Pfizer confirms it is viewing options, including sale, of its Animal Health and Nutrition businesses

Global drugs behemoth Pfizer (NYSE: PFE), which is facing patent loss on the biggest ever-selling drug, its cholesterol lowerer Lipitor (atorvastatin), yesterday announced that it is exploring strategic alternatives for its Animal Health and Nutrition businesses - with combined sales of some $5.5 billion - based on its recent, previously-announced business portfolio review to determine the optimal mix of businesses for maximizing shareholder value. Analysts estimate that Pfizer could get more than $20 billion if it sells both businesses.

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.

Pfizer has already disposed of one major non-core operation - the capsule and drug delivery business of Capsugel which generated annual sales of around $750 million - that it sold earlier this to investment firm Kohlberg Kravis Roberts for $2.38 billion (The Pharma Letter April 5).