Pfizer Decides Against Splitting Innovative And Essential Health, Will Remain One Company

Pfizer Inc. PFE disclosed that its Board and Executive Leadership Team are not in favor of splitting the company into Innovative Health and Essential Health. The company believes it's best positioned to optimize future value creation in its current structure for its shareholders.

The decision comes after an extensive evaluation of the company's two mainline businesses.

Pfizer believes it could deliver growth in both the divisions and that they could also lead in both the innovative and essential health. The drug maker pointed out the rebuilding of pipeline in the last several years and transformed its approach to R&D.

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The company got 20 approvals for fresh drugs and unveiled several products to address unmet medical requirements. This included Ibrance, Xalkori, Bosulif, Inlyta, Eliquis, Prevnar Adult and Trumenba.

Pfizer's chairman and CEO, Ian Read, commented, "We believe that by operating two separate and autonomous units within Pfizer we are already accessing many of the potential benefits of a split – sharper focus, increased accountability, and a greater sense of urgency – while also retaining the operational strength, efficiency and financial flexibility of operating as a single company as compared with operating as two, separate publicly traded companies."

Following the news, the stock shed $0.36, or 1.05 percent, to $33.90 in the pre-market trading on Monday.