Wednesday, March 14, 2012

Buy Biocon - Pfizer Withdrawal from insulin pact has nothing to do with Biocon capabilities

Recall that Pfizer entered into this deal with Biocon on 18th October 2010, it was when Mr. Jeff Kindler was the CEO of Pfizer.  But Soon after this deal (in December), Kindler was abruptly replaced by Mr. Ian Read as the CEO of the company,. The abrupt departure of Kindler, without any explanation, implied that most of the emerging market initiatives taken by Kindler are likely to be rolled back

Ian Read, soon after taking up the CEO seat,  instituted a 180 degree shift in strategy.  As against Kindler’s ambition of making its generic business bigger than ever, Ian Read focused on making Pfizer a innovation driven prescription pharma focused company.  Ian has also announced intention of divesting its established product portfolio (mature products with generic substitutes) business.

The complete shift in strategy was primarily because of a very different background of Kindler and Ian Read. Kindler was previously Pfizer's general counsel and before that led the McDonald's owned Boston Market restaurant chain, while Read was a pure pharma person and started his career with Pfizer in 1978.  Prior to being promoted as the CEO, he headed the global pharmaceutical operations of Pfizer.  Read received his BSc Chemical Engineering from Imperial College London in 1974. He earned the Chartered Accountants certification from the Institute of Chartered Accountants of England and Wales in 1978.

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