Wyeth
The company had hit the 20% upper circuit yesterday and this was on the back of its plans to merge with Pfizer. The Board is scheduled to meet on 23rd Nov’ 13 to decide on the scheme of amalgamation of the company with Pfizer.
The company had not ended Q2Fy14 on a high note. Though its net sales at Rs.169 crore has shown a 10% (YoY) rise, its net profit for the period had slumped 40% and even sequentially too, it fell 18%. The company had implemented the New Pricing Policy, revised prices had been implemented during the quarter on all products covered under the price notifications issued by the Govt till date. This alongwith the higher landed cost of imported goods adversely affected the revenues and profits. This apart, the surge in operating costs affected the profits further. Wyeth remains fundamentally sound and now all eyes will be on the merger with Pfizer and wide speculation is abound of a 2:1 ratio being announced on 23rd. And analysts are of the opinion that investors of Wyeth are likely to benefit more than Pfizer.