Why Wall Street is skeptical of Pfylan

The future of Pfizer is one in which its yesteryear medicines will find a home at Mylan, the EpiPen maker that has a way of stumbling into a scandal every few years. And while investors have been pressuring Pfizer to break up its operations for the better part of a decade, the details of its generics spinoff aren’t winning many fans.

The problem is that Mylan has spent the last few years alienating Wall Street, whether via a corporate structure that disempowers shareholders, questionable use of the company jet, or turning its most famous brand into a shorthand for price gouging. And analysts see little reason why Mylan 2.0, led by a Pfizer-appointed CEO and armed with Lipitor and Viagra, will fare much differently.

“It is hard to imagine a more different culture than Pfizer,” Bernstein analyst Ronny Gal wrote in a note to investors. That creates a huge risk of future conflict, according to Gal, and “the next two years will be a Harvard Business School case one way or the other.”

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