Pfizer breaking up?

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One must conclude that this is the ultimate goal. Breaking up allows the generics to unlock their value as payers move patients to them at a faster rate with the implementation of obamacare. It allows the pharma/biologic side to grow or expand if the environment warrants without the heavy burden of its size. Or maybe it allows to be bought by someone for a change.
 
























Anonymous said:
One must conclude that this is the ultimate goal. Breaking up allows the generics to unlock their value as payers move patients to them at a faster rate with the implementation of obamacare. It allows the pharma/biologic side to grow or expand if the environment warrants without the heavy burden of its size. Or maybe it allows to be bought by someone for a change.
Click to expand...

I agree this is the ultimate goal. keep the branded extremely high margin products under the Pfizer name, spin off the lower margin generics. The tax benefits in a spin off (with majority ownership retentation) is appealing. Not sure what you're referring to when you say "allows the generics to unlock their value" could you elaborate? Not being a jerk, I want to read your opinion.

As far as the 65B in cash, well that stays with the Pfizer name. It'll grow by another 15B if we spin off the generics. Est. prod. expected to hit over 17B in sales in the near future.

Big ? is, would we move some of our old dogs to EP? Specifically Viagra, Pristiq, Toviaz, Premarin family, Chantix...
 




Anonymous said:
I agree this is the ultimate goal. keep the branded extremely high margin products under the Pfizer name, spin off the lower margin generics. The tax benefits in a spin off (with majority ownership retentation) is appealing. Not sure what you're referring to when you say "allows the generics to unlock their value" could you elaborate? Not being a jerk, I want to read your opinion.

As far as the 65B in cash, well that stays with the Pfizer name. It'll grow by another 15B if we spin off the generics. Est. prod. expected to hit over 17B in sales in the near future.

Big ? is, would we move some of our old dogs to EP? Specifically Viagra, Pristiq, Toviaz, Premarin family, Chantix...
Click to expand...

I am also curious to see how the Specialty division plays into this ultimate goal. That is where the greatest margin is. I am curious if the whole company goes "Specialty" based on disease star versus separate Primary Care / Specialty divisions.
 




Anonymous said:
I am also curious to see how the Specialty division plays into this ultimate goal. That is where the greatest margin is. I am curious if the whole company goes "Specialty" based on disease star versus separate Primary Care / Specialty divisions.
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Specialty is where the future profits are. Oncology, inflammation and autoimmune disorders with monoclonal antibodies.
 




The question is which divisions would split? THE VALUE= Primary Care (like Abbott) or the GROWTH=Oncology/Speciality

Pfizer moves may signal drug-unit breakup
Drew Armstrong
Updated 8:10 pm, Tuesday, January 15, 2013
Pfizer's four business units may be combined into two, a top company official said, triggering speculation by analysts that the world's
biggest drugmaker is preparing to split in half.
Pfizer's units cover oncology, primary care, specialty drugs, and so-called established products, which are medicines that have lost
patent protection and are sold against generics. That's "probably going to evolve to two, where there's the innovative business and the
value business," said Geno Germano, president of the specialty care and oncology businesses.
Chief Executive Officer Ian Read took over Pfizer in 2010, as the company was digesting the 2009 acquisition of Wyeth and preparing
for the loss of its top-selling product, Lipitor. Under Read, Pfizer has cut research and operations and is divesting non-drug businesses,
such as animal health and infant nutrition. Those actions have created questions about whether a bigger breakup is on the horizon.
The possible reorganization outlined by Germano may be another step toward a split by Pfizer two to three years down the line, said
Mark Schoenebaum, an ISI Group analyst. Such a move would be similar to the action by Abbott Laboratories, which spun off its
brand-drug business Jan. 1 as the new company AbbVie Inc.
Making the generics unit more independent of the business that finds and develops new medicines would be a sign that Pfizer is headed
for such a major breakup, Schoenebaum said.
Breakup 'signal'
"Any signal that Pfizer is physically disentangling that business from the rest of those businesses, those would all be viewed as positive
steps toward a spinout," Schoenebaum said. "It's in their back pocket, should it make sense in a few years."
The company hasn't made any changes at this point, Germano said. "We currently operate under two distinct models - innovativedriven and value-driven, and there have been no changes to Pfizer's business unit structure," Germano said.
Pfizer's new-drugs business will have about $36 billion in sales in 2013, and its generic medicines line $17 billion, said Goldman Sachs'
Jami Rubin, an analyst who has led speculation about a breakup.
First steps
"While we laud Pfizer's decision to separate its animal health and nutritionals businesses, we see these moves as first steps in a
potential full-scale breakup, akin to Abbott," Rubin said in a client note in March. Abbott shifted its drug operations into AbbVie and
remained a diversified products company with medical device, diagnostics, nutrition and generic medicines units.
Not cost-saving
A reorganization of Pfizer's four major units into two wouldn't be a cost-savings exercise, Germano said.
"We'll squeeze out every bit of efficiency we can, and I expect we'll get some, but that's not the main driver," he said. "We really see
the business segmenting into these two segments with pretty different capabilities, and we would want to organize in a way that we
realize the most value for shareholders."
Rubin said in her March note that such a move was a signal of things to come.
"We believe the above incubation stage could take two or three years to build the stand-alone potential of the two businesses but Pfizer
could be broken up by 2015," she said. "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 and drive multiple expansion," she said.
Schoenebaum, the analyst, said the timing of a possible breakup would be driven by what Pfizer could command for the generics
business from the market. It could be handled as a sale, or as a stock spin-off.
"Right now, generics company multiples aren't higher than pharma company multiples," Schoenebaum said.
Market data provided by Bloomberg News Drew Armstrong is a Blooomberg reporter. E-mail: darmstrong17@bloomber
 




