Read previously was head of Pfizer’s global pharmaceutical operations, responsible for 85 percent of the New York-based company’s revenue. That position will be eliminated as the heads of units report directly to Read, said Ray Kerins, a spokesman for the drugmaker, in a telephone interview. The changes take effect immediately, Kerins said. Read was named CEO on Dec. 5.
Over the next five years, Pfizer faces generic competition to products with $20 billion in annual sales, or almost a third of the company’s revenue. Pfizer is eliminating jobs and reducing costs as it absorbs the $68 billion acquisition of Wyeth last year. The new reporting structure will help elevate leaders and speed up decision making, Kerins said.
“We have outstanding leaders who are now being pulled together into one leadership operation and are no longer segmented,” Kerins said. “Having the business units at the executive leadership table, we can further improve alignment across all groups and divisions to drive operational excellence.”
Pfizer fell 8 cents, or less than a percent, to $17.11 at 4 p.m. in New York Stock Exchange composite trading. The stock has declined 7 percent in the past 12 months.
David Simmons, who previously was named head of emerging markets and established products for Pfizer, will be elevated to the executive leadership team, as will Geno Germano, head of specialty care, and Olivier Brandicourt, head of primary care, Kerins said.
The oncology business now will report to Germano, though it will remain a distinct unit, Kerins said. Tony Maddaluna will take charge of global manufacturing, reporting to Chief Financial Officer Frank D’Amelio. Manufacturing had been run by Nat Ricciardi, who is retiring at the end of the first quarter after almost 38 years with the company.
Cavan Redmond, president of animal health, consumer health, and the company’s Capsugel unit, also will take charge of corporate strategy. The nutritionals unit, formerly reporting to Redmond, will be among the responsibilities of Amy Schulman, who will remain in her position as general counsel.
“Amy has been an outstanding general counsel and a leader for this company,” Kerins said. “This now adds to her portfolio and broadens her position within the company.”
Chuck Hill takes over as head of human resources, replacing Mary McLeod, who “decided to leave Pfizer to pursue other opportunities,” Kerins said.
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