Pfizer filed an S-1 with the Securities and Exchange Commission with plans to restructure their animal health division into a company called Zoetis. The move comes as part of their plans to focus on their core pharmaceutical business.
The animal health unit, Zoetis, filed for a $100 million initial public offering. Some of the other cost-cutting measures the company has been involved in involve pairing research spending, as Reuters reported drugs such as Lipitor faced increased competition from lower-priced generic counterparts. Pfizer purchased Wyeth in 2009 for $67 billion in order to bolster its array of medicines.
In June, Pfizer revealed they planned to separate their animal health unit, which is responsible for selling medicines, vaccines, and other products for livestock and pets, into its own standalone company. Pfizer has over 9,000 employees with revenue reported of $4.2 billion in 2011.
Pfizer also sold its baby formula business to Nestle SA for $11.85 billion and its Capsugel unit, maker of hard capsules, to a private equity firm for $2.38 billion last year. Both moves were made in order to bring Pfizer’s focus back to its core.
Zoetis’s competition in the animal health business includes Merck & Co, Eli Lilly and Co, Sanofi SA, and Novartis AG. Approximately 66 percent of the company’s revenue in animal health comes from livestock products. Zoetis is the manufacturer of Palladia, the first FDA-approved drug to treat cancer in dogs. Zoetis also developed the first swine vaccine for pandemic H1N1 influenza virus in the United States.
According to Pfizer Chief Executive, Ian Read, the completion of the IPO is expected to be the first half of 2013. Pfizer expects to divest up to 20 percent of its stake in the IPO.
For more about Pfizer Animal Health visit https://animalhealth.pfizer.com.