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ARTICLE | Financial News

Pfizer: splitting business not 'short-term priority'

January 30, 2013 2:27 AM UTC

Pfizer Inc. (NYSE:PFE) said on a conference call to discuss its 2012 and 4Q12 earnings that there's "not really a lot of point on speculating" on the pharma splitting its two operating units into separate entities. President, CEO and Chairman Ian Read said he believes the pharma will move towards separate management for the units, at which point Pfizer will evaluate with shareholders if they would prefer to be able to invest in two distinct companies. However, Read said, "I don't think that this is a short-term priority right now," noting that the pharma's primary focus remains on acquisitions that are "projected to meet or exceed the return on investment of share repurchases."

Pfizer reported 4Q12 adjusted diluted EPS of $0.47, beating the Street's estimate by $0.03, but down 4% from $0.49 in 4Q11. Fourth quarter revenues were $15.1 billion, down 7% from $16.1 billion in 4Q11 but above the Street's estimate of $14.4 billion. Full year revenues were $59 billion, down 10% from $65.3 billion in 2011. The Street was expecting revenues of $58.35 billion. Pfizer, which recorded a $4.8 billion gain for the sale in November of its nutrition business to Nestle S.A. (SIX:NESN), repurchased $3.4 billion in shares during the quarter. ...