Surprise exit for Pfizer chief executive Jeffrey Kindler
pharmafile | December 6, 2010 | News story | Manufacturing and Production, Research and Development, Sales and Marketing | Ian Read, Jeffrey Kindler, Lipitor, Pfizer, Wyeth, executive succession
Pfizer’s chief executive Jeffrey Kindler has unexpectedly stepped down, saying his time at the helm of the world’s largest pharmaceutical company had been “extremely demanding on me personally”.
His successor is the head of Pfizer’s global biopharmaceutical operations Ian Read, who said he would be looking at the performance and potential of all parts of the business to “ensure we are delivering value to our customers and shareholders”.
During his four and a half years leading the company Kindler undertook a deep cost-cutting programme, diversified the firm and steered through last year’s merger with Wyeth in a bid to reduce Pfizer’s dependence on its cholesterol blockbuster Lipitor.
He said: “My nearly nine years at Pfizer and, particularly the last four and a half as chief executive, have been extremely exciting and rewarding. I feel our team can proudly boast of some transformational accomplishments.
“However, the combination of meeting the requirements of our many stakeholders around the world and the 24/7 nature of my responsibilities, has made this period extremely demanding on me personally.”
Kindler said he felt now, one year after the acquisition of Wyeth, the time was right to turn the leadership of the company over to Read.
“Ian is an outstanding and experienced pharmaceutical executive who I know will make the next phase of the company’s future a successful one.”
Kindler added that he was “excited” at the opportunity to “recharge my batteries, spend some rare time with my family, and prepare for the next challenge in my career”.
But the unexpected nature of his departure – announced late yesterday (Sunday) evening – has prompted speculation Kindler did not leave of his own accord.
Sanford Bernstein analyst Tim Anderson told Reuters it was “highly likely that [Kindler] was pushed”.
He added that Pfizer shares would probably rise today “because investors just want to see change at a washed-out story like Pfizer”.
Kindler’s quest to turn Pfizer into a ‘scientific powerhouse’
Kindler, 55, became chief executive of Pfizer in 2006 after joining as the firm’s general counsel in 2002.
Prior to that Kindler worked for fast-food chain McDonald’s in various posts, including periods as VP of corporate relations and general counsel. A former partner at a Washington legal firm, he also served as VP and senior counsel for litigation and legal policy for General Electric.
His aim was to turn Pfizer into a ‘scientific powerhouse’ and moved to diversify its product portfolio in order to offset looming patent expiries that threatened to knock the company from its top perch.
The biggest of these is its anti-cholesterol drug Lipitor, which is currently the biggest selling drug in the world making over $12 billion a year, but is due to lose US exclusivity next year.
In 2009 Kindler orchestrated the $68 billion takeover of Wyeth and this year has focused on smaller ‘bolt on’ acquisitions, such as Pfizer’s $3.6 billion purchase of generics firm King Pharmaceuticals.
Ian Read: ‘Pfizer has all the elements for success’
A long-time Pfizer man, Ian Read, 57, is a trained accountant to Kindler’s background as a lawyer.
Since 2006 Read has led Pfizer’s worldwide biopharmaceutical businesses. These account for around 85% of Pfizer’s annual revenues and are made up of five global business units: primary care, specialty care, oncology, established products and emerging markets.
Read said: “We have a broad portfolio that spans the entire spectrum of human and animal health, from vaccines to biologics to primary care, specialty care, oncology, consumer products, nutritionals and beyond.”
He added: “We have all the elements for success – financial strength, global reach, a disciplined focus on the therapeutic areas with the strongest growth potential and a talented and dedicated workforce.”
Read joined Pfizer in 1978 and assumed positions of increasing responsibility in Latin America. In 1996, he was appointed president of Pfizer’s international pharmaceuticals group, with responsibility for Latin America and Canada.
He was named corporate VP in 2001, and assumed responsibility for Europe in addition to Canada; he later added the Africa/Middle East and Latin American regions to his leadership responsibility.
The board’s lead independent director, Constance Horner, said: “In the last four years as president of Pfizer’s pharmaceutical businesses, Ian has redefined our go to market approach with the creation of global business units and has brought to product development a focus and commitment to advance only medicines that have clear value to our customers.
“Today’s business leaders need to understand global markets, drive change and innovation, and move quickly to adapt to competitive pressures. Ian’s track record throughout his career has demonstrated these exact strengths.”
Ben Adams
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