Pfizer deal with Ireland-based Allergan would set up US firm for a split - (The Independent via NewsPoints Desk)

  • The Independent reported that many industry observers believe Pfizer will decide to split late in 2016, after having compiled three years of financial data treating its "established" and "innovative" products divisions as if they were separate companies.
  • "This would be the creation of two companies really, not one huge $350-billion Pfizer," said Andy Summers, co-portfolio manager at Janus Capital Group, of the potential Pfizer split post-merger.
  • According to the news source, a combination with Allergan would add lucrative product lines to Pfizer's core innovative business, including aesthetics with the anti-wrinkle treatment Botox and facial fillers, as well as ophthalmology and neurology brands.
  • Oliver Pursche, CEO of Bruderman Asset Management, suggested a combination with Allergan "certainly gives Pfizer more flexibility in terms of how it wants to execute that strategy" of splitting the company, adding that "it makes it more of a growth company."
  • Pfizer has annual sales of about $48 billion, with about $27 billion from patent-protected drugs, vaccines and consumer products, while it generates about $21 billion from established products.
  • Allergan, which was created in its current form in March following its merger with Actavis, expects revenue of more than $8 billion in the second half of 2015, not including the generic drugs it is selling to Teva.

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