Pfizer in the spotlight

Pfizer is most obviously the newsmaker today. It announced yesterday after market closure that it has entered into an Acquisition Agreement with AstraZeneca AB, Sweden ('AstraZeneca'), pursuant to which the brand 'Neksium' is being acquired by Pfizer in India for a consideration of Rs. 75 crore.

Neksium (esomeprazole) complements the Company's existing product portfolio in the gastrointestinal (GI) therapeutic area. Neksium was launched in India in 2006 and is a leading product in the anti-peptic ulcerant space.

With this acquisition, Pfizer’s “anti-peptic ulcer” hold grows stronger, almost becomes monopolistic as it is already the owner of other two brands - Gelusil and Mucaine. Pfizer has been a strong player in the antacid segment for over 30 years. Most in the industry say that this deal with Astra came at a great bargain.

The market is happy and has reacted with an over 7% jump at Rs.1785.80. It has come off this level for now and is at Rs.1735 levels, up over 4%.