Haleon plc (LSE/NYSE: HLN), a leading consumer health company, recently finalized an off-market share repurchase transaction with Pfizer Inc. This deal involved acquiring 60,526,315 ordinary shares at a total cost of £230 million. Following the repurchase, Haleon canceled half of the bought shares and retained the rest as treasury shares.
Currently, Haleon has a total issued share count of 9,083,725,919, with 30,365,037 shares held in treasury, leaving 9,053,360,882 shares with voting rights. This figure is crucial for shareholders and stakeholders needing to disclose their interests as per the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.
Amanda Mellor, the Company Secretary, confirmed the completion of the share purchase. Haleon's portfolio includes popular brands like Advil, Sensodyne, and Centrum, focusing on Oral Health, Pain Relief, and Vitamins, Minerals, and Supplements.
In addition to the share repurchase, Haleon recently divested its nicotine replacement therapy business outside the United States to Dr. Reddy's Laboratories SA for up to £500 million. The company also increased its equity stake in Tianjin TSKF Pharmaceutical Co. Ltd to 88% and witnessed changes in its board of directors with Alan Stewart's resignation.
Analysts from Morgan Stanley and BofA Securities raised Haleon's stock price target, while Goldman Sachs downgraded it to "Neutral," and Berenberg initiated coverage with a "Buy" rating. Noteworthy developments include the launch of Eroxon®, the first FDA-cleared over-the-counter gel for erectile dysfunction treatment in the US.
InvestingPro Insights
Haleon's recent share repurchase aligns with positive indicators highlighted by InvestingPro data. The company's impressive gross profit margin of 62.54% in the last twelve months as of Q2 2023 reflects strong pricing power and efficient cost management. Operating with moderate debt levels may have enabled the £230 million buyback.
The market's positive response to Haleon's strategic moves is evident as the stock trades near its 52-week high at 97.59% of its peak, with a 25.26% return over the last three months. Analysts predict profitability this year, signaling the company's solid financial position.
For in-depth analysis, InvestingPro offers 7 additional tips for investors to gain deeper insights into Haleon's financial health and market position.
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Analysis:
Haleon plc, a consumer health company, recently completed a significant share repurchase from Pfizer, indicating a strong financial position and strategic moves in the market. The company's focus on popular brands and key sectors like Oral Health and Pain Relief, along with recent divestments and equity stake increases, reflects a proactive approach to growth.
Analysts' ratings and the launch of innovative products further contribute to Haleon's positive outlook. The company's financial indicators, including profit margins and debt levels, suggest stability and potential for profitability. Investors can leverage InvestingPro's insights for a comprehensive understanding of Haleon's market standing and investment opportunities.