Pfizer Looks to Lose Animal-Health and Nutrition
Pfizer says it will explore options for its animal-health and nutrition businesses in other words, look to spin off or sell the units. But the company plans to hang on to its established products (generics and branded generics) and consumer-health businesses, which may disappoint investors hoping for more sweeping restructuring plans.
Heres the Dow Jones Newswires story and heres the companys press release.
Pfizer has been weighing the sale of various business units to focus on neuroscience, cardiovascular medicine, oncology, inflammation, immunology and vaccines, and three specialized units for pain, sensory disorders and biosimilars. In April it said it would sell its Capsugel unit for $2.38 billion.
The company said today it will continue to enhance the value of its established products business, given the demand for off-patent drugs in developing economies. And it said its consumer health care division has a strong connection to the companys core biopharmaceutical businesses.
Sanford Bernstein analyst Timothy Anderson reported in March the company was considering a larger shake-up. In a research note today, he said that while Pfizer has since suggested to investors that it wouldnt necessarily eliminate all the divisions in question, some investors may be disappointed that [Pfizer] is not going the full distance by not getting rid of everything.
The companys shares were down 2.2%, to $20.33, in late morning trading.
Merck, too, has decided to hang on to its consumer-health business. The two pharma giants are facing the same market dynamics but have lately staked out different paths on the R&D front.
By exploring options for its animal-health division, Pfizer is somewhat bucking a trend. Other pharma companies have been looking to animal medicines for quicker growth and a lack of the price pressures and high marketing costs involved with human drugs.
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