Pfizer-Wyeth integration takes time in India

The much talked about integration of Pfizer and Wyeth had finally been completed globally and operations as a merged entity commenced on 0ctober 16, 2009. Under the terms of the transaction, each outstanding share of Wyeth's common stock has been converted into the right to receive $33 in cash (without interest) and 0.985 of a share of Pfizer's common stock. The $68 billion acquisition of Wyeth by Pfizer earlier this year was a blessing in disguise for the latter as it was mentally preparing itself for a sharp dip in its revenues following the patent expiry of its blockbuster drugs.
In India, however, the integration would take some time, maybe a couple of months, due to issues related to infrastructure and manpower, revealed an inside source of the company. Globally, almost all the teams and units have been integrated. In India, there are many units where the integration is still in process. There are four divisions within Pfizer which would remain out of the purview of the integration. These four divisions, which come under the diversified business of the company include, animal health, consumer health, nutraceuticals and Capsugel.
A look at both the companies’ ranking and performance in India will reveal that unlike the global platform wherein Pfizer’s ranking is number one and Wyeth is listed within the top 15 (according to IMS rankings), in India, Pfizer is ranked within 18 while Wyeth does not even figure within the top 30. “According to ORG IMS, the Indian market share for Pfizer comes to around 2.2 percent while that of Wyeth comes up to 0.8 percent; so together their market share is of 3-3.5 percent,” added an analyst. A reliable source study also mentions that Pfizer's retail sales amounts to $134 million (market cap of $329.68 million) while Wyeth's sales comes up to $69 million (market cap of $201.66 million). As a combined company, the retail sale revenues will increase to approximately $198 million.
Pfizer at present has big plans for India in the coming months. To prevent a drop in sales due to patent expiry of blockbuster drugs, Viagra and Lipitor, and to compete with the generic companies, Pfizer is venturing into generics which also includes the biosimilars space. Recently, Pfizer has launched a drug for hypertension. “Yes, we are looking at the generic space and by December we should be launching 2-3 more generic drugs,” mentioned Mr Kewal Handa, MD, Pfizer India. There were market speculations about the company looking at possible alliances with Indian generic companies but a company spokesperson rubbished the rumors mentioning, “We do not comment on market speculations and these are all just wrong assumptions.”