Mumbai: The Indian subsidiaries of Pfizer Inc. and Wyeth remained silent on a Wall Street Journal report of a possible takeover of Wyeth by Pfizer. Analysts, however, responded enthusiastically, as did shares of the India units Pfizer Ltd and Wyeth Ltd, in anticipation that a merger would help both entities expand their market reach.
Kirit Gogri, a sector analyst with Mumbai-based Quant Broking Pvt. Ltd, said that “since both companies are operating in different disease segments at present, Wyeth’s market presence in the antibiotics and woman health market will certainly help Pfizer to expand to those markets, which have equal potential in the fast growing pharmaceutical market in India”.
In India, Pfizer’s portfolio includes oncology, cardiovascular and central nervous system drugs, while Wyeth focuses on antibiotics, gynaecological drugs, vaccines and steroids.
On the Bombay Stock Exchange, Pfizer’s stock rose 6.57% to close at Rs514.65 while Wyeth gained 1.12% to close at Rs436.70 on Friday. The two are ranked 23rd and 49th by sales, respectively, in the domestic market.
An analyst with a Mumbai brokerage said the actual benefit to investors from the merger is still uncertain. “One should assume that if the deal structure implies a merger of the businesses within the wholly owned subsidiary of Pfizer, the investors in the listed entities will not be benefited at all.”