Pfizer to internally split business into three segments

Pharma giant Pfizer Inc today said it plans to internally separate operations into three segments -- two innovative businesses dealing with patented drugs and one "value business line" for generic medicines.
The company said 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.
"Today, Pfizer is announcing plans to move forward to internally separate its commercial operations into three business segments, two of which will include innovative business lines and a third which will include the value business line," Pfizer Inc said in a statement.

Each of the three segments will include developed markets and emerging markets, it added.
"This represents the next steps in Pfizer's journey to further revitalise our innovative core, enhance the value of our consumer and off-patent established brands and maximise the use of our capital to create value for Pfizer and our shareholders," Pfizer Chairman and Chief Executive Officer Ian Read said.
Pfizer said one of the innovative business segments would include products across multiple therapeutic areas that are expected to have market exclusivity beyond 2015.

"The therapeutic areas include inflammation and immunology, neuroscience and pain, rare diseases and women's, men's health," the company said.

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, it added.
"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, and will be positioned to provide patients access to effective, lower-cost, high-value treatments," the company said.
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.
The third unit will also deal with biosimilars and current and future established products collaborations, such as existing partnerships with Mylan in Japan, Teuto in Brazil and Hisun in China, it added.

The drug firm said Olivier Brandicourt will lead the transition from the current emerging markets organisation to the regional structure that will be established for each of the three business segments.