Having owned the operating unit for a decade, Pfizer
The pharmaceutical giant is "reviewing strategic alternatives" for Capsugel, the unit it got when it acquired Warner-Lambert in 2000. That's company-speak for trying to figure out whether to sell the thing. If it's worth more to a generic-drug maker like Teva Pharmaceutical
Pfizer is in the driver's seat here. Even if it decides to put Capsugel on the block, it still doesn't have to sell if the price isn't right. That's what Abbott Labs
In the bigger picture, Pfizer might be better off selling much of its ancillary businesses, slimming down, and giving its drug discovery business a chance at growing. Diversification can work, but at some point a company becomes worth less than the sum of its parts. Selling off its animal health, consumer health, and nutrition businesses -- or spinning them off, like Bristol-Myers Squibb
After slimming down, Pfizer could have a decent shot at growing. It would have a smaller base to start from, making additions count more. But more importantly, the sales would generate considerable amounts of cash to spend. In order to grow, Pfizer needs to get drugs from outside its walls through acquisitions or licensing; both require cash.
Warren Buffett is willing to part with a little of his cash. Go figure.