Glaxo eyeing Pfizer consumer meds

Janet Babin Jun 6, 2006

TEXT OF STORY

MARK AUSTIN THOMAS: Final bids to purchase the over-the-counter division of New York-based Pfizer are expected today. That means ownership of brands like Sudafed, Listerine and Kaopectate could soon change hands. Pharmaceutical giant GlaxoSmithKline is the reported frontrunner. Janet Babin has more.

JANET BABIN: Pfizer’s over the counter medicines bring in about $3.8 billion a year.

That sales revenue could go a long way for GlaxoSmithKline. The British company’s been looking to expand its over-the-counter presence in the US.

Les Funtleyder is an analyst with Miller Tabak. He says Pfizer has decided to focus on branded prescription pharmaceuticals, and could use capital from the sale to develop new drugs

LES FUNTLEYDER: On the other hand, if Pfizer sells the division and is unable to deploy the capital in a way that generates returns for shareholders, people will say the deal was unsuccessful.

Funtleyder says the final price for the Pfizer unit will likely be at least $10 billion.

I’m Janet Babin for Marketplace.

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