Pfizer contemplates a partial sale of its consumer healthcare business
Date: 2017-10-11   Author: Saipriya Iyer  Category: #market

Pfizer contemplates a partial sale of its consumer healthcare business

Globally acclaimed American pharma giant, Pfizer Inc., has made it to the front page for its speculation over offsetting its consumer healthcare business. The New York headquartered pharmaceutical industry player has categorically announced that it has been reviewing numerous options for selling a part or the whole of its consumer healthcare unit.

Pfizer’s decision to forge a consumer healthcare spin-off is reliant on the drugmaker’s notion that this business unit has demonstrated a fair potential that strengthens its chances of making it big as a standalone business. In 2016 alone, the drug manufacturer’s consumer healthcare business was valued at USD 3.4 billion, and is inclusive of renowned brands such as Advil, ChapStick, Robitussin, and many others that consumers are able to purchase without the requirement of a prescription.

In the light of its exponential growth, the chairman and CEO of Pfizer, Ian Read, was quoted mentioning that the company’s consumer health products are now distinct enough from its primary biopharma business. The company executives presume that the valuation of the firm’s consumer healthcare unit may be fully realized when it would fall outside the umbrella of the drugmaker.

If reports are to be believed, Pfizer has stated that any decision regarding its consumer healthcare unit would be fully operational only in 2018. The pharma behemoth has also hired globally reputed investment managing service providers Morgan Stanley & Co LLC, Guggenheim Securities LLC, and Centerview Partners LLC as key financial advisors for the proposed review.

Pfizer does not seem to be the only company wanting to exploit the potential of its consumer health unit. Recently, the Germany headquartered pharma magnate, Merck KGaA, had also announced the sale of its consumer health business. The company had specifically hired JP Morgan to conduct a review for the proposed sale.

Post the announcement of its divesture, Pfizer’s shares rose up to 1 percent at USD 36.50 in premarket trading.



About Author


Saipriya Iyer

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

More from Saipriya


Post Recommendents

IT giant Cognizant acquires Dublin-based fintech firm Meritsoft
Author: Ojaswita Kutepatil

The company with this acquisition will leverage Meritsoft’s know-how to help clients transform business for the digital era.

American IT conglomerate, Cogni...


Hops material segment of Non-Alcoholic Wine and Beer Market will witness CAGR over 8% by 2024
Author: Rahul Sankrityayan

Shifting consumer preferences towards healthier alternatives is among the key factor propelling the non-alcoholic wine and beer market size. Factors such as religious restrictions, rising consumer spending across developing countries along with fa...


Matcha market from personal care & cosmetic application will witness 3.5% by 2024
Author: Rahul Sankrityayan

Rising consumption rates along with increasing health awareness of nutritious food & beverages will propel matcha demand. This rise in demand can be attributed to its nutritional benefits, unique flavor and texture along with its extreme versa...