With the aim to focus on the manufacturing of its prescription drugs, Pfizer is strategically looking at areas of the business which will create further revenue if acquired by a competitor.
News that the company is looking to therefore sell its consumer healthcare business has made competitors take notice, with aims to see how such an investment could positively impact current business models. It is widely thought that GlaxoSmithKline, Johnson & Johnson and Procter and Gamble could look at acquiring this asset.
The company’s consumer business unit encompasses non-prescription products such as ChapStick, as well as painkillers Advil and Centrum, all of which have a loyal customer base and are regular buys for those who need non-prescription medication in common ailments.
"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," Pfizer Chief Executive Ian Read has said.
Whilst it has been reported that Pfizer would aim to reach up to $15 billion for the sale, the company is aware that other companies in areas such as tech and food will also be looking at how its consumer healthcare division could provide a continuous stream of revenue. This could therefore lead to a bidding war. The brands under the division exceeded over $100 million in 2016 alone.
Pfizer has engaged Centerview Partners LLC, Guggenheim Securities LLC and Morgan Stanley & Co. LLC as financial advisors for the strategic review process. The company aim to make its final decisions in 2018.