Is Pfizer Preparing to Break Up?

Pfizer (PFE -3.85%) 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.