Pfizer Inc. abruptly replaced its CEO and chairman, saying Jeffrey B. Kindler was retiring after 4 1/2 years leading the world’s biggest drugmaker with research and development operations in Groton to “recharge,” The Associated Press reports.
Analysts saw Sunday’s unexpected departure as an ouster, however, coming amid repeated failures from Pfizer’s labs to produce new, much-needed blockbuster drugs, multiple patent expirations that threaten its income and a questionable strategy of relying on acquisitions and cost cutting to overcome those mammoth problems.
The move, announced unexpectedly late Sunday night, may be an attempt to palliate investors unhappy with Pfizer’s languishing stock price, which is well below that of its peers and down about 30 percent since Kindler took the helm.
Ian Read, 57, a 32-year Pfizer employee who has run Pfizer’s worldwide pharmaceutical operations since 2006, took over immediately as chief executive and president. The board appears to want a tighter rein for now, saying it will elect one of its members as a non-executive chairman within the next two weeks.
Kindler, who reorganized most of the New York-based company’s operations in an effort to maintain sales, said he plans to “recharge my batteries” and spend more time with his family while preparing for new challenges, according to a company statement. It gave no further details.
“I think what you’re seeing is board frustration,” said analyst Steve Brozak of WBB Securities.
