Web Date: April 13, 2009
Pfizer To Raise Stake In Indian Subsidiary
Pfizer will raise its stake in an Indian subsidiary, Pfizer Ltd., to 75% by buying an additional 33.8% of shares in the company from the public. The offer, at a 22% premium over Pfizer Ltd.'s average share price for the prior 30 days on both the Bombay Stock Exchange and the National Stock Exchange of India, is worth approximately $136 million.
Pfizer Ltd. manufactures and distributes prescription drugs as well as pet and poultry medicines. The company also performs research and clinical trials.
The planned acquisition follows other deals in which major drug companies have upped their activities in emerging markets as a means of diversifying their portfolios in the face of patent expirations for top-selling drugs.
Novartis announced in March that it will spend $87 million to acquire up to 39% more of its Indian subsidiary, Novartis India, for a total stake of 89.9%. More recently, Sanofi-Aventis agreed to buy the Brazilian generic drug firm Medley in a transaction valued at $665 million (C&EN, April 13, page 20). Sanofi is also acquiring Laboratorios Kendrick, a Mexican generics firm, for an undisclosed sum.
Pfizer's share offering is expected to open in June and will be managed by HBSC Securities & Capital Markets. Pfizer also has a fully-owned subsidiary, Pfizer India.
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