Pfizer to Continue to Enhance the Value of its Established Products and Consumer Healthcare Businesses Within the Company, While Continuing to Strengthen its Biopharmaceutical Core
NEW YORK--Pfizer Inc. (NYSE: PFE) today announced that it is exploring
strategic alternatives for its Animal Health and Nutrition businesses
based on its recent business portfolio review to determine the optimal
mix of businesses for maximizing shareholder value. The company is
considering options that may include, among others, a full or partial
separation of each of these businesses from Pfizer through a spin-off,
sale or other transaction. Given the separate and distinct nature of
Animal Health and Nutrition, the company may pursue a different
strategic alternative for each business.
“Both Animal Health and Nutrition are strong businesses with attractive
customer bases and solid fundamentals, but distinct enough from our core
businesses that their value may be best maximized outside the company,”
said Ian Read, president and chief executive officer, Pfizer. “In
exploring these alternatives, we can determine what options will best
drive their future growth opportunities and expansion, and enable
shareholders to potentially realize higher value for these businesses.”
Pfizer Animal Health is a world leader in the discovery, development,
manufacture and commercialization of products, including vaccines,
medicines, diagnostics and genetic tests, to prevent and treat disease
in livestock and companion animals. This business has operations in more
than 60 countries, an extensive research and development network with
major research centers on four continents and strong market positions
across several geographic regions, including the United States, Europe,
Africa and Middle East, Canada and Latin America, and Asia-Pacific. In
2010, Animal Health achieved revenues of approximately $3.6 billion.
Pfizer Nutrition is a leader in infant and pediatric nutrition,
providing quality formulas and nutritional products for infants and
children up to seven years old. This business has operations on six
continents, products available in more than 60 countries, and a focused
presence in key markets throughout Asia, the Middle East, Europe and
Latin America, with China, Philippines, United Kingdom, Mexico and
Australia being among its top markets. Nutrition generated revenues of
approximately $1.9 billion in 2010.
Pfizer will continue to enhance the value of its Established Products
business within the company. The pharmaceutical industry’s
fastest-growing markets are in the emerging markets, and within the
emerging markets, the fastest-growing segment is off-patent medicines
and their generic equivalents. Given these dynamics and the company’s
footprint and asset base, the company believes that the Established
Products business is well positioned to capture the opportunities being
created by the demographics and rising economic power within these
markets.
Also based on this portfolio review, the company believes that it can
continue to enhance the value of its Consumer Healthcare business within
Pfizer. Consumer Healthcare has a strong connection to the company’s
core biopharmaceutical businesses, including the potential opportunity
to extend the value of certain Pfizer legacy biopharmaceutical products,
and strong connections with emerging markets and pharmacy customers
worldwide.
“The actions we’re announcing today are driven by the potential to
create value for shareholders and enable Pfizer to become a more focused
organization, better positioned for future success,” said Mr. 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.” The company will continue to assess its
businesses and assets as part of its regular, ongoing portfolio review
process and also continue to consider business development activities
for its businesses.
Pfizer has engaged J.P. Morgan in connection with the evaluation of
strategic alternatives for its Animal Health business and Morgan Stanley
and Centerview Partners’ advisory business in connection with the
evaluation of strategic alternatives for its Nutrition business.
Although the timeline for each evaluation may differ, Pfizer expects to
complete any transactions that may result from these evaluations in 12
to up to 24 months, and does not anticipate making any further
announcements regarding strategic alternatives for Animal Health and
Nutrition until sometime in 2012.
Pfizer Inc.: Working Together for a Healthier World™
At Pfizer, we apply science and our global resources to improve health
and well-being at every stage of life. We strive to set the standard for
quality, safety and value in the discovery, development and
manufacturing of medicines for people and animals. Our diversified
global health care portfolio includes human and animal biologic and
small molecule medicines and vaccines, as well as nutritional products
and many of the world’sbest-known consumer products. Every day, Pfizer
colleagues work across developed and emerging markets to advance
wellness, prevention, treatments and cures that challenge the most
feared diseases of our time. Consistent with our responsibility as the
world’s leading biopharmaceutical company, we also collaborate with
health care providers, governments and local communities to support and
expand access to reliable, affordable health care around the world. For
more than 150 years, Pfizer has worked tomake a difference for all who
rely on us. To learn more about our commitments, please visit us at www.pfizer.com.
DISCLOSURE NOTICE: The information contained in this release is as of
July 7, 2011. The Company assumes no obligation to update
forward-looking statements contained in this release as a result of new
information or future events or developments. This release contains
forward-looking information that involves substantial risks and
uncertainties about the Company’s exploration of strategic alternatives
for its Animal Health and Nutrition businesses, including the potential
benefits and timing thereof, and about the prospects and potential
opportunities for its Animal Health, Nutrition, Established Products and
Consumer Healthcare businesses. Such risks and uncertainties include,
but are not limited to, the possibility that the Company may not be able
to realize higher values for Animal Health and Nutrition through
strategic alternatives; the possibility that the Company may not be able
to consummate, at all or within the specified time period, any proposals
for strategic alternatives for Animal Health and Nutrition that may
result from its evaluation due to, among other things, market,
regulatory and other factors; the potential for disruption to the
Company’s business resulting from the evaluation of strategic
alternatives for Animal Health and Nutrition; and, with regard to the
prospects and potential opportunities for , and the Company’s ability to
enhance thevalue of, Animal Health, Nutrition, Established Products and
Consumer Healthcare, the uncertainties and variables inherent in
business operating and financial performance, including, among other
things, competitive developments and general economic, political,
business, industry, regulatory and market conditions. A further
description of risks and uncertainties can be found in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 31, 2010
and in its reports on Forms 10-Q and 8-K.
Joan Campion (Media)
212-733-2798
or
Chuck Triano (Investors)
212-733-3901