Pfizer India’s shares zoom as parent company offers to boost stake by 75%

Pfizer India’s share prices peaked upto 13 percent to 700 rupees, the highest in almost a year, following world’s largest drug maker Pfizer Inc’s announcement to raise its stake in Indian subsidiary by, at least, 75%.

Pfizer india’s stock was trading 8.9 percent higher at 677 rupees at Indian bourses on Monday morning.

Pfizer currently holds 41.23 percent in Pfizer Limited – the Indian arm of the company.

Pfizer Inc would pay about $136 million to buy the nearly 33% stake in the Indian subsidiary, Pfizer Inc stated in New York on Sunday.

Pfizer will launch a tender offer to buy a 33.77 percent stake in the Indian business at a price of 675 rupees per share.The offer represents a premium of more than 8 percent to the April 9 closing price for Pfizer Ltd.

Pfizer expects to open the offer in June 2009, subject to regulatory approvals in India.

A public announcement will be issued in India as required by the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997.

The offer for these shares, which are traded on the Bombay Stock Exchange Limited and the National Stock Exchange of India Limited. The open offer will be managed by HSBC Securities and Capital Markets (India) Private Limited, the company statement said.

Pfizer Limited (India) is one of the fastest growing pharmaceutical companies in India with a consistent ‘higher than market’ growth rate since 2006. In 2006 Pfizer India registered a turnover of US$ 172 million (November 2006). Pfizer has been ranked as the most respected MNC pharmaceutical company by survey in the same year.

Pfizer has made clinical research investments of US $ 15.75 million in India. Pfizer India has also partnered with other pharmaceutical companies, contract research organizations and investigators to establish Indian Society for Clinical Research (ISCR) – a professional society aimed at raising the standards of clinical research.

Pfizer India was awarded the FICCI–SEDF (Socio Economic Development Foundation) Certificate of Commendation for its social responsibility efforts.Since 2005 Pfizer India several products including Vfend, Viagra, Lyrica, Caduet and Macugen. More than half a dozen Pfizer brands feature among the Top-100 pharmaceutical brands in India.

Pfizer India’s cough formulation, Corex continue to rank as the No.1 brand amongst all pharmaceutical drugs produced in India. Similarly, Pfizer India’s multivitamin pill Becosules , which is  currently ranked the 11th largest prescription in the Indian market according to market research agency ORG Marg, is also a big revenue spinner for Pfizer India.

Pfizer India instituted Disease Management Program – Healthy Heart- in Cardio Vascular Disease (hypertension, chronic stable angina and dyslipidemia), in partnership with Apollo Hospital, Hyderabad and more recently with Apollo Hospital, Chennai.

Headquartered in Mumbai, Pfizer India employs nearly 2000 staff.Pfizer India has state-of-the-art manufacturing facility at Thane, Maharashtra.

Pfizer’s announcement come close on the heels of Novartis AG, Switzerland’s second-biggest drug maker, which sought to increase control after shares in their Indian units slumped last year. Novartis offered to buy an additional 39 percent in Novartis India Ltd. for 4.4 billion rupees on March 25.

Novartis offered 351 rupees for the shares, a 27 percent premium to the unit’s closing share price on the previous day. 

Pfizer Inc, the world’s largest drug maker announced plans to buy rival Wyeth for $68 billion earlier this year.