Pfizer to Organize for Future Growth

Pfizer Inc. (NYSE:PFE) today announced it will organize the company into
three businesses: a science-based Innovative Medicines business which
will now include biosimilars and a new hospital business unit for
anti-infectives and sterile injectables; an off-patent branded and
generic Established Medicines business operating with substantial
autonomy within Pfizer and a Consumer Healthcare business. These changes
will be effective at the beginning of the company’s 2019 fiscal year.

“This new structure represents a natural evolution of these businesses
given the ongoing strength of our in-market products and our late-stage
pipeline and the expected significant reduction in the impact of patent
protection losses post-2020 following the loss of exclusivity for Lyrica
in the U.S which is expected to occur in or after December 2018. As we
transition to a period post-2020 where we expect a higher and more
sustained revenue growth profile we see this new structure better
positioning each business to achieve its growth potential,” said Ian
Read, Pfizer Chairman and Chief Executive Officer.

The Innovative Medicines business will include all of the current Pfizer
Innovative Health business units as well as a new Hospital Medicines
business unit that will commercialize Pfizer’s global portfolio of
sterile injectable and anti-infective medicines, allowing for better
focus and customer centricity. Pfizer will also incorporate its
biosimilar portfolio into its Oncology and Inflammation & Immunology
business units. These units possess significant therapeutic area
expertise in the medical, commercial and patient experience domains and
will provide a strong commercialization platform for these medicines.

The growth fundamentals for the Innovative Medicines business are strong
with an aging population that is leading to increasing demand for new
innovative medicines and quickly advancing biological science that is
delivering breakthrough solutions. With a robust portfolio of growing
in-market products, a new wave of expected launches starting in 2020,
and a strong pipeline, Pfizer believes it is well positioned for growth
in this business.

The Established Medicines business will include the majority of Pfizer’s
off-patent solid oral dose legacy brands, including Lyrica, Lipitor,
Norvasc and Viagra, and certain generic medicines. This business will
operate in all regions of the world. To allow this business to act with
speed and flexibility, it will have distinct and fully-dedicated
manufacturing, marketing, regulatory and with some exceptions enabling
functions which will enhance its autonomy and position it to operate as
a true stand-alone business within Pfizer.

Following the impact of the expected loss of exclusivity of Lyrica in
the U.S. in or after December 2018, Pfizer expects that the Established
Medicines business has the potential to generate sustainable modest
revenue growth. Urbanization and the rise of the middle class in
emerging markets, particularly in Asia, are providing additional access
opportunities and generating significant demand for branded and generic
established medicines. As a leading pharmaceutical company in Asia and
particularly in China, Pfizer believes it is well positioned to be a
leader in this significant and rapidly growing market.

“Delivering critical medicines to patients all over the globe remains
the compass for all we do at Pfizer, and this design gives us a sharper
focus on diverse patients in diverse markets,” said Albert Bourla,
Pfizer Chief Operating Officer. “In addition, the structure will enable
the Established Medicines business to optimize its distinct growth
opportunities, while also providing the future flexibility to access
opportunities that enhance value.”

The Consumer Healthcare (PCH) business will include all of Pfizer’s
over-the-counter medicines. It will continue to operate relatively
autonomously with dedicated manufacturing and regulatory capabilities.

While the fundamentals for growth are strong in the PCH business, they
differ from the two prescription medicine businesses. Trends in
consumerism and an increased focus on staying healthy are causing
consumers to seek easily accessible health and wellness solutions. With
a strong portfolio of global brands that span health and wellness, the
company believes this business is well positioned to continue its
growth. Pfizer continues to evaluate strategic alternatives for this
business and expects to make a decision in 2018.

These changes in Pfizer’s organizational structure are not expected to
impact current capital allocation priorities or Full-Year 2018 financial
guidance. Based on 2017 actual results, the Innovative Medicines
business (including Consumer Healthcare) is expected to comprise
approximately three-quarters of Pfizer’s revenues, while the Established
Medicines business is expected to comprise approximately one quarter.
Pfizer will provide financial reporting to reflect this reorganization
beginning with the issuance of first quarter 2019 earnings.

