 "Pfizer, Wyeth merge in India to create 9th largest pharma company")
Pfizer Ltd, the Indian unit of US drug maker Pfizer Inc, is to take over local affiliate Wyeth Ltd, they said on Saturday after their boards approved the deal.
Shareholders of Wyeth will get seven Pfizer Ltd shares for every 10 shares held, requiring the issue of approximately 15.9 million new Wyeth shares, the statement said.
Pfizer Inc bought rival Wyeth in 2009, leaving their Indian units with separate stock market listings. After the merger of their Indian operations, now they will operate under a single brand, Pfizer. The move would give the combined entity increased therapeutic presence and a de-risked business profile.
[caption id=“attachment_1246073” align=“alignleft” width=“380”]  Jeffrey Kindler (L), Chairman and CEO of Pfizer, and Bernard Poussot, Chairman and CEO of Wyeth. Reuters[/caption]
For the year ended March 2013, Wyeth reported total revenues of Rs. 714 crore and profit of Rs. 130 crore. On the other hand, Pfizer India clocked revenues of Rs. 1,156 crore and a bottom-line of Rs. 503 crore.
Wyeth has a market capitalisation of about $294 million and is already owned 51.12 percent by Pfizer Inc, which in turn owns 63.57 percent of Pfizer Ltd, which has a market capitalisation of $681 million.
Pfizer and Wyeth also announced on Saturday they would pay interim dividends of Rs 360 and Rs 145 per share, respectively.
Pfizer Inc bought rival Wyeth in 2009, leaving their Indian units with separate stock market listings. Bank of America Merrill Lynch and Citigroup were advisors to Pfizer and Wyeth, respectively, the statement added.
Impact Shorts
More ShortsThe boards of Pfizer India and Wyeth India approved a ratio which would give Wyeth Ltd shareholders 7 Pfizer shares for every 10 they hold.
The companies have also announced separate interim dividend payouts in which Pfizer will give Rs. 360 per share, while Wyeth will give Rs. 145 a share.
Managing Director Aijaz Tobaccowalla told reporters the merger process would take nine months to complete as it involves a string of approvals.
“We will have increased product base with wider access to market. This merger will also improve our market share and strengthen the competitive position,” Tobaccowalla said, adding segments like women’s health, vaccines, respiratory, CNS, anti-infectives will be on high focus for the company.
“Implied pro-forma shareholding of Pfizer Inc, post merger will be 63.9%,” the company said.
Talking on Pfizer India post-merger, Tobaccowalla said the combined entity will have strong financial profile with improved market share.
According to a report in The Times of India, the merger will create the ninth largest pharma company in India. Earlier, Pfizer was 18th largest and Wyeth 28th.
As far as market share is concerned, Pfizer Ltd enjoyed just about 1.9 percent. Post the merger, the company will have 2.9 percent market share.
With inputs from agencies
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