Margins expansion helps net earnings growth despite revenue decline NBIE Values your patronage- Vote for The Team in the Asia Money poll 2020. Click Pfizer reported revenue of Rs5,149mn in 1QFY21, 8.8% above ours and 7.3% below consensus Here estimate. On YoY basis, revenue was down 5.4% as the COVID pandemic led to lower demand for its hospital anti infective portfolio and vaccine (Prevnar). Considering higher exposure of Pfizer in the SELL anti-infective space, we had assumed a low teen decline for Pfizer earnings, in line with IPM growth Sector: Pharmaceuticals during the quarter. During the quarter anti infective segment in IPM had declined high teens....

basis, revenue was down 6.3%. The sales have been impacted by divesture of rights and interests in certain brands & COVID-19. Adjusting for the above, the growth for the quarter and year ended March CMP: Rs3,999 31, 2020 would have been 3.5% and 5.8% respectively. Gains from divested brands include Rs310mn and is booked as part of other income. As we understand, post lockdown was imposed inventory Target Price: Rs3,512 levels at most wholesalers had significantly dipped which indicate primary sales lagged secondary sales during the quarter. While Q1FY21 should partially make up for this loss, but the same should be Downside: 12% more than offset by lower demand seen in Q1. AIOCD AWACS report suggests sharp decline in Q1 FY21 sales so far. Since Pfizer does not have a chronic portfolio, the impact is likely to be steeper. We Vishal Manchanda...

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....

Pfizer reported revenue of Rs5,382mn in 3QFY20, 4.8% below our / consensus estimate. On YoY basis, revenue was up 4.7%. On a QoQ basis, revenue was down 5.1%. The reported YoY growth is much lower than the mid teens growth reported as per AIOCD AWACS data for the quarter. Pfizer witnessed first generic competition for its anti coagulant brand Eliquis, which has been on a very strong growth trajectory so far. Eliquis is positioned as a best-in-class anti coagulant treatment for stroke prevention in atrial fibrillation. However, the recent generic competition is expected to limit the scale up of Eliquis. Currently, Natco Pharma is the only generic player, but we might see 34 additional players that are currently pursuing litigation with Pfizer....

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...

stood at Rs 20,815mn, up 5.1%. On a QoQ basis, sales were up 4.3%. EBITDA for the quarter stood at Rs1,510mn, below our/consensus estimate by 14.9%/18.6%, respectively. EBITDA declined 2.2% on QoQ basis and grew 9.0% on YoY basis. Historically, Q4 represents the strongest quarter w.r.t operating margins, but Q4FY19 does not fit into the trend and we believe this is an aberration driven by a 20% increase in other expenses during the quarter. EBITDA in FY19 stood at Rs5,652mn, showing a growth of 13.0%. EBITDA margin declined 185bps QoQ and increased 156bps YoY. In addition to lower cost of sales, staff costs during the quarter were also down...

Pfizer reported revenues of Rs5,138mn for 3QCY19 which were 2.8% above our estimate and 1.7% below consensus estimate. On YoY basis, revenues were up 12.5%. EBITDA for the quarter stood at Rs1,543mn, above our/consensus estimate by 31%/16%, respectively. EBITDA outperformance was driven by a superior gross margin. Gross margin improved 450bps QoQ and 140bps YoY. On YoY/QoQ basis, EBITDA grew 31% and 19%, respectively. Reported gross margin for the third quarter is the best ever Pfizer achieved over the past five years. In addition to lower cost of sales, other expenses during the quarter were also lower 10% YoY and QoQ....

Pfizer is an Indian subsidiary of the US-based Pfizer Inc, which is one of the world's largest pharmaceutical companies. Pfizer does Rs20,000mn in annual revenues, all of which come from sales of branded formulations in India. Around 17 brands of Pfizer rank # 1 in their representative product market. Pfizer's presence in India spans across therapy areas like vaccines, primary care (multivitamins, pain, respiratory), women's healthcare, chronic care (cardiovascular and central nervous system), critical care (anti-infectives), immunology & internal medicine (rheumatology, anti-coagulant, and neuropathic pain),and consumer healthcare. We initiate coverage on Pfizer with an Accumulate rating and a target price of...

Strong revenue growth: Pfizer's revenues are likely to grow faster than the market growth due to strong growth of its major brands. The growth was contributed by its major brands namely: Becosules, Ovral-L, Corex-Dx,Wysolone, Magnex, Neksium and Dolonex. We expect the company to report better revenue growth in FY19, led by the launch of a series of products as line extensions under the Corex brand name and the recent launch of Meronem and Neksium in India. The management indicated the launch of 3-4 new products per annum. Pfizer's 17 brands are in No.1 position in the...

FY18 revenues declined 3% YoY to | 1980 crore mainly due to GST impact, discontinuance of Corex cough syrup and divesture of certain brands. Q4FY18 revenues grew 15% YoY. Excluding...

Margin grew by 1,290bps YoY: Pfizer's EBIDTA margin for the quarter grew 1,290bps YoY to 29.3% from 16.4% due to overall decline in costs. Its material cost declined by 30bps YoY to 41.9% from 42.2% due to a profitable product mix. Personnel expenses declined by 60bps to 13.9% from 14.5%. Other expenses declined by 1,210bps to 14.9% from 27.0% as Q2FY17 had one-off expenses. The...