As of the time of publication, pfizer rose by 0.19%, trading at $26.29.
According to the Securities Times APP, pfizer (PFE.US) is considering selling its hospital pharmaceutical business. Three informed sources revealed that the pharmaceutical giant is planning to divest non-core assets under pressure from activist investor Starboard Value.
The business unit is now known as "Pfizer Hospital Business" (Pfizer Hospital), established by pfizer after its acquisition of Hospira for about $17 billion in 2015. Insiders pointed out that pfizer has hired Goldman Sachs to assist in evaluating the preliminary interest of potential buyers, including private equity firms and other pharmaceutical companies.
After acquiring Hospira, pfizer merged its biosimilar business with its own low-cost biosimilar business. In 2017, pfizer sold the hospital infusion system business acquired through acquisition. Currently, pfizer hospital business, as a subsidiary, mainly focuses on antibiotics and other drugs administered in hospitals and clinics in the form of sterile injections or infusions.
Insiders stated that the business generates pre-interest, tax, depreciation, and amortization earnings of nearly $0.5 billion annually, with a possible valuation in the billions, but they also cautioned that a deal is not certain and pfizer may choose to retain the division. Both pfizer and Goldman Sachs have declined to comment on this.
Pfizer, headquartered in New York, had long-term debt of $61.5 billion at the end of 2023. In recent years, the company has reduced its debt by divesting non-core businesses and reducing its company's shares. For example, in October of this year, pfizer sold its stake in the british consumer healthcare group Haleon, worth about $3.26 billion.
Pfizer is currently under pressure from Starboard, which criticized the management for overspending on large acquisitions and failing to produce high-profit new drugs through these transactions or internal R&D efforts. Previously, pfizer acquired cancer drug manufacturer Seagen for $43 billion last year, one of the company's largest deals to date.
Since the beginning of this year, pfizer's stock has fallen by about 7%, underperforming the s&p 500 index's 26% increase. During a recent earnings conference call, pfizer's Chief Financial Officer Dave Denton stated that the company has already repaid about $4.4 billion in debt this year and will continue to evaluate non-core assets that may be sold.
As of press time, Pfizer rose by 0.19%, to $26.29.