Pfizer Sells Remaining 7.3% Stake in Haleon for Around 3.3B

Pfizer PFE has sold off its remaining stake in consumer health company Haleon HLN to institutional investors and Haleon itself for around $3.3 billion. Pfizer sold its 7.3% stake in Haleon, or approximately 662 million shares, for £3.85 per ordinary share (around £2.5 billion). With this move, Pfizer has fully exited its stake in Haleon, which makes popular brands such as Advil painkiller and Sensodyne toothpaste.Details of PFE’s HLN Stake DivestmentPfizer sold 618 million ordinary shares of HLN to institutional investors worth around $3.1 billion (around £2.4 billion). Per a previous share buyback plan, Pfizer sold around 44.14 million shares worth approximately $220 million (£170 million) directly to Haleon.Haleon was a consumer health joint venture (JV), an over-the-counter (OTC) medicines business jointly created by Pfizer and GSK plc. GSK in 2019. GSK owned a controlling stake of 68% in the Consumer Healthcare JV (CHC JV). GSK/Pfizer divested the CHC JV to form the company Haleon in July 2022.GSK, which initially owned a nearly 13% stake in Haleon, sold its entire stake in May 2024. Pfizer originally held a 32% stake in Haleon, which it has been gradually reducing since 2022.Following Pfizer’s divestment, BlackRock Investment Management (UK) Ltd, a unit of BlackRock, will become HLN’s largest shareholder with a stake of 5% Pfizer’s stock has declined 5.2% in the past year compared with a decrease of 3.8% for the industry.Image Source: Zacks Investment ResearchHaleon’s stock has risen 24.5% in the past year compared with an increase of 9.5% for the industry.Image Source: Zacks Investment ResearchLarge Drugmakers Spin Off Consumer UnitsLately, several large drugmakers have been divesting their Consumer divisions to help focus on their core pharmaceuticals business. In 2023, J&J JNJ separated its Consumer Health business into a newly listed company called Kenvue, which now operates as a separate and fully independent company. In mid-2024, J&J exited its remaining 9.5% stake in Kenvue’s common stock, bringing the separation to a close. With the complete separation of the Consumer Health segment, J&J has now become a two-sector company focused on the Pharmaceutical and MedTech fields.In October 2023, Sanofi announced that it intends to separate the Consumer HealthCare unit through the creation of a publicly listed entity headquartered in Paris to be called Opella. Sanofi has entered into an agreement with private equity firm CD&R for the sale of a 50% controlling stake in Opella. The transaction is expected to be closed in the second quarter of 2025.PFE and HLN’s Zacks RankPfizer hasa Zacks Rank #3 (Hold), while Haleon is a Zacks Rank #4 (Sell) stock.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Zacks Names #1 Semiconductor StockIt's only 1/9,000th the size of NVIDIA which skyrocketed more than +800% since we recommended it. NVIDIA is still strong, but our new top chip stock has much more room to boom.With strong earnings growth and an expanding customer base, it's positioned to feed the rampant demand for Artificial Intelligence, Machine Learning, and Internet of Things. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GSK PLC Sponsored ADR (GSK): Free Stock Analysis Report Johnson & Johnson (JNJ): Free Stock Analysis Report Pfizer Inc. (PFE): Free Stock Analysis Report Haleon PLC Sponsored ADR (HLN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks