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June 25, 2009

Pfizer Ups Bid to Roughly $172.8M for an Increased Stake in Indian Operations

  • In an effort to gain more control over India operations and this emerging market, Pfizer is raising its offer to acquire a 33.77% stake in Pfizer India by 23%. Pfizer notes that this proposal represents its only and final price revision.

    With the company now willing to pay Rs. 830 ($17) per share compared to the original offer of Rs. 675 ($13.9) per share, the deal is valued at roughly Rs. 8.4 billion, or $172.8 million. The transaction is being implemented through Pfizer Investments Netherlands, an indirect wholly owned subsidiary of Pfizer.

    Pfizer India's stock has been trading well beyond Rs. 675 since the initial offer was made. It achieved a high of Rs. 860 yesterday and opened trading today at Rs. 821. The revised offer represents a 33.5% premium over the closing share price of Rs. 621.55 of Pfizer India on April 9, the last trading day before the initial tender offer was made. Yet there is potential for Pfizer India's value to go up beyond this current price.

    Pfizer like other pharma firms has shown a particular interest in emerging markets this year. In May the company inked deals with Aurobindo Pharma and Claris Lifesciences, obtaining marketing rights in this area to 75 products.

    Novartis is also seeking to expand its stake in Novartis India with a Rs. 5.64 billion ($115.2 million) proposal. Additionally, GlaxoSmithKline acquired a 16% share of South Africa-based Aspen Pharmacare.


    Past Pfizer Acquisitions
    Pfizer to Pony Up $68B for Wyeth (Jan. 26, 2009)
    Possible $195M Encysive Buyout by Pfizer Will Save Firm from NASDAQ Delisting (Feb. 20, 2008)
    Pfizer to Acquire CovX to Bolster Biologics Pipeline (Dec. 18, 2007)
    Pfizer to Procure Coley for $164M (Nov. 16, 2007)
    Roche Continues Acquisition Spree Picking Up BioVeris for $600M (Apr. 4, 2007)

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