Pfizer updates on plans to spin-off of animal health business

8 June 2012

Global drugs behemoth Pfizer (NYSE: PFE) yesterday announced the next steps in the strategic alternatives review process for the company's animal health business, as part of its plans to divest non-core operations such as infant nutrition (sold to Nestle for $11.85 billion; The Pharma Letter April 24) and Capsugel (acquired by Kohlberg Kravis Roberts last year for $2.38 billion: TPL April 5, 2011).

Preparations are underway to file a registration statement in the US for a potential initial public offering (IPO) of a minority ownership stake in the new company. Earlier this year Pfizer was reported to be discussing placing up to 19.9% of the new unit.

Pfizer expects to provide details regarding the proposed transaction as part of its 2012 second quarter earnings announcement. Animal Health will continue to be treated as a continuing operation for Pfizer’s financial reporting purposes. The name of the new standalone company, which analysts value at between $15 billion and $20 billion, will be Zoetis.

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