Pfizer (PFE) is a widely held mega-cap drug company that recently announced plans to merge its generic drug business, Upjohn, with Mylan (MYL). This move is partially being forced upon Pfizer due to the significant potential liabilities generic drug companies have to opioid-based litigation. While this spin-off should leave Pfizer with a compelling portfolio of patented drugs and a respectable pipeline, this move is a possible harbinger of a dividend reduction.
Spin-off at the low or perhaps before the fall
Upjohn is Pfizer's generic or off-patent division, which manufactures various generic