Pfizer Plans Staff Reductions as Part of Reorganization
As part of Pfizer’s previously announced reorganization, the company plans to reduce its global headcount by around 2% through voluntary retirements and staff reductions this year (2018) and in early 2019. Pfizer says the move is expected to streamline its corporate structure and eliminate some managerial roles and responsibilities, but is not related to achieving cost savings. As of December 31, 2017, Pfizer employed approximately 90,200 people in its operations globally.
The move follows an announcement earlier this year (July 2018) of a reorganization of the company, to take effect at the beginning of the company’s 2019 fiscal year, as well as CEO succession plan, announced earlier this month (October 2018), to take effect January 1, 2019.
Beginning in 2019, the company will reorganize into three businesses; an Innovative Medicines business, an Established Medicines business, and a Consumer Healthcare business. The Innovative Medicines business will include the current Pfizer Innovative Health business units as well as biosimilars and a new hospital business unit for anti-infectives and sterile injectables. Pfizer will also incorporate its biosimilar portfolio into its Oncology and Inflammation & Immunology business units.
The Established Medicines business will include off-patent branded drugs and generics and operate with substantial autonomy within Pfizer, the company said. The business will include the majority of Pfizer’s off-patent solid oral dose legacy brands, including Lyrica (pregabalin), a drug to treat nerve pain, Lipitor (atorvastatin), an anti-cholesterol drug, Norvasc (amlodipine), an antihypertensive drug, and Viagra (sildenafil), a drug to treat erectile dysfunction, and certain generic drugs.
The Consumer Healthcare business will include all of Pfizer’s over-the-counter medicines. It will continue to operate relatively autonomously with dedicated manufacturing and regulatory capabilities. At the time of its July 2018 announcement, Pfizer said it continues to evaluate strategic alternatives for this business.
Incoming Pfizer CEO names executive leadership team
Earlier this month (October 2018), Pfizer announced an executive succession plan with current Chairman and Chief Executive Officer (CEO) Ian Read stepping down as CEO, effective January 1, 2019 and transitioning to Executive Chairman of Pfizer’s Board of Directors. Albert Bourla, currently Chief Operating Officer of Pfizer, will succeed Ian Read as CEO effective January 1, 2019.
Pfizer subsequently announced the executive team that will report to Bourla, coincident with the commencement of his new role as CEO, effective January 1, 2019. The executive leadership team is outlined below, which includes new leadership for the company’s manufacturing operations and the creation of a new role as chief patient officer.
- Frank D’Amelio, Chief Financial Officer and Executive Vice President, Global Supply and Business Operations, will also assume the leadership for the company’s manufacturing operations, Pfizer Global Supply.
- Mikael Dolsten, Gobal President, Worldwide Research and Development, and Medical, will also assume oversight of the Chief Medical Officer’s role.
- As previously announced, Michael Goettler become Global President and lead the newly reorganized Established Medicines business that will operate as an autonomous, stand-alone unit within Pfizer.
- Angela Hwang, Group President, Pfizer Innovative Medicines, will become the Group President of Pfizer’s science-based Innovative business responsible for the entire portfolio of innovative medicines.
- John Young, Group President, Chief Business Officer, will assume a new role, responsible for strategy, business development, portfolio management and valuation activities; business analytics; global commercial operations; and Patient and Health Impact, among others. Pfizer’s Consumer Healthcare business will also report to John
- Freda Lewis-Hall, Executive Vice President, Chief Patient Officer, will assume a new role as Pfizer’s Chief Patient Officer, deploying the resources of the company to advocate on behalf of all patients who rely on Pfizer to deliver new therapies and vaccines.
- Rady Johnson, Executive Vice President, Chief Compliance, Quality and Risk Officer, will continue in his role as the Company’s Chief Compliance Officer.
- Doug Lankler, Executive Vice President, General Counsel, will continue in his role as the company’s General Counsel.
- Rod MacKenzie, Executive Vice President, Chief Development Officer, will expand his responsibilities to include Pfizer’s regulatory affairs function in addition to all late stage development activities.
- Dawn Rogers, Executive Vice President, Chief Human Resources Officer, will continue to lead the Human Resources team.
- Sally Susman, Executive Vice President, Chief Corporate Affairs Officer, will continue to lead the Corporate Affairs function.
Pfizer partners with Bain Capital to form CNS-focused biopharmaceutical company
As part of an earlier decision to end its internal neuroscience discovery and early-stage development programs, Pfizer has created a new Boston, Massachusetts-based biopharmaceutical company focused on central nervous system (CNS) disorders, Cerevel Therapeutics, with Bain Capital, a private investment firm.
In January 2018, Pfizer announced that it was ending its internal neuroscience discovery and early-development efforts to re-allocate funding to other areas where the company says it has stronger scientific leadership. At the time, the company had said it planned to create a dedicated neuroscience venture fund to support continued efforts to advance the field.
Pfizer is contributing a portfolio of pre-commercial neuroscience assets to the newly formed Cerevel, which include three clinical-stage compounds and several pre-clinical compounds designed to target a range of CNS disorders, including Parkinson’s, Alzheimer’s, epilepsy, schizophrenia, and addiction. Funds affiliated with Bain Capital Private Equity and Bain Capital Life Sciences have committed $350 million with the ability to provide additional capital should it be needed in the future. Pfizer will retain a 25% equity position in Cerevel.
The development of tanezumab, a pain drug that Pfizer is developing with Eli Lilly and Company, and potential treatments for rare neuromuscular disorders were impacted by this decision for the spin-off of the other neuroscience assets