When these changes are effective John Young and Angela Hwang will lead
Pfizer’s Innovative Medicines business and will continue to report to
Albert Bourla.

John Young, Group President, will be responsible for the Internal
Medicine, Oncology (including biosimilars), and Rare Disease business
units. In addition, he will manage Pfizer’s innovative medicines
portfolio across all emerging markets.

Angela Hwang, Group President, will be responsible for the Inflammation
and Immunology (including biosimilars), Vaccines, and Hospital Medicines
business units. In addition, she will oversee Pfizer’s Consumer
Healthcare business.

The Established Medicines business will be led by Michael Goettler, who
will become a member of Pfizer’s executive leadership team reporting to
Albert Bourla. Mr. Goettler has 23 years of industry experience and
joined the company in 2009, as part of the Wyeth acquisition; he joined
Wyeth in 2007. At Pfizer, he has held a number of senior leader roles
with increasing responsibility across multiple therapeutic areas,
including primary and specialty care. Mr. Goettler has extensive
commercial leadership experience and has lived and worked in multiple
markets and regions, in both Asia/Pacific and Europe. He ran the Rare
Disease Business Unit at Pfizer and initiated the company’s commercial
move into gene therapy. He is currently the Global President of Pfizer
Inflammation & Immunology. Mr. Goettler holds an MBA from the University
of Texas at Austin and graduated from the Koblenz School of Corporate
Management in Germany.

DISCLOSURE NOTICE: The information contained in this release is as of
July 11, 2018. Pfizer assumes no obligation to update forward-looking
statements contained in this release as the result of new information or
future events or developments.

This release contains forward-looking information about, among other
things, Pfizer, its expected growth profile, its plans to organize the
company into a new structure consisting of three businesses and the
anticipated performance of those businesses, including their potential
benefits, that involves substantial risks and uncertainties that could
cause actual results to differ materially from those expressed or
implied by such statements. Risks and uncertainties include, among other
things, risks related to the ability to realize the anticipated benefits
of the organization of the company into the new structure, including the
possibility that the expected benefits from the new structure will not
be realized or will not be realized within the expected time period; the
risk that the businesses will not be organized into the new structure
successfully; the potential for disruption from the organization of the
company into the new structure and diversion of management’s attention
from other aspects of our business as a result of the organization into
the new structure; significant transaction costs; other business
effects, including the effects of industry, market, economic, political
or regulatory conditions; future exchange and interest rates; changes in
tax and other laws, regulations, rates and policies; future business
combinations or disposals; the uncertainties inherent in research and
development, including the ability to meet anticipated trial
commencement and completion dates and regulatory submission dates, as
well as the possibility of unfavorable clinical trial results, including
unfavorable new clinical data and additional analyses of existing
clinical data; whether and when any drug applications may be filed in
any jurisdictions for any pipeline assets or new indications for
marketed products; whether and when regulatory authorities may approve
any such applications, which will depend on its assessment of the
benefit-risk profile suggested by the totality of the efficacy and
safety information submitted and, if approved, whether they will be
commercially successful; decisions by regulatory authorities regarding
labeling and other matters that could affect the availability or
commercial potential of the company’s pipeline assets or marketed
products; competitive developments; risks and uncertainties related to
our evaluation of strategic alternatives for our Consumer Healthcare
business, including, among other things, the ability to realize the
anticipated benefits of any strategic alternatives we may pursue for our
Consumer Healthcare business, the potential for disruption to our
business and diversion of management’s attention from other aspects of
our business, the possibility that such strategic alternatives will not
be completed on terms that are advantageous to Pfizer, the possibility
that we may be unable to realize a higher value for our Consumer
Healthcare business through strategic alternatives, and unknown
liabilities.

A further description of risks and uncertainties can be found in
Pfizer’s Annual Report on Form 10-K for the fiscal year ended December
31, 2017 and in its subsequent reports on Form 10-Q, including in the
sections thereof captioned “Risk Factors” and “Forward-Looking
Information and Factors That May Affect Future Results”, as well as in
its subsequent reports on Form 8-K, all of which are filed with the U.S.
Securities and Exchange Commission and available at www.sec.gov
and www.pfizer.com.

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