Pfizer unveils post-Wyeth shake-up

Release Date: 2009-04-07

The US pharmaceutical group unveiled a management shake-up as part of a new structure designed to end uncertainty following its $68bn takeover of Wyeth and tap its best researchers

Pfizer, the US pharmaceutical group, on Tuesday unveiled a management shake-up as part of a new structure designed to end uncertainty following its $68bn takeover of Wyeth and tap its best researchers.

In a move reflecting Pfizer’s relative weakness outside chemical-based patented drugs and a desire to maintain specialist expertise, Wyeth executives will take on senior roles in the combined company for vaccines, biological medicines and consumer health products.
They will also lead therapy areas for oncology and neuroscience.

The action marks an effort to respond to scepticism over this and previous ”mega mergers” in pharmaceuticals, which critics argue have produced little or no increase in innovation.

Martin Mackay, head of Pfizer’s global research and development, will now run Pfizer’s PharmaTherapeutics Research group.

He told the FT: ”We’ve learnt a lot from previous mergers and one thing is that the quicker you put in a new structure, the better. It’s critical to retain the top talent.”

He will report to the chief executive alongside Mikel Dolsten of Wyeth, who will be in charge of the BioTherapeutics Research group.

Mr Mackay said that, of the 100 companies Pfizer had analysed when considering a takeover in recent months, Wyeth had always emerged on top.

He said the deal with Wyeth allowed Pfizer to expand more rapidly than it could have done organically into biological products, which he said would continue to account for about the 30 per cent of all products in development following the takeover.

Externally licensed products would also remain about 30 per cent of the entire portfolio and he said Pfizer would continue to grow “internally and externally”.

In a statement, the company also confirmed the anticipated departure of Bernard Poussot, the chief executive of Wyeth who co-ordinated the takeover.

Jeff Kindler, the head of Pfizer, said Mr Poussot would “continue to provide us with critical counsel and support until the close of the acquisition”.

The new organisational structure includes nine healthcare businesses: primary care, speciality care and vaccines, emerging markets, oncology, established products (generic drugs), animal health, Capsugel (a manufacturer of capsule products), consumer health, and nutritional health.

Pfizer said the deal was on track to be completed by the end of the third quarter or during the fourth quarter this year.

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