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Pfizer creating two businesses is 'nice prep' for split, Cramer says

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Jim Cramer said Tuesday that Pfizer is setting itself up to split with the creation of its Pfizer Innovative Health and Pfizer Essential Health.

The biopharmaceuticals company released its second-quarter earnings Tuesday at 64 cents per share, beating analysts estimates of 62 cents per share. Its revenue came in at $13.1 billion, edging past expectations for $13 billion.

Cramer told CNBC's "Squawk on the Street" that splits in the industry have typically been very good, particularly looking at the biotech business Baxter, which split last year.

"I think this is a nice prep," he said.

The drugmaker did not offer hints on whether it will split in its earnings report, but after Pfizer ended its acquisition of Botox-maker Allergan in April, the company put the idea back on the table.

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