Pfizer Announces Merger Structure and Top Executive Team
Published: Feb 11, 2016
February 8, 2016
By Mark Terry, BioSpace.com Breaking News Staff
Pfizer Inc. announced today more details about how the Allergan-Pfizer merged companies will be structured, as well as the roles of its top executive team.
The two companies announced they would merge in November 2015 in a deal worth $160 billion. The company also has indicated that it eventually plans to split the merged company into two units, one focused on innovative new products, the other focused on older branded products.
As announced earlier, Allergan head Brent Saunders will be the president and chief operating officer of the combined company. Starting immediately and through closing, Pfizer’s Global Innovative Pharma (GIP) business and its Vaccines, Oncology and Consumer (VOC) business will operate separately. Albert Bourla, currently group president, VOC, will head the units as Group President, Global Innovative Pharma.
After the deal closes, a new operating division will be created dubbed Global Specialty and Consumer Brands. That will be made up of Pfizer’s Consumer Healthcare unit and Allergan’s ophthalmology and aesthetics business, as well as Botox Therapeutic and Cosmetic. This will be run by Bill Meury, Group President, Global Specialty and Consumer Brands, Pfizer. Meury is currently executive vice president and president Branded Pharma at Allergan.
In what might be a lead-in to a split, once the deal is closed, there will be two distinct business units: Innovative Products and Established Products. Innovative Products will be made up of Global Innovative Pharmaceutical and the Global Specialty and Consumer Brands. The Established Products business will be led by John Young, which will be made up of the Global Established Pharmaceutical businesses, including all legacy Hospira operations.
Reporting to Brent Saunders, will be Albert Bouria, group president, Global Innovative Pharma, Tony Maddaluna, executive vice president, President Pfizer Global Supply, Bill Meury, group president, Global Specialty and Consumer Brands, Laurie Olson, executive vice president, Strategy, Portfolio and Commercial Operations, and John Young, group president, Global Established Pharma.
Ian Read will remain as Pfizer chairman and chief executive officer. Reporting to him will be Frank D’Amelio, executive vice president, Business Operations and chief financial officer, Mikael Dolsten, president, Worldwide Research and Development, Chuck Hill, executive vice president, chief compliance and risk officer, Doug Lankler, executive vice president, general counsel, Freda Lewis-Hall, executive vice president and chief medical officer and Sally Susman, executive vice president, corporate affairs.
The company also reported that Geno Germano, group president, Global Innovative Pharma Business, will be leaving the company.
“We are creating an executive team that has deep industry knowledge, a proven track record of success and an unwavering commitment to the patients we service,” said Read in a statement. “I look forward to working with these outstanding leaders to achieve the full potential of this combination and fulfill our mission of becoming the premier biopharmaceutical company in our industry. We are designing the combined company to preserve and enhance our option to potentially separate the innovative and established businesses into separate companies in the future, and continue to expect to make a decision about any potential separation by no later than the end of 2018.”
The final deal closure is expected in the second half of 2016.
Pfizer released its annual earnings last week. Annual revenues were $14.05 billion, up from $13.12 billion in 2014. Analysts responded by upgrading their evaluations. Credit Suisse changed the target price from $41 to $38. Deutsche Bank gave it a “buy” rating and changed its target price from $43 to $41. Bernstein gave it an “outperform” rating and also lowered its target price, from $41 to $36. And BMOM Capital Markets repeated an “outperform” rating, changing its price target from $41 to $39.