Pfizer to cut stake further in Panadol-maker Haleon

Both Haleon and Pfizer have significant operations based in Ireland, making the likes Panadol pain killers and other pharmaceuticals

Mon, 18 Mar, 2024 - 16:00

Consumer healthcare firm Haleon has said that US drugmaker Pfizer, its top shareholder, will sell down its stake in the company to about 24%.

Pfizer, which currently holds a 32% stake in Haleon, said last year it planned to cut its ownership in a "slow and methodical" manner within months. The offer price per share is expected to be announced on or around March 19, Haleon said in a statement.

The sale of 630m shares would be worth over £2bn (€2.3bn). Shares in the Ftse-100 listed company closed around 2% lower in the latest trading session.

Both Haleon and Pfizer have significant operations in Ireland. Haleon makes Panadol pain killers in Co Waterford, while Pfizer employs 4,000 people across operations in Co Kildare, Cork, and Dublin.

Haleon, which also makes household brands such as Sensodyne toothpaste, was spun out of British drugmaker GSK in July 2022. It was formed in 2019, by merging GSK and Pfizer's consumer healthcare businesses.

GSK has since sold down its stake in the company, with the last sale in January bringing down its shareholding to 4.2% from the 12.9% it initially retained in the business. It is Haleon's second-largest shareholder.

Haleon will also repurchase shares worth about £315m (€368.2m) pounds from Pfizer off-market, it said. It said last month it plans to buy back £500m (€584.5m) of its shares this year amid firm demand for its products and progress in reducing debt.

Former parent GSK has also benefited from the spin-off, beating quarterly estimates and delivering an upbeat forecast for 2024 and beyond on the ramp-up of its vaccines and cancer drugs pipeline.