Warning: Undefined array key "rcommentid" in /customers/6/5/f/pcm.me/httpd.www/wp-content/plugins/wp-recaptcha/recaptcha.php on line 348 Warning: Undefined array key "rchash" in /customers/6/5/f/pcm.me/httpd.www/wp-content/plugins/wp-recaptcha/recaptcha.php on line 349
Pfizer CEO Ian Read said Tuesday at the J.P. Morgan Global Healthcare Conference that he doesn’t plan another “mega-acquisition” and will instead focus on restructuring research operations to produce sustainable growth and forging more partnerships with academic researchers.
Commenting on Lipitor, which lost patent protection in the US in late-November, Read said “we’re basically where we expected to be,” with Lipitor representing about 37 percent to 38 percent of the overall US market. However, the CEO noted that it would be difficult for Pfizer to hold more than its current market share. To date, enrollment in the company’s co-pay card programme is higher than expected, but some patients are encountering resistance at pharmacies that want to fill prescriptions with a generic version of the drug, Read said. Moreover, when additional generic versions of the drug enter the market in June, the executive noted that Pfizer will re-evaluate its marketing strategy “depending on how many people come in and what pricing goes to.”
The CEO also said that he is still considering whether to divest the company’s animal and consumer health businesses, but hasn’t reached a conclusion. “It is on track and we are happy with the way it is going,” he remarked, adding that “they are great businesses, but they have a value that can be better explored outside Pfizer.”
Reports also suggest that Pfizer recently took first-round bids for its infant nutrition business and is scheduled to meet with several remaining bidders, including Danone and Nestle. According to the New York Post, H.J. Heinz also “is making a serious run” to either acquire part or all of the business from Pfizer in what could represent “a $9 billion transformative deal.” A Pfizer spokesman noted that “we’re currently pursuing the activities associated with evaluating all options, including sale, spin-off or other transaction. However, no decisions have been made at this point,” adding that “we expect to be in a position to announce any decision in 2012, and continue to expect to complete any transactions that may result from this decision between July 2012 and July 2013.”
Looking ahead, Read said he considers the drugmaker’s strengths to be in vaccines, biologics, pain and oncology. He indicated that in order to bolster its pipeline while being mindful of its revised research budget, which was slashed by $2 billion last year as part of a restructuring effort, Pfizer will continue to divide its resources between internal research and external academic partnerships and make decisions early about whether a product advances into late stages of development. “It’s important that we (decide) early. The earlier you (decide), the cheaper it is and faster you move onto something more important,” Read remarked.