Pfizer Inc, world's largest pharmaceutical company with net sales over US$ 48.5 billion, has suffered a major setback during the year ended December 2007 on account of loss of US exclusivity of Norvasc and Zoloft, one-time after tax gain in the last year related to the sale of the consumer healthcare business and write-off of assets as well as other costs associated with its decision to exit Exubera.

Pfizer's net profit declined sharply by 57 per cent to US$ 8,298 million from $ 19,337 million in the previous year. The company's revenues improved marginally by 0.5 per cent to $48,613 million from $ 48,371 million basically due to favourable impact of foreign exchange rates. With significant reduction in profit level, its earning per share came down to $1.20 from $2.67 in the last year.

Jeff Kindler, chairman and CEO, said, "In 2007, we delivered solid performance, and made structural and operational changes to enhance the future performance of our company. With strong product performance, cost reduction, improved productivity and the benefits of foreign exchange, we achieved both revenue and adjusted diluted EPS growth despite losing US market exclusivity for Norvasc and Zoloft. This performance highlights not only Pfizer's operating and financial strength, but also our determination to meet our objectives in a challenging marketplace."

"We are executing against a broad plan to position Pfizer to deliver long-term value. Our new products - Lyrica, Chantix, and Sutent - are performing well. We are continuing to strengthen our senior leadership team and enhance accountability. We are shifting investments into high-priority therapeutic areas, revamping our R&D operations and acquiring new compounds and technologies that we believe are especially promising. These actions taken together have made Pfizer a stronger company than it was a year ago, and we look forward to continued progress in 2008," he added.

The company's Pharmaceutical sales declined by 1 per cent to $44.6 billion despite the positive impact of foreign exchange, which increased revenues by approximately $1.3 billion or 3 per cent. Revenues for Zoloft and Norvasc declined by 49 per cent in 2007. The Lipitor revenues declined by 2 per cent to $12.7 per cent and in the US it was declined by 8 per cent. However, it was up by 9 per cent in international markets. The US statin market in particular continues to be highly competitive, with both branded and generic competition in an increasingly cost-sensitive environment. Celebrex revenues increased by 12 per cent to $2.3 billion. Pfizer's R&D expenditure increased by 6 per cent to $8.1 billion from $7.6 billion.

Frank D'amelio, chief financial officer of Pfizer, said, "We continue to focus on building value by achieving our financial goals, maintaining spending discipline, prudently allocating our capital, and improving our cost structure. With respect to our cost structure, we continue to execute on our plans to reduce expenses and improve productivity. In 2007, among other activities, we reduced headcount by more than 11,000 exited six manufacturing sites and two R&D sites; continued to streamline our organization; and we remain on track to achieve in 2008".