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Pfizer Throws Out Plan to Split into Two Companies

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Pfizer Inc. said Monday it would remain a single company, deciding not to split into one business focused on patent-protected drugs and another on cash-rich older products.pfizer

The decision means the New York City-based drug company would remain one of the industries largest. It projects at least $51 billion in revenue this year from a growing portfolio of cancer drugs and vaccines as well as a pipeline with copies of expensive big-molecule drugs.

Chief Executive Ian Read said staying whole was “the best structure,” though the company would “preserve our option to split our businesses should factors materially change at some point in the future.”

Shares of Pfizer fell 1.7% in trading on the New York Stock Exchange Monday morning.

Pfizer said in a news release announcing the decision that a supposed “valuation gap” between the company’s market cap and the value of its individual units has closed over time.

 

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