Haleon plc (LSE/NYSE: HLN), a leading consumer health company, announced today the completion of an off-market share repurchase from Pfizer Inc. (NYSE:PFE) The transaction involved the acquisition of 60,526,315 ordinary shares at a total cost of £230 million. Following the buyback, Haleon cancelled half of the purchased shares and retained the remainder as treasury shares.
As of today, Haleon reported a total issued share count of 9,083,725,919, with 30,365,037 shares held in treasury. Consequently, the number of shares with voting rights stands at 9,053,360,882. This figure is significant for shareholders and other stakeholders who are required to disclose their interests under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Amanda Mellor, Company Secretary, confirmed the completion of the share purchase. The company's portfolio includes well-known brands such as Advil, Sensodyne, and Centrum, focusing on areas like Oral Health, Pain Relief, and Vitamins, Minerals and Supplements. The information in this article is based on a press release statement.
In other recent news, Haleon plc ompleted the divestment of its nicotine replacement therapy business outside the United States to Dr. Reddy's Laboratories SA, in a deal worth up to £500 million.
The company increased its equity stake in the Chinese joint venture, Tianjin TSKF Pharmaceutical Co. Ltd, to 88%. Notably, Haleon recently experienced changes in its board of directors with the resignation of Alan Stewart.
Analysts at Morgan Stanley and BofA Securities have upgraded Haleon's stock price target, while Goldman Sachs downgraded it from "Buy" to "Neutral," and Berenberg initiated coverage with a "Buy" rating. Another key development includes the launch of Eroxon®, the first FDA-cleared over-the-counter gel for the treatment of erectile dysfunction in the United States. These are recent developments in Haleon's operations.
InvestingPro Insights
Haleon's recent share repurchase from Pfizer aligns with several positive indicators highlighted by InvestingPro data. The company's impressive gross profit margin of 62.54% for the last twelve months as of Q2 2023 suggests strong pricing power and efficient cost management. This financial strength is further supported by an InvestingPro Tip noting that Haleon operates with a moderate level of debt, which may have facilitated the £230 million share buyback.
The market seems to be responding positively to Haleon's strategic moves, as evidenced by the stock trading near its 52-week high, with a price at 97.59% of its peak. This performance is reinforced by a strong 25.26% return over the last three months. These metrics, combined with the InvestingPro Tip that analysts predict profitability this year, paint a picture of a company on solid financial footing.
For investors seeking more comprehensive analysis, InvestingPro offers 7 additional tips that could provide deeper insights into Haleon's financial health and market position.
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