Pfizer is mulling over strategic alternatives for its consumer healthcare business including a sale in a move to allocate resources and capital to best serve patients and maximize share value.
The US-based pharma giant said that it may consider a full or partial separation of Pfizer Consumer Healthcare either through a spin-off or other transaction apart from the sale option.
It may even retain the business eventually after completing review of a range of options.
Pfizer chairman and CEO Ian Read said: “Although there is a strong connection between Consumer Healthcare and elements of our core biopharmaceutical businesses, it is also distinct enough from our core business that there is potential for its value to be more fully realized outside the company.
“By exploring strategic options, we can evaluate how best to fuel the future success and expansion of Consumer Healthcare while simultaneously unlocking potential value for our shareholders.”
Pfizer Consumer Healthcare is considered to be a major player in the OTC health care products business in the world. The business, which operates across 90 countries, had registered revenues of around $3.4bn in 2016.
It develops, manufactures and markets non-prescription medicines, vitamins, and personal care products. Some of the major brands it markets are Centrum – a multivitamin brand for women, Advil – a pain relief brand and Robitussin cough syrup. Both, Centrum and Advil brands had crossed $100m in sales last year according to Pfizer.
Pfizer has opted for Centerview Partners, Guggenheim Securities and Morgan Stanley & Co. as financial advisors for the strategic review process of Consumer Healthcare.
The company anticipates that a decision regarding strategic alternatives for the Consumer Healthcare business would be arrived at in 2018.
Last month, Pfizer launched a new company named SpringWorks Therapeutics by spin-off of four investigational drugs that are being developed to treat rare diseases.
Image: Pfizer world Headquarters in Manhattan, New York. Photo: courtesy of Coolcaesar/Wikipedia.org.