Recall that Pfizer has completed this 100 per cent spinoff path, as of June 2013 (in the form of Zoetis). Overnight, Novartis has apparently made some noises — so it stands to reason that journalists will start guessing at what Merck’s Animal Health businesses might fetch.
The first of these, in this new round, I think — is out of Bloomberg — and puts a mythical $13 billion “added value” price-tag on any such transaction. I, for one, will be firmly skeptical, of any such eye-popping value add, coming out of Whitehouse Station — or formerly, Summit, NJ.
I am almost equally certain that the various M&A advisory firm bankers (Goldman plainly included here), now jetting about the country (and globe, actually) are carrying pitch books and Powerpoints — with just such nonsense projections baked right in, throughout.
. . .Novartis has identified its animal-health business as a top candidate for a sale as Chairman Joerg Reinhardt revamps the Swiss drugmaker, according to three people familiar with the matter.
Novartis is working with Goldman Sachs Group Inc. on a portfolio review, which is at a relatively early stage, said two of the people, all of whom asked not to be named because the process is confidential. Novartis is also considering selling its over-the-counter medicines unit and the vaccines operation, they said. No final decision on asset sales has been made, the people said. . . .
Uh-huh. Here’s to hoping that Mr. Frazier, and the board, will be able to see through the fog of hype the bankers are forever spinning — with trumped up, and goofy, stand-alone Animal Health company enterprise value calculations. I hope.