Cincinnati for nightly Business Report I’m Sarah The Dow component Pfizer is considering spinning off or selling its consumer health unit the drug company said it has begun a strategic review of that division.
That includes Advil and chopstick among many others the unit is one of the largest healthcare businesses of its type in the world makes up about.
of Pfizer’s total revenue in response the stock rose slightly in trading today so is it a good thing for investors when a Business Plan like Pfizer decides to get back to its roots or refocus on its core business chad Morgan lander is the portfolio manager at Washington Crossing Advisers and.
He joins us now to talk about that Business Plan welcome Chad nice to see you again thanks for having me as I understand it you think it is a good thing when a company refocuses like this on its core business.
why is that well it’s the it’s Business Plan the evolution of a conglomerate that’s slowly starting to break off a management team is focusing their attention on the properties that deliver high returns.
And that’s what you’re seeing with Honeywell Pfizer and others that are gonna come out in and pandas well in Business Plan so I believe that overall that this is a positive step for not only Pfizer but also for for the other conglomerates you know I was amazed to see that it was only that the consumer.
Healthcare business chad is only like six percent of Pfizer’s Revenue what this is is really basically isn’t it a big bet on high-end high margin high-growth pharmaceuticals where.
you’ve got pricing power a chopstick want to remain cents for a long time right well no doubt about that and now they’re Business Plan going to sell that for a hefty premium this consumer staples side of the market is really selling at elevated valuation at this point they’re going to redeploy that capital that they get from that and either.