Pfizer To Reorganize Into Three Businesses
Pfizer has announced plans to reorganize the company into three businesses; an Innovative Medicines business, an Established Medicines business, and a Consumer Healthcare business. These changes will be effective at the beginning of the company’s 2019 fiscal year.
“This new structure represents a natural evolution of these businesses given the ongoing strength of our in-market products and our late-stage pipeline and the expected significant reduction in the impact of patent protection losses post-2020 following the loss of exclusivity for Lyrica in the US, which is expected to occur in or after December 2018,” said Ian Read, Pfizer Chairman and Chief Executive Officer in a July 11, 2018 company statement. “As we transition to a period post-2020 where we expect a higher and more sustained revenue growth profile, we see this new structure better positioning each business to achieve its growth potential.”
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 pain drug, Lipitor (atorvastatin calcium), an anti-cholesterol drug, Norvasc (amlodipine besylate), a blood pressure drug, and Viagra (sildenafil citrate), an erectile dysfunction drug, and certain generic drugs. This business will operate in all regions of the world. The business will have distinct and fully dedicated manufacturing, marketing, regulatory, and with some exceptions, enabling functions, which will enhance its position to operate as a stand-alone business within Pfizer. Following the impact of the expected loss of exclusivity of Lyrica in the US in or after December 2018, Pfizer said the Established Medicines business has the potential to generate sustainable modest revenue growth.
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. Pfizer said it continues to evaluate strategic alternatives for this business and expects to make a decision in 2018.
In terms of revenue, based on 2017 actual results, the Innovative Medicines business (including Consumer Healthcare) is expected to comprise approximately three-quarters of Pfizer’s revenues, and the Established Medicines business is expected to comprise approximately one quarter, according to information from Pfizer.
When these changes are effective, John Young, Group President, Pfizer Innovative Health, and Angela Hwang, Group President, Pfizer Essential Health, will lead Pfizer’s Innovative Medicines business and will continue to report to Albert Bourla, Pfizer’s Chief Operating Officer.
John Young will be responsible for the Internal Medicine, Oncology (including biosimilars), and Rare Disease business units. In addition, he will manage Pfizer’s innovative-medicines portfolio across all emerging markets. Angela Hwang will be responsible for the Inflammation and Immunology (including biosimilars), Vaccines, and Hospital Medicines business units. In addition, she will oversee Pfizer’s Consumer Healthcare business.
The Established Medicines business will be led by Michael Goettler, Global President, Pfizer Inflammation & Immunology, who will become a member of Pfizer’s executive leadership team reporting to Albert Bourla.
Goettler has 23 years of industry experience and joined the company in 2009 as part of Pfizer’s $68-billion acquisition of Wyeth. At Pfizer, he has held a number of senior leader roles with increasing responsibility across multiple therapeutic areas, including primary and specialty care. Goettler has commercial leadership experience and has lived and worked in multiple markets and regions in both Asia/Pacific and Europe. He led the Rare Disease Business Unit at Pfizer and initiated the company’s commercial move into gene therapy.