Little impact of a possible Pfizer-AstraZeneca deal seen in India

It could well go down as the biggest deal ever in global pharma so far and certainly for Pfizer. While there is no official word from US pharma major Pfizer and the UK-based AstraZeneca, both the companies have been in the spotlight recently. Media reports have indicated that the two may be in talks with Pfizer seeking to acquire AstraZeneca in what could be an over $100-billion deal. The spokespersons of the two companies in India refused to comment claiming it was market speculation.

Analysts feel if this deal does go through then it could be a landmark in more ways than one at a global level for both the companies though it is unlikely to have any major impact in India.

"Pfizer is a much bigger entity that AstraZeneca in India. Therefore the impact of a possible deal like this may not be much in India except giving Pfizer an added edge in terms of increase in topline and adding to its strengths in the India  market," said an analyst on condition of anonymity. Globally, Pfizer is the world's fourth-largest pharmaceutical company in terms of revenues, according to pharmaceutical industry news publication FiercePharma. Johnson & Johnson, Novartis and Roche are ahead of Pfizer while AstraZeneca is ninth.

So, this may be an attempt by Pfizer to add to its topline and move up the pecking order.

"With the pipeline of blockbuster drugs getting thinner by the day, consolidation may be the only way forward and this seems to be a good example of that," says the head honcho of a leading pharma company in Mumbai who did not want to be named.

Pfizer India had revenues of Rs 1050 crore in India in 2012/13. Recently, though, the Indian arms of Pfizer and Wyeth had merged. If Wyeth revenues are added (the process to merge Wyeth with Pfizer in India is still on and therefore Pfizer does not show merged entity revenues), the joint entity would have revenues of around Rs 1,600 crore. AstraZeneca Pharma India revenues for the same period stood at Rs 390.42 crore.

The share price of both the companies rose on Monday.  While the Pfizer stock closed 3.26 per cent higher at Rs 1,272.55, AstraZeneca Pharma India rose 3.83 per cent to close at Rs 1,094.50 on the BSE.