Pfizer has continued shrinking its ownership in the British consumer health company Haleon.
The New York drugmaker sold 640 million shares, raising about $3.26 billion in gross proceeds, according to an announcement Tuesday on the London Stock Exchange. On Monday, Pfizer had planned to sell 540 million shares in Haleon, which was formed after combining Pfizer and GSK’s consumer health units.
Haleon also bought 60.5 million shares from Pfizer for about $308 million. As a result, Pfizer’s stake in Haleon has gone from 22.6% to about 15%.
The large pharma had sold more than 600 million shares in the spring, and GSK said in May it would sell off the rest of its stake.
In May 2023, Pfizer said it would undergo a “slow and methodical” exit from Haleon.
Haleon’s share price on the London Stock Exchange closed down almost 1% on Monday. Pfizer is going through a multibillion-dollar cost-cutting program.
Meanwhile, on Friday, Haleon said it was increasing its equity stake in a China joint venture. Earlier in the summer, the Sensodyne toothpaste and Advil maker had sold off its ex-US nicotine replacement therapy business to Dr. Reddy’s for a total of £500 million, or about $630 million.
On Pfizer’s second-quarter earnings call in July, CFO Dave Denton said once the company’s ownership in Haleon is below 20%, “our accounting will transition from recording equity income and will no longer be included in our adjusted results.”
Editor’s note: This story has been updated to include new details about the share offering on Tuesday.