Reckitt to Spinoff their Pharmaceutical Business
Reckitt Benckiser have today announced that they are planning on separating their pharmaceutical business, as they continue to concentrate on consumer health and hygiene.
The process to separate RB Pharmaceuticals to be a separate UK listing is expected to occur within the next 12 months.
The decision was founded from Reckitt’s belief that the division “has the potential to deliver significant long-term value creation as a stand-alone business,” commented Rakesh Kapoor, chief executive of Reckitt Benckiser.
Reckitt’s finance chief, Adrian Hennah, noted that Reckitt Benckiser may still decide to sell their pharmaceutical business and could retain a stake in the spinoff.
The announcement came after Reckitt announced that revenue from their pharmaceuticals business dropped five percent for the second quarter of 2014, after excluding the impact of exchange rates.
A stand-alone business will be best placed to create value for shareholders as it manages the challenges and seizes the opportunities” the company concluded, noting that they “believe that RBP will be a more attractive partner for business development opportunities as a stand-alone and separately managed entity.