On Tuesday, Pfizer Inc. (NYSE: PFE), the pharmaceutical giant, said that it is considering the sale or spin-off of its consumer healthcare business, whose brands include lip balm Chapstick and painkiller Advil.
The company’s consumer healthcare business generated revenue of around $3.4 billion in 2016, which accounted for around 6% of the Pfizer’s total revenue.
The announcement followed an unsuccessful deal to acquire British pharmaceutical company AstraZeneca and Allergan. According to the company, any decisions regarding the consumer healthcare business will come next year. Centerview Partners, Guggenheim Securities and Morgan Stanley will be advisers for the strategic review.
“Pfizer Consumer Healthcare is a leading player in the largest OTC categories, with iconic brands, robust retail partnerships, global reach and strong fundamentals,” said Ian Read, the Chief Executive of Pfizer. “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,” he said.