, Columnist
Pfizer: Let's Stay Together
Why try to fix what isn't broken?
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Pfizer and its CEO Ian Read have been toying for years with the idea of splitting the company in two. But now, just months from when management is expected to announce a decision, there's a growing camp convinced the $213 billion company will opt to stay together. What gives?
The rationale for a breakup goes like this: One side of Pfizer is composed of older products, such as Viagra and Lipitor, that generate nice cash flow but whose sales growth will be hampered by expired patents. The other focuses on developing and marketing new drugs. Conventional wisdom would say to make the "boring" business a separate stock for investors who prefer predictability over risky growth, and vice versa.