Pfizer sharpens its pharma focus
pharmafile | July 8, 2011 | News story | Sales and Marketing | Pfizer, animal health, nutrition, pharma strategy
Pfizer has given its strongest signal yet that its animal health and nutrition arms do not have long to last in their present forms.
The company admits it is “exploring strategic alternatives” for the two business units, with selling them both a likely outcome.
“Their value may be best maximised outside the company,” conceded Pfizer chief executive Ian Read. Together they contributed less than 10% of Pfizer’s revenue last year.
The company is certainly in divestment mode, unloading its drug delivery unit Capsugel in April and giving notice earlier this year that it wanted to trim its overall operation by as much as 40%.
Going forward Pfizer will concentrate on its core biopharmaceutical businesses, and news that sales of animal health and nutrition could be in the offing seem designed to appeal to investors.
Such a radical restructure chould also help it deal with problems such as the loss of patent on its big-selling cholesterol drug Lipitor later this year.
“The actions we’re announcing today are driven by the potential to create value for shareholders and enable Pfizer to become a more focused organisation, better positioned for future success,” said Read.
“Ultimately, our decisions will continue to support our long-term strategy to allocate our resources, investments and people to the areas that best serve our patients and customers, and generate the best value for our shareholders,” he concluded.
Emerging markets and the development of generics are to be key areas for the company going forward, and it has also said its consumer healthcare business is not currently for sale.
The portfolio of Pfizer Animal Health, which brought in $3.6 billion last year, contains livestock vaccines, diagnostics and genetic tests. Meanwhile Pfizer Nutrition ($1.9 billion revenue in 2010) specialises in formulas and other products for infants up to seven years old.
Pfizer says it does not expect to comment on what will happen to them again before next year.
Adam Hill
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