Earnings are out and, naturally, this means the ceo is chatting up analysts, fund managers and other investors in need of reassurance about the future. For a change of pace, however, Pfizer ceo Jeff Kindler stopped for a few minutes to chat with Pharmalot about some key issues confronting the drugmaker. By his side was cfo Frank D’Amelio. Here is an excerpt…

Pharmalot: How do you get sufficient top line growth without making acquisitions?
Kindler: First of all, we’ve set out a number of strategies that will produce very profitable growth over the next few years. And we’re on target to achieve those goals. Now, look at emerging markets. That’s a huge growth opportunity. If you exclude Japan, Australia and New Zealand, and look at Asia, that’s expected to grow from $50 billion $80 billion between now and 2012. And we have a 4 percent share. So you can do the math. If we keep that share, it represents a lot of money. And if we growth that, it represents a lot.

Then, there are our established products, which is a multi-billion dollar business and the fastest-growing segment of our pharmaceutical business. We’re very focused on that and there has been growth over a substantial period. When it comes to acquisitions, alliances, joint ventures, these enable our strategy. They are not a strategy in and of itself. We have and will pursue supplemental business activities…to enhance our internal growth strategy.

Pharmalot: Right, although I ask because I continue to hear the board is discussing the possibility of a big drugmaker or a biotech. Name such as Bristol or Biogen.
Kindler: As I said on the call today, we’ve always said we’re open to to looking at large, medium and small companies, and evaluating them in the light of the dynamic environment we’re in…But there has to be strategic value at the right price and it would have to be done in a way to minimize the disruption and risk involved. And importantly, it has to create shareholder value [translation - who knows? why rule anything out?]

Pharmalot: Let’s talk about products for one moment. Chantix didn’t do well in the US. Is the product dying? If not, what can you do to make it the success you first envisioned?
Kindler: Actually, the product is doing well outside the US. Clearly, it has had challenges in light of three labeling changes made over the last year. But having said that, this is a very innovative and valuable medication and, when properly used by right patients, can provide enormous benefit in stopping an important and serious cause of death in the world - smoking. The benfits are substantial. We are continuing a host of ways to properly communicate all relevant information aobut the product to make it available.
D’Amelio: We’re contining to invest. We just launched a multi-channel ad campaign. Yes, US sales were down, but international sales were up 60 percent yearr to date, and overall global sales were up. You know, $660 million in sales cumulatively through nine months is a nice product.

Pharmalot: We’ve read a lot about cost cutting, but of course, that doesn’t help revenue grow. In the last few years, Pfizer went from 110,000 or so employees to around 80,000-plus. What can you tell us about plans we hear to further trim R&D and salespeople, or can you now say that such moves are largely done with?
Kindler: We are all focused on growing revenue and that’s the most important thing we need to do so we can appropriate size the cost structure to revenue over time. This is an organization that’s demonstrated its ability to execute on cost improvements. I can tell you cost efficiency is a way of life here to a degree I’ve never been before. And one size doesn’t fit all. One reason we have these business units is so they can develop established growth strategies. Cost improvement and productivity is an ongoing imperative in any business and our Pfizer colleageus have done a very formidable job last year and a half in continuing to improve the cost structure and we intend to continue to do that [translation - sounds like more job cuts, yes?]