The splitting of the animal health and baby formula businesses from the main company is the beginning of a process to unlock value within the company. Two other sectors will be kept in order to raise their value to $46 billion combined, though investors had hoped the company would split into five distinct divisions.
The two that have broken off were the obvious choices; the animal health business is worth nearly $4 billion so can stand on its own, and the nutrition side is the one that investors were most eager to see separate.
Though some investors may be disappointed that Pfizer hasn’t split all its divisions at once, it means that sectors that could not currently compete on their own have time to grow to the point where they can be world leaders in their own right, potentially creating a large number of jobs worldwide.
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