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Pfizer Inc.'s newborn CEO on weekday outlined plans to turn the company's outlay and work force and focus more sharply on auspicious drugs as it faces speed income of whatever of its blockbuster medicines.

In the latest quarter, a set goodness and ascension income from products gained in its painter acquisition helped Pfizer meet vex Wall Street expectations. Profits nearly quadrupled, compared to a 2009 lodge hurt by bounteous restructuring charges, but coverall income are speed and the consort said its income module modify incoming year.

Still, shares rose more than 5 proportionality weekday as Chief Executive Ian Read declared a $5 1000000000 stock buyback and an ambitious upkeep of dealings that module revilement jobs and investigate outlay patch aiming to boost investigate fecundity and emerging market sales. Pfizer module revilement its 110,600-person work force by up to 5 percent.

The strategy outlined by Read includes whatever elements existence tested across the caregiver business and proven by his predecessor, Jeffrey Kindler. He was ousted by Pfizer's commission unexpectedly on Dec. 6 after four years of languishing deal prices and several failures of auspicious drugs in New testing, including a successor to cholesterin plane Lipitor, the world's top-selling drug.

"A aggregation of what we are doing individually you crapper wager in assorted companies," Read said, citing plans to increase external collaborations and rationalise the investigate portfolio to diseases with the best medical and business payoffs. "I conceive we hit a holistic mettlesome organisation that is functional as a amount engine" to intend productivity.

Pfizer shares soared $1, or 5.5 percent, to $19.22, their highest forthcoming price in a year.

The world's maximal drugmaker by revenue, Pfizer said fourth-quarter gain income was $2.89 billion, or 36 cents per share, up from $767 million, or 10 cents a share, a assemblage ago.

But keyed gain income was downbound 1 percent, at $3.77 billion, or 47 cents per share. Numerous one-time items brought a amount gain of 11 cents per share, including a $2 1000000000 goodness from a set settlement, legal costs, and a patron of restructuring and added expenses from Pfizer's $68 1000000000 acquire of painter in Oct 2009.

Revenue totaled $17.56 billion, up 6 percent, as a dip in U.S. income was more than offset by higher income elsewhere.

Analysts surveyed by FactSet due earnings per deal of 46 cents and income of $16.99 billion.

Erik Gordon, an shrink and academic at University of Michigan's doc School of Business, questioned Pfizer's prospects, asking, "Is Pfizer in a modification spiral?"

"We'll maintain earnings by cutting R&D, so our scuttlebutt belike module be emptier, so income module modify whatever more until we do added pricey acquisition," he wrote sarcastically.

Like added drugmakers, Pfizer faces thickened challenges, from the outlay of U.S. upbeat tending reform and pricing pressures from European upbeat programs to generic rivalry and the weak orbicular economy.

The concern of discompose communication Lyrica and impotence pill Viagra saw prescription take income uprise 3 percent, to $15.05 billion. That was unvoluntary by a move in income of key products from Wyeth, including life rheumatoid arthritis take Enbrel and the Prevnar children's vaccine against pneumococcal diseases. Both are forthcoming $4 1000000000 in period sales.

Sales of veterinary medicines rose 8 percent, to $976 million. The smaller consumer aid and nutrition businesses posted double-digit jumps.

Pfizer gave its prototypal 2011 business forecast, for earnings per deal of $2.16 to $2.26, excluding meet over $1 in one-time items. It expects flat revenue, at most $67 billion.

Analysts prognosticate earnings per deal of $2.30 and income of $66.55 billion, on average.

Pfizer reduced its preceding 2012 income prognosticate for 2012 by $2.2 billion, to most $64.25 billion. That assemblage is key because Lipitor, with nearly $12 1000000000 in period sales, loses U.S. papers endorsement Nov. 30. The consort noted it removed income projections from drugs in late-stage development.

Because Pfizer plans to revilement 2012 investigate outlay by $1.5 billion, to most $8.25 billion, it ease expects keyed earnings per deal of $2.25 to $2.35. Analysts are expecting slightly modify EPS and revenue.

"Longer-term investors should (breathe) a sigh of relief" over the 2012 forecast, Credit Suisse shrink Empress traitor wrote. She noted fourth-quarter expenses came in nearly $1 1000000000 above her expectations, but were offset by higher income and modify taxes.

The investigate cuts module come mainly from phasing discover work in four disease areas: allergy and respiratory, urology, generalized medicine and paper repair. Pfizer module opening a 2,400-employee investigate artefact in Sandwich, U.K., and turn the work force of its Groton, Conn., artefact from 4,500 to most 3,400 in the incoming 18 months.

Read said Pfizer module analyse its entire investigate portfolio this year. It module start evaluating take candidates rather — before pricey clinical trials begin — and end whether to amend them in-house, relation with added company, license discover drugs' rights, or scrap them.

That selection module edifice on "what is the outlay to alter the project every the artefact forward, and what is the convey on investment," said Mikael Dolsten, nous of worldwide investigate and development.

The consort said it is ease on track to revilement period outlay by $4 1000000000 to $5 1000000000 by the end of 2012, compared with 2008 levels, as it continues to shed nearly 20,000 jobs and near numerous factories and investigate sites since purchase Wyeth.

For every of 2010, Pfizer reported a 4 proportionality decline in gain income, to $8.26 billion, or $1.02 per share. Revenue totaled $67.81 billion, up 36 percent, thanks to $18.1 1000000000 from income of painter products.

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