This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pfizer Divesting Zoetis, Returning Human Health Focus

Pfizer Inc. (PFE) will be divesting Zoetis, which makes vaccines and drugs for pets, cattle, swine and other farm animals. The IPO hopes to raise up to $2.2 billion for the animal-medicine and vaccine company and is another attempt by Pfizer to focus on its core human-health businesses going forward.

EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Pfizer sold Vevey, an infant nutrition business, to Nestle SA for $11.9 billion last April. Bristol-Myers Squibb Co. (BMY) has also participated in divesting activity, selling Mead Johnson Nutrition Co. (MJN).  Since the sale, both stocks have gained 60% and 160% respectively.

Zoetis’s IPO is expected to price on the NYSE on January 31st under the ticker ZTS. Pfizer will continue to hold 414 million class B shares and will have 83% control over Zoetis. 81.6 million Class A shares will be on the market for $22-25 each.

Conclusion

Pfizer is trying to trim the fat and focus on its core business. CEO Ian Read is shrinking the drugmaker with these divestures, helping spur future growth and increasing returns for shareholders. A divesture, like increasing dividends or buying back stock, will return value to shareholders.

Zoetis is the biggest animal-medicine and vaccine company in the world by revenue. 

Written by Kapitall's Nick Sousa

null

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,669.36 -211.00 -1.25%
S&P 500 1,940.83 -29.24 -1.48%
NASDAQ 4,387.2720 -75.63 -1.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs