FMP
Pfizer Reduces Stake in Haleon with $3.05 Billion Share Sale
Jan 15, 2025 10:12 AM - Parth Sanghvi
Image credit: Eugene Chystiakov
Pfizer Inc. (NYSE:PFE) has announced the sale of shares worth £2.50 billion ($3.05 billion) in British consumer healthcare giant Haleon, reducing its ownership stake to 7.3% from 15%. The transaction involves the sale of 700 million shares at 357 pence per share, a 2.8% discount compared to Tuesday's closing price.
Haleon Share Performance
Shares of Haleon, the maker of Sensodyne, Panadol, and Advil, rose 0.7% in morning trading to 369.7 pence, reflecting investor confidence despite Pfizer's divestment. The stock outperformed in 2024, with a 17% gain, contributing to the FTSE 100's resilience.
Background on Haleon
- Formation: Haleon was created in 2019 from a merger of GSK and Pfizer's consumer healthcare divisions.
- Spin-off: In 2022, Haleon became an independent company through its separation from GSK.
- Stake Adjustments: Pfizer previously reduced its Haleon stake by $3.3 billion in October 2023, and GSK exited entirely in May 2023.
Strategic Implications for Pfizer
This share sale is part of Pfizer's strategy to reduce its Haleon stake in a "methodical" manner, as outlined in 2023. The decision comes amid pressure from activist investor Starboard Value, which has been critical of Pfizer's recent underperformance.
Financial Context
- Haleon Q3 Performance:
- Haleon missed Q3 2024 earnings expectations due to a stronger GBP and weaker sales of Panadol in Australia and the Middle East.
- Share Sale Details:
- Pfizer remains Haleon's largest shareholder after this sale.
- JPMorgan and Morgan Stanley served as joint global coordinators and bookrunners.
Relevant APIs for Further Insights
1. Historical Earnings API
Analyze Haleon's past earnings to understand its financial trajectory since its spin-off.
Explore the Historical Earnings API.
2. Sector P/E Ratio API
Evaluate Haleon's valuation relative to its industry peers in the consumer healthcare sector.
Access the Sector P/E Ratio API.
3. Earnings Calendar API
Stay informed about Haleon's upcoming earnings releases for real-time insights.
Check the Earnings Calendar API.
Outlook
While Pfizer's divestment may create short-term fluctuations, Haleon remains a robust player in the consumer healthcare market. However, challenges like foreign exchange impacts and regional sales slowdowns could weigh on near-term performance.
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