Pfizer's Strategic Shift: Potential Sale of Hospital Drugs Unit

Pfizer is considering selling its hospital drugs unit, known as Pfizer Hospital, to reduce debt and streamline operations. This move follows pressure from activist investors and a history of large acquisitions. The sale could attract interest from private equity and pharmaceutical companies but remains uncertain.

Pfizer, the renowned pharmaceutical giant, is reportedly contemplating the sale of its hospital drugs unit. This strategic move aligns with the company's ongoing efforts to divest non-core assets and reduce its substantial debt burden, which stood at $61.5 billion by the end of 2023.

Formed after acquiring Hospira in 2015 for approximately $17 billion, the Pfizer Hospital unit focuses on antibiotics and sterile injectables used in hospitals and clinics. While the potential sale could attract interest from private equity and pharmaceutical firms, insiders caution that no deal is guaranteed.

This development comes amid pressure from activist investor Starboard Value, urging Pfizer to address overspending and unprofitable deals. CEO Albert Bourla aims to reposition the company as shares have dipped 7% this year, contrasting with the S&P 500's 26% rise.

(With inputs from agencies.)