Is Pfizer Preparing to Break Up?

Before you go, we thought you'd like these...
Before you go close icon
Pfizer CEO Ian Read has gone about remaking the pharma-based conglomerate into a leaner, more focused company. In advance of reporting second-quarter results, Pfizer announced a new re-organization.
Pfizer management has used the terms "innovative" business and "value" business on previous conference calls, so while this shake-up isn't a surprise, the groupings are given that we have three units instead of two. Innovative 1 is a broad swath of branded pharma products, while Innovative 2 is vaccines, oncology, and consumer health care. Finally, there is Value, which is all established --  e.g., no longer patent-protected products -- or those products losing patent protection by 2015.

In this video, health care analyst David Williamson discusses what these events mean for investors in Pfizer and whether a bigger break-up of the company is at hand.

Rising health care costs continue to be a hotly debated topic, and even legendary investor Warren Buffett called this trend "the tapeworm that's eating at American competitiveness." To learn more about what's happening to the health care system -- and how to potentially profit from this trend -- click here for free, immediate access.

Follow David on Twitter: @MotleyDavid.

The article Is Pfizer Preparing to Break Up? originally appeared on

David Williamson owns shares of Pfizer and Zoetis. Follow David on Twitter: @MotleyDavid. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

People are Reading