Pfizer is cutting the apron strings at Zoetis. Just months after its highly successful IPO, in which Pfizer sold off a 20% stake, the animal health business is set to become fully independent. Pfizer is offering a stock swap to its shareholders, who can exchange $100 in Pfizer shares for roughly $107 worth of Zoetis stock.
Pfizer's spinoff of its animal health business into Zoetis is the biggest IPO this year. And the spinoff that created the newest Big Pharma company, AbbVie, was no slouch.
Stock for Pfizer's animal health spinoff Zoetis soared 21% after raising more than $2.2 billion in its initial public offering.
The spinoff of Pfizer's animal health unit has gone off with such success that it may make some wonder why CEO Ian Read didn't keep it and dump the challenging pharmaceutical business.
Pfizer's animal health group Zoetis goes public today, with an IPO valued at up to $2.2 billion.
Closing in on its IPO for its animal health unit Zoetis, Pfizer on Thursday reported that it would price shares between $22 and $25 each, potentially raising $2.2 billion when it happens at the end of the month, Bloomberg reports. The company intends to offer 86.1 million shares, a 20% stake, to investors.
Just watch Pfizer's leash on Zoetis growing longer. The animal health unit proved popular on the bond market Wednesday, with $30 billion in orders pouring in for a $3.65 billion four-part deal. Within hours, the order book had been built, Reuters reports, allowing Zoetis to tighten up its initial pricing guidance.
A top Pfizer ($PFE) official tells Bloomberg that the company will probably reorganize into two business units--one focused on innovative drugs, the other on off-patent meds (and perhaps consumer health)--from four. And that would pave the way for a two-way split.
Pfizer's animal health unit may be worth $20 billion, and that is the conundrum.
Pfizer ($PFE) added to its lineup at Zoetis, the animal health unit preparing for a spinoff. The drugmaker tapped 9 executive vice presidents to back up previously appointed CEO Juan Ramon Alaix.