Pfizer sells further shares in Sensodyne maker Haleon for £2.4bn

Haleon was formed in 2019 by the merger of the consumer healthcare businesses of GSK and US rival Pfizer, but was spun out and floated in 2022.

Holly Williams
Tuesday 01 October 2024 12:35 BST
US drugs giant Pfizer has sold a stake in Sensodyne and Panadol maker Haleon worth around £2.4 billion (Alamy/PA)
US drugs giant Pfizer has sold a stake in Sensodyne and Panadol maker Haleon worth around £2.4 billion (Alamy/PA)

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US drugs giant Pfizer has sold a stake in Sensodyne and Panadol maker Haleon worth around £2.4 billion, cutting its holding from 22% to 15%.

Pfizer sold 640 million shares in Haleon for 380p each, reducing its holding in the consumer healthcare firm by 7.6%.

It marks the latest move to sell down its stake in the group after Pfizer said last year it planned to reduce its holding gradually.

Haleon was formed in 2019 by the merger of the consumer healthcare businesses of British pharmaceutical group GSK and US rival Pfizer, sitting as a joint venture within GSK.

It was then spun out of GSK as a standalone business and listed on the London Stock Exchange in July 2022.

GSK initially retained a 12.9% stake in Haleon after the flotation, but both GSK and Pfizer have been selling down their stakes in the company, with GSK offloading its holding completely in May when it sold its last remaining shares for £1.2 billion.

Pfizer also sold around £2.6 billion worth of Haleon shares in March.

Haleon said on Tuesday it had bought back an extra 60.5 million of its shares from Pfizer at the same price, for a total of £230 million, amid the stake sale.

It said the move would allow it to return further cash to shareholders through share buybacks.

Brian McNamara, chief executive of Haleon, said: “Our purchase of shares from Pfizer will successfully deliver on our commitment to return £500 million to shareholders through share buybacks this year, and marks another milestone in Pfizer reducing its stake in Haleon following our listing in July 2022.”

Haleon has been pressing ahead with plans to cut its debts, rein in costs and sell off brands to simplify the business.

In June, it agreed to sell its nicotine replacement brands outside the US for £500 million to a division of Indian drugmaker Dr Reddy’s Laboratories.

It includes brands Nicotinell, Nicabate, Habitrol and Thrive which are sold as lozenges, patches and gum in different strengths and flavours.

Earlier this year, Haleon agreed to sell its ChapStick lip balm brand in a deal worth around 510 million US dollars (£383 million), while it sold off athlete’s foot treatment Lamisil last year.

The firm has previously outlined plans to focus on a handful of “higher growth” brands and hopes to save about £300 million over the next two years.

The company continues to own well-known household brands such as Sensodyne toothpaste, Panadol and Advil pain relief medication, and Centrum vitamins.

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