Pfizer has announced plans to wind down its interest in animal health group Zoetis in order to focus on its core biopharmaceuticals business.
The US drug giant already sold a near 20% stake in the division in an initial public offering earlier this year that reportedly raised over $2 billion.
Now the firm said it intends to get rid of the rest via an exchange offer, which will allow its shareholders to exchange shares of Pfizer common stock for shares of Zoetis' stock owned by the drug giant.
The move to cleave off the animal health business is expected to be accretive to Pfizer’s earnings per share from beginning 2014.
"Given the strong demand in the IPO and a favourable market environment, we concluded that now is the appropriate time to distribute our remaining stake in Zoetis,” said Ian Read, Pfizer Chairman and Chief Executive, explaining the move.