Pfizer Announces Organizational Restructuring, Establishes Oncology Business Unit, and Targets $4 Billion in Cost Reductions by 2024

Dec 14, 2023 12:21 CST Updated 12:21

Pfizer

Pharmaceutical R&D Developer

Seagen

Monoclonal Antibody Developer

In the telephone conference on the morning of December 12, Pfizer mentioned the latest progress in the acquisition of Seagen and provided guidance for the full year of 2024.Annual Financial Guidance.

Pfizer stated that it is expected to complete the acquisition of Seagen on Thursday. This acquisition will double its oncology portfolio and grant access to a series of marketed drugs from Seagen, the leader in ADCs. It is projected that by 2030, products from Seagen will generate an additional $10 billion in annual revenue. According to investors, half of the new leadership in Pfizer's oncology division will consist of long-time Pfizer employees, with the other half coming from Seagen.

In announcing the acquisitionSeagenNot long after, Pfizer reportedly abandoned its collaboration with Germany’s Merck on the Bavencio (PD-L1 inhibitor) project, possibly to help alleviate concerns from the U.S. Federal Trade Commission (FTC) regarding its acquisition.SeagenThe review.

Pfizer also announced its organizational restructuring, establishing a new Pfizer Oncology Division that integrates the commercialization and R&D of oncology products. The division will be led by Dr. Chris Boshoff, who has been serving as Pfizer's head of oncology R&D for the past six months.

Pfizer CEO Albert Bourla said in a press release that the new model "is designed to maximize the impact of this transaction and strengthen our commercial execution across all therapeutic areas of the company."

Moreover, under the new structure effective January 1, 2024, Pfizer's non-oncology commercial division will be split into two organizations, one overseeing operations in the United States and the other handling business in the rest of the world.

Aamir Malik, who has served as Pfizer's head of commercial innovation for more than two years, will take over the U.S. business. Leading international commercial operations will be Alexandre de Germany, who worked at Pfizer for 21 years, followed by five years at Sanofi, and most recently spent two years at Laboratoires Majorelle.The CEO position.

Additionally, Angela Hwang, who has worked at Pfizer for 27 years (including the past 5 years as Chief Commercial Officer), will be leaving the company. She was once named "the most influential woman in the life sciences industry in 2022." Angela Hwang has agreed to serve as an advisor during the company's transition.

Due to the significant decline in sales of COVID-19 products, Pfizer forecasts its total revenue for 2024 to be between $58.5 billion and $61.5 billion. Excluding Comirnaty (COVID-19 vaccine) and Paxlovid (oral COVID-19 treatment), its operational revenue is expected to increase by 8%-10%. Excluding COVID-19 products and Seagen,Contribution, Pfizer's revenue is expected to grow by 3%-5%.

Pfizer stated that it plans to announce in OctoberCutOn the basis of $3.5 billion in cost cuts, an additional $500 million will be reduced, with a total expected cost reduction of $4 billion by the end of 2024. The company has begun layoffs in the United States and the United Kingdom.

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