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Pfizer Inc. (NYSE:PFE) is set to raise approximately £2.7 billion ($3.6 billion) through the sale of shares in Haleon Plc, as the pharmaceutical giant continues to reduce its stake in the UK-based consumer health company. This move underscores Pfizer's strategy to distance itself further from Haleon, a company known for its well-established consumer health products.
Initially, Pfizer planned to sell 540 million shares, but due to high demand, it increased the number to 640 million, according to details of the deal reported by Bloomberg News. The oversubscribed offering is expected to be priced at around £3.80 per share, representing a discount of approximately 3.3% compared to Monday’s closing price. This sale is anticipated to raise about £2.43 billion for Pfizer.
In a related development, Haleon has agreed to repurchase roughly £230 million worth of its shares from Pfizer, with the repurchase being executed at the same price as the public share offering. This was announced in a statement earlier on Monday.
This transaction marks a significant addition to the robust activity in European capital markets, particularly in the health and pharmaceutical sectors. According to Bloomberg's data, the sale will add to the $54.1 billion in sales of new and existing shares in European-listed companies this year, reflecting a 2.3% increase from the same period in 2023.
Haleon, a leading player in the consumer health sector, was created through the merger of the consumer health divisions of GSK Plc and Pfizer. The company manufactures a variety of well-known products such as Panadol pain relievers and Centrum vitamins, catering to a global market for over-the-counter healthcare products.
Earlier this year in March, Pfizer began reducing its stake in Haleon, selling more than £2.8 billion worth of shares and American depositary shares (ADS). However, this latest offering does not include any ADS sales, as confirmed in Pfizer's statement.
GSK Plc, which was also a significant shareholder in Haleon, has been reducing its holdings as well. The British pharmaceutical company completed its separation from Haleon in May, selling shares that raised close to £4 billion in total. GSK's decision to divest its stake marked a final step in distancing itself from the consumer health company, allowing it to concentrate on its core pharmaceutical and biotechnology operations.
The sale of these shares by Pfizer is part of a broader trend within the pharmaceutical industry, where major players are increasingly shedding their consumer health units to focus on innovative drug development and other core areas of their business. For Haleon, this signifies an opportunity to continue its operations independently, while Pfizer and GSK move forward with more specialized pursuits in the healthcare landscape.
As Pfizer proceeds with this significant sale of shares, it marks a notable shift in its involvement with Haleon, a company it once co-owned with GSK. With both Pfizer and GSK now largely divested, Haleon is set to chart its own course in the consumer health market.
