Novartis Seems Close to Consumer Health Sale – Analyst
This article was originally published in The Tan Sheet
Novartis CEO Joe Jimenez made clear the firm is considering divesting its consumer product, animal health and vaccines and diagnostics business, Sanford and Bernstein analysts say. “It seems that Novartis will be making final decisions with these units fairly soon,” they say.
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Merck says it remains committed to retaining consumer care and animal health, though it continues to evaluate the businesses. Competitors such as Pfizer and Bristol-Myers Squibb successfully spun out non-pharma assets following similar restructurings.
Consumer health products are grouped with vaccines and oncology drugs in Pfizer’s internal reorganization that takes effect in January 2014. Pfizer’s realignment into three organizations represents a step in the firm’s multi-year deliberation over whether to split its business.
Novartis sells six OTC brands, including Bufferin, to focus resources on core consumer health products. The firm also is realigning its consumer health supply chain, including restructuring its Lincoln, Nebraska, manufacturing plant, where the workforce will be cut 40%.