U.K.-based companies GlaxoSmithKline plc and Reckitt Benckiser Group plc submitted nonbinding bids for Pfizer Inc.'s consumer health business, Bloomberg News reported, citing people familiar with the matter.
Pharmaceutical companies Sanofi, Johnson & Johnson and Swiss food company Nestlé SA were among the companies that considered placing bids, but decided against doing so, the sources said. A spokesman for J&J confirmed the company withdrew from the bidding process.
Potential buyers were concerned about the unit's stagnant sales and challenges from online competitors such as Amazon.com Inc.
The consumer health unit, which produces pain drug Advil among other household names, could be sold for $15 billion to $20 billion. The deadline for bids was on Feb 1.
New York-based Pfizer will open a data room for GlaxoSmithKline and Reckitt Benckiser to start due diligence on the assets before the companies submit their final offers in the coming weeks.
The company will continue to evaluate options for the unit, including a sale, spin off or other deal, or it may decide to keep the business, a spokeswoman for Pfizer said. She added that the company expects to make a decision in 2018.
Pfizer is not the only company looking into options for its consumer health unit. Germany's Merck KGaA also said in September 2017 that it was considering strategic options for its consumer health business, including a full or partial sale.
