WIth the announcement of the new consolidated corp structure, Pfizer will have the biggest downsizing in corp history.
The Plan is to consolidate specialty and primary care. The only divisions not effected is Oncology and Vaccines. All other specialties that are 1 product divisions will be merged by March 2015. (MS, ENDO, AI, Hemophilia, Inflammation will merge together)-- MS doesnt have a product in Dec, AI products will move to generic/establish division, Hemo doesnt make any money, and the Xeljanz inflammation division is way under performing for a blockbuster drug status and need to move Wyeth reps out and upgrade talent.
Primary Care will move all products to a contract sales force model given PC doctors decision to prescribe products is payer base, not rep or product itself. This CSO model will deliver the same results given reps have little impact with results in the PC market, at the same time save the company multi millions from salary (pc cso reps avg 35-40k yr--so $100million a yr savings just in salary) as well as from not paying Obama healthcare costs, and retirement costs. A select few pfizer PC specialty reps will be placed to call only on therapeutic specialty physicians. (bottom line Pfizer like most companies are getting out of the primary care product business in the US and turning to more of a biotech/specialty product company where more profit exists-- every earnings report those products loose money and the RD pipeline doesnt have true PC products; its all specialty products.)
As a shareholder these moves will boost the stock price as profits will increase with massive operations expenses reduces while supporting resources to drive core products with the greatest profit margins. For employees it is going to be a massive change, but for those who stay it will be very rewarding with the stock price soaring--- and that's the CEO job is to increase stock price. THis is the model that will do it.
The Plan is to consolidate specialty and primary care. The only divisions not effected is Oncology and Vaccines. All other specialties that are 1 product divisions will be merged by March 2015. (MS, ENDO, AI, Hemophilia, Inflammation will merge together)-- MS doesnt have a product in Dec, AI products will move to generic/establish division, Hemo doesnt make any money, and the Xeljanz inflammation division is way under performing for a blockbuster drug status and need to move Wyeth reps out and upgrade talent.
Primary Care will move all products to a contract sales force model given PC doctors decision to prescribe products is payer base, not rep or product itself. This CSO model will deliver the same results given reps have little impact with results in the PC market, at the same time save the company multi millions from salary (pc cso reps avg 35-40k yr--so $100million a yr savings just in salary) as well as from not paying Obama healthcare costs, and retirement costs. A select few pfizer PC specialty reps will be placed to call only on therapeutic specialty physicians. (bottom line Pfizer like most companies are getting out of the primary care product business in the US and turning to more of a biotech/specialty product company where more profit exists-- every earnings report those products loose money and the RD pipeline doesnt have true PC products; its all specialty products.)
As a shareholder these moves will boost the stock price as profits will increase with massive operations expenses reduces while supporting resources to drive core products with the greatest profit margins. For employees it is going to be a massive change, but for those who stay it will be very rewarding with the stock price soaring--- and that's the CEO job is to increase stock price. THis is the model that will do it.