Pfizer has released a statement on its position concerning its consumer healthcare business, revealing that it will be considering a range of strategic alternatives as part of its continued efforts to best serve patients and maximise value for its shareholders.
OTC drugs
The options being considered include a full or partial separation of the consumer healthcare business from Pfizer through a spin-off, sale or other transaction, or Pfizer potentially retaining the business completely.
“Pfizer Consumer Healthcare is a leading player in the largest over-the-counter (OTC) categories, with iconic brands, robust retail partnerships, global reach and strong fundamentals,” said Ian Read, Pfizer chairman and chief executive officer. “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 realised 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.”
The consumer healthcare arm of Pfizer markets two of the top ten selling consumer brands worldwide — Centrum and Advil. In addition to these, the business has ten other brands that are ranked highly in their respective markets.
“Consumers are taking more ownership of their health and wellness through OTC products, preventative treatments and alternative health paths,” added Albert Bourla, group president, Pfizer Innovative Health. “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.”
The company has engaged Centerview Partners LLC, Guggenheim Securities LLC and Morgan Stanley & Co. LLC as financial advisors for the strategic review process and anticipates a decision to be made next year. No statements by Pfizer are planned to be released until a decision has been reached or after completion of the strategic review.