The review comes in the wake of a letter written by the retail shareholders of Pfizer Limited's to the industry ministry expressing concern over the FIPB's decison to allow Pfizer Inc to set up a 100 per subsidiary in India. Following the announcement by Pfizer Inc. (for setting up a 100 per cent arm in India), the Pfizer Limited stock shed 33 per cent, falling from a high of Rs 1187 on August 20 to Rs 892 on September 21. However, after the industry ministry's reported move to review the subsidiary proposal, the stock has recovered by 15.2 per cent, from Rs 892 to Rs 1028.

The minority investors say theshareholder value will be eroded by the entry of Pfizer's wholly-owned subsidiary. Their main concern is the future of the existing concern, if the parent is allowed to set up a 100 per cent arm in India. Pfizer Inc has a 40 per cent stake in the existing Indian venture -- Pfizer Limited. About 60 per cent of the company's equity is held by the public and financial institutions. Another apprehension of the shareholders is that the company's share price will be hammered in view of the parent company's move to set up the subsidiary.

As it is, Pfizer Limited has been hammered down to below Rs 1000, after the announcement of the third-quarter results. For the third-quarter of the current financial year, the company recorded an 8 per cent growth in net profit to Rs 9.97 crore from Rs 9.12 crore in the corresponding period of the last year. The growth in net profit is against a 26 per cent rise in net sales to Rs 76.97 crore from Rs 61.14 crore in the the third quarter of the previous fiscal.

Other income rosefrom Rs 12.09 crore to Rs 13.19 crore. Net sales of the wholly-owned subsidiary, Duchem Laboratories, for the third quarter fell 38 per cent to Rs 21.49 crore from Rs 34.49 crore. Total expenditure rose 24.59 per cent to Rs 72.69 crore from Rs 58.34 crore. Operating profit was Rs 17.47 crore.

For the second quarter of the current fiscal, Pfizer had registered a net profit of Rs 5.69 crore on sales of Rs 68.12 crore. Net sales of the wholly-owned subsidiary, Duchem Laboratories, for the quarter were Rs 28.16 crore. Other income for the quarter stood at Rs 13.43 crore. Total expenditure for the period was Rs 70.65 crore. Interest and depreciation were Rs 20 lakh and Rs 1.84 crore, respectively. Provision for taxation was Rs 3.17 crore.