|
 Sales of Suboxone have slumped and Reckitt has two new
pharmaceutical projects that could diversify revenue and boost the
unit's market valuation.
The British company put Suboxone under strategic review in October
and in April said it was leaning towards spinning off the business
rather than a private sale.
Analysts had given a range of valuations for the business due to
uncertainty over the longer-term impact of competition from generic
versions of Suboxone. Deutsche Bank values it at 2.9 billion pounds
($4.92 billion) including debt. Prior estimates from other analysts
have ranged from 2 billion to 5.5 billion pounds.
"A trade buyer looks to have remained elusive, with a stockmarket
listing the natural, if potentially more fraught, alternative," said
Hargreaves Lansdown analyst Keith Bowman.
Reckitt did not entirely rule out an outright sale if a buyer
emerges. It has not decided whether to keep a stake in Suboxone if
it opts for a spin-off.
Reckitt, which also makes Durex condoms, Finish detergent and
Nurofen painkiller, reported a 4 percent rise in first-half sales on
a constant-currency basis, excluding Suboxone, whose sales fell 8
percent.
The growth was in line with many analysts' expectations.
Reckitt stood by a 2014 target for revenue growth of 4-5 percent
this year. It said it expected more profit margin growth, which
implies an increase on a prior target for the margin to be flat to
marginally higher.
[to top of second column] |
Recent efforts to reduce costs have targeted the company's
advertising budget, among other areas.
Reckitt shares were up 2.6 percent at 0821 GMT.
Bernstein analysts have said that Suboxone - which is sold as a film
that dissolves in the mouth - has 79 percent of the large U.S.
market, down from about 85 percent since generics went on sale in
March last year.
($1 = 0.5890 British Pounds)
(Reporting by Martinne Geller in London; editing by Tom Pfeiffer)
[© 2014 Thomson Reuters. All rights
reserved.] Copyright 2014 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
