Pfizer Completes Exit from Haleon, Marking End of Big Pharma Stake in Consumer Health Giant

Pfizer has finalized its departure from Haleon, the consumer health company it co-created with GSK, by selling its remaining 7.3% stake for approximately £2.5 billion ($3.2 billion). This move marks the conclusion of both pharmaceutical giants' involvement in the standalone consumer health venture, reflecting a broader industry trend of divesting consumer health divisions.

Pfizer's Final Stake Sale

Pfizer's exit strategy, executed over the course of 2024, culminated in the sale of roughly 662 million Haleon shares. The transaction, completed on Wednesday, involved selling approximately 618 million shares to institutional investors at 385 pence per share, with an additional 44 million shares purchased directly by Haleon at the same price.

This final divestment follows Pfizer's earlier moves in 2024, including a March sale of 893 million shares for about $3.5 billion and an October transaction involving 640 million shares for around $3.26 billion. The systematic reduction of Pfizer's stake aligns with the company's stated intention to monetize its position in Haleon in a "slow and methodical" manner, as outlined by Pfizer's CFO David Denton in May 2023.

GSK's Earlier Exit and Industry Trends

GSK, which initially held a 68% stake in Haleon following the 2022 spinoff, had already completed its exit in May 2024 by selling its remaining 4.2% stake for approximately $1.58 billion. The departure of both Pfizer and GSK from Haleon exemplifies a broader trend in the pharmaceutical industry, with other major players such as Johnson & Johnson, Merck, Novartis, and Sanofi either implementing or considering similar strategies for their over-the-counter or generics businesses.

Haleon's Performance and Outlook

Despite the changes in ownership, Haleon continues to operate as a standalone entity, managing popular consumer brands including Advil, Sensodyne, Tums, and Theraflu. The company reported total sales of £11.23 billion (approximately $14.6 billion) for 2024, showing a slight decrease from the £11.3 billion recorded in 2023. Looking ahead, Haleon has projected organic revenue growth of 4% to 6% for the current year, signaling confidence in its independent operations and market position.