This summary is based on the fourth quarter fiscal 2007 earnings call conducted by Pfizer Inc. (PFE: chart) on January 23, 2008.

Management:

- CEO and Chairman: Jeffrey Kindler
- CFO: Frank D''Amelio
- President, Worldwide Pharmaceutical Operations: Ian Read
- President, Pfizer Global Research & Development: Martin Mackay
- Sr. VP and General Counsel: Allen Waxman
- Sr. VP, WW Investor Development & Strategy: Amal Naj

Key Investors Issues

- Revenues were $13.1 billion, a 4% increase compared with $12.6 billion in 2006.
- Net income of $2.9 billion or 42 cents a share, decreasing 70% from the prior year.
- The firm took a 10% reduction in the global workforce and 20% in the U.S. sales force.

Full Year Highlights:

- Revenues increased 1% to $48.6 billion compared with 2006 despite the loss of U.S. exclusivity in both Norvasc and Zoloft.
- Net income of $8.3 billion or $1.20 a share declined 57% compared with 2006.
- Research and Development costs increased 6% to $8.1 billion.

Fourth Quarter Highlights

Revenues were $13.1 billion, a 4% increase compared with $12.6 billion the year ago quarter, despite Norvasc loss of U.S. exclusivity, which contributed to a $666 million decrease in Norvasc revenues.

- Revenue was positively impacted by foreign exchange which increased revenues by $610 million or 5% and the strong performance of many new and in-line products.
- Net income of $2.9 billion or 42 cents a share, decreased 70% due to the one-time after-tax gain of $7.9 billion related to the sale of the Consumer Healthcare business.
- This was partially offset by the favorable impact of foreign exchange, lower acquisition related IPR&D charges and other items.
- The firm incurred $230 million in restructuring charges as compared with $495 million in the prior year quarter associated with employee costs and asset impairments.
- It also incurred $525 million of implementation costs compared with $241 million in the prior year quarter related to sites exited or are in the process of exiting.

A wide array of outsourcing opportunities are in various stages of implementation. Manufacturing, logistics, finance, facilities, legal and IT are among the functions contributing to the financial and operational benefits of this strategy.

- Adjusted cost of sales as a percentage of revenue was 17.4% compared with 16.6% in the year ago quarter driven by the unfavorable impact of foreign exchange.
- Adjusted SI&A and R & D expenses were $4.5 billion,and $2.2 billion, an increase of 1% and a decrease of 9%, respectively, compared with the year ago quarter.
- Adjusted SI&A and R&D expenses as well as adjusted cost of sales were favorably impacted by savings from our ongoing cost reduction initiatives.

Progress Towards Priorities:

- Priorties include, maximizing revenues in both the short and the long term, establishing a lower and more flexible cost base, create smaller, more focused and accountable business units.
- In addition, priorities entail building more collaborative relationships to deliver greater value for patients, physicians and customers, and make the company a great place to work.
- New products in the portfolio include Lyrica, an innovative treatment for diabetic nerve pain and post-herpetic neuralgia, and now the first medicine to ever win FDA approval for the management of fibromyalgia.

Another product, Sutent, is a breakthrough way to fight too tough-to-treat cancers and a drug with the potential to treat other devastating cancers, including breast cancer.

- Chantix has now been tried by more than 5 million smokers and is growing rapidly worldwide.
- Meanwhile, Lipitor continues to hold its own, generating sales only slightly less than last year despite an unprecedented commercial and competitive attack.
- The firm has a host of other innovative products doing well, like Celebrex, Geodon and Zyvox, and the animal health business continues to deliver outstanding performance.
- The company also accelerated a new compound for generalized anxiety disorder into Phase III and moved three high value oncology indications, melanoma, breast and lung cancer into Phase III.

To supplement these efforts internally, the firm has revamped the business development group to capitalize on external opportunities like the apixaban collaboration with Bristol-Myers Squibb.

- Deals concluded include the acquisitions of BioRexis with its diabetes candidates and novel peptide technology platform, Coley Pharmaceutical Group with its vaccine adjuvant technology and a new class of drug candidates, and CovX.
- The firm also entered into an important collaboration with Adolor to develop two novel compounds for the treatment of pain.

Organisational Reform:

- The firm took a 10% reduction in the global workforce and 20% in the U.S. sales force and to enhance R&D efficiency and productivity, it closed two U.S. R&D sites and announced the closure of three international sites.
- The firm streamlined the therapeutic area structure and cut the layers of management in PGRD from 13 to 8.
- In manufacturing, it exited six sites in 2007 and plan to exit 12 more and achieved significant production cost reductions on key products hence is now on track to achieve absolute reductions of total adjusted costs of between $1.5 billion and $2 billion.