Indian arms of Pfizer, Wyeth to merge soon

The decision of Pfizer to acquire rival drugmaker Wyeth in a $68-billion cash-and-stock deal will also see merger of the listed Indian subsidiaries of both US multinationals soon.

The combined entity will generate about Rs 1,500 crore revenues and will be one of the top 10 drug firms in the domestic market.

Pfizer is the second biggest foreign multinational after GlaxoSmithKline in terms of domestic sales of medicine.

Wyeth, which had generated annual sales of around Rs 400 crore last year, will help Pfizer firm its presence in the top-10 list.

“The merger will be complimentary in nature as it will give Pfizer India an opportunity to enter the vaccines market. Wyeth also has a strong presence in antibiotics,” an industry expert said.

Wyeth promoters hold 57 per cent in the listed subsidiary in India.

Spokespersons of the subsidiaries of both Pfizer and Wyeth declined to comment on the development.

Pfizer is known to have over 2,000 employees in India.

The staff strength of Wyethis approximately 800, sources said. It is not immediately known if the rationalisation plans of the combined entity will lead to job losses.

“Pfizer and Wyeth have specifically defined business avenues.

Hence the merger is unlikely to have a major impact on the employees,” the industry expert said.

Pfizer focuses on the sales of medicines related to cancer, heart attack and neurological illnesses, whereas Wyeth specialises in vaccines, antibiotics and gynecological drugs.

On the last trading session on the Bombay Stock Exchange on Friday, Pfizer’s stock price went up 6.57 per cent to close at Rs 514.65. Wyeth’s share price closed 1.12 per cent up at Rs 453.02.

Meanwhile, a joint press release posted on Pfizer’s website said the merged entity will have a significant presence in high-growth emerging markets, such as Latin America, West Asia and China, where Wyeth has an impressive presence in infant nutritional and Pfizer is a recognised leader in pharmaceuticals.

Geographically, the combination will enhance Pfizer’s and Wyeth’s compelling portfolios in important growth areas.

Based on IMS data, the combined company will be number one in terms of biopharmaceutical revenues in the United States with an approximately 12 per cent market share; in Europe with an approximately 10 per cent share; in Asia (ex-Japan) with an approximately 7 per cent share; in Japan with a 6 per cent share; and in Latin America with a 6 per cent share.