On the call: Pfizer CEO on spinoff plans

AP News
Posted: May 03, 2011 4:22 PM
On the call: Pfizer CEO on spinoff plans

New Pfizer CEO Ian Read discussed the company's ongoing review of its businesses and research operations on a conference call Tuesday with analysts, who pressed for any news on plans to sell or spin off parts of the pharmaceutical giant.

Among those discussed are a unit that sells drugs that have generic competition, called established products, and one that sells those drugs and newer, patent-protected ones in emerging markets including Brazil, Russia, India, China, Mexico and Turkey.

QUESTION: Have you narrowed your options regarding strategic alternatives for your established products and emerging markets businesses? If you do spin or sell some of these businesses, what you will do with the cash proceeds?

ANSWER (Ian Reed, Pfizer CEO): "We are still reviewing all of our alternatives on the businesses outside of the core. ... I don't foresee at some point in the second half suddenly coming out with a detailed master plan but certainly we'll lay out decisions we've taken and decisions we haven't, and (then) give a clearer path forward. ... If we do spin assets, the goal will be returning proceeds to shareholders."