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news.P&G intends to sell off its pharmaceuticals unit as part of its strategy to focus on high-growth businesses. The company is currently working with Goldman Sachs to identify potential buyers.
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According to the company, lower returns in pharmaceuticals compared to consumer products has led it to revise its strategy. The company has earlier heavily invested in the pharmaceuticals sector when the gains from pharma were more than that in consumer products. However, rising R&D costs and increasing competition from generics, led to lower returns on pharma products, the company said.
According to A G Lafley, P&G’s CEO, the company has stopped investing in new drug development and is considering to divest some of its key pharmaceuticals brands. However, the company will continue to develop its consumer healthcare business, he added.