In November, biopharmaceutical firm Pfizer (PFE) was reportedly evaluating a potential sale or spin-off of its consumer health division but it never came to fruition.
On Wednesday, Morgan Stanley analyst David Risinger argued for the drugmaker to do just that.
Risinger argues that maximizing the value of its consumer health unit would bolster shareholder value, even though the division only accounts for a small percentage of Pfizer's market cap.
"Pfizer's current (price-earnings ratio) of 13x is just over half of some consumer stock P/Es such as Reckitt at 23x, PepsiCo (PEP) at ~22x, Kraft Heinz Co (HNZ) ~25x and Hershey (HSY) ~23x," he noted.
Risinger also argued that the "strategic rationale" for retaining the consumer unit has weakened with the diminishing prospects of transferring proven prescription drugs (Rx) to nonprescription, OTC status.
"We note that the company's pipeline is primarily comprised of drug candidates for complex medical conditions which do not lend themselves to self-diagnosis and self-treatment," he wrote.
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Alibaba's Jack Ma woos Detroit: TheStreet has spent the past two days in Detroit covering Alibaba's (BABA) big hiring event in Detroit. We have had the opportunity to talk with Alibaba and take in how the Chinese tech company plans to grow jobs in America. But the real showstoppers have been the presentations with Alibaba's executive chairman Jack Ma, who as always hasn't been short on bold proclamations.
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Uber's embattled founder resigns: Uber Technologies Inc. founder and CEO Travis Kalanick has resigned from the ride-sharing company, TheStreet reports. The move comes just days after he was asked to take a leave of absence in the wake of a report into allegations of discrimination and bullying at the world's startup.
"I love Uber more than anything in the world and at this difficult moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight," Kalanick said in a statement given to the New York Times, which originally reported his departure.
Here is what Uber co-founder Garret Camp had to say this week about Uber's culture.
Check out TheStreet's new series: TheStreet has officially launched a new video series called Alpha Rising, where we will showcase all of the amazing women in business. TheStreet's Tracy Byrnes sits down with some of the top women kicking butt in business such as Birchbox' CEO Katia Beauchamp, who revolutionized the beauty business.