Pfizer Inc. (NYSE:PFE) has unveiled its new management structure as part of its ongoing restructuring following its $160 billion purchase of Allergan Plc, which is due to be completed in the second half of this year.
The new leadership team will see two executives drawn from Pfizer and one from Allergan run three divisions within its two core businesses.
Pfizer executive Albert Bourla, who headed its oncology, vaccines and consumer division, will now run the so-called “innovative pharma” half of the firm. This division is in charge of many of Pfizer’s newer brands. Bill Meury, the president of branded pharma at Allergan, will be president of the other half of the “innovative pharma” unit known as global specialty and consumer brands. This division mostly deals with Allergan’s brands.
Germano to Exit Business
John Young will remain in charge of Pfizer’s traditional products business of generic drugs and older medicines. However, Geno Germano, the president of Pfizer’s global innovative pharma division, is set to exit the company.
“We thank Geno for his many contributions to Pfizer’s business over the past seven years,” said Ian Read, the Chairman and Chief Executive Officer of Pfizer, in a statement. “Under Geno’s leadership we have laid the foundation for the growth potential of our vaccines and oncology businesses, strengthened our in-line portfolio with products like Enbrel, Xeljanz and Eliquis and improved our innovative late-stage pipeline with programs like bococizumab and tanezumab.”
Also not affected by the shake-up include Pfizer head of global supply Tony Maddaluna and Chief Financial Officer Frank D’Amelio as well as the general counsel, president of research and development and head of compliance.
Laurie Olson was also retained by Pfizer as the executive VP in charge of strategy and commercial operations.
The new shake-up will not affect the positions held by Pfizer CEO Ian Read, who will retain his role in the combined company. Moreover, Allergan CEO Brent Saunders will be the president and chief operating officer of the new company once the deal is finalized.
All executives are expected to answer to Mr. Saunders.
Pfizer entered into a deal November to purchase Botox-manufacturer Allergan in order to benefit from lower tax rates since it would move its headquarters to Dublin.
Pfizer has been mulling over whether to split into two separate businesses, and has recently brushed away concerns whether the new leadership reorganization will affect the timing of the split.
Not the First Time for Pfizer…
However, Pfizer isn’t new to the practice of shaking up its top leadership ahead of an anticipated split.
The company revealed plans in July 2013 to internally split into three separate business units, resulting in Germano heading a business segment dealing in anti-inflammation drugs, immunology and uncommon ailments, among other therapeutic aspects.
The other business unit was headed by then-general counsel and consumer products head Amy Schulman, while Young was given the “value products group” which is similar to the current traditional products business.
Schulman was to later resign, and her role given to Bourla.