, was another setback. The drug did not gain acceptance on concerns over long-term lung safety and lack of reimbursement as insurers considered the drug a convenience.Last year, the company was successful with Chantix, an anti-smoking pill, and Sutent, a treatment for stomach and kidney cancers. Lyrica, a treatment for neuropathic pain, fetched sales of $395 million for the first quarter of 2007, representing a 106% growth over the year-ago period.The company said Sunday that it would begin a search both inside and outside the company for LaMattina's successor. Martin Mackay, currently vice president R&D and head of worldwide development is also seen as a contender for the prestigious position.As part of the shake-up, Pfizer's chief financial officer - Alan Levin, will also leave the company, after a 20-year tenure, with the last 2 as CFO. Pfizer said the CFO is leaving to pursue other career opportunities. As reports have it, the company is looking for a finance chief with more visibility and experience on Wall Street.Pfizer is executing turnaround initiatives to spark up its stock, which hit multi-year lows last July. The company ousted former Chief Executive Hank McKinnell and brought in McDonald's Corp. executive Jeffrey Kindler to head the company.Kindler is closing plants and slashing jobs to transform Pfizer into a nimbler and more productive company. In January, the company cut about 10,000 jobs or 10% of its work to help bring down annual costs by up to $2 billion by the end of next year. Until new treatments hit store shelves, those cost cuts are expected to drive earnings growth in the single-digit range.Late April, Prudential Financial analyst Tim Anderson downgraded Pfizer stock to "Neutral Weight" from "Overweight, and cut his target price to $29 from $30.In view of rising generic competition and Pfizer's intentions not to break up the company, the analyst said in a research note that it is unclear what the company will do to improve its stock price. The stock has traded between $22.16 -and $28.60 in the past year.However, Pfizer's cash position remains strong. The company reported operating cash flow of $14.88 billion for the trailing twelve months. The company has also been buying back stock and pays a 4.3% dividend yield, probably Pfizer's way of encouraging investors to wait for a turnaround.PFE closed Friday's regular trade at $27.44, up 8 cents or 0.29%.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.