Pfizer Ltd. share price target

Q3FY26 - Strong Revenue growth and margins- Revenues grew ~20% to ~ 645 crore, driven by growth in power brands such as Mucaine (Antacid), Eliquis (CVS), among others. Brands such as Minipress XL (CVS), and Becosules (VMS) also registered moderate growth. On the other hand, there was a de-growth in other power brands such as Corex DX (cough syrup), Dolonex (pain management) and Prevnar 13 (pneumococcal vaccine). EBITDA grew 56% with a strong margin expansion of 824 bps YoY to 35.4%. GPM grew by 169 bps to 65.2%. PAT grew 11% with a...

Pfizer’s Q2FY26 revenue grew at a faster pace of 9.1% YoY, surpassing IPM growth of ~8%. Rebound in growth across key brands has helped the company grow faster in the otherwise prevalent sluggish growth scenario for acute therapies.

Pfizer’s Q2FY24 revenues declined by 9.8%, marred by a weak season for acute products and the recall of three key brands Magnex, Magnamycin and Zoysn. Gross margins contracted 40bps YoY, but recovered 503bps QoQ to 64.4% as the impact of mandated price cuts on NLEM products was partially offset by better product mix.

Pfizer’s Q1FY24 performance was marred by recall of three key brands - Magnex, Magnamycin and Zoysn. These had annual sales of INR 1.4bn in FY23. Gross margin contracted 420bps YoY at 59.4%, also impacted by mandated price cut on NLEM products.

Q4FY23 marked a turnaround in Pfizer’s performance as the declining revenue trend (down 7% in FY23) was arrested in Q4, which saw a 4% YoY rise. The turnaround was driven by traction in key brands such as Magnex, Corex DX, Dolonex, Minipress XL and Prevenar-13.

Pfizer’s Q2FY23 performance beat our estimates on the profitability front driven by strong control over costs. Revenue was flat YoY (+7.5% QoQ) at Rs6.4bn (I-Sec: Rs.6.4bn).

Pfizer’s Q1FY23 performance beat our estimates on the profitability front driven
by strong control over costs. Revenues declined 20.9% YoY (+7.9% QoQ) to Rs 5.9bn (I-Sec: Rs 5.9bn) on a high covid-led base.

About the stock: Pfizer collectively addresses 15 therapy areas in the domestic formulations with a portfolio of over 150 products that include therapeutics & vaccines. The company has been continuously restructuring its portfolio in the last...

About the stock: Pfizer collectively addresses 15 therapy areas with a portfolio of over 150 products that include therapeutics & vaccines. The company has been continuously restructuring its portfolio in the last few years to improve the...

About the stock: Pfizer collectively addresses 15 therapy areas with a portfolio of over 150 products that include therapeutics & vaccines. The company has been continuously restructuring its portfolio in the last few years to improve the...

Besides legacy NLEM/GST related adjustments, Pfizer has been continuously restructuring its portfolio in the last few years to improve the productivity of its core brands and also in accordance with development at the parent level. Despite stagnant turnover growth (FY16-21 CAGR of ~2%), the company has delivered margin improvement on a fairly consistent basis (FY21 EBITDA margin of 31.8% vis--vis FY16 EBITDA margins of 21.5%;...

Asian markets are trading in the green as investors react to the approval of Pfizer's Covid-19 vaccine and data from Japan showed improving business sentiment in three months to December. Nikkei is trading higher by 0.70%; Hang Seng is trading higher by 0.04% and Shanghai is trading higher by 0.15..

Besides legacy NLEM/GST related adjustments, Pfizer has been continuously restructuring its portfolio in the last few years to improve the productivity of its core brands and also in accordance with development at the parent level. Despite stagnant turnover growth (FY15-20 CAGR of ~3%), the company has delivered margin improvement on a fairly consistent basis (FY20 EBITDA margins 26.6% vis--vis FY15 EBITDA margins of 20.7%;...

produce millions of vaccines by end2020. The two companies are working on four possible vaccines against the new coronavirus, and launched clinical trials using volunteers in Germany earlier this month and hope to begin a U.S. trial soon, pending approval by regulators. The companies were moving forward to ramp up clinical trials and manufacturing capabilities in parallel to be able to...

On the business front, despite the nationwide lockdown, domestic growth is expected to remain more or less stable. Exports growth, barring for one or two months due to congestion in all major ports globally, is also expected to remain strong due to 1) currency benefit, 2) slowdown in competition due to delay in new approvals that will be beneficial for existing players and 3) expected demand continuum across the world despite Covid-19. Some windfall is also expected in some critical productsa case in point is Hydroxychloroquine, a malaria drug that is likely to be repurposed as a prophylaxis for Covid-19 treatment in some cases....

Pharma MNCs with domestic focus continue to drive investor's interest on the back of 1) consistency in stable growth despite higher competition and regulatory changes, 2) strong focus on legacy power brands as well as introduction from the global parent's stable, 3) consistent free cash-flow generation, 4) debt-free balance sheet and strong core RoEs and 5) healthy dividend payout track record. The domestic pharma industry is expected to grow in the range of 9-11% per annum. Issues such as NLEM and other regulatory aspects are mostly in the price. On the flip side, the looming...