Pfizer to conduct Capsugel strategic review

Pfizer is to conduct a review of its strategy relating to the Capsugel business unit, in order to determine the most efficient way of utilising the asset.

The company is working with Morgan Stanley to evaluate strategic alternatives for the hard capsules and drug delivery systems specialist, with divesture among the potential options.

According to Pfizer, Capsugel represents a unique and successful business within the company's overall portfolio, generating revenue of around $740 million (467.5 million pounds) in 2009.

Cavan Redmond, senior vice-president and group president for Pfizer's diversified businesses unit, said the continuing success of the firm suggests it could have "strong potential for growth" if sold by Pfizer.

He added: "The decision to consider strategic alternatives for Capsugel is part of Pfizer's strategy to optimise its business mix and leverage its competitive strengths to deliver value for shareholders."

This week, the company also announced that it has completed its takeover of the drug discovery and clinical development firm FoldRx Pharmaceuticals.