Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Xetra  >  Bayer AG    BAYN   DE000BAY0017

BAYER AG (BAYN)

Real-time Quote. Real-time Tradegate - 01/18 11:07:44 am
101.165 EUR   +0.71%
08:49aDJBayer Joins Jobs Parade -- WSJ
01:56aDJBAYER : Will Keep Monsanto Jobs in U.S., Trump Team Says -- 2nd Upda..
01/17DJBAYER : Will Keep Monsanto Jobs in U.S., Trump Team Says -- Update
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

Pfizer CEO: spin-off more likely for animal health

share with twitter share with LinkedIn share with facebook
share via e-mail
0
03/12/2012 | 03:47pm CET

Pfizer Inc (>> Pfizer Inc.) is more likely to spin off its animal health unit than sell it outright, reflecting the expected investor appeal of such a large standalone business, its chief executive said on Monday.

Pfizer Inc (>> Pfizer Inc.) is more likely to spin off its animal health unit than sell it outright, reflecting the expected investor appeal of such a large standalone business, its chief executive said on Monday.

No final decision has been taken but Ian Read told Reuters there were clear attractions for shareholders in a tax-free spinoff of the operation, which is the biggest in the industry.

"I would probably handicap animal health as more likely to be a spin than a sale," the CEO of the world's biggest drugmaker said in an interview in London.

Read, who took over as Pfizer chief in December 2010 at a challenging time, is shrinking the group by divesting non-core businesses, including veterinary medicine and infant nutrition.

Pfizer is losing billions of dollars of revenue from cholesterol blockbuster Lipitor, which is now off patent in many markets, although Read said he hopes to carve out a new future for the medicine as an over-the-counter (OTC) product.

The nutrition business is widely expected to be sold outright for around $10 billion. Bidders were asked to submit offers last week, with Nestle SA (>> Nestle SA) and a partnership of Danone SA and Mead Johnson Nutrition Co (>> Mead Johnson Nutrition CO) seen as frontrunners.

The process for animal health, however, is less well advanced and the case for a sale less obvious. Pfizer faces a hefty tax bill if it sells outright and any buyer would also faces substantial antitrust hurdles.

"It's the largest animal health business and it would stand alone as an individual company. There's huge interest among investors to own a company like that," Read said.

"With nutritional there are lots of companies that are already in the nutritional business and have it as a major development area."

Speculation about a possible sale of animal health, which analysts believe could be worth $15-20 billion, was fuelled last week by reports that Novartis AG (>> Novartis AG) had made an approach that was rebuffed by Pfizer, while Bayer AG (>> Bayer AG) was also weighing a move.

The plans to dispose of both units, which Pfizer has said would be completed between July 2012 and July 2013, follows a far-reaching review and a decision to focus on core pharmaceutical operations.

The outcome of that review was to focus on five core areas of drug research, while maintaining a strong presence in generic and OTC medicines.

Read said Pfizer hoped to introduce a non-prescription form of Lipitor, but this would not happen in the short term. Pfizer is currently discussing the issue with the Food and Drug Administration, which is seeking public comment on the idea of making more medicines available OTC.

"We would like to sell it over the counter. We're in discussions and development with the FDA on that," Read said.

In the past, Pfizer has been a mergers and acquisitions machine, snapping up smaller rivals and partners to build out its portfolio.

It will continue to look for bolt-on acquisitions, including deals that could be "multiples" of 2010's $3.6 billion purchase of King Pharmaceuticals, Read said. But he did not see a need for another large-scale deal like the $67 billion purchase of Wyeth in 2009.

Asked about the possibility of buying out Bristol-Myers Squibb Co (>> Bristol Myers Squibb Co.), its partner on promising anti-clotting drug Eliquis, Read said: "I'm not sure that would create shareholder value. I think the partnership is working very well."

(Editing by Chris Wickham)

By Ben Hirschler and Kate Kelland

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BAYER AG
08:49aDJBayer Joins Jobs Parade -- WSJ
01:56aDJBAYER : Will Keep Monsanto Jobs in U.S., Trump Team Says -- 2nd Update
01/17DJBAYER : Will Keep Monsanto Jobs in U.S., Trump Team Says -- Update
01/17DJBAYER : Will Keep Monsanto Jobs in U.S., Trump Team Says
01/12 BAYER : Regorafenib from Bayer Granted Priority Review in the U.S. for Second-Li..
01/12 Bayer says had productive meeting with Trump over Monsanto deal
01/12 BAYER : CEOs of Monsanto and Bayer meet with Trump, press case for merger
01/11DJBAYER : Monsanto CEOs Pitch Deal to Trump
01/10 BAYER : MILITARY $6,894 Federal Contract Awarded to Bayer HealthCare
01/09 BAYER : Volker Koch-Achelpöhler to head Bayer’s EU Liaison Office in Bruss..
More news
Sector news : Pharmaceuticals - NEC
12:05aDJAllergan Admits to Disclosure Violations During Valeant Bid
01/17 Allergan to pay $15 million over failing to disclose merger talks
01/17DJSHIRE : Files 8K - Other Events
01/17DJBIOGEN : Reaches Settlement and License Agreement for MS Drug
01/17DJASTRAZENECA : Sets New Deadlines for MYSTIC Trial
More sector news : Pharmaceuticals - NEC
News from SeekingAlpha
12:21a Tracking Ken Fisher's Fisher Asset Management Portfolio - Q4 2016 Update
01/17 Bayer, Monsanto confirm spending, jobs plans after meeting Trump
01/17 Trump Nabs Quid Pro Quo Worth Billions
01/17 REPORT : Bayer could pledge billions to U.S. investment for Monsanto deal OK
01/12 CLIMATE CHANGE INVESTING : Up In The Air
Advertisement
Financials (€)
Sales 2016 46 746 M
EBIT 2016 8 695 M
Net income 2016 4 762 M
Debt 2016 15 852 M
Yield 2016 2,67%
P/E ratio 2016 17,32
P/E ratio 2017 15,47
EV / Sales 2016 2,12x
EV / Sales 2017 1,96x
Capitalization 83 067 M
More Financials
Chart BAYER AG
Duration : Period :
Bayer AG Technical Analysis Chart | BAYN | DE000BAY0017 | 4-Traders
Full-screen chart
Technical analysis trends BAYER AG
Short TermMid-TermLong Term
TrendsBullishBullishNeutral
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 27
Average target price 109 €
Spread / Average Target 8,2%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Werner Baumann Chairman-Management Board
Werner Wenning Chairman-Supervisory Board
Johannes M. Dietsch Chief Financial Officer
Katharina Jansen Head-Science & Research
Hartmut Klusik Human Resources, Technology & Sustainability
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BAYER AG1.33%88 718
JOHNSON & JOHNSON-0.30%312 507
ROCHE HOLDING LTD.1.29%200 476
PFIZER INC.-1.29%194 551
NOVARTIS AG-2.70%185 185
MERCK & CO., INC.4.43%169 509
More Results