Pfizer sells remaining Haleon stake for £2.4 billion pounds as consumer healthcare firm strengthens its position

Pfizer has completed the sale of its remaining 7% stake in Haleon, the FTSE 100 consumer healthcare company, raising £2.4 billion. This transaction, involving the placement of 618 million shares at 385p, comes at a slight discount to Haleon’s previous closing price of 391p. Haleon shares have dipped marginally to 390.5p following the sale.

As part of the process, Haleon announced the repurchase of 44 million shares from Pfizer, valued at £170 million, as part of its £500 million share buyback programme. This milestone marks significant progress for Haleon, which was spun off as a standalone consumer healthcare company in July 2022 in London’s largest public listing in nearly a decade.

Haleon, which was previously a joint venture between Pfizer and GSK, has seen its stock rebound since its somewhat turbulent debut on the stock exchange. Initial concerns over litigation relating to the heartburn drug Zantac and doubts around its ability to deliver consistent organic growth placed early pressure on the shares. However, the company has since been delivering 4% to 6% organic growth as initially promised by its leadership.

The sale reduces the overhang on Haleon shares, which previously impacted its valuation, especially with GSK and Pfizer together initially retaining 45% of the business post-demerger. With GSK having fully exited in May, Pfizer’s recent move eliminates its connection as a shareholder. Investors have consequently shown stronger interest in Haleon, pushing its share price above the initial demerger valuation of 330p.

Chief Executive Brian McNamara underscored the significance of this sale in a statement, emphasising that nearly three years after its demerger, Haleon finds itself in a strong position. The company has been steadily reducing debt, refining its extensive portfolio of products such as Sensodyne toothpaste and Panadol painkillers, and focusing on enhancing shareholder returns.

Haleon’s strategic adjustments, including asset sales and share buyback programmes, position it well to take advantage of future growth opportunities. Institutional investors are now continuing to support the company as it focuses on strengthening its financial position and driving long-term value creation.