Reckitt Benckiser's £3bn float to shed its pharmaceutical division
Dettol and Harpic owner Reckitt Benckiser will float its pharmaceutical division for at least £3billion after failing to find a buyer.
The consumer goods giant has chosen the London Stock Exchange to list RB Pharmaceuticals (RBP) having launched a strategic review last October.
But the group’s strong set of half-year figures was overshadowed by the lack of detail surrounding the float.
RBP houses one key product – Suboxone, a heroin-addiction treatment administered by way of a dissolvable wafer-thin film. The business is not key to Reckitt, which also makes Nurofen and Strepsils, and has dragged Reckitt down since Suboxone lost patent protection and rivals copied it.
In half-year figures, RBP, which accounts for 7 per cent of group revenues, saw sales fall 8 per cent to £344million.
Martin Deboo, an analyst at Jefferies, said the lack of information took the shine off ‘strong organic performance’ at Reckitt, which also makes Durex condoms.
‘This feels like an anti-climax to us, relative to pre-event speculation that RB was to announce more concrete plans,’ he said
Reckitt Benckiser, which also announced plans to ditch its centuries old name in favour of just RB, credited a raft of innovations for a 3 per cent rise in underlying second- quarter sales.
The launch of Durex Devices, a range of ‘pleasure toys designed especially for the female body,’ and Vanish Gold, which removes stains in 30 seconds, were highlights during the six months.
Group pre-tax profit rose £1billion from £898million on sales of £4.6billion. The interim dividend was maintained at 60p a share.
Sir Andrew Witty said Britain’s biggest drugs maker could sell its consumer healthcare business if it offered more value as a separate business, but there were no plans to do this in the immediate future.
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