Jeffrey Kindler

Kindler: Take politics out of the FDA

Tracy Staton — Mon, 03 Nov 2008 11:10:55 -0500

Last week we told you about GlaxoSmithKline CEO Andrew Witty's (photo) sit-down with the Financial Times. Today, it's Jeffrey Kindler (photo), Pfizer's chief. In a series of videos on the FT website, Kindler talks FDA leadership, industry challenge and company strategy. Like the folks watching FDA's performance in China, Kindler is hoping the new U.S. administration will beef up the agency. Not only that; he'd also like the president to allow FDA types to work independently, "so that we get science-based decisions, not political decisions." Zing!

And that's not Kindler's only FDA beef. There's been too much turnover at the top of the agency, to his mind, and he'd like the next FDA commissioner to stick around long enough to really "exercise leadership" and "to have real scientific credibility." Are you listening, presidential candidates?

Meanwhile, like many of us regular folks, Kindler is worried that the U.S. faces some enormous challenges in the near term. The economy. Energy. The war. The financial markets. And because the government will have to keep all these balls in the air, healthcare reform, he fears, is likely to drop to the wayside. This, despite the fact that politicians, businesses and citizens all agree that our healthcare system is broken and needs a major fix.

- see the Wall Street Journal Health Blog's summary of the FT interview
- check out the FT videos

No more heli-commute perks for Pfizer SVP

Tracy Staton — Fri, 18 Jul 2008 09:24:18 -0400

Should a senior VP's helicopter commute go on the company dime? Pfizer's CEO Jeff Kindler apparently said no: HR exec Mary McLeod got a $300,000 bill for heli-rides back and forth from her Maryland home, which had previously been charged to the company, Pharmalot reports. Report

Pfizer's Jeffrey Kindler - CEO Pay

Tracy Staton — Mon, 19 May 2008 14:57:06 -0400

Jeffrey Kindler - Pfizer

Total Compensation: $12.6M

2007 Revenue: $48.6B
2006 Revenue: $48.3B
Change: .6%

Details: 2007 was not Pfizer's best year, seeing that the company started things off with one of the biggest drug development flops in recent history. CEO Jeffrey Kindler's pay is low when compared to rivals, but it was still up significantly from $9.8 million in 2006. Kindler pulled in $1.35 million in base pay, $3.1 million in cash bonuses (down slightly from 2006), $7.5 million in stock and options. His other compensation included $175,000 for aircraft use and over $42,000 for his use of a car.

Pfizer News:
Woe is Pfizer, analysts say
Investors, analysts not impressed with Pfizer
Is Pfizer's CEO as bold as promised?
Pfizer chiefs sees pay decline
Pfizer's Kindler leaves analysts feeling flat

Pharma CEOs mull industry "trust deficit'

Thu, 24 Apr 2008 06:59:57 -0400

We love it when pharma CEOs depart from their usual talking points about financial results and restructurings and pipelines, to wax philosophical on their place in the word. This week, we heard an entire trio musing on the state of the industry: Merck chief Richard Clark, GlaxoSmithKline's putative chief Andrew Witty (photo), and Pfizer's Jeff Kindler (photo). Some choice bits:

Pharma's equilibrium is "shattered," Witty told the Academy of Medical Sciences this week. To fix it, drug makers need to listen more--and talk more--particularly with drug buyers (about the true value of new meds) and with government. Pharma and regulators are "like two ships missing in the night," he said.
"There is a trust deficit we have to fix," Merck's Clark told The Star Ledger, when asked about lessons learned from the Vytorin controversy. "I think everyone has a lesson to be learned from this. Drug makers "may have to become more transparent" about their spending and their relationships with docs, he said.
"There's a lot of public concern about the pharmaceutical industry," Kindler told the Wall Street Journal. "But...everybody recognizes that you can't solve the healthcare reform problem without an innovative, healthy pharmaceutical industry. We have to be a part of the solution." He went on to talk about truth-telling: "It's important for the industry to communicate with integrity and to do everything it can do to insure the integrity of the data and the science."

Sounds like these guys are all picking up on the same vibe: communication, transparency, telling the truth. And that they recognize that the "shattered equilibrium" and "truth deficit" need to be fixed. What will they do to make that happen, that's the question.

