Pfizer may consider drug unit split, says CEO
Pfizer’s Chief Executive has hinted that the company may decide to separate its remaining core drugs business in the future.
This move would echo Pfizer’s current operations in developed countries such as US and UK, where it is already structured into separate units for new, brands and generics. While the emerging markets usually operate by country or region instead of by types of drugs, Pfizer may move toward a similar business structure for the overall company in the future.
“I believe that at some point the industry will globally separate into business models with an innovative core and a value core and you would see our management moving to manage the business that way over time.
“If there is a value to shareholders of a split, I have acknowledged we are open to any construct that produces value for Pfizer.”
Ian Read, Pfizer CEO.
However, Pfizer CEO Ian Read said the company had no immediate plans.
Pfizer is currently working on refilling its pharmaceutical pipeline, after its top-selling cholesterol treatment, Lipitor, went generic last year. However, the loss of Lipitor sales was offset in Q4 2012 by the recent sale of Pfizer’s nutrition business to Nestle for approximately US $12 billion.
Pfizer hints core drugs unit may be split (Financial Times)
Pfizer Will Consider Split of Drug Units, CEO Read Says (Bloomberg Businessweek)
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