Global business vet marshals Pfizer's new 'value' segment
Name: John Young
Title: Group President, Global Established Pharma Business
It was only a matter of time before Pfizer ($PFE) decided to divide and conquer. Faced with plummeting revenues after losing best-selling Lipitor, CEO Ian Read devised a plan to move the company toward calmer waters. Part of the strategy involved spinning off the company's animal health business, Zoetis, and selling its nutrition division to Nestlé for $11.9 billion. Another was geared toward internal restructuring.
In 2013, Pfizer outlined a plan to split its commercial operations into three units: two focused on "innovative" drugs and a third comprising the company's "value" business. Each division will be headed by a group president and will focus on developed and emerging markets. At the helm of Pfizer's new value business segment will be John Young.
The value business unit will include generic drugs and branded products set to go off patent through 2015. The unit will also comprise biosimilar drugs and existing partnerships, such as Pfizer's current deal with Mylan ($MYL). By focusing on low-cost products, the company hopes to generate cash flow and respond to a growing demand for generics, according to a statement released in January.
Young's leadership history and experience could be just what the doctor ordered: He began his career with Pfizer in 1987 as a sales representative in Scotland, and rose up the ranks to lead the company's Primary Care Business Unit in Europe and Canada in 2009. In 2012, Young was named president of Pfizer's Primary Care Business Unit.
While the future of Young's fledgling unit remains to be seen, its success could help inch up Pfizer's margins. With a 2014 revenue forecast of $49.2 billion to $51.2 billion--noticeably lower than last year's numbers--the company may need an extra boost.
"We see attractive opportunities globally to deliver value to patients, payors and other stakeholders through a combination of innovative, established and over-the-counter pharmaceutical products. I believe we have the business structure, leadership team and financial capability firmly in place to facilitate our continued success," Read said in a statement.
-- Emily Wasserman (email | Twitter)
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