Pfizer CEO Kindler retires

Pfizer announced that CEO Jeffrey Kindler has retired. Ian Read, head of Pfizer’s global biopharmaceutical operations, will take over from Kindler as President, CEO and Director.

Calling the four-and-a-half years he spent as CEO “exciting and rewarding,” Kindler also noted that it had been “extremely demanding…personally.” He added that after seeing the company through a full year following its acquisition of Wyeth, he had “concluded the time is right to turn the leadership of the company over to Ian Read.” Kindler’s successor became head of biopharmaceutical operations in 2006, and has also run Pfizer’s businesses in Latin America, Europe and Africa. Read noted that in his new role, he “will be looking at the performance and potential of all of our businesses to ensure we are delivering value to our customers and shareholders.”

Constance Horner, lead independent director on Pfizer’s board, cited Read’s experience in emerging markets in announcing the change. Read “has brought to product development a focus and commitment to advance only medicines that have clear value to our customers,” Horner added. Pfizer noted that its board will appoint a non-executive chairman from its current membership at its next meeting, which is scheduled within the next two weeks.

David Maris of CLSA said that following the appointment of Read he expects more acquisitions by Pfizer, particularly in emerging markets. “They know they’re behind in China, and want to do more… They know they want to do more in Brazil,” Maris noted. “China, Brazil and Latin America will be the highest priorities, he commented, adding: “Now, when they need to drill down and buy individual companies, they will have someone who is much more operationally focused, who can ask the right questions, someone who has been in the drug industry.”

Miller Tabak analyst Les Funtleyder said the appointment of Read was “not really a surprise, but what is surprising is the timing… The suddenness of the announcement will make many people think there may be something more here.” Sanford C. Bernstein analyst Tim Anderson said “I doubt there was one event per se that caused Kindler’s” retirement, although he added it is “highly likely he was pushed.”

Funtleyder noted that “it hasn’t been an easy ride for” Kindler as CEO, indicating that his resignation may be more connected to Pfizer’s share performance, which has fallen around 27 percent since his appointment in July 2006. Anderson said he expected the drugmaker’s shares would likely rise following the news “because investors just want to see change at a washed-out story like Pfizer.”