Pfizer PFE has sold off its remaining stake in consumer health company Haleon HLN to institutional investors and Haleon itself for around $3.3 billion. Pfizer sold its 7.3% stake in Haleon, or approximately 662 million shares, for £3.85 per ordinary share (around £2.5 billion). With this move, Pfizer has fully exited its stake in Haleon, which makes popular brands such as Advil painkiller and Sensodyne toothpaste.
Details of PFE’s HLN Stake Divestment
Pfizer sold 618 million ordinary shares of HLN to institutional investors worth around $3.1 billion (around £2.4 billion). Per a previous share buyback plan, Pfizer sold around 44.14 million shares worth approximately $220 million (£170 million) directly to Haleon.
Haleon was a consumer health joint venture (JV), an over-the-counter (OTC) medicines business jointly created by Pfizer and GSK plc. GSK in 2019. GSK owned a controlling stake of 68% in the Consumer Healthcare JV (CHC JV). GSK/Pfizer divested the CHC JV to form the company Haleon in July 2022.
GSK, which initially owned a nearly 13% stake in Haleon, sold its entire stake in May 2024. Pfizer originally held a 32% stake in Haleon, which it has been gradually reducing since 2022.
Following Pfizer’s divestment, BlackRock Investment Management (UK) Ltd, a unit of BlackRock, will become HLN’s largest shareholder with a stake of 5%
Pfizer’s stock has declined 5.2% in the past year compared with a decrease of 3.8% for the industry.
Image Source: Zacks Investment Research
Haleon’s stock has risen 24.5% in the past year compared with an increase of 9.5% for the industry.
Image Source: Zacks Investment Research
Large Drugmakers Spin Off Consumer Units
Lately, several large drugmakers have been divesting their Consumer divisions to help focus on their core pharmaceuticals business. In 2023, J&J JNJ separated its Consumer Health business into a newly listed company called Kenvue, which now operates as a separate and fully independent company. In mid-2024, J&J exited its remaining 9.5% stake in Kenvue’s common stock, bringing the separation to a close. With the complete separation of the Consumer Health segment, J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields.
In October 2023, Sanofi announced that it intends to separate the Consumer HealthCare unit through the creation of a publicly listed entity headquartered in Paris to be called Opella. Sanofi has entered into an agreement with private equity firm CD&R for the sale of a 50% controlling stake in Opella. The transaction is expected to be closed in the second quarter of 2025.
PFE and HLN’s Zacks Rank
Pfizer hasa Zacks Rank #3 (Hold), while Haleon is a Zacks Rank #4 (Sell) stock.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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