Pfizer plans two research chiefs upon Wyeth merger

By Ransdell Pierson

NEW YORK (Reuters) - Pfizer Inc (PFE.N) said on Tuesday it will have two research chiefs -- one in charge of traditional medicines and one in charge of biotech drugs and vaccines -- when the drugmaker completes its planned purchase of smaller U.S. rival Wyeth (WYE.N).

"The new structure will allow us to move through the integration much more easily, because you know who the leadership is," Pfizer's current head of research Martin Mackay said in an interview. "The key to success is how well these divisions work together."

Pfizer said it still aims to complete the acquisition, valued at $68 billion when the merger was announced in January, by the end of the third quarter or in the fourth quarter.

Pfizer's biggest focus is "small molecule" drugs, meaning traditional oral medicines made from synthetic chemicals. Wyeth's strong suit is vaccines and biotech drugs -- injectable or intravenous drugs that are made in living cells and are adept at blocking or activating specific proteins linked to diseases.

After the merger, Mackay will give up his title as Pfizer's head of global research and development and instead lead a newly created PharmaTherapeutics Group focusing on discovery of small molecule drugs.

A separate BioTherapeutics Research Group, focusing on vaccines and biotech medicines, will be led by Mikael Dolsten, Wyeth's current head of research, Pfizer said.

Mackay and Dolsten will serve as presidents of their respective groups and report to Pfizer Chief Executive Jeff Kindler.

Pfizer became the world's biggest drugmaker over the past decade by buying two other smaller rivals -- Pharmacia and Warner-Lambert -- but its laboratories have produced few medicines over that period despite a $7 billion annual research budget.

Mackay said an infusion of fresh blood and talent from Wyeth will help ensure a change of fortune for Pfizer's far-flung research centers.

"Wyeth will bring us this prowess in biotherapeutics and vaccines, and also a significant presence in disease areas that are important to us, like Alzheimer's disease and oncology," Mackay said.

"We're well poised to deliver a whole crop of new products," Mackay said, noting that Pfizer has an impressive number of experimental medicines in late-stage testing.

Ian Read, now president of global pharmaceutical operations at Pfizer, is slated to become group president of Pfizer BioPharmaceutical Businesses.

Other senior Wyeth researchers are also being reserved top posts at Pfizer.

Emilio Emini, a respected industry scientist who heads Wyeth vaccines and formerly ran Merck & Co's (MRK.N) vaccine unit, will become chief scientific officer of vaccine research at Pfizer.

Menelas Pangalos, Wyeth's current head of discovery who has spearheaded efforts to develop treatments for Alzheimer's disease, is slated to become Pfizer's chief scientific officer of neuroscience research.