Pfizer mulls sale of animal health business; hires J.P. Morgan to evaluate alternatives
The move, according to Pfizer, would be made to “determine the optimal mix of businesses for maximizing shareholder value.”
Pfizer officials are considering a full or partial separation of its animal-health and nutrition businesses through a spin-off, sale or other transaction. The U.S.-based drugmaker hired J.P. Morgan to evaluate strategic alternatives for its animal-health business. And it expects to complete "any transactions that may result from these evaluations in 12 to up to 24 months," the company says in a prepared statement.
"Given the separate and distinct nature of Animal Health and Nutrition, the company may pursue a different strategic alternative for each business," Pfizer says. Pfizer Animal Health operates in more than 60 countries. In 2010, animal-health revenues were estimated at about $3.6 billion.
"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," says Pfizer's president and chief executive officer Ian 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," Read says.