Corporate News Blog - Pharma Giant Pfizer Mulling Divestment of Consumer Healthcare Business
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LONDON, UK / ACCESSWIRE / October 12, 2017 / Pro-Trader Daily takes a look at the latest corporate events and news making the headlines for Pfizer Inc. (NYSE: PFE), following which we have published a free report that can be viewed by signing up at http://protraderdaily.com/optin/?symbol=PFE. The Company announced on October 10, 2017, that it is considering strategic alternatives for its Consumer Healthcare business. The strategic alternatives include a spin-off, sale, or any similar alternative. The Company would take a final decision which may also include holding onto the business. The Company's decision is part of its business strategy to distribute its capital and resources that is in the best interests of its patients and provide most value for its shareholders. For immediate access to our complimentary reports, including today's coverage, register for free now at:
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Commenting on the Company's decision regarding the Consumer Healthcare Business, Ian Read, Chairman and CEO of Pfizer, 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."
Albert Bourla, Group President - Pfizer Innovative Health, added:
"Consumers are taking more ownership of their health and wellness through OTC products, preventative treatments and alternative health paths. Pfizer Consumer Healthcare is playing an important role in changing the world's well-being. Our colleagues are passionate about empowering consumers around the world to improve their health and wellness through our trusted brands, innovation, and thought leadership."
About the Consumer Healthcare Business
Pfizer's Consumer Healthcare Business is one of the largest OTC healthcare products businesses in the world and develops, manufactures, and markets mostly non-prescription medicines, vitamins, and personal care products. Its product line is divided into five main categories - Dietary Supplements which includes the brands Centrum, Caltrate, and Emergen-C, Pain Management which includes the brands Advil and Thermacare, Gastrointestinal which includes the brands Nexium 24 Hour and Preparation H, Respiratory which includes the brands Robitussin and Advil Cold and Sinus and Personal Care which includes the brands ChapStick and Anbesol.
Centrum and Advil are two of the top ten consumer healthcare brands globally in terms of sales. Pfizer's Consumer Healthcare Business have 10 brands each crossing $100 million mark in terms sales in FY16. The business unit also has several top-selling local brands under its folds. Pfizer's Consumer Healthcare Business has global presence in over 90 countries and recorded revenues of approximately $3.4 billion in FY16.
The Company has retained the services of Centerview Partners LLC, Guggenheim Securities LLC, and Morgan Stanley & Co. LLC for providing financial advice for the process of strategic review. The Company plans to take a final decision on the matter in FY18. It has declined to provide any information till such time that the strategic review process is complete and it reaches a decision in this matter.
Pfizer is not the only Company considering strategic alternatives for its Consumer Healthcare business. German pharma Company Merck KGaA had announced in September 2017 that it may sell its consumer health business, which includes brands such as Seven Seas vitamins, and the business had achieved net sales of €860 million in FY16.
It is speculated that the sale of Pfizer's Consumer Healthcare business could generate approximately $14 billion to $17 billion. Industry experts speculate that Nestle SA could be one of the potential buyers for Pfizer's business unit. Other interested buyers may include companies like Reckitt Benckiser Group Plc, GlaxoSmithKline Plc, Johnson & Johnson, Sanofi, etc.
Last Close Stock Review
On Wednesday, October 11, 2017, the stock closed the trading session at $36.45, marginally up 0.14% from its previous closing price of $36.40. A total volume of 16.76 million shares have exchanged hands. Pfizer's stock price advanced 9.53% in the last three months, 7.46% in the past six months, and 10.02% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 12.22%. The stock is trading at a PE ratio of 26.55 and has a dividend yield of 3.51%. At Wednesday's closing price, the stock's net capitalization stands at $216.82 billion.
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