Haleon sale funds new acquisition

Article Excerpt

PFIZER INC. $49 is a buy. The prescription drugmaker (New York symbol PFE; Manufacturing & Industry sector; Shares outstanding: 5.6 billion; Market cap: $274.4 billion; Dividend yield: 3.3%; Takeover Target Rating: Medium; www.pfizer.com) merged its consumer drug business with GlaxoSmithKline (New York symbol GSK) in 2019. Glaxo now plans to spin off this business as a separate firm called Haleon; it owns 68% of this operation, with Pfizer holding the remaining 32%. Brands involved in the spinoff include Advil, Voltaren, Centrum, Sensodyne and Otrivin. After the spinoff, Pfizer plans to sell its Haleon shares in stages. As of April 3, 2022, Pfizer’s stake in Haleon was worth $15.8 billion. The cash will help the company fund its recent deal to buy Biohaven Pharmaceutical Holding Company Ltd.(New York symbol BHVN) for $11.6 billion. That firm’s main product is Nurtec, a treatment for migraine headaches. Pfizer is a buy. buy…

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