Pfizer To Internally Separate Its Branded, Generic Businesses - Update

(RTTNews) - Pfizer Inc. (PFE) Monday disclosed plans to internally separate its commercial operations into three business segments. Of these new units, one will include products that have market exclusivity beyond 2015, while another will offer products that have lost market exclusivity.

According to the drugmaker, two of these segments will include Innovative business lines and a third will include the Value business line. Each of the three segments will include developed markets and emerging markets.

The Value business segment will be led by John Young, Group President, Value Products Group. This group will include products that generate strong, consistent cash flow. It will be positioned to provide patients access to effective, lower-cost, high-value treatments.

Apart from 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 like Pfizer's existing partnerships with Mylan in Japan, Teuto in Brazil and Hisun in China.

One of the Innovative business segments will be led by Geno Germano, Group President, Innovative Products Group. It will include products across several therapeutic areas that are expected to have market exclusivity beyond 2015.

These therapeutic areas include Inflammation and Immunology, CV/Metabolic, Neuroscience and Pain, Rare Diseases and Women's /Men's Health.

The other Innovative business segment will include Vaccines, Oncology and Consumer Healthcare and will be led by Amy Schulman, Group President, Vaccines, Oncology and Consumer Healthcare. Each of these businesses will operate as a separate global business. It will require distinct specialization in terms of the science, talent, and market approach required to deliver value to consumers and patients.

Pfizer said Olivier Brandicourt would lead the transition from the current Emerging Markets organization to the regional structure, which will be established for each of the three business segments.

The changes will be implemented in January 2014 in countries where consultation with works councils or unions are not required.

In those countries where consultation is required, the changes will be implemented after the successful conclusion of those processes.

Beginning with the first-quarter 2014 financial results, the company will provide financial transparency for each of these three business segments. This will include a 2014 baseline management view of profit and loss for each segment.

In connection with the changes announced today, 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.

All leadership changes will be effective January 1, 2014.

Ian Read, CEO, said, "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.''

PFE closed at $29.37 on Friday.