Pfizer breakup, in the Abbott mode?
Goldman Sachs pharmaceutical analyst suggests an increased chance of a larger breakup of Pfizer after hearing the thoughts of CEO Ian Read.
Pfizer said in July that it was shopping its animal and nutrition units to determine what price it could get for them, all under the usual heading of increasing shareholder value.
Those were two of Pfizer's more profitable units. Some might think it odd that the company, which has cut R&D in search of profits, would sell already profitable units.
Anyway, the discussion has continued and Goldman Sachs pharmaceutical analyst Jami Rubin sent a note to clients suggesting a larger breakup of Pfizer might occur. She based that observation on a recent conversation with Pfizer CEO Ian Read, according to Bloomberg. That story is here.
Pfizer headquarters is in Manhattan, but the company has a big operation in Collegeville and other spots in the region.
Meanwhile, Abbott has been moving toward dividing itself, with the intended result being a profitable drug company and a profitable medical device-dominated company. Both would be publicly traded companies.
Abbott said on March 21 that CEO and chairman Miles White would stay with the device company, which will keep the Abbott name. It might indicate where White thinks greater future profits can be found. Richard A. Gonzalez, the executive vice president in charge of global pharmaceuticals, would become chairman and CEO of the drug company with the name........AbbVie.
The Abbott press release is here.