- check out the Witty story in the Financial Times
- see the Clark interview in the Star-Ledger
- read Pharmalot's take on Clark's remarks
- read the WSJ's Q&A with Kindler

Related Article:
Say goodbye to Big Pharma's gilded age

Woe is Pfizer, analysts say

Fri, 18 Apr 2008 06:59:58 -0400

Pfizer shares hit a 10-year low yesterday. And who can blame investors who sold, considering the Eeyore tone Wall Street analysts took after the drugmaker announced its falling sales and earnings? Here are a few choice quotes:

"Other than for an attractive dividend yield, we do not believe Pfizer needs to be owned." -- Steve Scala, Cowen & Co.
"After missing consensus estimates by $0.05, the earnings call did little to ease investors' minds." -- Tony Butler, Lehman Brothers
"I'm not sure any real progress can happen this year." -- Linda Bannister, Edward Jones
And the big winner: "Unless Kindler's plan is to tank revenue, I would say his plan is not working." -- Les Funtleyder, Miller Tabak & Co.

You'll all recall that CEO Jeff Kindler caught a lot of flak when he presented his plans for 2008 to analysts. Not aggressive enough. No pizazz. And (this was a biggie) no mega-acquisitions. Deutsche Bank's Barbara Ryan is still harping on that, saying, "Recent actions to significantly reduce corporate overhead...are clearly a positive, but need to be followed by strategic initiatives, namely acquisitions."

Now, Ryan may get more of the former before she gets the latter: Kindler said during yesterday's earnings call that he'd adjust the size of the company to match sales--even if sales don't grow the way he wants them to. And of course it's easier to cut jobs than it is to engineer R&D breakthroughs. Particularly at Pfizer, where the "track record at inventing new medicines is awful," according to Forbes. But Kindler, like Winnie-the-Pooh facing his friend the despairing donkey, is undaunted. He even used the word "exciting" when describing the company's oncology pipeline.

- read the story at Forbes
- check out the WSJ Health Blog coverage
- find Pharmalot's take
- see the item at PharmaGossip

ALSO: Avant Immunotherapeutics is pocketing a $40 million upfront fee and a $10 million equity stake from Pfizer in exchange for the worldwide rights to Avant's experimental brain cancer vaccine. Report

Related Articles:
Is Pfizer's CEO as bold as promised? Pfizer report
Pfizer's Kindler leaves analysts feeling flat. Kindler report
Pfizer, Roche suffer as big drugs falter. Pfizer report
Pfizer's Kindler can't quash mega-deal talk. Deal report

Wyeth, Pfizer chiefs see pay decline

Mon, 17 Mar 2008 07:59:58 -0400

Here's the latest installment in the exciting serial entitled "Pharma Paycheck, or Which Way But Up?" For recently retired Wyeth CEO Bob Essner (photo), the answer appears to be "down." He scored a cool $24.1 million, according to the WSJ Health Blog, but that's a big drop from $32.9 million in 2006. His replacement, Bernard Poussot (photo), saw his package decline to $12.7 million from $14.4 million. Though their base salaries both increased, their stock awards fell considerably; in Essner's case, to $10.2 million from $18.2 million. (Note: The Associated Press reported a 9 percent pay hike for Essner, pegging his total package at $20.1 million, perhaps because the WSJ uses the value of options on the day they were granted and the AP estimates the value of options and stock awards granted during the year).

Pfizer CEO Jeffrey Kindler lost some ground, too, the Health Blog calculates: his 2006 pay came in at $9.8 million, and in 2007 that dropped to $9.5 million. In the scheme of Big Pharma CEOs, those numbers don't look too outrageous (though laid-off Pfizer types might argue, and the AP's numbers look different). By contrast, the company handed two retiring officials a combined $56.8 million--almost six times Kindler's pay. Research chief John La Mattina got an exit package of $22.6 million when he departed under the torcetrapib failure cloud. Vice Chairman David Shedlarz, who retired, walked away with $34.2 million, most of which came from the company's retirement plans.

- check out the Health Blog item on Wyeth
- see the AP's numbers on Wyeth
- read the Health Blog on Pfizer's paydays
- find the AP's (higher) estimates of Kindler's pay

Related Articles:
Pfizer shows the door to two top executives. Report
AstraZeneca's CEO sees 19% pay cut. Report
Merck chief got 80% pay hike. Report
J&J hikes CEO's pay to $25.1M. Report
Genentech CEO snags $14M in pay as shares swoon. Report

Ex-Pfizerite indicted in off-label case

Wed, 12 Mar 2008 07:59:54 -0400

More evidence that the cover-up could be more lethal than the crime: A former Pfizer district sales manager has now been indicted for obstructing justice in connection with a 2004 off-label marketing investigation. The manager, Thomas Farina, allegedly deleted and otherwise tampered with documents on his computer, and told sales reps who reported to him to do the same. The indictment states that Farina messed with the evidence when he knew Pfizer was under investigation--and he'd been specifically told by the company to keep all related documents.

