Pfizer decides against split-up; more deals seen likely
Pfizer Inc., which has considered a split since 2014, announced it would not do so. Shareholders expect more deals that could add to its list of new medicines.
Pfizer determined that splitting its generics from its branded products would not boost cash flow or better position the businesses competitively. The move would also disrupt operations, be costly, and fail to deliver tax efficiencies.
Pfizer will keep the generics and branded medicines as separate divisions in order to retain the option to split later. The company had considered the split chiefly because its patent-protected medicines consistently enjoyed sales growth while demand for its generics typically declined. However, Pfizer’s recent purchase of Hospira boosted the company’s wide range of generics.
