Pfizer announced that it was considering a sale of its consumer health business, which some analysts are valuing between US$13 billion to US$17 billion to focus on its core pharmaceutical business and associated research and development pipeline.

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This follows Pfizer’s other moves to streamline its business after spinning out its animal health business in 2013 to form Zoetis and selling its infant nutrition business to Nestle for US$11.9 billion.

The consumer health business consists of well-known brands such as Advil, ChapStick and Centrum and generated about US$3.4 billion in sales in 2016. It is likely to garner significant interest from other major healthcare companies with significant consumer health businesses such as Sanofi, Reckitt Benckiser and Johnson & Johnson.

Having failed to consummate significant mergers in the last few years including one with Allergan, it is likely that Pfizer will once again begin focusing on more deals to bolster its pipeline, particularly if more clarity is gained around tax reform in the U.S. – in the past, Pfizer had pursued such large mergers, partially to redomicile itself to a lower tax jurisdiction.

 

 

About Kevin Hua

Kevin Hua is a Co-Founder of AtlasTrend, an online investment platform that makes it easy for anyone to learn and invest in trends transforming our world. Kevin has over 19 years experience in financial markets including as Senior Portfolio Manager at Atrium Investment Management and Stark Investments.