Timothy Anderson - Sanford Bernstein
Hi. Thank you. I have questions on guidance. In the press release you talked about the gross cost savings from Wyeth being $4 billion which has always been the number. But you''re also talking about after reinvesting that translates into net savings of $2 billion to $3 billion. Maybe I have missed it in the past, but I don''t recall hearing that gross versus net distinction. And I am wondering if in essence you are saying you''re going to cut less cost out of Wyeth than what you originally said about a year ago?
Another question is on your revenue guidance for 2012, how are you accounting for pipeline products that could launch between now and then? So you''ve got certain products like Prevnar in adults, for example and Dimebon, are those types of products in that revenue guidance?
And then in the last piece is just on the R&D. So you put forth some pretty aggressive R&D cost cutting figures for 2010 and 2012. As I think kind of the core of the organization how are you confident that that isn''t going to ultimately come around to bite you for potentially under investing in R&D?
Jeffrey B. Kindler
Okay. Well, Frank, why don''t you address all three questions? I might make a comment on the last one.
Frank A. D’Amelio
So just quickly, Tim, on the less cost cutting, my answer is no. We are on a track to take out the $7 billion that we talked about. What we are doing though is we are choosing to reinvest some of that money in some of the opportunity areas that we have alluded to on the telephone and in some of our prepared remarks. So I don''t view it at all as cutting less. We are going to get the $7 million that we talked about previously, but what we are choosing to do is to reinvest some of that money. On the 2012 revenue targets and pipeline assumptions, I think the one large pipeline assumption would be pediatric Prevnar 13 and to a much smaller degree adult Prevnar.
In terms of the R&D programs, $9.1 billion to $9.6 billion in 2010, $8 billion to $8.5 billion in 2012 with the targets, those numbers have obviously been worked in detail with Martin, with Mikael. We have done bottoms up analytics on that. We announced our updated pipeline last week. It went from 600 programs to 500 programs. I believe we, the R&D team, the leadership team is very comfortable with the portfolio we have. We will be continuing to refine and optimize that going forward.
And we think we are really focusing it on the invest-to-win areas and we think we are maximizing the potential return on investment on that capital deployment.
Jeffrey B. Kindler
Yeah. Tim. And I just wanted to just add one note on that comment. Because it is a really good and important question that you asked, but it is among the most important things that we as a company and we as an industry have to continue to focus on. We have to improve R&D productivity. We have to improve the return on our owner''s capital investment in R&D. But at the same time, we can''t do it in a way that doesn''t feed the innovations that we need to do our core business.
We believe that we are striking the right balance there. We feel very good about the plans that we put in place. And we are making very good progress in that regard and I think we are really on the right track. So I feel very confident with that. Next question, please.
Operator
Seamus Fernandez, Leerink Swann.
Seamus Fernandez - Leerink Swann
Thanks very much. Just a couple of questions for Ian, I guess. Can you give us a little bit more granularity on where the investment is being driven? I am a little perplexed by commentary on DTC with Chantix. So maybe you can just give us a little bit more clarity on, are those investments really being driven to the Emerging Markets to potentially accelerate and sustain that double-digit growth and it is being traded from some of the markets where we are seeing very disappointing, I think, across the industry, not necessarily Pfizer-related but across the industry product launches in the U.S. markets that we are tracking today?
And then secondly I just wanted to go back to Jami''s question on Prevnar 13 and what is happening in the U.S and then also what is happening internationally in terms of the timing of the national immunization programs getting up and running with new products. Can you give us a little bit of an update on that and when we would see pricing and incorporation into that finalized?
And then again just Prevnar 13 in the U.S, what is happening? And do you expect at least have some response from the FDA prior to the ACIP meeting scheduled for February? Thanks.
Ian C. Read
Okay. So let''s just, on your first question, we have in the last two to three years been very deliberately shifting resources out of the United States and Western Europe and putting those resources into the Emerging Markets, mostly in the form of reducing our field forces. We changed our business model so we can still be effective with our customers in the United States and Europe but moving those resources out of those markets that you commented on and moving towards the Emerging Markets.
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