Several Big Pharma companies have divested units in an attempt to concentrate focus in certain areas and improve overall competitiveness and profitability. Examples include Abbott's split to create AbbVie as the pharma company while Abbott stuck with diagnostics. Pfizer has sold off a couple of units and still may further divest from its current 3 unit structure. Novartis and Glaxo effectively traded oncology and vaccine franchises (with cash) to consolidate around each's respective strengths while ridding the weakness.
Now a Bernstein's analyst is pushing for Amgen to do the same. If done, it would be the first Big Biotech to undertake such a step. The analyst says Amgen could split itself into a stable company of steady existing products tat would have low investment and could offer higher dividends. The second half of the company would be the more aggressive growth company with a few recent products and a development pipeline. They would be much bigger R&D spenders and would have the greater upside (or not if things went south) potential. It would be te sexy new product company.
It's an interesting idea but one I don't expect to get too much serious attention in the hallways of Thousand Oaks. More likely, Amgen will be looking to continue with its new products, new biosimilars and acquiring additional assets to complement its portfolio as needed. See Fierce Biotech.
Posted by Bruce Lehr June 5th 2014.