Pfizer’s (PFE) new CEO Jeffrey Kindler is dumping his head of research and his CFO. According to The Wall Street Journal, the company’s logic is that it needs a CFO with "more visibility and experience on Wall Street". And, finding a new research chief may help convince investors that the CEO is addressing Pfizer’s main problem: its weak pipeline, which critics say stems from the company’s unwieldy size, ingrained mentality and narrow focus on blockbuster drugs.
With its stock off over 20% during the last five years, it does not matter who Pfizer names to communicate with Wall St. The company’s R&D problems go well beyond its research head.
Speeding up drug development will have to be part of a cultural change at Pfizer. It can hardly be changed by swapping out one person. And, the company will probably have to consider decentralizing the entire development process so that Pfizer has a number of independent research operations that have specialties and compete aggressively for development dollars. A :"survival of the fittest model." That may mean having three or four research chiefs instead of one.
Douglas A. McIntyre
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