'For Sale' Signs In Consumer Health Sector As Firms Sharpen Pharma Focus
This article was originally published in The Rose Sheet
Freeing up spending for their Rx businesses prompt Merck KGAA to look at selling its division marketing Nasivin OTC nasal sprays, Omnibionta probiotic vitamins and other brands, and Pfizer to shop its consumer business with Advil analgesics, Centrum multivitamins and other OTC and dietary supplement brands.
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By setting up Pfizer Consumer Healthcare to have sales and earnings results reported separately, pharma giant could be making the division's assets more visible to potential buyers. Its sales pitch: "With a strong portfolio of global brands that span health and wellness, the company believes this business is well positioned to continue its growth."
UK manufacturer in January begins operating with a separate health care division, representing 60% of sales with products including Mucinex and Mead Johnson infant and adult formulas, and a home care/hygiene division led by Lysol disinfectants. The plan piques analysts' expectations that operating the divisions separately will lead to divesting one.
As Pfizer re-examines a potential sale of its consumer business, analysts expect it would attract suitors for its unit, with $15bn to $17bn a likely price, but also say it might be better off continuing to compete in the sector that accounted for around $3.4bn of its 2016 revenues.