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Anne Law

Zoetis IPO raising $2.2 billion for Pfizer

by Anne Law | Dun & Bradstreet Editor

January 28, 2013 | No Comments »

zoetisPfizer’s animal health unit, Zoetis, is expected to debut on the public market this week with the lofty goal of raising up to $2.2 billion for its parent, marking the largest US IPO since Facebook’s offering last May.

Top global drugmaker Pfizer, which originally filed a placeholder value of some $100 million for the Zoetis IPO, said in a recent regulatory filing that it will sell 86.1 million shares (representing 17% of Zoetis) for $22 to $25 per share, valuing the entire Zoetis business at as much as $12.5 billion. Shares will trade as ZTS on the New York Stock Exchange.

To prepare for the IPO, Pfizer placed its animal health assets into the standalone Zoetis subsidiary in mid-2012. Pfizer will retain about 83% of Zoetis, which makes veterinary supplies such as vaccines and medicines for livestock and companion animals.

Pfizer is looking to raise cash by selling noncore assets, including Zoetis, as it struggles against revenue loss from the patent expiration of bestselling drug Lipitor. Other moves to shrink costs and narrow its focus around human prescription pharmaceuticals include the divestitures of its nutrition products business (sold to Nestlé for some $11.8 billion during 2012) and its Capsugel capsule-making unit (sold to KKR for $2.4 billion in 2011).

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