Pfizer is selling off a significant portion of its stake in the consumer health spinoff company Haleon, which produces Sensodyne toothpaste and Advil. The transaction, announced on Monday, will see Pfizer sell approximately 630 million shares for over $2.5 billion. This will decrease Pfizer’s stake in Haleon from 32% to around 24%.
In a similar move, GSK sold around 300 million Haleon shares earlier this year, raising $1.24 billion. GSK had initially started selling shares in two separate instances in 2023, bringing in $1.1 billion in October and $1 billion in May, and currently holds a 4.2% stake in Haleon.
The formation of Haleon was a joint venture between Pfizer and GSK in 2022 after first discussing the idea in 2018. The company was anticipated to achieve $46 billion in annual sales by 2031 and generate a 10% profit over five years. However, as the demerger with GSK took place in 2022, Pfizer opted to sell a portion of its Haleon holdings following the spinoff, reducing its stake to 32%, which has now been further reduced to 24%.
Johnson & Johnson recently completed the spinoff of its consumer health business, Kenvue, generating $13.2 billion through an exchange offer that allowed shareholders to trade their J&J shares for Kenvue shares. These recent moves in the pharmaceutical industry reflect strategic shifts in ownership and investment priorities among major companies.
Pfizer’s decision to sell off shares in Haleon follows a similar move by GSK earlier this year, who sold around 300 million Haleon shares for over $1.5 billion (estimated). Both companies have opted to reduce their ownership stakes after forming joint ventures with other companies.
These moves demonstrate that major pharmaceutical companies are constantly reassessing their ownership structures and making strategic decisions based on shifting market conditions and changing investment priorities.
Haleon’s future remains uncertain as it navigates through these changes but it is expected that it will continue to operate independently with its own management team and financial resources while still benefiting from the support of its parent companies.
Overall these recent moves highlight how big pharma companies are constantly restructuring themselves based on changing circumstances
