Pfizer plans major push into generics

Pfizer Ltd. | Pharmaceuticals & Drugs | Healthcare | BSE: 500680 | NSE: PFIZER

11 Sep 2009 Evaluate

Pfizer Ltd, the Indian subsidiary of the world’s largest drug maker Pfizer Inc., is making an aggressive play in the Indian generics or off-patent drugs market. The generic portfolio will boost its revenue once it succeeds in semi-urban and rural markets. It has already launched a widely prescribed hypertension drug Telmisartan under the brand name Targit, and will launch at least three more generics by December. Telmisartan is currently marketed by at least 20 domestic drug makers, including Glenmark Pharmaceuticals Ltd, Sun Pharmaceutical Industries Ltd, Cipla Ltd, and Ranbaxy Laboratories Ltd.

Pfizer Ltd is the 12th largest pharma company in the country by sales revenue and has expanded its field force by 220 people over the past few months for this business and identified several top-selling Indian generic drugs of which it will launch versions. The drugs in the project would address both chronic and infectious diseases. The project will see the company challenging local rivals such as Ranbaxy, Cipla, Sun Pharma, Piramal Healthcare Ltd, among others, whose primary business comes from generics. It is also a radical shift for Pfizer from its traditional business model of being an original and speciality pharmaceuticals manufacturer.

Generics represent one of the fastest growth segments in the global pharmaceuticals market as costs and access are its primary drivers of growth. The Indian pharma market, driven largely by generics, has been growing at 14-15% over the past four years. Pfizer grew by 12% in 2008 and ended the year with revenue of Rs704 crore. The company follows a December-November fiscal year.

crack crack