BioCentury
ARTICLE | Finance

Better together

Why Pfizer decided not to split into innovative, established product companies

October 3, 2016 7:00 AM UTC

Sinking valuations for specialty pharmas comparable to the Essential Health business of Pfizer Inc. (NYSE:PFE) and a resurgent stock price led Pfizer to conclude it was better off keeping its innovative and established products businesses under one roof.

According to Credit Suisse analyst Vamil Divan, the argument for there being value trapped within Pfizer's Innovative Health and Essential Health businesses was more plausible when the pharma's shares were trading in the mid-teens and low $20s in 2011-12. ...