Pfizer Considering Sale of Hospital Drugs Unit

Pfizer is exploring the sale of its hospital drugs unit, known as Pfizer Hospital, as part of a strategy to divest non-core assets and reduce its significant debt load of $61.5 billion. The move comes amid pressure from activist investor Starboard Value, which holds a $1 billion stake in the company and has criticized Pfizer for its prior acquisitions and lack of profitable drug development. Goldman Sachs has been engaged to assess interest from potential buyers, including private equity firms and other pharmaceutical companies, with estimates suggesting the unit could be worth several billion dollars. The Pfizer Hospital unit, established after the 2015 acquisition of Hospira for $17 billion, primarily focuses on antibiotics and sterile injectables and currently generates around $500 million in EBITDA. Despite the potential sale, sources indicate that Pfizer may opt to retain the unit, and no deal is guaranteed. This divestiture follows Pfizer's recent sale of a stake in Haleon PLC for $3.26 billion, reflecting its ongoing efforts to streamline operations and improve financial performance.