Pfizer (NYSE: PFE) said on Wednesday it would reorganize its business into three units and one of them would include a new hospital business segment.
The company also said the three units are biosimilars and hospital business, branded and generic medicines and consumer health care.
The changes would be effective beginning fiscal 2019.
On Tuesday, Pfizer announced it would postpone drug price hikes after an "extensive" conversation between the company's CEO and President Donald Trump.
"Pfizer shares the President’s concern for patients and commitment to providing affordable access to the medicines they need,” Pfizer CEO Ian Read said in a statement.
Read went on to say that “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”
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.
Shares in Pfizer dropped 24 cents to $37.19 Wednesday morning.
