Pfizer has announced a re-organisation of its operations into three distinct businesses.
From 2019, the drug giant will house a science-based Innovative Medicines business, including biosimilars and a new hospital business unit for anti-infectives and sterile injectables, an off-patent branded and generic Established Medicines business and a Consumer Healthcare business.
According to Pfizer, growth fundamentals for the Innovative Medicines business “are strong” as an ageing population is fuelling demand for new medicines and breakthrough solutions.
“With a robust portfolio of growing in-market products, a new wave of expected launches starting in 2020, and a strong pipeline, Pfizer believes it is well positioned for growth in this business,” it said.
The global Established Medicines unit will include most of the firm’s off-patent solid oral dose legacy brands, including Lyrica, Lipitor, Norvasc and Viagra, and certain generic medicines.
It was highlighted that this business will have “distinct and fully-dedicated manufacturing, marketing, regulatory and with some exceptions enabling functions” to boost autonomy and allow it “to act with speed and flexibility”.
Pfizer is expecting Established Medicines to generate “sustainable modest revenue growth”, following the impact of the expected loss of exclusivity of Lyrica in the US in or after December this year.
The Consumer Healthcare business will include all of Pfizer’s over-the-counter medicines and will continue to operate relatively autonomously “with dedicated manufacturing and regulatory capabilities”.
Growth prospects here are strong but differ from the two prescription medicine businesses, the drug giant said, also noting that strategic alternatives for this division are still be evaluated with a decision on its future expected sometime this year.
Going forward, based on 2017 results, the Innovative Medicines business (including Consumer Healthcare) is expected to account for around three-quarters of the firm’s total revenues, with the Established Medicines business accounting for the remainder.
“This new structure represents a natural evolution of these businesses given the ongoing strength of our in-market products and our late-stage pipeline and the expected significant reduction in the impact of patent protection losses post-2020 following the loss of exclusivity for Lyrica in the US,” noted Pfizer chairman and chief executive 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”.