Is Pfizer Preparing to Break Up?

Pfizer (NYSE: PFE  ) CEO Ian Read has gone about remaking the pharma-based conglomerate into a leaner, more focused company. In advance of reporting second-quarter results, Pfizer announced a new re-organization.
Pfizer management has used the terms "innovative" business and "value" business on previous conference calls, so while this shake-up isn't a surprise, the groupings are given that we have three units instead of two. Innovative 1 is a broad swath of branded pharma products, while Innovative 2 is vaccines, oncology, and consumer health care. Finally, there is Value, which is all established --  e.g., no longer patent-protected products -- or those products losing patent protection by 2015.

In this video, health care analyst David Williamson discusses what these events mean for investors in Pfizer and whether a bigger break-up of the company is at hand.

Rising health care costs continue to be a hotly debated topic, and even legendary investor Warren Buffett called this trend "the tapeworm that's eating at American competitiveness." To learn more about what's happening to the health care system -- and how to potentially profit from this trend -- click here for free, immediate access.

Follow David on Twitter: @MotleyDavid.

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9/26/2016 4:00 PM
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Pfizer CAPS Rating: ****