Pfizer (PFE) Looking at Selling, Spinning Off Major Units

Drug giant Pfizer Inc. (NYSE:PFE) said it is reviewing the probable spin-off of a number of units which could reduce the size of the company by up to 50 percent, according to Sanford C. Bernstein & Co. analyst Tim Anderson, citing Chief Executive Officer Ian Read.

“Pfizer may be destined for a significant shake-up in the form of shrinking its behemoth $67 billion a year revenue base,” Anderson said. Read “appears to want to narrow both the focus and size of the future Pfizer, presumably with the goal of achieving sustainable growth off a new base.”

Anderson said the company could be positioning itself as a “pure-play" drug company, with the primary focus on designing new drugs.

The company may also end up spinning of four non-pharmaceutical businesses which would reduce the company's revenue to about $35 billion to $40 billion annually.

A Pfizer spokeswoman said the company hasn't made any final decisions at this time.

Pfizer was trading at $19.86, up $0.39, or 2.00 percent, as of 12:15 PM EST.