Pfizer considers sale of Capsugel
Says Capsugel has strong growth potential outside Pfizer
US pharmaceutical firm Pfizer is reviewing the options for its Capsugel business, including a possible sale.
Capsugel develops hard gelatin and liquid-filled capsules and other drug delivery systems. It also helps formulate liquid medicines and provides equipment for research labs to fill capsules.
The Capsugel business generated $740m in revenue in 2009, a fraction of Pfizer’s US$50bn overall revenue. It has pharmaceutical, consumer healthcare and dietary supplement customers across the globe and employs around 3,000 people worldwide.
Cavan Redmond, senior vice president and group president of Pfizer’s Diversified Businesses, said Capsugel has ‘strong potential for growth outside of Pfizer’.
He added: ‘This, combined with Capsugel's consistent performance as well as improved financial market conditions, make it a good time to undertake this review.’
Pfizer has engaged Morgan Stanley to conduct the strategic review process, and expects to make an announcement regarding the results of this review process by the end of the first quarter of 2011.
Capsugel became part of Pfizer through a series of acquisitions. It was originally part of Parke-Davis, a pharmaceutical manufacturer bought in 1970 by Warner-Lambert, which was then bought by Pfizer in 2000.
The firm has manufacturing operations in the US, France, China and Asia.
