Is This Big Pharma Giant Headed for Another Breakup?

Generic drugmakers Actavis, Valeant, and Mylan are all reportedly interested in Pfizer's generic drug business. Will Pfizer play ball and sell off yet another one of its slower-growth units?

Dan Carroll
Dan Carroll
Jan 17, 2014 at 6:30PM
Health Care

Pfizer's (NYSE:PFE) been all too happy to get rid of its peripheral businesses in the recent past, spinning off its animal health business in early 2013 after selling its infant nutrition group back in 2012. It's paid off in a big way for investors, who have made the most of Pfizer's stock surge over the past year. Could Pfizer be ready to divest yet another business in 2014?

Generic drugmakers are reportedly lining up for just that possibility. According to a recent Reuters reportMylan (NASDAQ:MYL)Actavis (NYSE:AGN), and Valeant Pharmaceuticals (NYSE:BHC) are all circling Pfizer's generics business now that the big pharma company's finished reorganizing. Pfizer's made no secret about its goal of honing in on its core branded pharmaceuticals business, and these three generics suitors all have been on the acquisitions train as of late.

Yet would Pfizer's lucrative generics business make sense for these suitors? In the video below, Motley Fool contributor Dan Carroll digs into the reported interest of these companies in a buy -- and how such a deal between Pfizer and one of these big names could mean big money for investors in the near future.