Glaxo, Reckitt Submit Only Bids for Pfizer’s Consumer Unit

GlaxoSmithKline Plc and Reckitt Benckiser Group Plc are the only companies to have posted non-binding bids for Pfizer Incorporation. ’ s consumer company after rival candidates walked aside, according to people familiar with the matter.

Pfizer plans to open a data space for Glaxo and Reckitt to begin due diligence on the assets before distributing final offers in the next few weeks, the individuals said, asking not to be determined because the matter is private. France drugmaker Sanofi , Switzerland’ t Nestle SA plus health care giant Johnson & Johnson were amongst companies to consider and then decide towards bidding for the business, the people stated.

The deadline for non-binding provides for the business, which makes well-known manufacturers including the pain reliever Advil, ChapStick lip balm and the dietary supplement Centrum, was Feb. 1, the people stated. The unit could fetch $15 billion dollars to $20 billion, people acquainted with the matter have said . Potential buyers have expressed concerns regarding stagnant sales at the division along with the challenge from online competitors like Amazon. com Inc, the people mentioned.

Representatives for Glaxo and Reckitt declined to remark. A Sanofi spokesman also mentioned he had no comment. A spokeswoman for Nestle wasn’ t instantly available to comment. A spokesman with regard to J& J confirmed that the firm had withdrawn from the bidding procedure and declined to comment additional.

A spokeswoman with regard to Pfizer said the company is ongoing to evaluate a range of options for its customer healthcare business, including a full or even partial separation from Pfizer by way of a spin-off, sale or other deal, and it may still opt to maintain the business. The company expects to reach a choice in 2018, she said.

Pfizer first announced overview of the business in October. A selling would help the U. H. drug giant raise billions of bucks in cash for acquisitions plus streamline operations to focus on other development areas.

Sales in the consumer-products business were little transformed in the fourth quarter from a calendar year earlier at $950 million. Full-year sales at the unit advanced simply by 2 percent to $3. forty seven billion.

Glaxo Ceo Emma Walmsley said at a meeting in San Francisco last month how the company’ s top priority is the pharmaceutic business and that it doesn’ capital t need the Pfizer assets although the unit would be complementary.