U.S. drugmaker Pfizer said on Wednesday it would reorganize the company into three units, including a new hospitals business.
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The three units will be: biosimilars and hospital business, branded and generic medicines and consumer health care. The change will be effective starting fiscal 2019.
The changes, according to the company, position it for future growth. They are not expected to impact current capital allocation priorities of full-year 2018 financial guidance.
“As we transition to a period post-2020 where we expect a higher and more sustained revenue growth profile we see this new structure better positioning each business to achieve its growth potential,” Pfizer CEO Ian Read said in a statement.
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Innovative medicines – including consumer health care – will comprise approximately three-quarters of Pfizer’s revenue.
The company’s financial reporting will reflect reorganization beginning with the issuance of its first-quarter 2019 earnings.
Pfizer’s announcement comes one day after it said it would postpone price increases on certain drugs, following an “extensive” discussion with President Donald Trump.
The president slammed Pfizer – and other pharmaceutical companies – on Monday for raising prices, saying in a tweet that they “should be ashamed,” adding that the drug giants “are merely taking advantage of the poor & others unable to defend themselves.”