Pfizer to sell USD 3 billion stake in Haleon

Written by Ruchika Sharma Published On 2025-01-15T14:30:15+05:30 | Updated On 15 Jan 2025 5:06 PM IST

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Pfizer will lower its stake in Haleon from 15 percent to about 7.3% by selling shares worth 2.50 billion pounds ($3.05 billion) in the British consumer healthcare company, JPMorgan said.

The sale represents nearly 7.7% of Haleon's issued share capital. Haleon was formed in 2019 through a merger of the consumer healthcare businesses of GlaxoSmithKline (GSK) and Pfizer. Haleon was established in 2022 as a corporate spin-off from GSK.

The sale of 700 million Haleon shares at 357 pence apiece is a discount of about 2.8% to the stock's closing price on Tuesday, Reuters reported.

Shares in the maker of Sensodyne, Panadol and Advil, which gained 17% in 2024, were up 0.7% at 369.7 pence in morning trade on Wednesday, in line with the broader FTSE 100.

The sale represents nearly 7.7% of the issued share capital of Haleon, which was created by the merger of GSK and Pfizer's consumer healthcare businesses in 2019. It was spun off from the British drugmaker in 2022.

Pfizer, which will remain Haleon's largest shareholder after the sale, said in 2023 it would cut its ownership in a "slow and methodical" manner within months.

The U.S. drugmaker is under pressure from hedge fund Starboard Value to hold its management accountable for underperformance. Last October it sold a $3.3 billion stake in Haleon, while GSK sold its entire stake in May.

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JPMorgan and Morgan Stanley are joint global coordinators and joint bookrunners for the share sale.

In October Haleon missed third-quarter forecasts, hurt by a stronger pound and lower sales of its painkiller Panadol in Australia and the Middle East.

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Source : with inputs

Ruchika Sharma

Ruchika Sharma joined Medical Dialogue as an Correspondent for the Business Section in 2019. She covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She has completed her B.Com from Delhi University and then pursued postgraduation in M.Com. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751