Healthcare giant Pfizer (NYSE:PFE) plans to offload shares worth approximately $2.5 billion in consumer health company Haleon (NYSE:HLN). Pfizer is the largest shareholder in Haleon, the maker of Sensodyne toothpaste.
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The transaction will include nearly 630 million Haleon shares being offloaded by Pfizer. Haleon is buying back shares worth £315 million from Pfizer. Consequently, Pfizer’s Haleon stake will reduce to 24% from the current 32%.
Haleon was formed by combining the consumer health units of GSK (NYSE:GSK) and Pfizer. It was separated from GSK in 2022. GSK, too, has been offloading its stake in Haleon. In fact, earlier this year, GSK raised nearly $1.24 billion by offloading a partial stake in Haleon, lowering its stake in the company to 4.2%.
Healthcare Companies Shift Focus
In recent times, multiple healthcare companies have been moving away from their consumer health and generic drug businesses as they sharpen their focus on core operations. GSK’s stake sale in Haleon is expected to help the company maintain focus on vaccines and infectious diseases. Meanwhile, the offer price for Haleon shares from Pfizer is anticipated to be announced on or around March 19 once the book-building process is completed.
How High Is PFE Stock Expected to Go?
Pfizer stock has substantially underperformed GSK over the past year. However, the Tipranks Comparison Tool indicates a higher upside potential of 11.6% in Pfizer shares over the coming 12 months.
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