Pfizer, Merck Take Different R&D Tacks |
| Wall Street Journal - Feb 4, 2011 |
The newly minted chief executives of two of the world's biggest drug makers sketched out sharply divergent strategies for reviving their businesses this week, setting up a showdown over which is the better strategy for the industry's future.
Merck & Co.CEO Ken Frazier took steps Thursday that are sure to anger Wall Street, saying the company won't make the cuts necessary to meet its long-term forecasts. Instead, it will focus on investing in drug development to drive growth. By contrast, in his first major public remarks since taking the helm of Pfizer Inc., Ian Read pleased shareholders by vowing to slash the company's spending on drug research and development by a third and to spend an additional $5 billion to buy back its stock.
Investors punished Merck with a 2.7% drop in its share price Thursday, while Pfizer's stock is up 5.2% since Mr. Read's comments Tuesday.
Read Full Article from Wall Street Journal
- Posted: 2011-02-03 22:45:49
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