Pfizer Inc (NYSE:PFE) is reportedly looking to start selling its stake in Haleon plc (NYSE:HLN).
In June last, the pharma giant announced its plans to exit the ownership interest in Haleon in a disciplined manner after the demerger.
Pfizer’s CFO, Dave Denton, told the Financial Times that it intends to offload that stake in a “slow and methodical” manner within months.
Pfizer retained its 32% stake in Haleon. GSK Plc (NYSE:GSK) has up to 13.5% in Haleon, while GSK shareholders will own the remaining 54.5%.
“We love the Haleon business, but it’s not strategic,” said Denton. Shares in Haleon have jumped almost 14% since the listing, valuing Pfizer’s stake at about £10 billion.
However, Haleon’s market capitalization remains significantly below the takeover offer of £50 billion from Unilever plc (NYSE:UL).
The report added that Pfizer would shift its focus from pursuing mergers and acquisitions to replenish its drug pipeline to boosting shareholder returns.
Haleon reported a fall in quarterly adjusted profit margin, mainly because of “cost inflation and incremental standalone costs”. The adjusted operating profit margin of 23.1% declined by 90bps at actual exchange rates and by 140bps at constant currency.
Q1 reported revenue of £2.99 billion (+13.7% Y/Y), +9.9% organic with price +7.1% and favorable volume/mix +2.8%.
The company reaffirms FY 2023 guidance, with organic revenue growth expected to be towards the upper end of the 4-6% range.
Price Action: HLN shares are down 1.69% at $8.72 premarket on the last check Wednesday.
