Canaccord Genuity Morning Coffee on Pfizer (PFE): Woof!

June 8, 2012 11:02 AM EDT
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Price: $32.06 --0%

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Canaccord Genuity Morning Coffee on Pfizer (NYSE: PFE): Woof!

Shares of Pfizer were up slightly after the drug maker said that it plans to take its animal health unit public rather than sell it to a potential buyer to avoid hefty taxes. Pfizer said that preparations were under way for a public offering of a minority stake in its animal health business, which will be called Zoetis. The animal-health unit reported revenue of about $4.2 billion in 2011 selling medicines, diagnostics, vaccines and other products to veterinarians and pet owners. Pfizer said it plans to use proceeds from divestitures to repurchase shares, which could help bolster per-share earnings in coming years as the company is pressured by the recent loss of market exclusivity for blockbuster cholesterol drug Lipitor. The company didn't specify what percentage stake it plans to sell in the IPO, or how much it expects to receive in proceeds, but will provide more details when it releases its second-quarter earnings report this summer. Just six weeks ago, Pfizer agreed to sell its infant nutrition business for $11.85 billion to Nestle SA. While in the third quarter of 2011, Pfizer sold its Capsugel capsule-making business to private equity firm Kohlberg Kravis Robert & Co. (NYSE: KKR) for $2.38 billion in cash. The moves are part of a major corporate makeover as the company tries to shed weight to focus more intently on its core pharmaceuticals business.

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