Pfizer is currently assessing the potential divestiture of its hospital drugs unit, a division mainly focused on antibiotics and sterile injectables used in hospitals and clinics, Reuters reported.

The company has engaged Goldman Sachs to solicit initial interest from prospective buyers, including other pharma entities and private equity companies, according to sources who wish to remain anonymous.

The unit in question, Pfizer Hospital, was established following Pfizer's acquisition of Hospira for approximately $17bn in 2015.

This move bolstered Pfizer's Global Established Pharmaceutical business, granting it a position in the sterile injectables category.

However, amid pressure from activist investor Starboard Value, the company is considering divesting noncore assets as noted by the three with knowledge of the subject.

After its purchase of Hospira, Pfizer merged the biosimilars business with its own, which produced more affordable versions of high-cost biotech drugs.

In 2017, the hospital infusion system business, which was acquired through the Hospira deal, was sold by Pfizer.

The Pfizer Hospital unit is now a standalone subsidiary with a focus on antibiotics and other hospital and clinic-administered drugs.

At present, this business generates earnings before interest, taxes, depreciation, and amortisation (EBITDA) nearing $500m.

However, sources caution that the sale is not certain, and Pfizer might opt to retain the division. Both Pfizer and Goldman Sachs have refused to comment on the matter.

Pfizer, which reported long-term debt of $61.5bn at 2023-end, has been divesting noncore businesses and stakes in other companies to alleviate its debt burden.

Last month, the company sold a stake of approximately $3.26bn in Haleon, a UK-based consumer healthcare group.

These strategic moves come as Pfizer, under the leadership of CEO Albert Bourla, faces scrutiny from Starboard, which has condemned the company's spending on large acquisitions and the lack of profitable new drugs resulting from those deals or its internal research and development.