2:35 PM
 | 
Jul 11, 2018
 |  BC Extra  |  Company News

For Pfizer's units, three is the magic number

Pfizer Inc. (NYSE:PFE) will reorganize into three distinct business units: Innovative Health, Established Medicines and Consumer Healthcare.

The pharma's current structure includes two distinct business units: Pfizer Innovative Health and Pfizer Essential Health. Under the new structure, Pfizer’s biosimilars and sterile injectables products will move to the Innovative Medicines unit, and the pharma will remove consumer health from the innovative unit and structure it as a stand-alone business operating "relatively autonomously." The Established Medicines unit will operate with "substantial autonomy within Pfizer" and include off-patent branded and generic drugs.

Pfizer said that the reorganization was a “natural evolution” of the company, reflecting the upcoming U.S. patent expiration of neurology and musculoskeletal drug Lyrica pregabalin and the strength of its late-stage pipeline. According to a February 10-K, Lyrica’s basic product patent expires this December.

Lyrica generated 2017 global revenues of $5.1 billion (10%) of Pfizer's $52.5 billion in annual sales. The drug is among those that Pfizer had tabbed for a price increase before deferring the hikes following discussions between Chairman and CEO Ian Read and President Donald Trump (see “Pfizer Creates Deadline for Trump Drug Plan”).

Pfizer’s late stage -- or Phase III to registration pipeline -- contained 11 new molecular entities and six biosimilars, as of May 1. The biosimilars represent agents to treat cancer or cancer-related indications as well as autoimmune and hematology indications.

For 2017, Pfizer reported $31.4 billion in revenues for the innovative health unit and $21.1 billion for the established health unit. Consumer healthcare accounted for $3.5 billion in revenues, biosimilars for $531 million and sterile injectables $5.7 billion.

In 1Q18, the innovative health unit posted revenues of $7.8 billion and the established health unit $5.1 billion. Consumer healthcare generated $905 million, biosimilars $173 million and sterile injectables $1.4 billion.

The reorganization will go into effect at the start of next year.

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