GSK And Reckitt Opting Out Of Pfizer's Consumer Business Sale Speaks Volumes
This article was originally published in The Pink Sheet & The Rose Sheet
Reckitt and GSK withdraw from negotiating on potential deals for with Pfizer's consumer business, leaving slim chances Pfizer will receive an acceptable offer from other drug firms mentioned as potential suitors for the business, which it has valued at around $20bn. A spin-off could move to the fore.
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As new CEO Uwe Röhrhoff plans a "value creation" analysis, the improving Rx business growth could be essential for company because US competition from smaller, online brands is increasing in the OTC drug space and its sales of its consumer health products in Europe have yet to reach expectations.
Bayer consumer health sales fell 9.1% in Q4 and 2.9% for the year as competitive pressure in the US OTC market, especially from lower-price lines and brands sold on e-commerce sites, cut into sales of its Aleve analgesic and Claritin allergy lines. Heiko Schipper takes over as Bayer's consumer business chief and will lead the division in new initiatives to counter competition with increased marketing support for core brands.
UK firm sees acquisitions of Mead Johnson Nutrition and the Schiff brand as major milestones in its trajectory as a consumer health market competitor, but market analysts say both would be rendered comparatively minor moves if it makes an offer to acquire Pfizer's consumer products business.