The pharmaceutical giant said Monday that, as announced previously, Allergan chief executive officer Brent Saunders will become president and chief operating officer of the merged company, overseeing Pfizer and Allergan’s combined commercial businesses, manufacturing and strategy functions.
Effective immediately and through the closing of the transaction, Pfizer’s Global Innovative Pharma (GIP) business and its Vaccines, Oncology and Consumer (VOC) business will operate separately under the leadership of Albert Bourla, currently group president of VOC, Pfizer said. When the deal is completed, the Vaccines and Oncology businesses will be combined with the GIP business, and Bourla will become group president of Global Innovative Pharma, leading all of these businesses.
Also after the transaction is finalized, the merged company will form a new operating segment called Global Specialty and Consumer Brands that will include Pfizer Consumer Healthcare and Allergan’s ophthalmology and aesthetics businesses and Botox Therapeutic and Cosmetic. Plans call for Bill Meury, executive vice president and president of Branded Pharma at Allergan, to become group president of Global Specialty and Consumer Brands for Pfizer.
Pfizer and Allergan are slated to operate as separate companies until the close of the transaction, expected in the second half of 2016. Along with regulatory and shareholder approvals and other conditions, completion of the deal is pending Allergan’s divestiture of its generic drug business to Teva Pharmaceuticals Industries Ltd.
The companies announced the approximately $160 billion deal — described as the biggest ever in the health care sector — in late November. With the acquisition of Allergan, New York-based Pfizer aims to relocate to Ireland to cut its U.S. tax burden.
After the close of the transaction, Pfizer said it will continue to manage the combined company’s commercial operations via two units: an Innovative Products business and an Established Products business. The Innovative Products business will be composed of the Global Innovative Pharmaceutical and the Global Specialty and Consumer Brands segmenst. The Established Products business will continue to be led by John Young and comprise the Global Established Pharmaceutical segment, including all legacy Hospira commercial operations.
“We are creating an executive team that has deep industry knowledge, a proven track record of success and an unwavering commitment to the patients we serve. I look forward to working with these outstanding leaders to achieve the full potential of this combination and fulfill our mission of becoming the premier biopharmaceutical company in our industry,” stated Ian Read, chairman and CEO of Pfizer, who will be chief executive of the combined company. “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.”
When the deal closes, the merged company’s leadership team will include the following, all reporting to Saunders: Albert Bourla, group president, Global Innovative Pharma; Tony Maddaluna, executive vice president, president, Pfizer Global Supply; Bill Meury, group president, Global Specialty and Consumer Brands; Laurie Olson, executive vice president, Strategy, Portfolio and Commercial Operations; and John Young, group president, Global Established Pharma.
Pfizer executives continuing in their roles and reporting to Read Frank D’Amelio, executive vice president of business operations and chief financial officer; Mikael Dolsten, president of worldwide research and development; Chuck Hill, executive vice president of worldwide human resources; Rady Johnson, executive vice president and chief compliance and risk officer; Doug Lankler, executive vice president and general counsel; Freda Lewis-Hall, executive vice president and chief medical officer; and Sally Susman, executive vice president of corporate affairs.
Pfizer also announced that Geno Germano, group president of Global Innovative Pharma, will be leaving the company.
“We thank Geno for his many contributions to Pfizer’s business over the past seven years,” Read commented. “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.”