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A.G. Lafley pushes Procter & Gamble (P&G) and Goldman Sachs to sell its pharmaceuticals unit!
By Amarendra Bhushan for CEOWORLD Magazine Updated:February 5, 2009
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A.G. Lafley, Cincinnati, Ohio based company, consumer products giant the Procter & Gamble Co. chief executive, told in December that the company had stopped investing in new drug development and would consider divesting some of its key pharmaceuticals brands. Now Consumer giant, Procter & Gamble Co. wants Goldman Sachs Group to find buyers for its pharmaceuticals brands in an effort to exit the business.
The company’s healthcare division, which includes its pharmaceuticals business, had $14.6bn in sales and $2.5bn in net earnings in 2008. P&G said its pharmaceuticals unit accounts for global sales of more than $2bn.
- Procter & Gamble Co (PG.N) is working with Goldman Sachs Group (GS.N) to identify potential buyers for its pharmaceuticals brands or find other ways to exit the business.
- Its pharmaceuticals unit accounts for global sales of more than $2 billion.
- To focus more heavily on high-growth businesses and divest non-key assets.
- P&G expects fiscal 2009 sales to be flat to down 4 percent.
- P&G’s pharmaceuticals business sells prescription drugs including, Actonel, Asacol, Enablex, Dantrium, Dantrium IV, Didronel, Macrobid, Macrodantin, Entex, and Ziac that focus on women’s health and gastrointestinal and musculoskeletal problems, while the broader healthcare arm sells over the counter products such as heartburn treatment Prilosec and Pepto-Bismol.
- P&G also manufactures and markets a variety of over-the-counter and oral care products such as Crest, Oral-B, Prilosec OTC, Vicks, Metamucil, Pepto-Bismol and ThermaCare.
They are focused on three therapeutic areas:
Musculoskeletal
Therapeutic areas of special interest include osteoporosis, rheumatoid arthritis and osteoarthritis.
Gastrointestinal
Therapeutic areas of special interest include ulcerative colitis, Crohn’s disease, Irritable Bowel Syndrome (IBS), and Gastroesophageal Reflux Disease (GERD).
Women’s Health
Therapeutic areas of special interest include overactive bladder, incontinence (urge and stress), menopausal symptoms and other products directed towards women’s health areas with high consumer involvement.
Chief Executive Alan Lafley had earlier told that compared to 1990s “pharma companies trade at multiples at or below consumer products.” He had also disclosed in December that the company had stopped investing in new drug development. The company’s website says that rather than conducting internal upstream pharmaceutical research to invent new therapies, it would be partnering with biotech and pharma companies jointly to develop and market products.
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