Pharmaceutical giant has announced its decision to divide the company into three separate businesses. Whilst one will become a science-based Innovative Medicines division, encompassing biosimilars and a new hospital business unit for anti-infectives and sterile injectables; the second will become an off-patent branded and generic Established Medicines business operating with substantial autonomy within Pfizer and its Consumer Healthcare business.
“This new structure represents a natural evolution 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,” explained Ian Read, Pfizer Chairman and Chief Executive Officer.
“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.”
Whilst Pfizer’s Innovative Medicines business will encompass all the company’s Innovative Health business units as well as a new Hospital Medicines business unit which will commercialise its global portfolio of sterile injectable and anti-infective medicines, this will allow for better focus and customer centricity.
Additionally, Pfizer will also incorporate its biosimilar portfolio into its Oncology and Inflammation & Immunology business units.
With a global, ageing population, increased demands for new innovative medicines and advancing biological science continue to deliver breakthrough solutions. Pfizer’s new pipeline will therefore enable it to remain a key player within this competitive industry.
Its Established Medicines business will encompass the majority of Pfizer’s off-patent solid oral dose legacy brands, such as Lipitor and Norvasc, as well as a number of generic medicines. The move will enable the business to gain speed and flexibility, and enhance its autonomy and position as a stand-alone business.
Following on from ageing populations, urbanisation and the rise of the middle class in emerging markets, particularly in Asia, are providing additional access opportunities and generating significant demand for branded and generic established medicines. As a leading pharmaceutical company in Asia and particularly in China, Pfizer is in prime position.
“This design gives us a sharper focus on diverse patients in diverse markets,” said Albert Bourla, Pfizer Chief Operating Officer. “The structure will enable the Established Medicines business to optimise its distinct growth opportunities, while also providing the future flexibility to access opportunities that enhance value.”
Lastly, its Consumer Healthcare (PCH) business will include all of Pfizer’s over-the-counter medicines.