Pfizer Weighs Sale, Spin-off of Units
May 3, 2011
Chief Executive Officer Ian Read said he is reviewing the possible sale of four divisions with $18.3 billion in annual revenue, according to Bloomberg. Read, who took control of Pfizer in November, said in February that he was reviewing each of the company’s units to focus on product development. The shares have climbed 20 percent this year as investors bet that Read may create a leaner, more- profitable company. Read said he is reviewing veterinary products, over-the- counter medicines, baby formula and established products to determine whether the company should divest or increase investment for each unit. Read’s plan is to focus on making new drugs, responsible for generating about 85 percent of the company’s revenue. Pfizer has mixed results generating new products through research spending, a process that needs improving, Read said.