Pfizer says it is now considering selling its animal health and nutrition businesses -- which together account for about $5.5 B of its combined $68 B corporate sales. This is a more modest approach than what Ian Read had spoken about earlier in the year. Earlier, he had suggested that Pfizer might sell everything other than its innovative drug business in order to get back to its core offering.
Now Pfizer says it will hang on to its established products division ($10 B in revenues) that contains its generic drug portfolio. Pfizer will also keep its consumer healthcare business ($2.7 B). Both of these units had been previously mentioned as potential sales candidates.
In the meantime, JP Morgan has been enlisted to sell off the animal health buiness, and Centerview and Morgan Stanley will be entrusted to deal with the nutrition business. The deals might take as much as 24 months to pull off according to company spokesmen. Eli Lilly has been mentioned as a possible taker for animal health, and Nestle or Danone might be fits for the nutrition group. See the FT.com story.
Posted by Bruce Lehr Oct 24th 2011
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