Pfizer is exploring strategic alternatives for its Animal Health and Nutrition businesses following a business portfolio review. The company is considering options for a full or partial separation of these businesses 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,” said Ian Read, president and chief executive officer, Pfizer. “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.”
Pfizer Animal Health discovers, develops, manufactures and commercializes products, including vaccines, medicines, diagnostics and genetic tests, to prevent and treat disease in livestock and companion animals. In 2010, Animal Health had revenues of approximately $3.6 billion. Pfizer Nutrition develops and manufactures infant and pediatric nutrition, formulas and nutritional products for infants and children. Nutrition generated revenues of approximately $1.9 billion in 2010.
Pfizer plans to focus on its Established Products business, which covers emerging markets, generic products and mature brands. Also based on this portfolio review, the company plans to retain its Consumer Healthcare business.
In May, Mr. Read revealed that Pfizer was considering exiting a number of areas in order to focus on innovative pharma. Analysts were skeptical that the Established Products segment could stand on its own, and also felt that its loss would prevent Pfizer from transitioning new drugs when they reach the later stages of their lifecycle.
“The actions are driven by the potential to create value for shareholders and enable Pfizer to become a more focused organization, better positioned for future success,” said Mr. Read. “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.”