| Recently, Pfizer announced a new organizational restructuring, which will take effect before September 1, 2022. The business will focus more on COVID-19 related products.
New Architecture Effective Before September 1
It is reported that the purpose of Pfizer's restructuring this time is mainly to focus more on the COVID-19 vaccine Comirnaty and the oral COVID-19 treatment Paxlovid, while also fully leveraging the functional expertise of the organization. To this end, the company has decided to make organizational adjustments in three areas: Biopharmaceuticals (Biopharma), Global Product Development (GPD), and Business Innovation (CBIO) to better utilize the unique expertise of each division.
According to online reports, Pfizer's new structure will take effect before September 1, 2022, and consultations will be carried out with labor unions and employee representatives in accordance with the requirements of local laws.
In addition to the aforementioned organizational adjustments, Pfizer also stated that this restructuring process provides an opportunity for other departments to review their structures and make corresponding adjustments. There may be new developments in the coming months.
It is worth mentioning that Pfizer particularly emphasized "reducing any unnecessary bureaucracy or red tape." This also aligns with the current trend among multinational pharmaceutical companies to streamline operations, promote growth, and cut costs.
Many industry insiders speculate whether Pfizer's recent restructuring will lead to a new round of industry layoffs.
In January this year, Pfizer cut hundreds of sales positions in the United States due to digitalization efforts, while adding about half that number of digital-related jobs. In April, Pfizer India announced a digital upgrade plan along with a voluntary retirement scheme. Two months after the launch of the program, Pfizer terminated over 200 sales representatives at its Indian branch.
Based on recent experiences of multinational pharmaceutical companies' structural adjustments, after a company's restructuring, there are usually corresponding personnel changes and layoff plans. "Siqi Circle" will continue to monitor Pfizer's next steps following its structural adjustment.
Betting on COVID-19 Products
As we all know, Pfizer has fully enjoyed the huge vaccine dividend from this COVID-19 pandemic, which also reversed Pfizer's declining trend in recent years.
In terms of figures, in 2021, Pfizer's COVID-19 vaccine alone contributed $36.781 billion in sales, which directly led to a 92% year-on-year increase in the company's revenue. Because of this, Pfizer reclaimed the top spot in the global pharmaceutical business with a revenue of $81.288 billion.
In addition to the COVID-19 vaccine, Pfizer has also launched the COVID-19 oral drug Paxlovid, which received emergency use authorization from the FDA at the end of last year. This year, Pfizer is expected to generate $54 billion in sales revenue through the Comirnaty vaccine and the Paxlovid oral drug. If Pfizer achieves this sales target, its total revenue is likely to surpass Johnson & Johnson’s, reclaiming the top position in the pharmaceutical industry.
It should be noted that Pfizer remains optimistic about COVID-19 related products and continues to expand its COVID-19 vaccine pipeline, aiming to cover more populations with its COVID-19 vaccines. According to information disclosed on Pfizer's official website as of April 8 this year, among the 18 products currently under development in Pfizer’s vaccine pipeline, seven are from the COVID-19 vaccine series. This includes vaccines for infants aged six months to four years. Four COVID-19 vaccines are in the process of new drug registration applications, while the remaining three have entered phase III clinical trials.
Previously, Pfizer had indicated that it would focus on the development of innovative drugs and vaccines when planning to exit its consumer healthcare joint venture with GSK, Haleon. This recent structural adjustment further demonstrates Pfizer's commitment to its COVID-19 product line.
Pfizer's success in the COVID-19 vaccine today is mainly due to an inconspicuous deal made three years ago – the joint development of an mRNA-based flu prevention vaccine with biotechnology company BioNTech. At the same time, it is precisely Pfizer’s continuous investment in BioNTech that has accelerated the development of the COVID-19 vaccine, leading to the current high revenue.
In fact, most of Pfizer's best-selling products in recent years were not entirely self-developed but acquired through hefty investments and collaborative research. From 2014 to February 2022, Pfizer completed 11 acquisitions, totaling $59.351 billion. During this period, Pfizer also collaborated with 11 companies, including BioNTech, Novartis, and Merck KGaA, to jointly conduct research in areas such as oncology, rare diseases, inflammation, and immunology.
In the first half of this year, Pfizer continued to enrich its portfolio through acquisitions. According to incomplete statistics from "Sina Medicine," Pfizer initiated four acquisitions in the first half of the year. On May 10, Pfizer announced an $11.6 billion all-cash acquisition of Biohaven Pharmaceutical to gain access to its key migraine drug Rimegepant and its pipeline of research products. This acquisition also became the largest transaction in terms of value in the pharmaceutical industry since the beginning of 2022, and the only one worth over $10 billion.
In addition, on March 11, Pfizer also acquired Arena Pharmaceuticals for $6.7 billion. The company will bring Pfizer a diversified and promising portfolio of development-stage therapeutic candidates in the fields of gastroenterology, dermatology, and cardiology.
Benefiting from the revenue of COVID-19 vaccines and related products, Pfizer has not only gained time for its own transformation and upgrading but also accumulated sufficient capital for more asset acquisitions. However, after reaping the "COVID-19 dividend," where will Pfizer's next blockbuster come from? | 
