Pfizer abandons plan to split into two companies

(Reuters) - U.S. drugmaker Pfizer Inc, which has been considering a split into two companies for more than two years, said on Monday it would not do so because the move would not create any shareholder value.

Pfizer said a split would not boost cash flow or better position the businesses competitively. It would also disrupt operations, have inherent costs and fail to deliver any tax efficiencies, the company said.

Pfizer will keep its low-growth generics and patent-protected branded medicines separate, giving it the option to split later if "factors materially change at some point in the future."

Pfizer said the decision would not affect its 2016 financial forecast. Its shares fell 1.5 percent to $33.75 in morning trading, amid a 1 percent decline in the ARCA Pharmaceutical Index of large drugmakers.

The move follows the collapse of Pfizer's planned $160 billion acquisition of Irish drugmaker Allergan Inc after a change in U.S. law negated the tax benefits for companies moving corporate headquarters to overseas locales through acquisitions.