Pfizer plans separate segments for brands, innovations and generics
29 Jul 2013
Pharma giant Pfizer Inc today announced plans for an internal separation of operations into three segments - two of which will include innovative businesses and patented drugs and the third a ''value business line'' for generic medicines.
Each of the three segments will cover both developed markets and emerging markets and the changes will be effective from January 2014 in countries that do not require a consultation with works councils or unions, and in countries that require consultation, it will be implemented after such processes, Pfizer said in a release today.
Pfizer said it would provide financial transparency for each of these three business segments, which will include a 2014 baseline management view of profit and loss for each segment, beginning with the first-quarter 2014 financial results.
Geno Germano, group president, Innovative Products Group, will lead one of the innovative business segments, Pfizer said, adding that this will include products across multiple therapeutic areas that are expected to have market exclusivity beyond 2015. These include therapeutic areas like inflammation and immunology, CV/metabolic, neuroscience and pain, rare diseases and women's /men's health.
Amy Schulman, group president, vaccines, oncology and consumer healthcare, will lead the other innovative business segment, which will include vaccines, oncology and consumer healthcare. Each of these businesses will operate as a separate global business and require distinct specialisation in terms of the science, talent, and market approach.
John Young, group president, Value Products Group, will lead the value business or the generic drugs segment. This group will include products that generate strong, consistent cash flow, and will be positioned to provide patients access to effective, lower-cost, high-value treatments. In addition to products that have lost market exclusivity, it will generally include mature, patent-protected products that are expected to lose exclusivity through 2015 in most major markets, biosimilars and current and future established products collaborations, such as existing partnerships with Mylan in Japan, Teuto in Brazil and Hisun in China.
Olivier Brandicourt will lead the transition from the current emerging markets organisation to the regional structure that will be established for each of the three business segments.
Accordingly, Douglas Lankler, currently chief compliance and risk officer, will become general counsel, and Rady Johnson, currently senior vice president and associate general counsel, will become chief compliance and risk officer effective 1 January 2014.
''This represents the next steps in Pfizer's journey to further revitalize our innovative core, enhance the value of our consumer and off-patent established brands and maximize the use of our capital to create value for Pfizer and our shareholders,'' Ian Read, chairman and chief executive of Pfizer, stated.
He said the new commercial operating model will provide each business with an enhanced ability to respond to market dynamics, greater visibility and focus, and distinctive capabilities optimised to deliver value to patients and shareholders.