Pfizer Animal Health IPO ‘could come early next year’

Pfizer Animal Health could soon be the subject of an initial public offering (IPO) in the US worth around $4 billion (2.46 billion pounds).

The deal, which would be the biggest US company IPO since Facebook's in May 2012, may take place in early 2013, people close to the matter have informed the Wall Street Journal.

A final launch decision will depend on market conditions, but it is thought that parent company Pfizer considers this the best way of realising its full valuation of the business unit, which it is preparing to separate into a distinct business called Zoetis.

According to sources, potential buyers such as Novartis and Bayer have cooled their interest in purchasing the organisation due to Pfizer's $20 billion price tag, making an IPO the most likely course of action.

During the third quarter of 2012, Pfizer Animal Health generated revenues of $1.02 billion, representing year-on-year growth of four percent.

Once separated, Zoetis would become one of the biggest players in the animal health industry, employing more than 9,000 people worldwide.