Pfizer to Cut Stake in Haleon by 24%, Expects to Raise $2.58 Billion

On Monday, consumer healthcare firm Haleon announced that U.S. drugmaker Pfizer, its top shareholder, intends to decrease its stake in the company to approximately 24%. Pfizer, holding a 32% stake in Haleon, disclosed plans last year to gradually reduce its ownership over the coming months.

According to Reuters, the offer price per share is expected to be revealed around March 19 following a book-building process.

Financial Implications

The sale of 630 million shares is estimated to be valued at about 2.03 billion pounds ($2.58 billion) based on Haleon's closing price on Friday. Consequently, shares in the FTSE 100-listed company declined by 2.2% to 315 pence in early trading on Monday.

Haleon, renowned for products like Sensodyne toothpaste and Advil painkillers, emerged from the merger of GSK and Pfizer's consumer healthcare divisions in 2019. The company separated from British drugmaker GSK in July 2022.

Ownership Changes

GSK, Haleon's second-largest shareholder, has progressively reduced its stake in the company. In January, GSK's shareholding decreased to 4.2% from the initial 12.9% it retained in the business.

Yahoo reported that Haleon revealed intentions to repurchase shares valued at approximately 315 million pounds from Pfizer outside the market. Furthermore, the London-listed company announced a share buyback scheme worth 500 million pounds this year to meet the rising demand for its products and alleviate debt.

Positive Outlook for Haleon and GSK

Former parent company GSK has seen positive outcomes post the spin-off, surpassing quarterly estimates. It provided an optimistic forecast for 2024 and beyond, benefiting from the growth of its vaccines and cancer drugs pipeline.

Photo: Pfizer Newsroom