🥼 Pfizer Trims Haleon Stake by 700 Million Shares

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Here’s what we got today:

  • 🥼 Pfizer Reduces Stake In Haleon

  • 🏦 Wells Fargo CFO Notes Stable Consumer Activity

  • 🏥 UnitedHealth CEO Urges Less Complexity in U.S. Healthcare

Pfizer Reduces Stake In Haleon

Ever wonder what a $3 billion exit looks like? Pfizer ($PFE) just showed us. Pfizer just offloaded 700 million shares of British consumer-healthcare business Haleon ($HLN). The sale was priced at 357 pence each, a 2.75% discount to Haleon’s previous closing price of 367.10 pence. Pfizer’s stake in Haleon slides from 15% to 7.3%. Haleon was formed in 2019 from GSK ($GSK) and Pfizer’s consumer-healthcare units and was spun off in 2022. Brands under its umbrella include Sensodyne, Aquafresh, Panadol, and Advil. The transaction was completed via a bookbuild process and netted Pfizer around $3.05 billion. 

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  • Haleon is based in the U.K. and specializes in everyday healthcare products.

  • The company’s name is derived from “Hale” (healthy) and “Leon” (strength).

Wells Fargo CFO Notes Stable Consumer Activity

If the checkout lane is busy, you can thank the strong consumer. Wells Fargo ($WFC) CFO Mike Santomassimo says consumer spending remains steady, with credit and debit card usage holding up well. The bank sees overall healthy economic conditions, citing continued job growth and stable activity levels. While lower-income groups feel more inflationary strain, Santomassimo notes consistent credit performance across the board. Mortgage demand has dipped, and rates remain high, but the bank’s loan portfolio may see modest growth next year, according to its earnings release.

  • The average 30-year fixed mortgage rate currently exceeds 7%, per Bankrate.

  • A nationwide housing shortage continues to prop up home prices.

UnitedHealth CEO Urges Less Complexity in U.S. Healthcare

Healthcare is supposed to heal, but UnitedHealth’s Andrew Witty says it’s time to fix the system. The CEO urged changes to make U.S. healthcare “less confusing, less complex, and less costly” during an earnings call overshadowed by the murder of Brian Thompson, who led UnitedHealth’s ($UNH) insurance division. Witty noted efforts to simplify prior authorizations for Medicare members and pledged to work alongside policymakers. Shares fell 4.7% as fourth-quarter medical costs rose, pushed by ongoing demand from older adults and an influx of sicker patients in Medicaid. The medical cost ratio hit 87.6%, compared with analysts’ estimates of 85.95%. Fourth-quarter revenue was $100.81 billion, missing forecasts. 

Reuters

  • The medical cost ratio typically hovers closer to 80%.

  • Brian Thompson’s death occurred ahead of an investor day meeting, startling the industry.

Market Analysis For the Average Investor 🔎

#1

Haleon’s range of well-known brands (e.g., Sensodyne, Advil) and steady global demand for everyday healthcare products might interest investors seeking stable, consumer-driven segments.

#2

While mortgage demand is down due to higher interest rates, the bank’s loan outlook provides a snapshot of broader economic and borrowing trends—valuable for those tracking real estate or financial services sectors.

#3

Efforts to reduce prior authorization steps could alter how insurers manage claims and coverage.

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