Pfizer: Safer - if not greater - growth
But PFE did not raise its previously stated 16% EPS growth target for the 2002-2004 period. Instead it gave guidance that the combined entity would have slightly lower growth in revenues and increased net profits. The implication is two-fold: the benefits of the acquisition come from one-time cost-cutting, and the company will need the five additional NDAs to maintain the same growth rate off a larger base.
PFE positioned the deal as one that reduces risk in a time of "irrational gloom" by creating a company of increased size, diversification and marketing power. Management implied that such a strategy is mandated by