Pfizer MD to head Parke Davis as firms move towards merger

Our Corporate Bureau

Mumbai, Aug 14: Parke-Davis India (PDI) and Pfizer Ltd moved a step closer towards operationally integrating and eventually merging both companies, with the induction of Hocine Sidi Said as the managing director (MD) of PDI. Mr Said is also the MD of Pfizer Ltd, an affiliate of American multinational Pfizer Inc.

The proposed domestic merger is a direct fallout of the combination of forces by Pfizer Inc and Warner Lambert internationally. Both Pfizer Ltd and Parke-Davis India are 40 per cent affiliates of their US parent.

At the PDI annual general meeting held on Tuesday, PDI chairman and MD Pramod Lele told shareholders that he was stepping down due to personal reasons despite having received offers at senior positions in the worldwide affiliate.

Mr Lele said that he was withdrawing resolution number eight of the agenda pertaining to his re-appointment as MD for a further period of five years. In addition to the induction of Mr Said as the MD, Mr RA Shah and Mr CL Sarris have been brought in as chairman and director respectively, Mr Lele said.

Elaborating on the proposed Pfizer-Parke Davis India merger, the MD (designate) Mr Said said that the operational merger would be completed by the year-end and the complete legal merger by the end of 2002.

“We have solid reasons to believe that all statutory regulations would be obtained by the end of 2002,” Mr Said said.

Mr Said, had in an earlier interview with The Financial Express, said that the American parent will retain a 40 per cent stake the combined entity to be formed with the proposed merger of Pfizer Ltd and PDI. There are are no plans to either buyback shares or hike the parent company’s stake beyond 40 per cent, he had said at that time.

Earlier Mr Lele told shareholders that with Parke Davis being virtually debt-free, it would identify potential products for acquisitions with the excess funds received through the land sell-off. It would also rationalise the existing products to commensurate with Pfizer’s product portfolio, he added.

The company would also be launching a B2B site to enable its 2000-and-odd stockists to place orders online. Later its scope would be enlarged to cover procurement and entire supply chain management. The online placement of orders is unlikely to bring in substantial monetary benefits but would simplify the process, Mr Lele said.

The company currently outsources 50 per cent of its turnover through third parties and another 17 per cent on loan licence basis while the rest is produced in its own facilities, he said.