CEO Read to hand Pfizer reins to Bourla

Pfizer said on Monday that CEO Ian Read would become executive chairman at the beginning of 2019, handing the reins of the largest US drug maker to veteran insider Albert Bourla, after eight years in charge.

Under Read, a Scot who joined in 1978, Pfizer won 30 approvals from the US health regulator while weathering patent expiries on several of its blockbusters, including cholesterol drug Lipitor.

Read, however, failed in his efforts to pull off two mega deals, with plans to buy British drug maker AstraZeneca in 2014 and Ireland-based Allergan in 2016 both falling through.

Bourla, 56, was appointed COO at the start of 2018, after leading the drug maker’s Innovative Health business, which had revenue of $31.4bn in 2017.

THE APPOINTMENT COMES AT A TIME WHEN DRUG MAKERS ARE FACING INTENSE SCRUTINY OVER DRUG PRICING

“This looks like a well-considered transition, thus I’m not convinced it will herald a major change in strategic thinking, particularly as Ian will still stay on as chairman,” Berenberg analyst Alistair Campbell said.

The appointment comes at a time when drug makers are facing intense scrutiny on drug pricing, with regulators and the Trump administration aiming to lower prescription drug costs.

Pfizer said in July it was deferring drug-price increases for no more than six months after a conversation between Read and President Donald Trump. Its share price, which has risen about 160% since Read took over as CEO in December 2010, was up 0.36% at $44.23 before the bell on Monday.

“It’s been an honour to serve as Pfizer’s CEO for the past eight years,” Read said.

“However, now is the right time for a leadership change. Albert is the right person to guide Pfizer through the coming era.” Last week, rival Merck & Co Inc said it would amend a policy to allow its head, Kenneth Frazier, to remain CEO beyond 2019, when he was expected to retire.