Pfizer announced that it is considering the sale or spin-off of its consumer healthcare business, which may be worth up to $15 billion. The organization said it would decide the future of the unit during 2018 as Pfizer Chief Executive Ian Read said that consumer healthcare was not integral to its core prescription drug business.
With brands such as Advil and Chapstick, Pfizer’s consumer healthcare business had revenue of about $3.4 billion in 2016. It also has 10 brands that each exceeded $100 million in 2016 sales.
According to a Reuters report, people familiar with the matter said Nestle, manufacturers of over-the-counter (OTC) treatments and private equity firms may be interested in the sale. Reckitt Benckiser, Procter & Gamble, GlaxoSmithKline, Johnson & Johnson and Abbott are all reportedly interested as well.
“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,” Read said.
Pfizer is considering a full or partial separation through a spin-off, sale or other transaction.
Read the Reuters report