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Pfizer may divest nutrition, animal health units
July 7th, 2011
NEW YORK – Pfizer Inc. is exploring strategic options for its nutrition and animal health businesses, including the possibility of spinning off or selling those units.
The pharmaceutical company said Thursday that alternatives under consideration include a full or partial separation of those businesses from Pfizer through a spin-off, sale or other transaction.
"Both animal health and nutrition are strong businesses with attractive customer bases and solid fundamentals, but distinct enough from our core businesses that their value may be best maximized outside the company," Pfizer president and chief executive officer Ian Read said in a statement. "In exploring these alternatives, we can determine what options will best drive their future growth opportunities and expansion and enable shareholders to potentially realize higher value for these businesses."
Generating revenue of $1.9 billion last year, Pfizer Nutrition provides quality formulas and nutritional products for infants and children up to seven years old. The pediatric nutrition business has operations on six continents, and its products available in more than 60 countries.
Pfizer Animal Health, with 2010 sales of $3.6 billion, is a global leader in the discovery, development, manufacture and commercialization of products, including vaccines, medicines, diagnostics and genetic tests, to prevent and treat disease in livestock and companion animals, according to Pfizer. The business has operations in over 60 countries plus an extensive research and development network with major research centers on four continents.
In announcing its strategy for the nutrition and animal health units, Pfizer noted that the company aims to concentrate on businesses with bigger growth potential, including emerging markets, generic drugs, consumer health care and biopharmaceuticals.
"The actions we're announcing today are driven by the potential to create value for shareholders and enable Pfizer to become a more focused organization, better positioned for future success," Read stated. "Ultimately, our decisions will continue to support our long-term strategy to allocate our resources, investments and people to the areas that best serve our patients and customers, and generate the best value for our shareholders.”
Pfizer said has engaged J.P. Morgan to assist with its evaluation of strategic alternatives for the animal health business and Morgan Stanley and Centerview Partners for the nutrition business. The company added that it expects to complete any transactions that may result from these evaluations in 12 to 24 months.