Pfizer Inc. said Monday that it has decided not to split into two separate publicly-traded companies, something the drug giant had been mulling over for years, but reignited after its proposed merger with Allergan PLC fell through. The company said it determined that the best course to maximize shareholder value was to manage its two distinct businesses–Pfizer Innovative Health and Pfizer Essential Health– as units within Pfizer. “In our analysis, we concluded that splitting into two companies at this time would not enhance the cashflow generation and competitive positioning of the businesses and the operational disruption, increased costs of a split and inability to realize any incremental tax efficiencies would likely be value destructive,” said Chief Executive Ian Read. The company plans to begin fully allocating indirect expenses for each of the two businesses, and providing estimates of the value of the expenses during the first-quarter 2017 report. The stock, which shed 1.1% in premarket trade, has gained 6.1% year to date through Friday, while the SPDR Health Care Select Sector ETF has tacked on 1.5% and the Dow Jones Industrial Average has advanced 4.8%.
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