Daily Management Review

Pfizer abandoned its business division plans


09/26/2016


American pharmaceutical company Pfizer Inc. decided not to divide the business into two independent structures in the near future.



Wade M
Wade M
"Pfizer Inc. announced that, after careful assessment, the Board of Directors and executive management determined that the company is in the best position to maximize shareholder value in the current structure. Currently, we will not will detach Pfizer Innovative Health and Pfizer Essential Health in two separate publicly traded company ", - stated Pfizer in a statement.

Pfizer said that this decision will not affect the company's forecast for 2016. At the same time, the company does not exclude division of the company into two separate entities in the future.

In August, Pfizer announced acquisition of biotechnology company Medivation Inc., specializes in developing anti-cancer drugs, for $ 14 billion. The transaction will require approval by from relevant regulators, and is expected to be closed in the III or IV quarter 2016.

In April, Pfizer decided to abandon acquisition of Allergan due to restrictions on change of tax residence of legal persons proposed by US Treasury on April 4th. The deal with Allergan would have allowed Pfizer to reduce tax payments in half thanks to the re-registration in Ireland. 

Pfizer is the world's largest producer of pharmaceuticals, with a turnover of 48 billion dollars a year. It occupies a leading position in its segment and continues to evolve.

The largest manufacturer of drugs produces a wide range of products at factories located in more than 40 countries around the world. Last year, the company’s bestsellers were medications for diseases such as epilepsy, neuralgia, depression, oncology, hypertension, menopause, high cholesterol, psoriasis, arthritis, infections caused by bacteria.

Pfizer has gained worldwide popularity in 1998 thanks to invention and production of Viagra, a drug for sexual dysfunction. It brings $ 2 billion annually.

The company's share on the pharmacological market is more than 6%. Over the past year, Pfizer received about $ 7 billion in net profit, and continues to increase sales volumes. Leading experts in the company’s laboratories continuously conduct researches and tests. 

A report, prepared by WhaTech business portal, said that sales of prescription drugs in 2020 will amount to $ 918.7 billion, with an average annual growth rate (CAGR) 4,8%. According to experts' forecast, in 2016 the global volume of prescription drug sales will reach $ 761.8 billion. 

The report notes that one of the main factors of growth in global sales of prescription drugs will be increase in life expectancy, resulting in a further aging of the population. Spread of chronic diseases, including in developing countries, also plays a key role.

Analysts expect that the highest growth in sales of prescription drug will be observed in the Asia-Pacific region. They link it to rising levels of income and welfare, patient awareness and public investment in the health sector. 

The researchers also named key players on the global market of prescription drugs - AstraZeneca, Bayer, Roche, Gilead Sciences, GlaxoSmithKline, Johnson & Johnson, Merck & Co (MSD outside the US and Canada), Novartis, Pfizer, Sanofi and others.

source: telegraph.co.uk






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