The stock of Pfizer Inc (NYSE:PFE) closed at $35.04 gaining 1.59% in yesterday’s trading session. The recent move by Reckitt Benckiser to do away with its pursuit of the consumer health assets of Pfizer is tasking it with a tough job which has everything to do with the restoration of the growth of its flat-lining business.
With the deal now left behind, quite a significant number of the investors will be shifting their attention to the internal challenges of Reckitt and in this particular regard the integration of Mead Johnson is one of them. This happens to be the ailing baby formula maker it moved ahead to purchase in the previous year which was worth $17 billion and one notable aspect is the fact that a reigniting sales growth was experienced.
Steve Clayton, who happens to be a Reckitt shareholder while at Hargreaves Lansdown disclosed that the market as a whole had gotten used to Reckitt standing out as the company which at all times delivered ahead-of-market volume growth. However, matters played out a little bit differently in the previous year. The top official asserted that time had finally arrived for the company to move forward and place the crown back to its head.
Alex Smith, who happens to be a Barclay’s analyst opined, “We caution on being too optimistic over the prospects of a quick fundamental turnaround of the core businesses. In particular, we still see too many uncertainties around the cost and cultural change required to restore growth and competitiveness.”
A number of journalists recently approached one of the top officials working with the company and they were looking forward to getting his perspective regarding the latest developments by the company. According to him, hopes were high that the Pfizer business would have gone along way binging to light the possibility of Reckitt moving a notch higher in line with becoming a trusted leader in the consumer health.
Rakesh Kapoor in his role as the company’s chief executive has at all times emphasized the great need to embrace financial discipline at such a time when business dynamics are shifting pretty fast.
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