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The Chairman
Victor Niederhoffer

01/19/2005
Pfizer's 103-Page Interim Report

It was an occasion to see new euphemisms as well as to note the seemingly unnoticed and strange figures:

        Sales   CGS 
2003     13.9   3.9
2004     14.9   2.3

Reductions like this, not commented on in the report, seem more important than "Viagra partners continue to express a desire for their men to continue with Viagra treatment." Referring to a clinical study of Lipitor,  they state, "The results of this study demonstrate how Pfizer can leverage data to support multi-products in a given therapeutic area." Let us hope that people in our field will not leverage data unduly.

With reference to expanding geographically, they hope to "expand our geographical presence in communities around the world to ensure patients have access to our products." This humanitarian concern is much to be desired.

Relative to efforts of governments. to reduce costs Pfizer has an ear to "finding solutions to difficult problems in healthcare systems."

Among the dozens of canned questions answered in their report including "how is x drug performing" with sales of just a few million per year. I saw no questions about how Celebrex is doing now, relative to its 25% increase in sales during the fourth quarter, or what the impact of foreign exchange gains was on reported sales. I only found two honorifics to DOCTOR Hank McKinnell, chairman and CEO, and note that unlike Dr. Greenspan he actually does hold a doctorate (from Stanford Graduate School of Business), albeit one dare says that most people would consider from the doctoring label that he's a medical doctor rather than the kind like me that doesn't help anyone. He's also on Moody's , Exxon, and Wiley chair of business round table, and member of Mit. Corp., U.S. Chamber of Commerce, the Business Council, the Royal Shakespeare Company, Japan Society, Chairman of Stanford University Graduate Advisory Council, NY Public Library, and of course to be politically correct, Channel Thirteen, and John F. Kennedy Center for the Performing Arts.

One is awed that Dr. McKinnell still has the time to acquit his duties as CEO and chair of the world's biggest drug company with such aplomb.

All told, one is amazed with how many people and departments must have contributed to the 103-page report and how in such an environment a surprise sufficient to jack the price up by some 2% could emerge from it all.

*While not related to what was said above, Victor is long Pfizer shares as of this writing.

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