Pfizer Inc. (PFE) said that it determined the company is best positioned to maximize future shareholder value creation in its current structure and will not pursue splitting Pfizer Innovative Health and Pfizer Essential Health into two, separate publicly traded companies at this time.
"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," stated Ian Read, chairman and chief executive officer.
The company noted that both the Innovative Health and Essential Health businesses have delivered solid year-over-year performance over the course of the past three years, as well as strong performance through the first half of 2016, demonstrating their ability to compete on a standalone basis.
The company noted that it will begin to more fully allocate indirect expenses for each of its two businesses by including estimates of the dollar value of such expenses, where appropriate. This will commence with the publicly-disclosed quarterly financials for the first-quarter 2017.
Pfizer noted that it will move forward with a focus on its strategic priorities to grow and increase operational efficiency to be more competitive. This decision announced today does not impact 2016 financial guidance, and the company reaffirmed its guidance for 2016, which was issued on August 2, 2016.
For 2016, Pfizer continues to expect revenues in the range of $51.0 billion to $53.0 billion and adjusted earnings per share in the range of $2.38 to $2.48.
Analysts polled by Thomson Reuters expect the company to report earnings of $2.46 per share and revenues of $52.84 billion for fiscal year 2016. Analysts' estimates typically exclude special items.
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