Pfizer ponders spin off or sale of consumer healthcare arm

Pfizer may sell off all or part of its consumer healthcare business, the US drug giant said as it began a strategic review of the unit on Tuesday.

Pfizer, which rose to fame and fortune on the back of its development of Viagra, has hired investment bank Morgan Stanley among a cabal of three advisers which will examine a range of options, including a full or partial separation of the unit through a spin-off flotation or sale.

The consumer healthcare business generated $3.4bn of revenues last year, with its Centrum vitamin and Advil ibuprofen brands two of ten biggest selling globally.

Its other brands include Preparation H haemorrhoid cream, Chap Stick balm and Robitussin cough medicine.

“Pfizer Consumer Healthcare is a leading player in the largest OTC categories, with iconic brands, robust retail partnerships, global reach and strong fundamentals,” said chairman and CEO Ian Read.

“Although there is a strong connection between Consumer Healthcare and elements of our core biopharmaceutical businesses, it is also distinct enough from our core business that there is potential for its value to be more fully realized outside the company. By exploring strategic options, we can evaluate how best to fuel the future success and expansion of Consumer Healthcare while simultaneously unlocking potential value for our shareholders.”