By THERESA AGOVINO
The Associated Press
Thursday, November 30, 2006; 6:23 PM

GROTON, Conn. -- Pfizer Inc. on Thursday raised its earnings guidance for the year as it showcased its pipeline of new drugs and a new approach to dealmaking that it said should put about six new products a year on the market beginning in 2011.

CEO Jeff Kindler told analysts and investors gathered for a review of the world's largest drugmaker's plans that he understood the challenges but was determined to transform Pfizer into a nimble, innovative organization offering patients a rich selection of treatment options.

"Our ambition is to create a company that introduces a steady stream of new medicines from a more diversified product portfolio with a heavy emphasis on the therapeutic areas offering the greatest medical promise and commercial potential," Kindler said.

Patent losses will crimp Pfizer's revenues for the next two years, keeping sales at 2006 levels. And recently, there have been concerns that the star of Pfizer's pipeline, cholesterol treatment Torcetrapib, might face a problematic future because a study showed it caused an increase in blood pressure.

But as Kindler attempted to reassure analysts about Torcetrapib, he also drove the point that Pfizer was not a one-trick pony. He noted the company had 242 research programs in 11 different therapeutic areas and outlined new initiatives to increase the number of medicines it develops with other drugmakers and researchers.

Analysts said there were some promising compounds in the pipeline, including treatments for cancer and obesity. They also praised Kindler's more transparent approach in relating to the financial community, saying it contrasts sharply with that of Hank McKinnell, who vacated the post over the summer but remains chairman.

Pfizer expects to launch three new drugs next year but analysts think only one of them, an AIDS treatment, has blockbuster potential. Dr. John LaMattina, Pfizer's president of Global Research and Development, said the pipeline won't be barren until the surge of new products in 2011, noting the company will seek approval for new uses for cancer drug Sutent and Lyrica, a treatment for neuropathic pain and epilepsy and will as other compounds.

Yet, analysts remain focused on Torcetrapib, and say Pfizer will struggle if it disappoints.

"I think Torcetrapib is the key. I'm seeing a lot of drugs that might work five years from now," said Catherine Arnold, an analyst at Credit Suisse. "But most people aren't ready to buy stock on that."

Torcetrapib is a drug that raises good cholesterol, and initially it will be sold in combination with Lipitor, which lowers bad cholesterol.

Results of a trial that will use images of arteries to measure whether the drug removes plaque are due in March. The U.S. Food and Drug Administration has said it would consider approving the drug on those studies but there is a chance it may opt to wait for a trial which measures if Torcetrapib reduces the risk of heart attacks and death. Those results will not be available until 2009.

Pfizer has been hit hard recently by patent losses. A generic version of blockbuster Zoloft hit the market this summer. Next Pfizer will lose patent protection on blood pressure medicine Norvasc and allergy treatment Zyrtec.

"We understand the challenges (caused by the patent expirations) and the urgency of addressing it," said David Shedlarz, Pfizer's vice chairman.

Shedlarz will oversee efforts to work with other companies and academics to find new products and technologies that he maintains will allow Pfizer to bring two new products per year to the market by 2010. Pfizer's own pipeline should contribute four new drugs annually by then, the company said.

Pfizer has always collaborated with others but Shedlarz said the effort is becoming more streamlined and creative. For example, departments conducting business development, mergers and acquisitions and licensing agreements will all be brought together in one division.

He also said that Pfizer would be more flexible in structuring deals with both companies and academics so it can work with people who may not find the corporate atmosphere conducive to scientific research.

Shedlarz didn't rule out a major acquisition but said that if would not buy another company for short-term financial gain and would only make a purchase if it made strategic sense.

Pfizer also announced a research collaboration with the Scripps Research Institute and said it was launching a project at its facility in La Jolla, Calif., to discover new biotech drugs.

The drug pipeline summary followed Pfizer's announcement last month that it was exploring ways to cut its costs beyond the $4 billion it had already pledged to slash by 2008. Pfizer announced earlier this week that it would cut 20 percent, or 2,200 people, from its U.S. sales force of 11,000. Analysts estimated that could cut between $400 million and $500 million from annual costs.

Meanwhile, Pfizer raised its adjusted earnings-per-share forecast to a minimum of $2.05, from an earlier forecast of $2. Without adjustments, the company expects earnings at least $1.68 per share.

Analysts surveyed by Thomson Financial had been expecting adjusted earnings per share of $2.02.

Pfizer stuck to targeting average earnings growth in the high single-digit percentage range in 2007 and 2008.

Pfizer shares rose 42 cents, or 1.6 percent, to close at $27.49 on the New York Stock Exchange.

___

AP Business Writer Wallace Witkowski in New York contributed to this story.