Pfizer in News

Publication : Business Standard
Provider : Business Standard
July 3, 2004

Pfizer's pink numbers

Emcee, Pfizer India has reported impressive results for the quarter ended May 31 2004. Net profit has surged 672 per cent to Rs 9.35 crore. Operating profit was Rs 7.89 crore during the three months compared with an operating loss of Rs 5.42 crore in the same period of the previous year. Clearly, its aggressive marketing strategy has helped the company overcome the pricing pressures faced by its key brands.

In the key pharmaceuticals segment, backed by rising sales of Becosules, Corex and anti-infectives such as Fasigyn, segment profits rose by 110 per cent to Rs 24.29 crore and segment operating profit margins rose 948 basis points to 21.15 per cent. A similar trend was observed in the animal health division, where improved sales of Amoxisol and Distodin helped segment profits rise to Rs 1.43 crore in the May quarter as against a loss of Rs 15 lakh in the previous year.

The company has been shutting or selling unviable plants, while employee numbers have also been reduced, and these measures will help lower costs going forward. The synergies in the form of marketing efficiencies and an efficient supply chain due to the integration of Parke Davis (India) Ltd should also help boost profitability. Pfizer's product launches have been scarce, but there have been reports that the company may consider launching them once the new patent regime comes into force in 2005. Introducing new products will be critical if the company expects to maintain a price-earnings multiple of around 30.