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Pfizer to reorganize into 3 business divisions

Pfizer is organizing itself into three businesses: a science-based innovative medicines business, which will include 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, which will include all of Pfizer’s over-the-counter medicines.

Pfizer said the changes will go into effect at the beginning of the company’s 2019 fiscal year.

“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 United States, which is expected to occur in or after December 2018. 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,” Pfizer chairman and CEO Ian Read said.

The innovative medicines business will include all of the current Pfizer innovative health business units, as well as a new hospital medicines business unit that will commercialize Pfizer’s global portfolio of sterile injectable and anti-infective medicines. Pfizer also will incorporate its biosimilar portfolio into its oncology and inflammation and immunology business units.

“The growth fundamentals for the innovative medicines business are strong with an aging population that is leading to increasing demand for new innovative medicines and quickly advancing biological science that is delivering 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,” the company said.

The established medicines business will include the majority of Pfizer’s off-patent solid oral dose legacy brands, including Lyrica, Lipitor, Norvasc and Viagra, and certain generic medicines.

Pfizer expects to lose United States exclusivity of Lyrica, a painkiller for helping with diabetic nerve pain and fibromyalgia in or after December 2018. Pfizer said it expects that the established medicines business "has the potential to generate sustainable modest revenue growth."

“Urbanization and the rise of the middle class in emerging markets, particularly in Asia, are providing additional access opportunities and generating significant demand for branded and generic established medicines. As a leading pharmaceutical company in Asia and particularly in China, Pfizer believes it is well positioned to be a leader in this significant and rapidly growing market,” the company said.

“Delivering critical medicines to patients all over the globe remains the compass for all we do at Pfizer, and this design gives us a sharper focus on diverse patients in diverse markets,” Pfizer COO Albert Bourla said. “In addition, the structure will enable the established medicines business to optimize its distinct growth opportunities, while also providing the future flexibility to access opportunities that enhance value.”
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