Will a Pfizer Split Steal Market Share From Merck?

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July 30 (Bloomberg) -- Pfizer and Merck report earnings. Bloomberg's Olivia Sterns crunches the numbers and looks at the issues affecting the company's bottom line on Bloomberg Television's "Market Makers." (Source: Bloomberg)

What did you see with everyone focused on this break up?

It is a slight heat in earnings, but everyone wanted details on what it could look like once they separate their generics from the branded drugs.

On the earnings call, we did hear the ceo say a breakup is unlikely before 2017. so three years out.

We always knew a pfizer split would be a slow turning screw if it were to happen.

Profits rising more than fourfold.

Pfizer made a lot of money spinning off their animal health unit.

That's part of the bigger story of what is going on at pfizer.

This is a company making a fraction of the money they were making a few years ago because they lost the patents.

Now their best selling drugs, to vaccines, all of the hopes are what have been in the pipeline.

The bad news is the numbers have come in pretty soft and their blood thinner did not even make it into their own single line item.

And that is bad news.

It looks like shares are up 1%. we do get results from work today.

What was a highlight there?

There is good news and bad news.

Everyone was panicking about their drug for diabetes.

But the numbers came in strong.

Similarly to pfizer, they are in this environment of falling revenue, so they lost patents.

They lost a patent last year , but they have had some hiccups over what is in the pipeline.

They have had an experimental drug for osteoporosis and a sleeping aid we have been talking about trade it has been a tricky point for merck.

But they did announce they're going to replace the head of research and development, so they are recognizing the have trouble in the pipeline and are trying to do something about it.

And they have to offset those patent expert -- patent expirations.

Olivia sterns, covering pharmaceuticals for us on merck

This text has been automatically generated. It may not be 100% accurate.

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