Pfizer, the New York-based drugmaker, has announced a new executive lineup for its combined business with Dublin-based Allergan. It also announced how the new organization will be structured.
The companies agreed to merge in November in a $160 billion deal, which will give Pfizer a lower tax rate by moving its business to Ireland. Pfizer said Monday that the company still expects to make a decision on whether to separate the merged company's innovative and established businesses, by no later than the end of 2018.
As previously announced, Pfizer CEO Ian Read will be the combined company's chairman and CEO, while Allergan CEO Brent Saunders will become the company's president and chief operating officer.
Pfizer said that after the deal closes its vaccine and oncology businesses will be combined with its global innovative pharma business, which will be led by Albert Bourla, who is currently group president of the vaccines, oncology and consumer business. Until then, they'll operate separately under Bourla's leadership.
Geno Germano, the current group president of global innovative pharma business, is leaving the company.
Pfizer will also create a new operating segment called global specialty and consumer brands, which will include Pfizer's consumer healthcare unit and Allergan's ophthalmology and aesthetics businesses, as well as its Botox business. Bill Meury, currently executive vice president and president of branded pharma at Allergan, will lead the new segment.
Following the transaction, Bourla, Meury and three other executives will report to Saunders, while seven other Pfizer executives will continue to report to Read. Pfizer and Allergan will operate as two separate companies until the deal closes, which is expected to take place in the second half of 2016.
Pfizer reported last week that its fourth-quarter profit fell by half due to higher costs for production, administration and restructuring. But for the first time in five years, it posted positive revenue growth, excluding the impact of unfavorable exchange rates.