Pfizer Inc. (NYSE: PFE) is reportedly considering the sale of its hospital unit, Pfizer Hospital, in response to pressure from activist investor Starboard Value, as per information from Reuters. The move is part of the US pharmaceutical giant’s strategy to divest non-core assets and focus on its core businesses.
Background and Unit Focus
The Pfizer Hospital unit was established following Pfizer’s acquisition of Hospira for USD 17 billion in 2015. Since then, the unit has been primarily focused on the production of antibiotics and other drugs delivered as sterile infusions or injectables in hospitals and clinics. The integration of Pfizer’s biosimilars business with its own unit for manufacturing lower-cost near copies of expensive biotech drugs has been a key part of its operations.
Divestment Process and Potential Buyers
Goldman Sachs has been engaged to explore initial interest from potential buyers, which may include private equity firms and other pharmaceutical companies. This step is part of the due diligence process to determine the value and feasibility of the sale.
Future Considerations
Despite the exploration of a sale, Pfizer retains the option to keep the division, which could be valued at several billion dollars. The decision will depend on the interest generated and the strategic fit with Pfizer’s long-term goals.-Fineline Info & Tech
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