Pfizer eschews proposal to split into two
Pfizer said Monday that it had decided against splitting into two companies, a possibility the pharmaceutical giant had considered after the Obama administration crushed its tax inversion hopes.
The New York-based drugmaker had been weighing a plan to split into two companies — one devoted to its established products and one focused on new, advanced treatments.
"With this decision, our two distinct businesses will remain separately managed units within Pfizer, which we believe is currently the best structure to continue to deliver on our commitments to patients, physicians, payers and governments, and to drive value for our shareholders," Pfizer CEO Ian Read said in a statement.
Pfizer left open the possibility that it could reconsider a split if the opportunity presents itself. For now, the company has concluded that the "operational strength, efficiency and financial flexibility of operating as a single company" was too compelling to execute a split, Read said.
The decision comes nearly six months after the U.S. Treasury Department implemented new rules on corporate tax inversions that effectively scuttled Pfizer's $160 billion combination with Ireland-based Allergan.
Pfizer shares (PFE) fell 1.1% in pre-market trading to $33.87.
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