Pfizer Inc., which bases its research and development in Groton and New London, said today it will form two main research units after completing the buyout of Wyeth, focusing on traditional pharmaceuticals and cutting-edge biotechnology drugs.
Pfizer will also keep several key executives from Madison, N.J.-based Wyeth as part of its increased focus on the field of biotechnology, which uses living cells to make treatments for a wide range of conditions, including cancer.
The $68 billion cash, stock and debt deal, made on Jan. 26, is still pending. The deal’s total value, though, is actually less than the original offer because the value of Pfizer shares has fallen since the offer was made.
The combined company will have nine businesses, including the biotech business, primary care and consumer health. The deal is expected to close during the third or fourth quarter.
“Creating two distinct, but complementary, research organizations, led by the top scientist from each company, will provide sharper focus, less bureaucracy and clearer accountability in drug discovery,” Pfizer Chief Executive Jeff Kindler said in a statement.
The company’s planned PharmaTherapeutics Research Group will be headed by Martin Mackay, the current leader of Pfizer’s global research and development unit. The current president of Wyeth research, Mikael Dolsten, will head the biotechnology unit. Meanwhile, Pfizer said it will keep eight senior Wyeth executives including Emilio Emini, who will head vaccine research, and Menelas Pangalos, who will head neuroscience.
Kindler will be CEO of the combined company. Pfizer did not say whether Wyeth CEO Bernard Poussot would have a role after the deal closes but it has said he would stay on through the transition. Poussot is in line to get $53 million in severance payments if the acquisition is completed, according to regulatory filing last month.
At 11 a.m., Pfizer traded at $13.60, down 11 cents, or 0.8 percent. (AP)
