MIRA
INFORM REPORT
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Report Date : |
28.06.2007 |
IDENTIFICATION DETAILS
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Name : |
PFIZER LIMITED |
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Registered Office : |
Patel Estate, |
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Country : |
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Financials (as on) : |
30.11.2006 |
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Date of Incorporation : |
21.11.1950 |
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Com. Reg. No.: |
008311 |
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CIN No.: [Company
Identification No.] |
L24231MH1950PLC008311 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
MUMP00256E |
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PAN No.: [Permanent
Account No.] |
AAACP3334M |
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Legal Form : |
A public limited liability company. The company’s shares are listed on the Stock Exchanges. |
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Line of Business : |
Manufacture and sale of Pharmaceutical, Formulation and Bulk Drugs. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
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Maximum Credit Limit : |
USD 17590312 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a part of Pfizer Corporation U. S. A. Available information indicates high financial responsibility of the company. Financial position is good. Trade relations are fair. Payments are correct and as per commitments. The company is doing well. It can be regarded as a promising business partner in a medium to long-run. The concern can be considered good for any business
dealings at usual trade terms. |
LOCATIONS
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Registered Office : |
Pfizer Centre,
Patel Estate, |
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Tel. No.: |
91-22-2678 5511 /
6932000 |
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Fax No.: |
91-22-2678 1766 /
6932377 / 66932444 |
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E-Mail : |
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Website : |
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Factory: |
Thane Tel. No.
91-22-7916161 / 27681036 / 27681421 Fax No. 91-22-7916160 Plot No.
178-178A, Industrial Area, Phase I, Tel. No.
91-129-650578 / 79 / 80 / 84 Fax No.
91-129-655178 |
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Branches : |
Located at : Ahmedabad, |
DIRECTORS
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Name : |
Mr. R.A. Shah |
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Designation : |
Director |
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Name : |
Mr. Kewal Handa |
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Designation : |
Director |
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Previous Employments: |
Secretary & Financial Controller,
Schrader Scovill Duncan Limited |
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Date of Birth/Age : |
53 Years |
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Qualification : |
M.Com.
A.I.C.W.A., A.C.S. |
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Experience : |
30 years |
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Date of Appointment : |
18.06.1990 |
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Name : |
Mr. Pradip P. Shah |
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Designation : |
Director |
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Name : |
Dr. Bombi M. Gargrat |
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Designation : |
Director, Technical Operations |
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KEY EXECUTIVES
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Name : |
Mr. Gundu Rao |
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Designation : |
Finance Executive |
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Name : |
Mr. Sunil Madhok |
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Designation : |
Animal Health |
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Name : |
Mrs. Dipali Talwar |
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Designation : |
Legal Executive |
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Name : |
Mr. Yugesh Goutam |
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Designation : |
Human Resources |
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Name : |
Mr. S. Venkatesh |
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Designation : |
Strategic Business Development |
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Name : |
Mr. Venkat Lyer |
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Designation : |
Business Technology |
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Name : |
Mr. K. Subharaman |
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Designation : |
Company Secretary |
MAJOR SHAREHOLDERS / SHAREHOLDING PATTERN
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Foreign Collaborators (Pfizer Associates) |
12302937 |
41.23 |
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Bnks |
111561 |
0.37 |
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Financial Institutions |
4205748 |
14.09 |
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Foreign Institutional investors |
519763 |
1.74 |
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Mutual Funds |
4297037 |
14.40 |
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Domestic Companies |
878275 |
2.94 |
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Non – Domestic Companies |
29394 |
0.10 |
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Non- Residents |
168859 |
0.57 |
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Others |
7327866 |
24.56 |
BUSINESS DETAILS
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Line of Business : |
