“Pfizer Inc. (PFE), the world’s largest drugmaker, gained the most in three months after Goldman Sachs Group Inc. analysts said the company may go beyond the divestiture plans it has already announced.
Pfizer climbed 2.2 percent to $22.64 at 12:22 p.m., after earlier rising to $22.80. Through yesterday’s close, the shares had increased 6.6 percent since July 6, the day before Pfizer Chief Executive Officer Ian Read said the New York-based company was exploring strategic alternatives for its animal health and nutrition businesses.
Read, at a recent meeting with Goldman analysts, indicated he may be willing to further split up the company after selling or spinning off those two units, Jami Rubin, a Goldman analyst, wrote in a note to investors.
“We see these moves as first steps in a potential full- scale breakup,” akin to the split now taking place at Abbott Laboratories (ABT), Rubin wrote.
Abbott, based in Abbott Park, Illinois, said Oct. 19 it plans to divide into two publicly traded companies, with one focused on drug development and the other on products including medical devices, infant formula and generics.
Rubin said a further breakup would be dependent on Pfizer’s success in getting new, brand-name drugs approved by U.S. regulators. “If the pipeline is successful and drives meaningful top-line growth, management will want to separate the businesses so investors can better value the pharma business,” Rubin said in her note. She said that a breakup could happen by 2015…”
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