An announcement on the future of the business unit is expected by the end of the first quarter of 2011, said Pfizer, and “divestiture” is a possibility.
"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 & 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,” added Redmond.
According to the Associated Press, Pfizer said that Capsugel has strong potential for growth outside of the pharma giant.
Capsugel generated $740 million of revenue in 2009, which, while impressive, does pale beside the parent company’s $50 billion in revenue last year.
"The breadth and depth of Pfizer's portfolio are industry leading," said Mr. Redmond. "We remain dedicated to meeting the evolving needs of our customers and patients worldwide in the rapidly changing healthcare market."
Capsugel offers a range of products and services, including hard gelatin, liquid-filled, and vegetarian capsules, and R&D equipment and liquid formulations as part of its Licaps Drug Delivery System.