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Pfizer-Wyeth merger may close by Q4 FY09: Pfizer India

Published on Mon, Mar 30, 2009 at 11:00 | Source : CNBC-TV18

Updated at Mon, Mar 30, 2009 at 18:02

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Kewal Handa, Managing Director of Pfizer India said that Pfizer- Wyeth merger in the US is likely to close by the fourth quarter of 2009.

Handa feels it is too early to commenton on the impact of the merger on India. Pfizer, which has cash of about Rs 500 crore in its books, is looking at acquiring new brands and licensing deals, along with market expansion.

The company will also launch two-three new products through organic or inorganic routes in the year.

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Here is a verbatim transcript of the exclusive interview with Kawal Handa on CNBC-TV18. Also watch the accompanying video.

Q: What exactly will happen in India, from Pfizer and from Wyeth perspective, and how it might impact business?

A: This merger has taken place globally and that will take Pfizer to the most leading pharmaceutical company in the world. The merger is likely to close by the fourth quarter of 2009, so it's early for me to make any comments.

Q: What kind of synergies do you see in Pfizer India and do you expect to see any change in the revenue performance following this merger once it's fully done?
A: The transaction is likely to close by the end of this year, so it's early for us to make any comments.

Q: For Pfizer, the net profit has slipped a bit this time around and we believe that Becosule growth has been quite flat, please walk us through what growth outlook you have for Pfizer?
A: We have done pretty well in the first quarter, we had a growth of 24% on the topline, and most of the products are having double digit growth like Becosule, Gelusil, Magnex. The profit before tax (PBT) has grown by 24% and the net profit has gone up to 13%. This growth has come basically because we had low base in first quarter of 2008 and we also did a consolidation of stockist in 2009, which has given us a strong growth.

However, the cost has gone up by 5% points, mainly because of the increase in input costs, increase in the cost of vitamin C-that has all added to the increase in the cost for the quarter. Going forward, I only hope that the cost will come down and there would be improvement on the margins.

Q: There has been lot of talk about how a large number of MNCs are looking at Indian Pharmaceutical assets very closely-name like Nicholas Piramal etc have been doing the rounds-is your parent looking at any significant acquisition interest in India?

A: We have seen that in the last one year there has been lot of churn, there is lot of consolidation activity going on. We are also exploring various opportunities but it's too early to comment on any company because it is just at an exploratory stage where we look at various opportunities and then see what suits Pfizer India.

Q: Are you open to the possibility then?

A: Yes, we are open to looking at augmenting our portfolio, and that's what our effort is all about.