Pfizer Considering Capsugel Sale

NEW YORKPfizer Inc. (NYSE: PFE) announced it is reviewing strategic alternatives" for its Capsugel business unit, including a possible divesture of the operation. Capsugel currently operates within Pfizers Diversified Businesses segment, and is a leading supplier of hard capsules and is active in delivery formulation technology. The Capsugel business generated $740 million in revenue in 2009s.

"The decision to consider strategic alternatives for Capsugel is part of Pfizer's strategy to optimize its business mix and leverage its competitive strengths to deliver value for shareholders," said Cavan Redmond, senior vice president and group president, Pfizer's Diversified Businesses. "Among Pfizer's robust and broad portfolio, Capsugel now represents a unique business, which we believe has strong potential for growth outside of Pfizer. This, combined with Capsugel's consistent performance as well as improved financial market conditions, make it a good time to undertake this review."

Morgan Stanley has been retained to conduct the strategic review process, and an announcement regarding possible options is expected by the end of the first quarter of 2011.