Mid-Cap Pharma Stock: Indian Arm of Covid Vaccine Maker Soars 8 per cent
Company's Board Approves Marketing and Supply Agreement with Mylan Pharmaceuticals
Pfizer Ltd, the Indian subsidiary of Pfizer Inc, one of the world's leading biopharmaceutical companies with a presence in over 125 countries, witnessed a sharp rise of 8.26 per cent, reaching a day's high of Rs 4,448.35 in the opening session on the BSE on February 24, 2025.
The stock gained traction among investors after the company disclosed in an exchange filing on Friday, February 21, that its board had approved a marketing and supply agreement with Mylan Pharmaceuticals. Under this agreement, Pfizer, in collaboration with Mylan Pharma, will market and distribute two key brands, Ativan and Pacitane, within India for the next five years.
The newly formed marketing and supply agreement is specifically for the Indian market and is expected to bolster these two products' distribution and clinical availability. Although details regarding the sourcing of these medicines remain undisclosed, the drugs could either be manufactured at Mylan’s production hubs in India or imported through its global supply network. Mylan is known for its strong presence in the Central Nervous System (CNS) therapy segment, with a well-equipped team specializing in engagement with neurologists and psychiatrists. This partnership will enhance the distribution and clinical presence of Pfizer’s products across India, as per the exchange filing.
Pfizer recognizes both Ativan and Pacitane as leading brands in their respective markets. According to the company’s FY24 annual report, Pacitane commands a dominant 67 per cent market share in its therapeutic segment, while Ativan holds a 6 per cent share in the Benzodiazepine Tranquilizer market, despite previous supply constraints. The Indian pharmaceutical industry has been closely monitoring policy decisions by the U.S. administration, particularly in light of the potential reciprocal tariffs on Indian pharma exports to America, announced during President Trump’s tenure. This has added a layer of uncertainty to domestic pharma strategies.
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Pfizer is a globally recognized pharmaceutical company, engaged in the development and manufacturing of a diverse range of medicines and vaccines. The company conducts research and development across several therapeutic areas, including oncology, cardiology, immunology, and vaccines.One of Pfizer’s most groundbreaking contributions in recent years has been the development of the Covid-19 vaccine in collaboration with BioNTech. Pfizer Ltd currently holds a market capitalization of over Rs 19,990 crore. Over the past year, its stock has declined by 0.91 per cent, in contrast to the Sensex, which has gained 2.44 per cent during the same period.
Disclaimer: This article is for informational purposes only and should not be construed as investment advice.