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Pfizer readying to sell consumer healthcare business

(FinancialPress) — Pfizer Inc. (PFE) is planning to put its consumer healthcare business up for sale in the upcoming month. The information comes from two unnamed sources close to the situation.

The consumer healthcare business manages all products that in the vicinity of cold remedies to digestive health supplements. The sale could bring about a price tag as large as $15 billion, said the insiders. The unit netted sales for $3.4 billion in 2016.

GlaxoSmithKline plc (GSK) and Reckitt Benckiser Group Plc (RBGLY) are seen as the frontrunners to make offers for the prized unit, as per the report. This comes after, earlier this month, Pfizer revealed it would be considering selling the consumer healthcare business. A timeline was not provided at the time.

GSK Chief Executive Emma Walmsley declared on Wednesday she would look “carefully” at the business. Reportedly, Citi was brought on board as a potential representative for the pharma company in the auction. GSK declined to comment, while a request for comment was not immediately returned by Citi.

Other possible interested companies could include Procter & Gamble, Sanofi, Johnson & Johnson and Nestle, as per several sources.

It is expected that the company will share financial information with prospective buyers in approximately three weeks time, said the sources.

The beginning of 2018 should see the first round of bids come in, heating up the subject which could bring about a finalized deal by approximately the middle of the upcoming year.

Pharmaceutical companies see an added value to acquiring already-established consumer healthcare products that are consistent in their sales, as it helps them circumvent the high risk and cost of developing new drugs and products.
On Wednesday, Pfizer stock lost 0.23% of its value – closing at $36.19.


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