Could Pfizer (PFE) Be Prepping To Split After This Move?

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Jim Cramer announced on Tuesday that Pfizer (NYSE: PFE) is setting itself up to split with the creation of two new businesses, its Pfizer Innovative Health and Pfizer Essential Health.

Cramer told CNBC’s ” Squawk on the Street ” that splits in the industry have typically been very good, particularly biotech company Baxter (NYSE: BAX), which split in 2015.

“I think this is a nice prep,” Cramer remarked on Pfizer.

Pfizer just released its second-quarter earnings Tuesday at 64 cents per share, coming in ahead of the analysts estimates of 62 cents per share. The biotech company’s revenue came in at $13.1 billion, also past expectations for $13 billion.

Company CEO Ian Read said back in April he would reach a decision by the end of 2016 on whether to break up the company.

Disclaimer: We have no position in Pfizer Inc. (NYSE: PFE) and have not been compensated for this article.