Pfizer Limited · NSE:PFIZER
Pfizer — Merger or Acquisition (November 2013)
19 slides from Pfizer's merger presentation, Nov 23, 2013
Slide 1: Merger of Wyeth Ltd. With Pfizer Ltd. – Creating A Single Pfizer Brand
Merger of Wyeth Ltd. With Pfizer Ltd. – Creating A Single Pfizer Brand November 23, 2013
Slide 2: Pfizer Ltd. and Wyeth Ltd. – A Snapshot
Pfizer Ltd. and Wyeth Ltd. – A Snapshot
Slide 3: Pfizer Ltd. and Wyeth Ltd. – A Snapshot
Pfizer Ltd. and Wyeth Ltd. – A Snapshot Pfizer Limited (“Pfizer India”) Wyeth Limited (“Wyeth India”) ● Present in India since 1950 ● Present in India since 1947; Wyeth India became a subsidiary of Overview ● Current holding of Pfizer Inc is 70.8%; increased its stake from Pfizer Inc following the g
Slide 4: Transaction Overview and Rationale
Transaction Overview and Rationale
Slide 5: Overview
Overview ● The Board of Directors of Pfizer India and Wyeth India at their meetings today Approved a proposal to merge Wyeth India with Pfizer India Announced an interim dividend of INR 360 per share and INR 145 per share, respectively, which will be paid on December 17, 2013 MERGER TRANSACTION
Slide 6: Proforma Shareholding
Proforma Shareholding Pfizer Inc. continues to remain highly committed to India with majority shareholding in the merged entity. Significant increase in public float is expected to result in increased liquidity Pfizer India Shareholding (1) Wyeth India Shareholding (1) Indv. >10k Others Others Indv.
Slide 7: Transaction Rationale
Transaction Rationale 1 Increase in the long-term value for the shareholders of Pfizer India and Wyeth India 2 Creation of a single “Go to Market” strategy and single company brand image leading to stronger market presence and higher confidence levels with all stakeholders 3 Increased share in thera
Slide 8: Increase in the Long-term Value for the Shareholders and Simplification of Group Structure
Increase in the Long-term Value for the Shareholders and Simplification of Group Structure October 2009 Operational Integration Legal Integration (2009-2013) (Going forward) ● Pfizer India and Wyeth ● Further alignment of India operate as separate organization structure by entities in India legal co
Slide 9: Single “Go to Market” Strategy – Creation of a ‘Larger’ Listed Company
Single “Go to Market” Strategy – Creation of a ‘Larger’ Listed Company ● Creation of a single “Go to Top 10 player by IMS MAT Sales as of Sept-13 (INR mm)(1) market” strategy and single company brand #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #18 #28 image 51,998 ● Market share of combined listed entity inc
Slide 10: Increased Share in Therapeutic Areas while De-risking Business Profile
Increased Share in Therapeutic Areas while De-risking Business Profile Revenue Split by Therapeutic Area (Company Data Mar-13)(1) Market Share Across Key Therapeutic Areas (IMS MAT Sept-13) (2) Pfizer India Wyeth India Pfizer India Wyeth India Merged Entity Others CNS Others Consumer Respi. 6.0% 0.0
Slide 11: Greater Financial Strength
Greater Financial Strength Indicative FY13 Financials INR mm Pfizer India Wyeth India Merged Entity Sales 9,151 6,612 15,763 EBITDA (1) 1,896 1,622 3,518 % Margin 20.7% 24.5% 22.3% PBT 2,751 1,933 4,683 % Margin 30.1% 29.2% 29.7% Net Cash 14,329 4,368 18,697(2) ● Financials for Pfizer India exclude
Slide 12: Valuation Overview
Valuation Overview ● Valuation analysis has been undertaken by independent chartered accountants, Deloitte Haskins & Sells and S.R. Batliboi & Co LLP ● Valuation methodology based on Market values Trading multiples Discounted cash flow ● Fairness opinion to the Board of Pfizer India has been p
Slide 13: Interim Dividend
Interim Dividend Pfizer India Wyeth India Cash & Cash Equivalents (As on Sep 30, 2013) INR 14,776 mm INR 4,400 mm Interim Dividend Paid INR 12,569 mm INR 3,854 mm (including DDT)(1) Cash & Cash Equivalents (As on Sep 30, 2013) INR 2,208 mm INR 546 mm ● Dividend is the most equitable way to return ca
Slide 14: Business Strategy Going Forward
Business Strategy Going Forward
Slide 15: Pharma Market Growth, Competitive Outlook and Dynamics
Pharma Market Growth, Competitive Outlook and Dynamics Short-term, we believe the market is slowing down more Fragmented competitive New Introductions (NI) is a than expected market key growth driver Unaudited Hospital Brand Size # of Brands INR bn INR mm INR bn Dispensing doctors Retail CAGR(14-17)
Slide 16: TA Based Model Supported by Structured Approach will Enable Robust Performance
TA Based Model Supported by Structured Approach will Enable Robust Performance Pfizer India Re-deploy Strategy Focus TAs Resources ● De-focus on low ● Win big in a few high- potential TAs and re- potential TAs where deploy against areas Pfizer has a starting of high potential position Enable ● Grow/
Slide 17: Conclusion
Conclusion
Slide 18: Key Takeaways
Key Takeaways ● Operational integration culminates into legal integration ● Creating a single Pfizer brand ● Attracting best talent, increased employee confidence and morale ● Combination of both companies increases long term value for all stakeholders Expanded TA base enables wider access to mark
Slide 19: Disclaimer
Disclaimer The information contained in this presentation is only current as of its date. All actions and statements made herein or otherwise shall be subject to the applicable laws and regulations as amended from time to time. There is no representation that all information relating to the context