Issued by the U.S. Attorney's Office in Massachusetts, the indictment says Farina would face up to 20 years in prison and a $250,000 fine for each of the four counts of obstruction. A Pfizer spokesperson told Pharmalot that the company terminated Farina and some other employees several years ago and reported them to the Justice Department.

Meanwhile, the off-label marketing investigation? It's ongoing. And the indictment doesn't name the product in question; it calls the med X-Drug.

- see the news release from the U.S. Attorney
- read the indictment (.pdf)
- check out the coverage at Pharmalot

ALSO: Pfizer's general counsel Allen Waxman is stepping down; he's been GC since CEO Jeffrey Kindler took over in 2006. He'll remain outside counsel during the transition period, and SVP David Reid will take on Waxman's internal duties on an interim basis. Release | Item

Related Articles:
Rep decries off-label marketing "loophole." Report
Should off-label journal promos be OK? Report

Analysts not impressed with Pfizer

Thu, 06 Mar 2008 06:59:56 -0500

Investors and analysts are none too impressed with Pfizer's new strategies as outlined by CEO Jeffrey Kindler and other execs during an annual Wall Street update yesterday. The stock fell to within 50 cents of its 52-week low, and analysts expressed disappointment, boredom, and frustration. Here's a sampling:

"The message I hear is, 'Don't expect anything radical,' but the challenges require radical change," Morgan Stanley's Jami Rubin told the Wall Street Journal.
"In my own judgment, I don't think they're going to be able to replace Lipitor in 2011," les Funtleyder at Miller Tabak told CNN Money. "There's nothing I've seen today [at the analyst meeting] that would change that."

It was a tough audience. Analysts have been hoping--expecting--big changes from Kindler, and not unfairly, because he promised them. The moves he outlined yesterday do include some sweeping alterations to the way Pfizer manages its business; for instance, Kindler says he's giving company units more autonomy so they can move more quickly. But cultural change takes time to bear fruit, especially at a behemoth like Pfizer, and it's not the kind of big-deal dramatic move that energizes investors. Promising to vault a bunch of drug candidates into Phase III this year is another long-term, slow-to-pay-off strategy. The one thing that might have set observers abuzz--a big acquisition--Kindler ruled out completely.

Now, Kindler may be laughing all the way to the bank in 2010 when his patient strategies start to pay off. He might be able to thumb his nose at all the investors and analysts who yawned at the meeting yesterday. But Wall Street is all about psyche. The audience went in wanting, if not expecting, revelation. Instead they got step-by-step-by-painful-step improvement plans. Which may end up being the best thing for Pfizer. But they won't do a thing for investors' returns next quarter.

- read the story at CNN Money
- check out the WSJ's article
- find this comprehensive summary at The Day
- read Kindler's word on acquisitions
- see Forbes' focus on Kindler's plans
- view Kindler's interview with CNBC's Maria Bartiromo

ALSO: Pfizer has staked out plans to make 15 to 20 regulatory filings for new drug approvals and expanded use of existing drugs between 2010 and 2012, insisting that the pharma giant can gin new revenue to replace the $12 billion a year it will see evaporate when Lipitor loses its patent protection. Report

Related Articles:
Pfizer seeks salvation in late-stage biotherapeutics. Report
Pfizer got tax break but didn't deliver jobs. Report
Is Pfizer's CEO as bold as promised? Report

Is Pfizer's CEO as bold as promised?

Tue, 04 Mar 2008 06:59:58 -0500

Like natives encountering a strange explorer in an old B movie, investors hailed Jeffrey Kindler (photo) when he was picked to succeed Pfizer CEO Hank McKinnell. Now, 19 months into his tenure, the natives are getting restless. Kindler hasn't delivered the kind of sweeping change he promised. The company is no closer to replacing the fast-running revenue engine that is Lipitor, which could face generic competition in 2010. And shares have fallen 15 percent. "We're getting close to the end of the period where one can say it's too early to see change," one portfolio manager told The Wall Street Journal. Another said, "I've been a buyer for two years and I don't have a lot to show for it."

Observers had high hopes for Kindler in part because of his heritage as an ex-McDonald's exec; he was seen as an outsider who could see pharma's challenges more objectively and meet them in a nontraditional way. But last year's strategy update for analysts disappointed some in the audience, the WSJ said, because far from featuring radical solutions to Pfizer's problems, it revolved around old-hat tactics like layoffs and plant closures. This year's strategy, scheduled to be announced tomorrow, may prove little better, a source told the newspaper. "The Street may be disappointed with what he says Wednesday because he may not be as bold" as investors want.

