NEW YORK, Oct 6 (Reuters) - Pfizer Inc is reviewing strategic options for its Capsugel drug-delivery business including a possible divestiture of the unit, the world's largest drugmaker said on Wednesday.
Capsugel, the world's largest maker of hard capsules, according to Pfizer, generated revenue of $740 million last year. The potential split off of Capsugel comes as Pfizer girds for generic competition to its top-selling Lipitor cholesterol treatment and integrates its mega-merger with Wyeth.
Capsugel has strong potential for growth outside of Pfizer, the drugmaker said.
'This, combined with Capsugel's consistent performance as well as improved financial market conditions, make it a good time to undertake this review,' Cavan Redmond, a top executive with Pfizer's Diversified Businesses segment, said in a statement.
Pfizer has hired Morgan Stanley to conduct the strategic review process, and expects to make an announcement by the end of the first quarter of 2011.
(Reporting by Lewis Krauskopf; Editing by Derek Caney) Keywords: PFIZER/CAPSUGEL (lewis.krauskopf@thomsonreuters.com; 646-223-6082;Reuters Messaging:Lewis.Krauskopf.reuters.com@reuters.net;) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Capsugel, the world's largest maker of hard capsules, according to Pfizer, generated revenue of $740 million last year. The potential split off of Capsugel comes as Pfizer girds for generic competition to its top-selling Lipitor cholesterol treatment and integrates its mega-merger with Wyeth.
Capsugel has strong potential for growth outside of Pfizer, the drugmaker said.
'This, combined with Capsugel's consistent performance as well as improved financial market conditions, make it a good time to undertake this review,' Cavan Redmond, a top executive with Pfizer's Diversified Businesses segment, said in a statement.
Pfizer has hired Morgan Stanley to conduct the strategic review process, and expects to make an announcement by the end of the first quarter of 2011.
(Reporting by Lewis Krauskopf; Editing by Derek Caney) Keywords: PFIZER/CAPSUGEL (lewis.krauskopf@thomsonreuters.com; 646-223-6082;Reuters Messaging:Lewis.Krauskopf.reuters.com@reuters.net;) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.