Pfizer Inc. (NYSE:PFE) announced its decision to internally restructure is commercial operations into three business segments on Monday. The largest research-based pharmaceutical company worldwide said two of its segments will be under Innovative Business lines and the other segment called Value Business lines.
Pfizer to start in countries that do not require consultations
According to Pfizer Inc. (NYSE:PFE), the reorganization will start in countries that do not require consultations with work councils of unions by January next year. The pharmaceutical company said, the process will be conducted in countries that require consultation after successfully completing the first step.
The first Innovative Business segment of Pfizer Inc. (NYSE:PFE) will be composed of multiple therapeutic areas with market exclusivity beyond 2015. The segment include Inflammation and Immunology, CV/Metabolic, Neuroscience and Pain, Rare Diseases and Women’s/Men’s Health.
The second Innovative Business segment includes Vaccine, Oncology, and Consumer Healthcare. Each area will operate as a separate global business and needs distinct expertise in terms of science, talent and market approach to deliver value to consumers and patients.
Positioned to provide access to be treatments for patients
The Value Business segment will consist of the products of Pfizer Inc. (NYSE:PFE) that generate strong and consistent cash flow. It will also include mature, patent-protected products that are expected to lose market exclusivity in most major markets through 2015. The pharmaceutical company said the segment will be positioned to provide access to effective, lower-cost, high-value treatments for patients.
Geno Germano, group president, Innovative Products Group will oversee the first innovative business segment while Amy Schulman, group president, Vaccines, Oncology and Consumer Healthcare will lead the other innovative business unit. John Young, group president, Value Products Group will lead the segment. The three segments will be implemented in developed and emerging markets
In a statement, Ian Read, chairman and CEO of Pfizer Inc. (NYSE:PFE) 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”.
“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,” added Read.
Meanwhile, Pfizer Inc. (NYSE:PFE) and Merck & Co., Inc. (NYSE:MRK) signed a collaborative agreement to develop a new medicine for type 2 diabetes last April.