Conjoined triplets

29 Oct 2013 By Robert Cyran Follow @rob_cyran

A two-year diet has done more for investors than a decade of acquisitions. The drug giant still trades at a 10 pct discount to rivals – fodder for CEO Ian Read to push for a breakup. And Pfizer’s recovery should encourage others to find similar solutions to sluggish performance.

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On Oct. 29 Pfizer reported third-quarter net income of $2.6 billion, compared to $3.2 billion a year ago. The company earned 58 cents per share before special items, beating the consensus estimate of sell-side analysts which was for 56 cents per share on the same basis. Sales were $12.6 billion, a fall of 2 percent from the same period last year.
The company announced earlier this year it plans to separate its business into three divisions in 2014: Global Innovative Pharmaceuticals; Global Vaccines, Oncology and Consumer Healthcare; and Global Established Pharmaceuticals. Chief Executive Ian Read has said he is studying whether a full breakup of the firm makes financial sense.
In February, Pfizer spun off its animal-health division, Zoetis, to shareholders. In 2012, the company sold its baby food unit to Nestlé for $11.9 billion.

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