Pfizer To Reorganize After Allergan Buyout, With Saunders President
Big pharma Pfizer ( PFE ) announced Monday that after it closes its acquisition of Allergan ( AGN ) it plans to reorganize its three units into two, pending a possible split-up. Back in 2013, Pfizer reorganized its operations into three business units: Innovative Products; Established Products and Vaccines; and Oncology and Consumer Healthcare (VOC). This was widely viewed as a preparation for a split-up of the company. With its pending $160 billion buyout of Allergan, Pfizer will be adding a large number of drugs, including the wrinkle treatment Botox and a variety of eye-care and skin-care products. On Monday, Pfizer said it plans to combine the innovative products and VOC businesses into one, but that will include a new subdivision called Global Specialty and Consumer Brands that will include most of Allergan’s products. The larger Innovative Products business will be headed by current VOC head Albert Bourla, replacing Geno Germano who will leave the company. The new Global Specialty and Consumer Brands division will be headed by Allergan executive Bill Meury. The Established Products business will continue to be led by John Young. Allergan’s current CEO Brenton Saunders, meanwhile, is set to become the next president and chief operating officer of Pfizer. It was generally expected on Wall Street that he would land a high-ranking position so that he could be ready to succeed present Pfizer CEO Ian Read. When Pfizer announced the Allergan buyout last year, it said that a decision on a split-up will not be made until 2018, which was a couple of years later than previously expected. Read reiterated this in Monday’s announcement. “We are designing the combined company to preserve and enhance our option to potentially separate the innovative and established businesses into separate companies in the future, and continue to expect to make a decision about any potential separation by no later than the end of 2018,” Read said in a statement. Pfizer stock was down about 1.8% in midday trading on the stock market today , near 28.50. Allergan was down about 3.6% near 264.