Manufacture and sale
of Pharmaceutical, Formulation and Bulk Drugs. |
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Products : |
Prescription
Medicines - © ABDEC Forte
Multivitamin Drops © Adriamycin © Agarol Emulsion © Amlogard © Aromasin © Atgam © Atpark © Becosules Z Caps © Becosules Caps © BronCorex
Expectorant © Caduet © Campto © Carboplatin © Chloromycetin
Aplicap © Chloromycetin
Capsules & Palmitate Suspension © Chloromycetin
Ear Drops © Cisplatin © Citralka Liquid © Claribid OD
Tablets © Claribid Tablets
& Suspension © Corex © Corex Dx © Dalacin © Daunomycin © Daxid © Depo - Medrol © Depo - Provera © Detrusitol © Dilantin Caps
& Susp © Dilantin
Injection © Dolonex Capsules
© Dolonex DT © Dolonex Gel © Dolonex IM © Erythrocin © Farmorubicin © Fasigyn © Fragmin © Fumycin © Genotropin © Isokin © Lopid © Lyrica © Macugen © Magnamycin © Magnex © Marax © Medrol Tablets © Minipress XL © Pitocin © Ponstan © Prostin VR © Provera Tabs © Solu - Medrol © Tedral SA © Terramycin © Vfend © Viagra © Xalacom © Xalatan © Zavedos Capsules
© Zavedos
Injection |
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PRODUCTION STATUS
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Particulars |
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Unit |
Installed
Capacity |
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Formulations – Tablets and Capsules Liquids Solids Ointments |
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Mn. Nos Mn. Nos Kgs Kgs |
3624 6960000 162400 232800 |
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Food products - Protein Food |
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MT |
1000 |
GENERAL INFORMATION
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No. of Employees : |
1200 |
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Bankers : |
Ř Central Bank of Ř Citibank N.A., Mumbai Ř Deutsche Bank, Mumbai Ř Societe General, Mumbai Ř BNP Paribas, Mumbai Ř Standard Chartered Grindlays Bank Limited, Mumbai |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
BSR & company (Bharat S. Raut & Company) Chartered Accountant |
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Parent Company: |
Pfizer Chief Executive: Mr. Jeffrey B. Kindler Location: Research and Development: |
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Associates/Subsidiaries : |
Pfizer Corporation, Warner-Lambert Company, Parke-Davis & Company, Pharmacia Corporation, [Collectively holding 41.25% of the aggregate of equity share capital
of the Company] Pfizer Inc., Subsidiaries : Duchem Laboratories Limited (100% Shares are held by the Company as at the year end) Fellow Subsidiaries:(with whom transactions have taken place during
the year) Pfizer Pharmaceutical India Private Limited, Pharmacia India Private Limited, Pfizer Overseas Inc., Exports Division, Pfizer Export Company, Pfizer Overseas Inc., Pfizer International Inc., Pfizer Products Inc. Pfizer Overseas Inc. Export Division, Hongkong • Pfizer Limited, Pfizer Labs Ltd., Pfizer Service Company S.A. ( Pfizer Italians SpA Pfizer Pfizer Inc. Pfizer Japan Inc., Warner-Lambert Pharmaceuticals, |
CAPITAL STRUCTURE
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29844080 |
Equity Shares |
Rs.10/- each |
Rs.298.441 millions |
|
10155920 |
Unclassified Shares |
Rs.10/- each |
Rs.101.559 millions |
Issued Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
29844080 |
Equity Shares |
Rs.10/- each |
Rs.298.441
millions |
Subscribed & Paid-up Capital:
|
No. of Shares |
Type |
Value |
Amount |
|
29841440 |
Equity Shares |
Rs.10/- each |
Rs.298.414
millions |
Of the Above –
- 19108636 (Nov 2005: 19108636) Equity Share
of Rs.10/- each were allotted as fully paid – up bonus shares by capitalization
of general reserve Rs.177.692 millions and hare premium account Rs.13.394
millions
-9376100 (Nov 2005: 9376100) Equity Shares of
Rs.10/- each fully paid up are held by Pfizer corporation,
- 2142897 (Nov: 2005: 2142897)Equity Shares of
Rs.10/- each in aggregate are held by Warner – Lambert LLC, USA and Parke –
Davis and company LLC, USA
- 5357244 (Nov 2005: 5357244) Equity Shares of
Rs.10/- each were issued as fully paid up to the shareholders of erstwhile
Parke –
- 1043900 (Nov 2005: 1043900) Equity Shares of
Rs.10/- each were issued as fully paid up to the shareholders of erstwhile
Pharmacia Healthcare Limited (pursuant to the scheme of amalgamation of
Pharmacia Healthcare Limited with the company0 including 783941 Equity Shares
issued to Pharmacia Corporations, USA
Add: Forfeited Share Capital
Amount Paid up on 2640 (Nov 2005: 26400)Equity
Shares of Rs.10/- each forfeited
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
30.11.2006 |
30.11.2005 |
30.11.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
298.432 |
298.432 |
298.432 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
4099.146 |
3467.229 |
3129.166 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
4397.578 |
3765.661 |
3427.598 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
0.000 |
0.000 |
120.000 |
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TOTAL BORROWING |
0.000 |
0.000 |
120.000 |
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DEFERRED TAX LIABILITIES |
0.000 |
0.000 |
0.000 |
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TOTAL |
4397.578 |
3765.661 |
3547.598 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
699.585 |
755.610 |
717.061 |
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Capital work-in-progress |
15.999 |
21.406 |
39.370 |
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INVESTMENT |
0.036 |
0.036 |
32.436 |
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DEFERREX TAX ASSETS |
143.608 |
90.301 |
63.536 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
984.472
|
898.341 |
738.931 |
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Sundry Debtors |
696.279
|
828.212 |
717.341 |
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Cash & Bank Balances |
