McKinnell makes early exit from Pfizer
pharmafile | August 3, 2006 | Feature | Sales and Marketing | Pfizer
Hank McKinnell has stepped down as chief executive of Pfizer earlier than expected following continued criticism of his performance from shareholders.
The company's share price almost reached an eight-year low recently and Wall Street has also been critical of McKinnell, particularly over what it sees as unrealistic forecasts.
His replacement as head of the world's largest pharmaceutical company is Jeffrey Kindler, who joined Pfizer in 2002 and is currently its general counsel.
While at the company, Kindler has led efforts to protect Pfizer's intellectual property, campaigned against counterfeit medicines and has been a leading advocate for the regulatory and legal reforms Pfizer sees as being important to its future.
"The pharmaceutical industry is undergoing unprecedented change," Kindler said. "In response, we will transform virtually every aspect of how we do business, focusing on actions that create and sustain value for our shareholders.
We will make Pfizer more efficient and cost-effective, and reduce organisational layers to speed decision-making."
Prior to joining Pfizer, Kindler worked for fast-food chain McDonald's in various posts, including periods as VP of corporate relations and general counsel. A former partner at a Washington legal firm, Kindler also worked as VP and senior counsel for litigation and legal policy for General Electric.
His first challenge will be to face down legal proceedings from Novo Nordisk over Pfizer's inhaled insulin.
Novo has filed a suit in the US federal court in New York alleging Exubera, one of Pfizer's most promising new drugs, violates its patents for methods to deliver insulin.
Kindler was appointed ahead of two senior Pfizer executives: Karen Katen, the head of its Human Health division, and David Shedlarz, the company's vice chairman and chief strategist.
Kindler's appointment is a marked change from McKinnell, who was a 35-year veteran at Pfizer. Appointed chief executive in 2001, McKinnell presided over the company through a challenging time that included the after-effects of a merger in 2000 with Warner-Lambert and managing a merger with Pharmacia in 2003.
He said: "The Board and I see the pharmaceutical industry changing rapidly. Pfizer is changing as well as aggressively transforming its business model to build the next-generation Pfizer.
"With these initiatives well under way, it is time to transition to new leadership to accelerate the company's transformation."
He will remain as the company's chairman until February 2007, when he retires.
The company saw strong double-digit performance from several existing products in the second-quarter of this year, including its cholesterol-lowering star Lipitor, arthritic pain treatment Celebrex and the anti-psychotic Geodon.
Already the biggest-selling drug in the world, Lipitor's sales increased by 9% in the quarter to $3.1 billion and Pfizer is aiming for a full-year sales figure for the product of $13 billion.
The company has just seen off a US patent challenge from Ranbaxy to Lipitor, with the drug retaining its patent protection until March 2010.
Despite the win, Pfizer is being hit hard by patent expiries and by 2008, it will have lost about a third of its Human Health division's revenue in the four years leading up to that date.
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