Advertisement

If you have an ACS member number, please enter it here so we can link this account to your membership. (optional)

ACS values your privacy. By submitting your information, you are gaining access to C&EN and subscribing to our weekly newsletter. We use the information you provide to make your reading experience better, and we will never sell your data to third party members.

ENJOY UNLIMITED ACCES TO C&EN

Business

Pfizer To Raise Stake In Indian Subsidiary

Deal is latest by a big drug company in an emerging market

by Rick Mullin
April 13, 2009

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.

Article:

This article has been sent to the following recipient:

0 /1 FREE ARTICLES LEFT THIS MONTH Remaining
Chemistry matters. Join us to get the news you need.