Pfizer declines after clarification

Pfizer fell 0.15% to Rs 1,136.45 at 15:56 IST on BSE after the company issued clarification based on media reports of stake recast plans.

Pfizer issued clarification during trading hours today, 25 February 2014.

Meanwhile, the BSE Sensex rose 41.03 points, or 0.20%, to 20,852.47.

On BSE, so far 34,000 shares were traded in the counter, compared with an average volume of 17,922 shares in the past one quarter.

Trading in the counter was volatile. The stock rose 4.26% at the day's high of Rs 1,186.70. The stock fell 0.59% at the day's low of Rs 1,131.50.

The stock hit a record high of Rs 1,779 on 2 December 2013. The stock hit a 52-week low of Rs 985 on 29 July 2013.

The stock had outperformed the market over the past one month till 24 February 2014, rising 4.10% compared with the Sensex's 1.52% fall. The scrip had, however, underperformed the market in past one quarter, falling 20.49% as against Sensex's 2.94% rise.

The mid-cap company has an equity capital of Rs 29.84 crore. Face value per share is Rs 10.

With reference to the news item appearing in a leading financial daily dated 25 February 2014 titled "Pfizer Stock Gains Over 20% on Stake Recast Plans", Pfizer clarified that the news article is speculative and was not authorised by, or attributable to any statements made by or on behalf of, Pfizer. For instance, the article mentions unsubstantiated market rumours of a possible delisting of Pfizer. The company clarified that is not aware of any discussions or proposals by its promoters to delist the company's shares from Indian markets.

As regards the transfer of shares of Pfizer, such transaction is being undertaken directly between shareholders of Pfizer and to which, Pfizer was not a transacting party. Pfizer said it understands that filings have been made by the acquiring entity i.e., Pfizer East India B.V., Netherlands, under applicable provisions of the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011. The company said it understands that such transfers are being undertaken as part of the global internal corporate restructuring plan of the Pfizer Group, as reported previously. The company said it does not believe that the present transfers have bearing on the stack price of Pfizer, given especially that ultimate control of Pfizer remains unchanged.

The company further said that while it is not aware of the reasons behind the price movement, it could possibly be a result of the filings made by Pfizer East India B.V., Netherlands, under the Sebi (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

"Rest assured, if and when we make any announcement regarding any material activity for our business, we will ensure that we continue to follow mandated procedures of informing stock exchanges in a timely manner, so as to ensure uniform and simultaneous disclosure to all the investors," Pfizer said in a statement.

Pfizer during trading hours on Monday, 24 February 2014, announced an internal corporate restructuring plan. Under the plan, Pfizer East India B.V. Netherlands proposes to acquire 60.94% stake, which is collectively held by Pfizer Corporation (31.42% stake) and Pfizer Investments Netherlands B V (29.52% stake), Pfizer said in a BSE filing. Both, the acquirer and the sellers are held and controlled by Pfizer Inc., USA. Pfizer Investments Netherlands B V would sell 88.10 lakh shares at Rs 1,537 per share, while Pfizer Corporation will sell 93.76 lakh shares as a gift, for no consideration, it added.

The pharmaceutical firm said that the acquisition price would not be higher by more than 25% of the weighted average market price of Rs 1,340.72 per share. The acquisition date for proposed transaction will be on or before 28 February 2014. Shares of Pfizer spurted 9.36% to Rs 1,138.20 on Monday.

Net profit of Pfizer declined 25.49% to Rs 47.60 crore on 7.80% rise in net sales to Rs 247.70 crore in Q3 December 2013 over Q3 December 2012.

Pfizer's pharmaceuticals product portfolio spans a wide range of therapeutic classes from vitamins supplements and nutritional to antibiotics and cardiovascular.

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