Finanzas: Pfizer opts to remain one company; shares off 1% premarket

 

After what it calls an «extensive evaluation» to assess the feasibility and potential to maximize shareholder value by splitting into two publicly traded companies, Pfizer Innovative Health and Pfizer Essential Health, Pfizer (NYSE:PFE) decides to stay the course with its current corporate structure.

Chairman & CEO Ian Read says, «With this decision, our two distinct businesses will remain separately managed units with 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. We believe that by operating two separate and autonomous units within Pfizer we are already accessing many of the potential benefits of a split – sharper focus, increased accountability and a greater sense of urgency – while also retaining the operational strength, efficiency and financial flexibility of operating as a single company as compared with operating as two, separate publicly traded companies. We will continue to generate the financial information necessary to preserve our option to split our business should factors materially change at some point in the future.

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«EVP, Business Operations and CFO Frank D’Amelio adds, «When we first explored the trapped value question several years ago, market valuations of other companies suggested that our two businesses could potentially be worth more as separate companies than they are together in a single company. However, over time, any potential gap between Pfizer’s market valuation and an implied Sum of the Parts market valuation has closed. In our analysis, we concluded that splitting into two companies at this time would not enhance the cash flow generation and competitive positioning of the businesses  and the operational disruption, increased costs of a split and inability to realize any incremental tax efficiencies would likely be value destructive.

«The company reaffirms its financial guidance issued on August 2.

Shares are down 1% premarket on light volume.

Fuente: Seeking Alpha


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