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Pfizer CFO: Company Still Weighing Divestment Options

Pfizer CFO: Company Still Weighing Divestment Options

After a review was conducted of its entire business portfolio, drugmaker Pfizer decided that it will likely divest its animal health or nutrition business, Reuters reports.

However, despite a recent report from Bloomberg suggesting the drugmaker was delaying the sale of the nutrition business to explore other options, Pfizer CFO Frank D'Amelio said at an investor conference that the company had not yet reached any decisions.

The drugmaker reportedly made the announcement in July that it was considering either the sale or spin-off of the two divisions, after Ian Read took over as CEO in December and initiated the review.

According to Reuters, the review determined that Pfizer would benefit from keeping its established-products unit, which is what sells its generic drugs, with the end goal being one business to sell new products and one for the those medications that were already market fixtures.

"When you get out several years, I think we'll have those two kinds of distinct businesses," D'Amelio told investors, adding that such an implementation would strive for "consistent sustainable earnings growth over time."

Pfizer is one of a number of companies examining potential divestment or M&A strategies, as speculation is mounting that AOL and Yahoo could merge, according to Forbes.
 

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