Pfizer has announced plans to reorganise into three separate units through the separation of its consumer health care business from the other two arms of the company.
Pfizer is currently comprised of two segments: Innovative Health and Essential Health. The restructuring will involve the formation of a third segment which will take responsibility for all of Pfizer’s over-the-counter brands which were previously dispersed between the other two sections of the business.
The restructuring will also see the Innovative Health branch reorganised under the name ‘Innovative Medicines while the Essential Health’ section of the company will function under its new title Established Medicines. Both branches will see a streamlining of their operation in coming years.
The plan, which will come into effect at the beginning of 2019, is intended to promote “future growth”. As expanded upon by Pfizer CEO Ian Read: “As we transition to a period post-2020 where we expect a higher and more sustained revenue-growth profile, we see this new structure better positioning each business to achieve its growth potential.”
The restructuring will see biosimilars, which had previously come under the umbrella of Essential Health, included into Pfizer’s Innovative Medicines segment. Equally, a new hospital business unit including anti-infectives and sterile injectables will be incorporated into Pfizer’s Innovative Medicines branch.
Albert Bourla, Chief Operating Officer, noted that; “This design gives us a sharper focus on diverse patients in diverse markets.”
The restructuring has led to commentators discussing the possibility that Pfizer will sell the consumer healthcare branch of its business. As stated by Credit Suisse analyst Vamil Divan: “We believe the potential for Pfizer to ultimately sell or spin the business likely remains on the table over time.”