The Rising Influence of Rising Affluence

[DewDiligence]

PFE shuffles division-level management with an eye toward eventual spinoffs:

http://www.sec.gov/Archives/edgar/data/78003/000007800313000031/x991217a.htm

On January 1, the company will begin operating with three commercial businesses -- the Global Innovative Pharmaceutical business, led by Geno Germano; the Global Established Pharmaceutical business, led by John Young; and the Vaccines, Oncology and Consumer Healthcare business led by Albert Bourla. [Bourla rather than Amy Schulman for this business unit is the major change in today’s announcement.] The company remains on track to provide a 2014 baseline management view of profit and loss for each of these businesses, starting with the Q1 2014 quarterly results.

All these machinations are to enable PFE to split into three publicly-traded companies at some point in the next few years, but probably not before 2017.

If the split happens, the “Global Established Pharmaceutical” company, which will sell branded generic drugs throughout the world with an emphasis on emerging markets, will be a strong beneficiary of The Global Demographic Tailwind.