3065.058
|
2099.278 |
1610.992 |
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Other Current Assets |
42.250
|
21.355 |
13.664 |
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Loans & Advances |
677.896
|
669.309 |
684.040 |
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Total
Current Assets |
5465.955
|
4516.495 |
3764.968 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
1448.107
|
1340.403 |
(1128.444) |
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Provisions |
612.852
|
644.823 |
(542.051) |
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Total
Current Liabilities |
2060.959
|
1985.226 |
(1670.495) |
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Net Current Assets |
3404.996
|
2531.269 |
2094.473 |
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MISCELLANEOUS EXPENSES |
133.354 |
367.039 |
600.722 |
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TOTAL |
4397.578 |
3765.661 |
3547.598 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
30.11.2006 |
30.11.2005 |
30.11.2004 |
|
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Sales Turnover |
6623.522 |
5985.201 |
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Other Income |
593.957 |
410.301 |
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Total Income |
7217.479 |
6395.511 |
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Profit/(Loss) Before Tax |
1620.087 |
1092.445 |
748.336 |
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Provision for Taxation |
562.836 |
411.275 |
293.158 |
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Profit/(Loss) After Tax |
1057.251 |
681.170 |
455.178 |
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Earnings in Foreign Currency : |
|
|
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Export Earnings |
14.768 |
21.894 |
NA |
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Other Earnings |
270.591 |
247.840 |
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Total Earnings |
|
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Imports : |
|
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Raw Materials |
293.713 |
302.752 |
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Stores & Spares |
0.148 |
0.192 |
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Capital Goods |
19.256 |
13.819 |
NA |
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Others |
124.933 |
57.334 |
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Total Imports |
438.05 |
374.097 |
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Expenditures : |
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Manufacturing Expenses |
1973.283 |
1927.389 |
|
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Raw Material Consumed |
2235.603 |
2000.595 |
|
|
|
Interest |
0.715 |
1.572 |
|
|
|
Depreciation & Amortization |
130.713 |
138.459 |
|
|
|
Other Expenditure |
1023.395 |
1001.368 |
|
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Total Expenditure |
5363.709 |
5069.383 |
5029.599 |
|
QUARTERLY RESULTS
|
PARTICULARS |
|
|
28.02.2007 1st
Quarter |
|
Sales Turnover |
|
|
1640.800 |
|
Other Income |
|
|
119.700 |
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Total Income |
|
|
1760.500 |
|
Total Expenditure |
|
|
1292.700 |
|
Operating Profit |
|
|
467.800 |
|
Interest |
|
|
00.000 |
|
Gross Profit |
|
|
467.800 |
|
Depreciation |
|
|
27.100 |
|
Tax |
|
|
158.000 |
|
Reported PAT |
|
|
282.700 |
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|
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|
200702 Quarter 1 --------------- Notes Net Sales Includes
Gross Sales Rs 1787.70 million Excise Rs (146.90) million Sales Tax Rs
(90.80) million Expenditure Includes (Increase)/Decrease in stock in Trade Rs
(71.50) million Consumption of Raw Materials Rs 394.00 million Purchase of
finished goods Rs 201.40 million Staff Cost Rs 219.80 million Other Expenditure
Rs 432.20 million Extraordinary Items Indicates Exceptional Items - Income /
(Expense) Provision for taxation (including Fringe Benefit Tax) EPS is Basic
& Diluted Status of Investor Complaints for the quarter ended February 28,
2007 Complaints Pending at the beginning of the quarter 03 Complaints Received
during the quarter 112 Complaints disposed off during the quarter 115
Complaints unresolved at the end of the quarter Nil 1. The above results have
been taken on record by the Board of Directors of the Company at its meeting
held on March 22, 2007. 2. Sales in the month of December were impacted due to
Trade related issues in the state of
KEY RATIOS
|
PARTICULARS |
|
30.11.2006 |
30.11.2005 |
30.11.2004 |
|
-Equity
Ratio |
|
0.00 |
0.02 |
0.02 |
|
Long
Term Debt-Equity Ratio |
|
0.00 |
0.00 |
0.00 |
|
Current
Ratio |
|
1.47 |
1.57 |
2.20 |
|
TURNOVER
RATIOS |
|
|
|
|
|
Fixed
Assets |
|
4.53 |
4.24 |
4.63 |
|
Inventory |
|
8.14 |
8.52 |
8.54 |
|
Debtors |
|
10.05 |
9.03 |
10.49 |
|
Interest
Cover Ratio |
|
2315.43 |
824.13 |
117.01 |
|
Operating
Profit Margin(%) |
|
22.87 |
20.89 |
15.34 |
|
Profit
Before Interest And Tax Margin(%) |
|
21.16 |
18.90 |
13.84 |
|
Cash
Profit Margin(%) |
|
15.51 |
13.74 |
9.84 |
|
Adjusted
Net Profit Margin(%) |
|
13.81 |
11.76 |
8.35 |
|
Return
On Capital Employed(%) |
|
42.30 |
41.56 |
34.53 |
|
Return
On Net Worth(%) |
|
25.90 |
22.83 |
17.58 |
STOCK PRICES
|
Face Value |
Rs.10.00 |
|
High |
Rs.818.00 |
|
Low |
Rs.808.30 |
LOCAL AGENCY FURTHER INFORMATION
Fixed Assets:
Intangible Assets:
©
Trademarks
Tangible Assets:
©
©
©
Buildong
©
Leashold improvements
©
Machinery and equipments
©
Office Equipments
©
Furniture and Fixtures
©
Vehicles
Company Details:
Pursuing Innovation
The pursuit of
innovation is basic to Pfizer's culture. It shapes their strategy, defines
their purpose, and governs every facet of their operations - from research and
development (R&D) that leads to pharmaceutical inventions, to the transfer
of knowledge to patients and providers, to the way they respond to the changing
marketplace.
