Pfizer Considers Sale of Consumer Healthcare Business
Pfizer is reviewing strategic alternatives for its consumer healthcare business, including a full or partial separation of the business from Pfizer through a spin-off, sale, or other transaction. Pfizer’s consumer healthcare business had 2016 revenues of approximately $3.4 billion.
The business includes two top-selling consumer healthcare brands (Centrum and Advil) and has 10 brands that each exceeded $100 million in 2016 sales, according to Pfizer.
“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,” said Ian Read, Pfizer chairman and chief executive officer, in a company statemnt. “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’s consumer healthcare business develops, manufactures, and markets non-prescription medicines, vitamins, and personal care products. Major categories and product lines include: dietary supplements (Centrum, Caltrate, and Emergen-C); pain management: (Advil and Thermacare); gastrointestinal: (Nexium 24 Hour and Preparation H); respiratory: (Robitussin and Advil Cold and Sinus); personal care: (ChapStick and Anbesol).
Pfizer has engaged Centerview Partners, Guggenheim Securities and Morgan Stanley & Co. as financial advisors for the strategic review process. Pfizer expects that any decision regarding strategic alternatives for the consumer healthcare business would be made during 2018. The company does not plan to make any further statements about the strategic review process until a decision has been reached or upon the completion of the strategic review.