Pfizer Down 2% Despite Potential Sales

Shares of Pfizer

are not participating in today's rally, despite news the pharmaceutical giant is trying to sell its animal health and nutrition units. At last check, shares were off 40 cents to $20.38, a loss of 1.9%. The move lower could be because Wall Street is looking for Pfizer to sell even more businesses, as it tries to unlock shareholder value. ISI Group analyst Joe Ruggieri mentioned so in a research report to clients today. “Getting more feedback from the street but initial PFE read is this may not be enough (shedding animal health/nutritional biz), think will be a little disappointing given a lot of folks in for bigger break-up story here,” said Ruggieri. "Reminder there were four businesses street thought they could divest (animal health, nutritionals, established products and consumer)." According to the

the animal health unit accounts for $3.6 billion in revenues, while the nutrition unit counts for $1.9 billion in revenues. “Both Animal Health and Nutrition are strong businesses with attractive customer bases and solid fundamentals, but distinct enough from our core businesses that their value may be best maximized outside the company,” said Ian Read, president and chief executive officer, Pfizer. “In exploring these alternatives, we can determine what options will best drive their future growth opportunities and expansion, and enable shareholders to potentially realize higher value for these businesses.” “The actions we're announcing today are driven by the potential to create value for shareholders and enable Pfizer to become a more focused organization, better positioned for future success,” said Mr. Read. “Ultimately, our decisions will continue to support our long-term strategy to allocate our resources, investments and people to the areas that best serve our patients and customers, and generate the best value for our shareholders.” Pfizer has tapped J.P. Morgan for advice on the Animal Health business and Morgan Stanley and Centerview Partners' advisory businesses for the Nutrition business.