Estimated Spin-Off Values For Consumer Divisions

Morningstar market analysts advocate large pharma firms spinning off consumer divisions to realize better value. Below are their estimates of the divisions' values and their comments on the likelihood of each firm's divestment.
Firm	Standalone Consumer Division Approximate Value	Sale / Spin-Off Likelihood
Johnson & Johnson	$29.2 bil.	"Highly unlikely"
GlaxoSmithKline	£11.9 bil. ($19.6 bil. by May 31 exchange rates)	Already offering with poor-performing brands
Abbott Laboratories	$12.5 bil. pediatric only; $16.1 bil. with adult nutritionals	Management stated it wants firm to remain in current structure
Bayer	€6.8 bil. ($9.8 bil.)	Unlikely – more likely to shed materials sciences business
Sanofi-Aventis	€6.1 bil. ($8.8 bil.)	Unlikely – potential bidder for other firms' consumer assets
Novartis	$6.3 bil.	Unlikely – potential bidder for other firms' consumer assets
Pfizer	$5.8 bil. (OTCs); $7 bil. (nutritionals)	Nutritionals business "one of the most likely units to be divested"
Merck & Co.	$4.1 bil.	"Would not be surprised" to see breakaway
Merck KGaA	€687 mil. ($988 mil.)	"Logical candidate for divestiture"
Source: Morningstar Healthcare Observer, May 2011