Reckitt brings in drugs chairman
CONSUMER goods giant Reckitt Benckiser has hired a chairman for its troubled pharmaceuticals arm and to help with its strategic review as the company posted a rise in fourth quarter sales.
The company said yesterday it has brought in Howard Pien, a US-based pharmaceutical adviser, to chair its RBP unit, in what analysts said was another sign that the firm is being prepped for sale.
Reckitt’s RBP unit is focused on the drug Suboxone used to treat people with addictions to opioids such as heroin. However sales have been steadily declining since it lost its exclusive licence in the US in October 2009 and it was put under strategic review last year.
Analysts believe it could fetch anything from £1.5bn to more bullish estimates of £6bn, however the uncertainty lies over how many years of profit there are left in the business.
In its full-year results yesterday, Reckitt said that the review was still ongoing and that it would update investors over the course of the year.
The maker of Cillit Bang, Dettol and Nurofen said fourth quarter like-for-like sales, excluding its drug business, rose four per cent thanks to a strong performance from health and hygiene brands.
Net revenues for 2013 rose five per cent to £10bn, however pre-tax profits fell to £2.3bn in 2013 compared with £2.4bn in 2012 due to exceptional items and write-offs linked to legal and regulatory investigations.
“Market conditions are more challenging now than at the beginning of last year, particularly in some emerging markets,” chief executive Rakesh Kapoor said. Still, he was confident the company would deliver growth this year.