Haleon is exploring a potential sale of some smoking cessation products, including the Nicotinell brand of nicotine gum, patches and lozenges, according to Bloomberg.
Citing people familiar with the matter, Bloomberg said the Weybridge, Surrey-based consumer healthcare products company is working with an adviser to identify potential suitors for the Nicotinell brand.
Bloomberg sources said the business is attracting interest from both investment firms and consumer companies and could be worth up to US$800mln in a sale, as Haleon reportedly seeks to offload non-core businesses.
Victoria Scholar at interactive investor thinks “Haleon appears to be pursuing a streamlining strategy to focus on its biggest, most profitable brands and selling its non-core holdings to avoid the risk of becoming a jack of all trades, master of none.”
Shares were steady at 321p, up 0.1%. Deutsche Bank cut its target price on the stock from 350p to 340p while Barclays lowered its target price on Haleon from 400p to 378p,
Barclays is positive on the stock. "Haleon appears to be building an enviable track record of top-line delivery, and we reiterate our overweight stance," it said.