Anonymous said:
I agree this is the ultimate goal. keep the branded extremely high margin products under the Pfizer name, spin off the lower margin generics. The tax benefits in a spin off (with majority ownership retentation) is appealing. Not sure what you're referring to when you say "allows the generics to unlock their value" could you elaborate? Not being a jerk, I want to read your opinion.

As far as the 65B in cash, well that stays with the Pfizer name. It'll grow by another 15B if we spin off the generics. Est. prod. expected to hit over 17B in sales in the near future.

Big ? is, would we move some of our old dogs to EP? Specifically Viagra, Pristiq, Toviaz, Premarin family, Chantix...
Click to expand...

Pfizer could easily run the company on manufacturing and selling generic drugs. Remember that Pfizer has the recipe for making many of their products that have gone generic, and the company could easily survive manufacturing generics. Healthcare transitioning to Obamacare will allow very few branded drugs. The future unfortunately is generics.
 




Anonymous said:
Pfizer could easily run the company on manufacturing and selling generic drugs. Remember that Pfizer has the recipe for making many of their products that have gone generic, and the company could easily survive manufacturing generics. Healthcare transitioning to Obamacare will allow very few branded drugs. The future unfortunately is generics.
Click to expand...

It's always fashionable on Cafepharma to blame Obama for everything but the true is we've gotten fat by charging astronomical prices for mostly "me too's" and there's no real justification for that. Oh, Conservatives are all for getting rich at everyone else's expense but as the 2012 election showed, all those bitter white Conservatives are in terminal decline. There are few new drugs that are actually worth their cost to society. The days of endless Pharma pork are history and so are most of you porkers too!

The future is indeed generics but that's not unfortunate. They are profitable and stable - just not profitable enough to justify the huge Pfizer HQ costs............
 




Anonymous said:
Pfizer could easily run the company on manufacturing and selling generic drugs. Remember that Pfizer has the recipe for making many of their products that have gone generic, and the company could easily survive manufacturing generics. Healthcare transitioning to Obamacare will allow very few branded drugs. The future unfortunately is generics.
Click to expand...

You obviously have no idea what you are talking about. There is a very slim profit margin on generics and there is NO WAY PFE could survive just on generics with the overhead they have
 








Generics are always the solution until you or a family member is stricken with some rare ass cancer. Then it's woe is fucking me as you waste away and shit blood until you die. I can see it now, years into the future, " why don't pharma companies try to cure diseases anymore?" Hopefully all the cry baby libs will get the ass cancer and then we can move in with our lives.
 




Anonymous said:
Generics are always the solution until you or a family member is stricken with some rare ass cancer. Then it's woe is fucking me as you waste away and shit blood until you die. I can see it now, years into the future, " why don't pharma companies try to cure diseases anymore?" Hopefully all the cry baby libs will get the ass cancer and then we can move in with our lives.
Click to expand...

Obamacare death panel says no more expensive drugs once you reach Medicare age since you've served your usefulness to society by paying taxes, instead of taking taxes. So you get the blue pill, get shipped to hospice where you will live out the remaining days of your life.


Next thing you know, you'll qualify for hospice early if you were a smoker or obese during any phase of your life under 64. Just wait and see. Late term abortion phasing will make expansion into adult aged persons.
 








Anonymous said:
Pfizer is breaking up. Prevenar is now the #1 selling drug at $4 billion annually. The new company will be called Wyeth and trade with the sticker symbol WYE on 1/1/14.
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don't forget Premarin at $1 billion. Great to see after 70 years Premarin is still being promoted by a contract sales force and the Elite Vaccine Reps, who really know how to get it done in Outpatient Physician Offices.
 




Anonymous said:
don't forget Premarin at $1 billion. Great to see after 70 years Premarin is still being promoted by a contract sales force and the Elite Vaccine Reps, who really know how to get it done in Outpatient Physician Offices.
Click to expand...

Vaccines - are you looking to increase that Prevnar by going after OBGYN offices who have pregnant wombs for injection? My office said there was a girl, blonde bimbo, named Kelly trying to kick-up business that way. Is this strategy true?
 




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