Pfizer continues to undergo management reorganization that first began back in July 2006, when Hank McKinnell CEO and Chairman resigned from his position after growing unease over his stewardship of the firm. McKinnell was replaced by a surprise appointee, Jeffrey Kindler the firm's in-house counsel at the time. Kindler, a non-scientist, is the first person to run the company who was not a scientist by trade. Under Kindler's short reign, there have already been a number of changes in management as well as the initiation of a plan to cut employee staff worldwide (10% cut by end of 2008). Kindler has not, however, made a significant mark on the firm. Since his stewardship and under the direction and promotion of Research and Development Chief Mattina, the company experienced a major setback with the recent cancellation of Phase III clinical trials for the firm's expected blockbuster drug torcetrapib which had been designed to increase good cholesterol. Torcetrapib was Mattina's baby. The company was forced to cancel the development of the drug after an unexpected increase in the risk of deaths and heart-related problems were directly attributed to the drug's usage during ongoing clinical trials.
Alan Levin, who had been CFO since late February 2005, appears to have resigned to allow Pfizer to find someone who will be better able to handle Wall Street.
Kindler seems to be searching for a management formula rather than relying on a overall strategic approach to get the firm back on track. His decisions have been slow in the making and generally dependent upon events rather than through an overall strategic focus. He continues to talk about the possibility of acquisitions and renewed focus on research and development and Many on Wall Street saw yesterday's changes as positive, but the real question remains, can Pfizer develop a long-term strategy to improve the company which may just be too large to operate efficiently in today's marketplace.
For more on the changes:
See Forbes
Financial Week Article
Daily Speculations
Hemscott Empowering Investors
Times UK online
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