March 15, 2012

 

Bayer, Novartis mull bid for Pfizer animal health unit

 

 

German's largest drugmaker Bayer and Europe's second-biggest pharmaceutical company Novartis are both showing interest in bidding for Pfizer's animal-health unit.

 

Bayer is in the early stages of considering a bid, but may ultimately decide against making one, sources said, who declined to be identified because the process is confidential.

 

Novartis may also be interested in the business, people in familiar with the company said.

 

The Pfizer veterinary business is likely to fetch US$14 billion to US$18 billion in a sale, according to research firm, Leerink Swann.

 

Bidding for the Pfizer unit would be Bayer's second major attempt in three years to bulk up its veterinary-products operation.

 

The Leverkusen, Germany-based company offered EUR6-7 billion (US$9.2 billion) in 2009 for Schering-Plough's Intervet unit, sources said at the time. Bayer lost that deal after the sale was scrapped by the owner.

 

Novartis recently approached Pfizer about buying the unit, the Wall Street Journal reported, citing anonymous sources familiar with the matter. The preliminary offer, which valued the unit at as much as US$16 billion, was rebuffed, and it is unclear whether Novartis will make a new bid, the report said.

 

Pfizer is shedding its animal health and nutrition businesses as part of CEO Ian Read's plan to focus on developing new prescription drugs after losing patent protection for Lipitor, a cholesterol pill and the world's best- selling medicine.

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