Analysts had given a range of valuations for the business due to uncertainty over the longer-term impact of competition from generic versions of Suboxone. Deutsche Bank values it at 2.9 billion pounds ($4.92 billion) including debt. Prior estimates from other analysts have ranged from 2 billion to 5.5 billion pounds.
“A trade buyer looks to have remained elusive, with a stockmarket listing the natural, if potentially more fraught, alternative,” said Hargreaves Lansdown analyst Keith Bowman. [eap_ad_2] Reckitt did not entirely rule out an outright sale if a buyer emerges. It has not decided whether to keep a stake in Suboxone if it opts for a spin-off.
Reckitt, which also makes Durex condoms, Finish detergent and Nurofen painkiller, reported a 4 percent rise in first-half sales on a constant-currency basis, excluding Suboxone, whose sales fell 8 percent.
The growth was in line with many analysts’ expectations.
Reckitt stood by a 2014 target for revenue growth of 4-5 percent this year. It said it expected more profit margin growth, which implies an increase on a prior target for the margin to be flat to marginally higher.
Bernstein analysts have said that Suboxone – which is sold as a film that dissolves in the mouth – has 79 percent of the large U.S. market, down from about 85 percent since generics went on sale in March last year. (Reuters)[eap_ad_3]