Newspaper article International New York Times

Spinoff Plan Puts Focus on Core Brands ; as Pharmaceuticals Sales Drop, Reckitt Benckiser Looks to Health Businesses

Newspaper article International New York Times

Spinoff Plan Puts Focus on Core Brands ; as Pharmaceuticals Sales Drop, Reckitt Benckiser Looks to Health Businesses

Article excerpt

The spinoff would allow Reckitt Benckiser to focus on its core consumer health and hygiene businesses.

The British consumer products company Reckitt Benckiser said on Monday that it would seek to spin off its pharmaceuticals business in an initial public offering in London.

The spinoff, which is expected in the next 12 months, would allow Reckitt Benckiser, the maker of Clearasil acne treatments, Lysol cleaning products and Durex condoms, to focus on its core consumer health and hygiene businesses.

In October, Reckitt Benckiser reviewed its pharmaceuticals business, which has seen declining sales and market share in recent quarters. The bulk of its drug sales are from Suboxone, which is used to treat dependence on heroin and other opiates.

"We believe that RB Pharmaceuticals has the potential to deliver significant long-term value creation as a stand-alone business," Rakesh Kapoor, the chief executive of Reckitt Benckiser, said in a statement.

The company said Monday that revenue in its pharmaceuticals business, excluding the impact of exchange rates, was down 5 percent in the second quarter from a year earlier, at 174 million pounds, or about $295 million. …

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