Would Advil or Preparation H help cure P&G?

Procter & Gamble may bid to acquire the consumer health business that big-pharma player Pfizer said this month it is reviewing for possible sale, one Wall Street analyst says.

The New York-based pharmaceutical company, which is looking to grow its core business, disclosed on Oct. 10 it was considering "strategic alternatives" for its non-prescription business that does $3.4 billion in annual sales.

Potentially up for grabs are: headache remedy Advil, cough medicine Robitussin, lip balm ChapStick, Centrum vitamins, heartburn drug Nexium and hemorrhoid treatment Preparation H.

A P&G takeover would reunite the company with its ThermaCare heat wrap brand that it sold off in 2008 to Wyeth, a year before Pfizer took over Wyeth.

"We believe that Procter & Gamble is likely to take a close look at this business," wrote Bernstein analyst Ali Dibadj, in an Oct. 17 note to investors, adding P&G has openly discussed doing more acquisitions.

Dibadj admitted the roughly $16 billion price tag for the acquisition would be larger than the "bolt-on" type of deals P&G has indicated most of its interest.

Tantilizingly, P&G also disclosed during its months-long proxy battle with activest investor Nelson Peltz, it it is seeking "health care experience" for prospective board members. The company hinted at future growth areas as part of its argument the hedge fund boss wasn't qualified for the board seat he sought.

Nelson Peltz lost P&G seat by less than 1 percent, may demand P&G recount

While P&G has emerged from its fight with Peltz with a narrow win so far, a good acquisition could mute critics of the Cincinnati-based company. During his campaign, Peltz argued P&G should look at more acquisitions to help drive growth.

Dominated by oral care brands Crest toothpaste and personal health brands Vicks cough medicine, P&G's health care business is a $7.5 billion business unit. The unit also includes tooth brush brand Oral-B and digestive wellness products Metamucil and Pepto Bismol.

P&G's health business has focused on medicine-cabinet staples and over-the-counter (non-prescription) remedies since it exited its own pharmaceutical operations (anchored by the billion-dollar Actonel brand) in 2006.

Besides P&G, rival pharma companies Bayer AG, GlaxoSmithKline and Sanofi as well as European food company Nestle are seen as other potential buyers of Pfizer's non-prescription business.

Though Dibadj did not address other potential divestitures by health players, others in the sector are reviewing non-core assets.

Germany’s Merck also announced this fall it might exit its $1 billion in sales consumer health unit, which includes products such as Bion, Femibion, Nasivin, Neurobion, and Seven Seas brands.

On Tuesday, Eli Lilly disclosed it might sell or spin off its animal health division, which does $3.2 billion in annual revenues.