Pfizer’s announced reorganization could lead to an eventual spinoff of its consumer health-care business, CNBC’s Jim Cramer said Wednesday.
The drug giant said the item would certainly reorganize into three units: Innovative medicines, established medicines as well as consumer healthcare, which the item had been trying to sell since last year. The improvements take effect at the start of fiscal 2019.
“I think the item’s a prelude to splitting up,” Cramer said on “Squawk on the Street.”
Cramer, the host of “Mad Money,” mentioned of which Pfizer had spun off its animal health business Zoetis in 2013, which he said, “was the best.” Since then, shares of Zoetis have gained more than 150 percent.
Back in October, Pfizer said the item was considering the sale or spinoff of the consumer health-care business, which the item believed could fetch about $15 billion. Pfizer said in May of which the item had not received an acceptable offer.
“There will be still intrinsic value within Pfizer. [They] have a Great dividend,” said Cramer, adding its business will be “boring” however he “likes of which.”
Pfizer’s reorganization announcement comes a day after the item said would certainly roll back cost increases of which had gone into effect July 1 for a maximum of six months.
President Donald Trump has publicly criticized Pfizer as well as various other drugmakers for raising prices.
having a market cap of nearly $220 billion, Pfizer has seen its shares rise more than 12 percent over the past 12 months. The stock was slightly lower midday Wednesday.
Pfizer did not immediately respond to CNBC’s request for comment on Cramer’s theory.
— Reuters contributed to This particular report.