Pfizer Inc. PFE has divested a $3.3 billion stake in Haleon HLN, reducing its holding in the British consumer healthcare company.
What Happened: The transaction occurred on Monday, cutting Pfizer’s shareholding from 22.6% to 15%. The shares were sold at 380 pence each, a 3.3% discount to Haleon’s last closing price.
Haleon, known for products like Sensodyne toothpaste and Panadol painkillers, saw its shares drop 1.2% to 388 pence in Tuesday morning trade. Despite the sale, Pfizer remains Haleon’s largest shareholder.
The U.S. drug giant had initially planned to sell about 540 million shares but increased this to 640 million due to strong demand, a book-runner on the deal stated. Haleon confirmed it will repurchase approximately 60.5 million of its shares from Pfizer for 230 million pounds ($307.4 million).
Why It Matters: This divestment comes on the heels of Pfizer’s recent challenges.
On Thursday, Pfizer announced the voluntary withdrawal of its sickle cell disease treatment Oxbryta (voxelotor) from the global market due to severe complications and deaths. This decision also included halting all active clinical trials and expanding access programs for the drug.
Price Action: Pfizer Inc. stock closed at $28.94 on Monday, down 0.52% for the day, and is currently trading at $29.01 in pre-market, reflecting a slight gain of 0.24%. Year-to-date, Pfizer’s stock has declined by 2.66%.
Meanwhile, Haleon PLC – ADR finished at $10.58, down 0.84% on the same day, with a pre-market price up by 0.19%. The stock has performed well this year, rising by 28.55%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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