Pfizer To Split Commercial Division Into Three Business Segments
Pfizer has announced it is planning to divide its commercial business into three different lines to separate its branded and generic products.
The company said in its press release that it intended to create two "innovative" business segments and one "value" segment. Each of the three segments will include developed markets and emerging markets. They will operate as a separate global business and require distinct specialization in terms of the science, talent, and market approach required to deliver value to consumers and patients.
Ian Read, Pfizer Chairman and Chief Executive Officer, commented: “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.”
The changes will be implemented in January 2014 in countries that do not require a consultation with works councils or unions, and will be implemented in countries that require consultation after the successful conclusion of those processes.
One of the Innovative business segments will be led by Geno Germano, Group President, Innovative Products Group. It will generally cover products across multiple therapeutic areas that are expected to have market exclusivity beyond 2015, such as inflammation, immunology, rare diseases, neuroscience and pain. The other innovative segment will be led by Amy Schulman, Group President, Vaccines, Oncology and Consumer Healthcareand focus on OTC, vaccines and cancer drugs.
The Value business segment will be led by John Young, Group President, Value Products Group. The value segment will focus on generics, products that are expected to face generic competition in the next few years and biosimilars, as well as collaborations with generic companies in other countries. 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.
“Through this evolution, we will enable greater independence and focus for the Innovative and Value businesses. Our new commercial operating model will provide each business with an enhanced ability to respond to market dynamics, greater visibility and focus, and distinctive capabilities optimized to deliver value to patients and shareholders in the coming years,” observed Read.
Beginning with the first-quarter 2014 financial results, the company will 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.