Granted, Kindler inherited a tough situation. Pfizer stock dropped by half while his predecessor held the reins, and the company is still digesting two big acquisitions. Kindler may have good reason to be cautious, not least of which is a fear of over-promising and under-delivering. Some say he'll soft-pedal his initiatives tomorrow but his actions in the coming months will show just how aggressive he can be. One hint might lie in his hiring a Pfizer outsider but industry insider--venture capitalist and ex-Eli Lilly exec William Ringo--to head up strategy and business development. But for more specifics we'll just have to watch and wait.

- read Pfizer's release about Ringo
- see the report from The Wall Street Journal
- check out the Pharmalot item on Ringo

ALSO: Pfizer has beefed up its prospects in the cancer arena with the buyout of Durham, NC-based Serenex. The biotech has been developing drugs for tumors and cancers of the blood and bone marrow. But Pfizer also acquires--for an undisclosed sum of money--the company's drug discovery technology. Report

Related Articles:
Pfizer's Kindler leaves analysts feeling flat. Report
Management shakeup at Pfizer. Report
CEO McKinnell gets the boot as Pfizer struggles. Report
What's next for Pfizer? Report
Pfizer hires new R&D chief, launches biotech center. Report

Pfizer vice chair says hasta la vista

Fri, 26 Oct 2007 06:59:57 -0400

He didn't win the horse race, so he's heading out for greener pastures. Pfizer Vice Chairman David Shedlarz will retire at year's end after a 31-year career there.

Shedlarz stuck around for a year to help restructure after Pfizer chose Jeffrey Kindler to fill the CEO post. Kindler, Shedlarz and Karen Katen were all elevated to vice chairs in 2005 as the company evaluated who'd take the top slot. Shedlarz had been CFO for 10 years.

Now, though, the person in Shedlarz's old CFO suite is an outsider, Frank D'Amelio, brought in to continue revamping the company. And Kindler isn't a Pfizer careerist, either; he worked at McDonald's Corp. before joining the drug maker as general counsel and then vice chairman.

-read the news release from Pfizer
-read the Wall Street Journal's article or the item in its Health Blog

Pharma execs practice positive thinking

Tue, 11 Sep 2007 06:59:57 -0400

Throw a bunch of pharma execs into a room with financial analysts, and what do you get? Almost unmitigated hope. Thinking positive is a must when analysts are around, so as industry leaders stand up to address Bear Stearns' healthcare conference this week, they're trumpeting the growth in overseas markets, and soft-pedaling unpleasantness like layoffs and restructuring.

Wyeth EVP Jim Connolly credited the overseas market with the success of its pneumonia vaccine Prevnar, the company's second-biggest seller; he said Prevnar sales rocketed to $1.2 billion in the first half of 2007, a 32 percent increase, and projected annual sales of $3 billion by 2009.
Medtronic CEO William Hawkins predicted double-digit international growth pegging China as the big gorilla of overseas markets. Within 10 years, he said, China will supplant Japan as the company's second-biggest market. Meanwhile, the company's cutting 900 jobs.
Pfizer CEO Jeffrey Kindler said Asian and Latin American markets are growing at twice the rate of those in developed countries, and cited his company's new plants in China and new R&D in India and Korea as part of a strategy to take advantage of that growth. Pfizer, of course, is embroiled in a multibillion-dollar restructuring that includes some 10,000 layoffs.

- check out the report from CNNMoney

Related Articles:
Wyeth stumbles badly trying to develop new drugs. Report
China now leads India in ongoing clinical trials. Report
Troubled Pfizer blueprints biotech venture effort. Report

Pfizer hires on the axe man

Thu, 23 Aug 2007 06:59:57 -0400

It's a tough job, but...well, you know the rest. Pfizer is bringing in financial fix-it guy Frank D'Amelio as its new CFO, and he'll have plenty of fixing to do.

D'Amelio won kudos for helping turn around telecom equipment-maker Lucent, at least in part by wielding a hatchet. Pfizer has already cut 10,000 jobs, but it's facing a series of patent expirations that could turn the company into a falling-domino exhibition. CEO Jeffrey Kindler says D'Amelio's up to the challenge, though, because he's helped run companies through "the kind of rapid and complex changes we have undertaken at Pfizer."

It's true that D'Amelio saw Lucent through a dip into penny-stock land and helped engineer the company's sale to Alcatel. In the process he cut jobs by 75 percent. Pfizer workers may be quaking in their boots, but shareholders could be comforted by D'Amelio's rep as a pragmatic guy who can be objective when offering solutions to the company's problems. Is he sharpening his hatchet now? Only time will tell.

- see Pfizer's release
- read the report from Forbes

Related Articles:
Pfizer goes public with R&D pipeline. Report
Pfizer cuts 10,000 jobs. Report
Troubled Pfizer blueprints biotech venture effort. Report
Management shakeup at Pfizer. Report