Pfizer opts not to split after spending $600 million preparing for it
Pfizer has decided not to divide itself into two companies, one focusing on older drugs and another on patent-protected products, according to the Wall Street Journal.
The pharmaceutical giant had been contemplating the move since its aborted $150 million deal to buy Allergan, but Pfizer CEO Ian Read said the “valuation gap” between the company’s market cap and the value of its individual businesses has closed, making staying whole “the best structure.”
“We believe that by operating two separate and autonomous units within Pfizer we are already accessing many of the potential benefits of a split—sharper focus, increased accountability and a greater sense of urgency—while also retaining the operational strength, efficiency and financial flexibility of operating as a single company,” Read said.
This change of course comes with a hefty price tag—Pfizer spent $600 million preparing to split apart, a spokesperson told the Journal. Its revenue this year is expected to be $51 billion.
For more on why Pfizer backed away from the split idea, click on the link below:
John joined TriMed in 2016, focusing on healthcare policy and regulation. After graduating from Columbia College Chicago, he worked at FM News Chicago and Rivet News Radio, and worked on the state government and politics beat for the Illinois Radio Network. Outside of work, you may find him adding to his never-ending graphic novel collection.