Ian Read, Pfizer's 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. 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.”
One of the Innovative business segments, the Innovative Products Group, will be led by group president Geno Germano. It will include products across multiple therapeutic areas that are expected to have market exclusivity beyond 2015. The 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 group president Amy Schulman.
The Value Products Group segment will be led by group president John Young. 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 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 Pfizer's existing partnerships with Mylan in Japan, Teuto in Brazil and Hisun in China. Olivier Brandicourt will lead the transition from the current Emerging Markets organization to the regional structure that will be established for each of the three business segments.
The changes will be implemented in January 2014 in countries that do not require a consultation with works councils or unions; other countries will follow after the initial processes have concluded. Beginning with 1Q14's financials, Pfizer will provide break out each business segment and will include a 2014 baseline management view of profit and loss for each one.
As part of the new structure, Douglas Lankler will move from chief compliance and risk officer to general counsel, while Rady Johnson, currently senior vice president and associate general counsel, will assume the CCRO role.