After Allergan, Pfizer plans to sell its women’s health unit. Will it succeed?

By PharmaCompass

2018-11-15

Impressions: 177 Article

Pfizer Inc. is considering selling off its women’s health lineup, according to Bloomberg. It is learnt that the New York-headquartered pharma giant would rather focus on developing therapies with more potential for growth.

The drugmaker is reportedly working with financial advisers to gauge the interest of potential buyers. A sale of the division, which has annual sales of roughly US$ 1.2 billion, could fetch around US$ 2 billion. It could draw bids from both private equity firms and rival pharmaceutical companies.

However, it may not be all that easy for Pfizer to sell off this unit, given Allergan’s recent struggles with selling its women’s health business.

Last week, Allergan CEO Brent Saunders had a gloomy update for investors on the company’s women’s health business, which had been put on the block in May this year.

“We have received now the preliminary expression of interest for some of these businesses and they are below what I believe the value of these businesses are,” Saunders said. If the offers don’t go up, Allergan will drop the idea of selling it, he added.

Pfizer certainly knows what the M&A market is like. In March, the top two bidders for its consumer healthcare unit withdrew from the sale process which was expected to generate US$ 20 billion for Pfizer. As a result, Pfizer decided to hang onto the unit, at least for the time being. Given Allergan’s recent experience, there is every possibility that Pfizer too may decide to drop the idea of selling its women’s health lineup.

Last year, Teva managed to sell its women’s health division in separate transactions for about US$ 2.5 billion, in order to lower its debt burden.

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