Pfizer Announces Leadership Transition: Albert Bourla to Succeed Ian Read as CEO

On October 1, 2018, Pfizer announced that its Board of Directors had unanimously selected Dr. Albert Bourla, the 56-year-old Chief Operating Officer (COO) of Pfizer, to succeed Ian Read as Chief Executive Officer (CEO), effective January 1, 2019. Ian Read’s role will transition from Chairman and CEO to Executive Chairman of Pfizer’s Board of Directors.

“It has been a great honor to serve Pfizer as CEO for the past eight years,” said Albert Bourla. “Now is the right time for leadership transition, and Albert is the best person to lead Pfizer into a new era. Albert is an energetic leader who is unwavering in his commitment to serving patients. Having worked at Pfizer for 25 years, he has deep insights into the pharmaceutical industry and has demonstrated exceptional ability in building and growing businesses. Under Albert’s leadership, our dedicated global colleagues are preparing to achieve the next phase of business growth. I look forward to working with Albert and the Board of Directors to continue serving patients and creating value for shareholders.”

Ian Read was appointed CEO of Pfizer on December 6, 2010, and Chairman of the Board on December 12, 2011.

Since Mr. Albert Bourla assumed the role of CEO in 2010, Pfizer Inc. has achieved the following:

· 30 applications approved by the FDA

· Total Shareholder Return was 250%, outperforming the S&P 500 Index by 180% over the same period

· Returned over $120 billion in capital directly to shareholders

· Established a robust R&D product pipeline, with an estimated 25–30 projects having the potential for approval by 2022, among which up to 15 drugs are expected to become blockbuster products.

· Annual dividend per share increased by 70% (from $0.80 to $1.36)

· Since 2010, more than 580 million doses of Zithromax® (azithromycin) have been donated for the treatment of trachoma, the leading cause of infectious blindness. As a result, the number of people worldwide at risk of blindness from trachoma has decreased from over 300 million in 2010 to 158 million.

Shantanu Narayen, Lead Independent Director of Pfizer’s Board of Directors, stated: “On behalf of the Board, I thank Ian for his exceptional leadership as CEO. During his tenure, he successfully managed a $23 billion revenue loss resulting from product patent expirations, while simultaneously driving strong and sustained financial performance and investment in the future. We are therefore firmly convinced that Pfizer’s current product portfolio possesses depth and strength as robust as ever. Furthermore, Ian has cultivated a distinctive culture of ownership, strengthened accountability, and encouraged collaboration. As a result, the Company is now positioned in a way that gives us greater confidence in achieving success.”

“Today’s management announcement is the result of careful consideration and part of a multi-year corporate succession plan,” Narayen continued. “The Board is impressed by Albert’s performance, extensive experience, and proven track record, and we believe that as CEO, he will drive innovation and further growth across the entire business.”

Prior to assuming the role of Chief Operating Officer on January 1, 2018, Dr. Albert Bourla led Pfizer’s Innovative Health business, which generated $31.4 billion in revenue and $18.3 billion in pre-tax income in 2017, representing year-over-year growth of 8% and 17%, respectively. Profitability increased from 54% in the prior year to 58%. Dr. Bourla also established the Emerging Markets region for Innovative Health, which achieved $4.4 billion in revenue and 18% business growth in 2017. Before being appointed head of Pfizer’s Innovative Health business, he became President of the Vaccines, Oncology, and Consumer Healthcare business group in January 2014. Under his leadership, the oncology business tripled in size over four years, the vaccines business grew by 50%, and the consumer healthcare business significantly improved its profitability.

Furthermore, Dr. Bourla spearheaded several key transactions to advance Pfizer’s portfolio in oncology, inflammation and immunology, vaccines, and rare diseases, and prioritized investments to establish a strong position in the breast and prostate cancer franchises, building a leading oncology business.

Commenting on his appointment, Albert Bourla stated, “I am deeply honored to serve as Pfizer’s next CEO, and I thank Ian and the Board of Directors for their trust in me. I also wish to express my gratitude to Ian for his unwavering support; I have been fortunate to have him as both a mentor and a friend. I am delighted that Ian will continue to contribute to the company as Executive Chairman of the Board. This is a dynamic time for Pfizer, and I look forward to working with our colleagues to deliver critical medicines to patients around the world, which remains the compass guiding all of Pfizer’s work.”