Pfizer cashes in on the UK's Haleon: $2.5 billion treasure trove
The pharmaceutical company places a package of shares in its 'consumer' company on the market: it will drop to 24% of the capital
2' min read
2' min read
Pfizer, the US pharmaceutical company famous for Viagra, will sell about £2 billion ($2.5 billion) worth of shares in its UK subsidiary Haleon. It is the first step by Pfizer, the largest shareholder in the British consumer health products company, including the popular MultiCentrum vitamins, with 32%, to reduce its stake. The American pharmaceutical company, which has long wanted to reduce its stake, will make aplacing of 630 million shares in Haleon. As part of the process, Haleon will buy back £315 million worth of shares from Pfizer, whose stake will be reduced to around 24%. After the news, Haleon shares lost 1.16% on the London Stock Exchange.
The history of the division
.Haleon was formed in 2022 by a combination of British pharmaceutical manufacturer GSK and US pharmaceutical manufacturer Pfizer. It has many over-the-counter products in its portfolio, such as Sensodyne toothpaste and Panadol pain relief tablets.
Haleon's performance has improved recently: last month it forecast an increase in revenues of up to 6% for this year. The company has cut costs and reduced its portfolio after splitting from GSK. GSK itself raised more than £2.5 billion from three placements of Haleon shares.GSK decided to demerge Haleon to focus on its pharmaceutical and vaccine business, despite pressure from activist investor Elliott Investment Management.
The FMCG market
.In recent years, pharmaceutical companies have moved to separate their healthcare divisions (consumer personal care products and generics), narrowing their focus to the core business of developing innovative treatments. Sanofi has also said it plans to separate its consumer division, while Johnson &Johnson finalised its separation from Kenvue in August.
Monday's news marks the beginning of a portfolio clean-up by Pfizer, which had previously said it wanted to focus on its pharmaceutical innovations. The placement will take place with an ABB, an accelerated sale to private investors without going through the market, generally priced at a discount to entice shareholders. Citigroup and Morgan Stanley are the global coordinators and joint bookrunners.
