Drugmaker Pfizer decides not to break up business
TRENTON, N.J. — Drug giant Pfizer says it won’t split into two publicly traded companies, despite pressure from investors frustrated by its lagging stock price, ending years of Wall Street speculation over its strategy and future.
The biggest U.S.-based drugmaker said Monday it believes it is best positioned to maximize shareholder value in its current form, but it reserves the right to split in the future if the situation changes.
For several years, the maker of Viagra and the pain treatment Lyrica has been under growing pressure from analysts and investors who argued that by splitting up, the resulting two companies might grow faster than one. Pfizer has said it spent $600 million on preparations for such a split.
As a result, Pfizer has been reporting detailed financial results for each of its business segments, information that would be required by regulators for a split. Earlier this year, Pfizer promised a decision by the end of the year, but then it reorganized and renamed those segments — a sign a breakup was less likely.