Pfizer Creates Three Separate Businesses, But Spinoffs Are Not Imminent

As promised, Pfizer execs have settled on the latest installment in a much-discussed plan for splitting apart their various businesses. The next step begins in January and involves creating three entities - two will collect prescription drugs, over-the-counter items and vaccines, while a third will specifically house drugs that already face generic competition and still more that will lose patent protection by 2015. Each will operate as a separate global business. The idea, of course, is to eventually ‘unlock’ shareholder value, a move the drugmaker has increasingly explored over the past two years as a way to deflect the ravages of the patent cliff, which was typified by the emergence in late 2011 of a generic version of its best-selling Lipitor cholesterol pill. In the past year, Pfizer (PFE) sold its nutritional unit to Nestle for nearly $12 billion and spun off its animal health business, which is now called Zoetis (ZTS). However, splitting off these newest entities is not going to happen anytime soon. Each would require audited financial statements for three years and Pfizer will not start providing separate financial reports until the first quarter of 2014. This mean that the earliest investors would see such a break up would be sometime in 2017. Leerink Swann analyst Seamus Fernandez writes in an investor note that any announcement or decision on a further separation is unlikely until late 2015 or 2016. Here are some details: one Innovative Products group will be l...
Source: Pharmalot - Category: Pharma Commentators Authors: Source Type: blogs