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Pfizer announced its decision to remain one company after debating the possibility of splitting Pfizer Innovative Health and Pfizer Essential Health into two, separate publicly traded companies.
On Monday Sept. 26, 2016, Pfizer announced its decision to remain as one company. The company had been debating whether or not to divide Pfizer Innovative Health and Pfizer Essential Health into two, separate publicly traded companies. On Monday, leadership decided against this strategy noting Pfizer is best positioned to maximize shareholder value in its current state.
“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,” Ian Read, chairman and CEO of Pfizer said in a press statement. “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 businesses should factors materially change at some point in the future.”
In April 2016, after Pfizer announced the termination of its merger agreement with Allergan, Read said the company would make a decision by the end of 2016 about whether or not it would separate its businesses. Pfizer said it evaluated the performance of each business within the company and determined if they would be able to compete as stand-alone entities. Pfizer also evaluated whether strategic and operating imperatives could best be achieved in the current structure versus two, separate publicly traded companies.