Drugmaker Pfizer revealed July 11 the company plans to reorganize into three businesses, effective at the beginning of the company's 2019 fiscal year.
Here are five things to know about the company's reorganization plan:
1. Pfizer plans to split into three units: a science-based innovative medicines business; an off-patent branded and generic established medicines business; and a consumer health business.
"This new structure represents a natural evolution of these businesses given the ongoing strength of our in-market products and our late-stage pipeline," Ian Read, chairman and CEO of Pfizer, said in the company's July 11 statement. "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."
2. The innovative medicines business will comprise all of Pfizer's Innovative Health business units, as well as a new hospital medicines business unit that will commercialize the company's global portfolio of sterile injectable and anti-infective medicines.
3. The new established medicines business will include the majority of the company's off-patent solid oral-dose legacy brands, including Lyrica, Lipitor and Viagra, along with certain generics. It will operate in all regions worldwide.
4. The company's new consumer health business will comprise all of Pfizer's over-the-counter medicines and operate relatively autonomously, with its own manufacturing and regulatory capabilities. Officials said they plan to continue evaluating strategic alternatives for the business and will make a decision later in the year.
5. Officials noted the innovative medicines and consumer health business will together account for roughly 75 percent of its revenue based on 2017 results.