Pfizer said it will spin off its majority stake in animal health business Zoetis to shareholders by allowing them to swap Pfizer stock for Zoetis shares at a 7 per cent discount.

Pfizer, the largest US drugmaker, sold Zoetis shares in an initial public offering in February that raised $2.2 billion. Pfizer retained an 80 per cent stake in Zoetis after the IPO and plans to unwind that, starting with this offer.

The move comes as Pfizer continues to unload its non-pharmaceuticals businesses to focus on its core prescription drugs business, which has far-higher profit margins.

The offer would allow Pfizer shareholders to exchange $100 worth of company stock for $107.52 worth of Zoetis stock. The premium is meant to encourage Pfizer shareholders to acquire Zoetis shares. – (Reuters)