Pfizer, Parke Davis operational integration in India begins

Our Corporate Bureau

Mumbai, April 26 : THE operational integration of Pfizer and Parke-Davis in India has commenced and synergies between the two companies will pick up momentum in the next few months. The legal merger will receive “earnest consideration” by the boards of both the companies, Pfizer chairman RA Shah said at the 50th annual general meeting (AGM) held here on Thursday.

“While it is too early to make promises to our financial community yet, the new Pfizer resulting from the merger with Parke Davis India will deliver strong quantitative and qualitative benefits,” Pfizer managing director Hocine Sidi Said said.

Internally, the management teams of Pfizer and Parke Davis will be guided by the company’s overall objective of creating greater value for all our constituencies — shareholders, employees and our customers, he added.
Commenting on Pfizer Inc’s wholly owned subsidiary in India, Mr Said said that strong business sense will prevail while deciding upon the enactment of the wholly owned subsidiary. “Interests of shareholders, employees and more importantly the long term sustainability of our financial performance will be considered while arriving at a conclusion,” he added. Pfizer has yet to activate its 100 per cent subsidiary, despite having received FIPB approval over a year ago.

According to Mr Said, the company is not contemplating the divesture, sale or discontinuance of any of its core brands. We realise that sustaining leadership or brands like Corex and Protinex comes with stringent prerogatives. We at Pfizer India are very happy to deal with these prerogatives, he clarified.

However, this does not preclude, review of our business prerogatives. We are open to strategic alliances that can augment the brand equity of our core products even though we are not actively seeking such ventures, he added.

Mr Said, however, cautiously stated that the company shall maintain an open attitude to alliances that implicitly recognise and capitalise on the company’s marketing capabilities, similar to its experience with Shantha Biotechnics.

There has been considerable speculation about Pfizer’s long-term interest in Shantha Biotechnics. When asked about the possibility of Pfizer picking a stake in Shantha Biotechnics, Mr Said merely remarked: “It continues as a strategic alliance.” The company has earmarked Rs 14 crore for modernising its plant at Thane and Chandigarh while its search to find a suitable buyer for its Ankleshwar plant continues, company officials said.