Pfizer Files for Animal Health Spin-Off

I often tell investors that I’m not a big fan of most IPOs. There’s an implicit assumption in any IPO that the issuer can get a good price for themselves, and that’s to the detriment of shareholders. The academic research shows that this is more often than not correct.

I do like to pay attention when a company, especially a blue-chip company, has a yard sale. I take notice whenever I see a large company spin-off a smaller unit.

Today’s news is that Pfizer will be spinning off its animal health unit. This unit isn’t exactly small either. Last year, it generated sales of $4.23 billion. The independent company will be called Zoetis.

According to Bloomberg, current investors may be able “to swap a portion of their Pfizer shares for stock in the new company.”

I can’t say if Zoetis is a buy just now (we still don’t know the price), but it will definitely be a stock worth watching.

Posted by on August 13th, 2012 at 12:44 pm


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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