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Pfizer Looking To Spinoff Animal Health Division

published: July 29th 2011
source: Feedstuffs.com

Pfizer Inc. has started telling concerns interested in bidding for Pfizer Animal Health that a spinoff of the business is more probable than a sale, according to sources who are familiar with the matter.

A spinoff would avoid antitrust scrutiny that would be time consuming and would involve orders to sell some of the animal health platform separately, sources said, and would also avoid income taxes that Pfizer would need to pay on gains from a sale.

A spinoff will take months, and in the meantime, Pfizer still will consider offers for the animal health business, sources said.

Pfizer announced last month that it was considering strategic alternatives for its animal health and infant/children nutrition businesses, including sales or spinoffs, to increase its share value (Feedstuffs, July 11 and 18).

Pfizer Animal Health is the largest animal health company in the U.S. and holds a complete portfolio of livestock and poultry pharmaceuticals and vaccines, as well as medicines for companion animals. It recorded 2010 sales that totaled $3.575 billion.