The stock of Pfizer Inc (NYSE:PFE) closed at $34.49 losing 3.09% in yesterday’s trading session. Over quite a long period of time Reckitt Benckiser has been in great pursuit of Pfizer’s (PFE.N) consumer health assets but that is no longer the case after it resolved to drop the decision. It goes without saying that the heavy lifting is now left for Reckitt which will be compelled to do quite much in line with the restoration of its growth to its flat-lining business.
It was last Thursday when sources familiar with the matter disclosed that the British pharmaceuticals group had proceeded to make a submission of the binding bid. As a matter of fact there still could be more offers but it is still at the same time crucial to outline that Pfizer still enjoys a lot of freedom including resolving to decide against a sale.
A person familiar with the most recent developments but who at the same time wanted his identity kept anonymous had much to say in relation to the latest developments. According to him, the earlier decision by Reckitt to purchase a part of the Pfizer business was thought of as a progressive move though it proved unacceptable in the long run. He went further to state that the company had been much more interested in the sale of the best-selling painkiller Advil.
The simple truth is that most of the consumer remedies which are sold out over the counter are associated with the lower margins than prescription drugs. Basically, they are known and understood by quite a large number and that is not forgetting the fact that they are durable brands with loyal customers.
Reckitt shareholder Steve Clayton at Hargreaves Lansdown after attending a business conference that was held recently spoke saying that the poor performance by Reckitt wasn’t to be entertained anymore and that time had finally arrived for it to pick the crown up and get it back to its head.
But what is the good thing about RB resolving to open the door for Pfizer CH to be acquired by GSK? The point is it helps in the strengthening of one of its CH competitors.