The Southwood Group Comments on Pfizer Restructure

Top Quote The Southwood Group is advising clients on the increasing benefits of investing in Pfizer as restructure plans emerge. End Quote
  • (1888PressRelease) August 15, 2013 - In a year that has seen the Pharmaceutical sector involved in some of the largest and most expensive mergers and acquisitions to date. One drug company, the industry giant Pfizer Inc has taken the opposite path and been rewarded handsomely for its bold approach. As other conglomerates seek to consolidate as many holdings as possible under one marquee, Pfizer continues to divest and restructure into units that are more profitable.

    "Pfizer Inc has confirmed industry speculation that it will in essence split into two distinct companies, one will remain focused on their profitable secure generic drug manufacturing business, while the other will concentrate on the more costly patented drug market. The undertaking will be conducted in the same approach they have followed on numerous occasions in conjunction with project specific mergers and partnerships, it is expected that the final restructuring will be in place by 2017," said Senior Vice President of Mergers and Acquisitions James Morgan at the Southwood Group.

    "Pfizer's strategic plan allows the company to minimize any risk to their core revenue streams and share costs with partners in the more lucrative research fields, most companies would try to accomplish this, but they need to be very large to be able to do so. Luckily they don't come much larger than Pfizer," added Strategic Analyst at the Southwood Group.

    Pfizer Inc's share value rose just under 1% in trading to $29.67 driven by both news of the restructuring plan and a better than expected second quarter earnings report which was released concurrently. The report shows that Pfizer's net income had risen to $14.1 billion, a nearly 400% increase over last year and justifies the companies 29.62% return on investment over the last 12 months.

    "We have always had a high regard for companies that fall into this category, this is evident in the prominent place it plays in our institutional investor's portfolios. Pfizer has solid returns, a strong core business model and the ability to participate in more lucrative ventures via its growing partnerships, as a solid long term investment we are currently strategizing a plan for investors to take advantage of the attractive opportunity," said Senior Vice President of Mergers and Acquisitions James Morgan at The Southwood Group.

    As an equity-research house, The Southwood Group specialises in providing fundamental research and data analysis, ultimately facilitating trend identification, and finally stock selection. The company has professional managers with extensive experience in all aspects of investing and legal compliance, all of whom had spent their careers in the global finance industry from Hong Kong to New York. It is established on ideals of perseverance, enduring commitment to its clients and, most of all, due diligence.

    The Southwood Group hopes to enhance even more its capability and reputation as a provider of success-driven service to its clients.

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