Replies to post #137372 on Biotech Values

[DewDiligence]

PFE…has been talking to bankers about arranging an initial public offering that would look to place up to 19.9 per cent of the [animal health] unit’s shares in the autumn, in what is known as an equity carve-out or partial spinoff, people familiar with the talks said.

The 19.9% equity stake for the planned IPO of the animal-health business is not arbitrary—it must be <20% for the maneuver to be tax-free for PFE.

I wonder how many drug/biotech investors realize that PFE’s animal-health business could command a valuation as high as $18B as a standalone company.

[DewDiligence]

NVS offered $16B for PFE’s animal-health business, but PFE turned it down:

http://online.wsj.com/article/SB10001424052970203961204577267693843564640.html

[DewDiligence]

PFE’s animal-health spinoff will be called Zoetis:

http://finance.yahoo.com/news/pfizer-provides-animal-health-strategic-130500168.html

Plans for the IPO of a 19.9% equity stake in Zoetis will be discussed on PFE’s 2Q12 CC. The target date for the spinoff in Jul 2013.