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Pfizer President and CEO Ian Read will hand over the reins of America's largest drug maker to long-time insider Albert Bourla in January, after eight years at the helm, in the context of heightened surveillance of price of medicines.
Under Read, a Scotsman who joined the company in 1978, Pfizer resisted the patent expiry of several blockbusters, including the cholesterol drug Lipitor, through negotiations, expansion of emerging markets and cuts. costs.
The company also received 30 authorizations from the US health regulator during its tenure. Read, however, failed to conclude two large-scale agreements.
Pfizer stopped buying the British drug maker AstraZeneca in 2014, the deal having met with opposition from both countries about jobs and corporate tax maneuvers.
An attempt to acquire the Irish company Allergan in 2016 was canceled following a decision by the Obama administration to limit the benefits of a tax-reversal agreement .
"It's now the right time for a change of leadership and Albert is the right person to guide Pfizer over the next era," said Read, who will become executive chairman, said.
The drug maker's shares, which have risen about 160% since Read took over the CEO position in December 2010, have risen nearly 1% to $ 44.42.
Bourla, 56, was named chief operating officer at the beginning of the year and was widely regarded as the top candidate for the top job.
Prior to becoming Director of Operations, he was leading the drug maker's Innovative Health business, which achieved a turnover of $ 31.4 billion in 2017. Pfizer achieved a figure Global business of $ 52.5 billion in 2017.
"It sounds like a thoughtful transition, so I'm not convinced it's going to signal a major shift in strategic thinking, especially since Ian will still be chairman," said Berenberg analyst Alistair Campbell. .
The appointment comes at a time when the Trump administration has been pressuring drug manufacturers to reduce the costs of prescriptions.
After a conversation between Read and President Trump, Pfizer decided in July to postpone price increases for up to six months.
The company, which has been trying to sell its consumer health product business for a year, is preparing for the patent expiration of its Lyrica neurological disease treatment, which generated $ 1.2 billion in sales in the second quarter.
"The timing of this transition makes sense given Reed's age," said Ashtyn Evans, an analyst at Edward Jones.
Last week, his rival, Merck, announced a policy change to allow his boss, Kenneth Frazier, to remain chief executive beyond 2019, when he is expected to retire.
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