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By wrestling with the question of its corporate structure, Pfizer is having a debate that echoes throughout the industry. Investors have pressed many diversified drug firms this year over whether they should break themselves up into more specialised units. Diversified firms are those that typically have consumer-health divisions offering low-margin products such as plasters and talcum powder. Meanwhile, “pure-play” drug companies focus on innovative medicines—for example, a full cure for Hepatitis C—that command high margins.
Companies such as Johnson & Johnson (J&J), GSK and Novartis fall into the first camp, and have all recently wrestled with the question of splitting themselves up. Investors and analysts tell them that they may be worth more broken into their parts than as a whole, and ask whether capital is being allocated efficiently across their divisions. These sort of questions inspired Pfizer to sell its consumer-products division to J&J in 2006, and Merck, an American drug firm, to divest its consumer unit to Bayer in 2014.
1.
Some companies give up the plan of a full-line products, for______.
A. the lack of high technologies
B. achieving better financial statements
C. showing very little varieties
D. mastering in some products
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