Their medicines
library includes about 3 million compounds. Their pipeline holds approximately
169 new molecular entities and 73 enhancement programs for marketed products in
development and about 400 compounds in discovery research across multiple
therapeutic areas.
Pfizer scientists
have produced innovative breakthroughs in a wide range of research areas,
including depression, erectile dysfunction, high cholesterol, HIV infection,
hypertension, bacterial infections and systemic fungal infections. And today
they're taking on some of the world's most difficult diseases, including
cancer, arthritis, and osteoporosis.
Pfizer in
·
Pfizer Limited (
·
It is one of the fastest growing pharmaceutical
companies in
·
Globally one of the highest spenders in
pharmaceutical R&D, Pfizer has made clinical research investments of US $
15.75 million in
·
The company was awarded the FICCI–SEDF (Socio
Economic Development Foundation) Certificate of Commendation for its social
responsibility efforts
·
A 2006 survey has ranked Pfizer as the most
respected MNC pharmaceutical company
About their products
·
5 products launched since 2005 - Vfend, Viagra,
Lyrica, Caduet and Macugen
·
7 Pfizer brands feature among the Top-100
pharmaceutical brands in
·
2 of Pfizer
·
Pfizer has won the Golden Peacock Innovative
Product for Magnex (Sulperazon) and Exubera (inhaled insulin)
Going beyond medicines
·
In
·
Partner with Physician Associations to develop
recommendations/ guidelines of managing specific diseases
·
Provide medical information to physicians on drugs
as well as therapeutic areas that they operate in
·
A Pharmaco-Vigilance system wherein they track
adverse events reported by physicians
Location & People
·
Headquartered in Mumbai
·
Over 2000 colleagues
·
State-of-the-art manufacturing facility at Thane,
Academic Contribution
·
Formed the Academy of Clinical Excellence (ACE)
in collaboration with Bombay College of Pharmacy to provide professional
training to investigators and other clinical research personnel
·
Pfizer has also partnered with other pharmaceutical
companies, contract research organizations and investigators to establish Indian
Society for Clinical Research (ISCR) – a professional society aimed at
raising the standards of clinical research
·
Pfizer Education And Research League (PEARL) is a new
initiative in which Pfizer seeks to partner with institutes to improve existing
clinical research and continuing medical educational capabilities.
History:
One year after his
arrival in
By the turn of the
century, Pfizer’s main product was citric acid. This versatile substance had
many industrial applications. It was also widely used to flavour foods, soft
drinks and medicines. It wasn’t until 1917; however, that citric acid was made
for the first time by fermenting sugar. Through the 1920s, Pfizer developed new
methods of high-volume fermentation. In the 1930s, Pfizer developed deep-tank
fermentation of citric acid from molasses, a method that increased quality
while cutting production costs.
The wonder drug
With the coming of the Second World War, there was an urgency to develop
an infection-fighting medicine. One such medicine was penicillin, which had
been discovered by Sir Alexander Fleming in
Several
By 1945, Pfizer
was the world’s largest producer of penicillin and set out to discover other
organisms to fight disease. In 1959, following 20 million tests on 135,000 soil
samples from different locations around the world, Pfizer introduced the new
antibiotic Terramycin, the first medicine discovered by systematic Pfizer
research.
Global expansion
Pfizer first came
to the Indian market in 1950, through a company named Dumex Limited. The first
production facility was set up at Darukhanna in Mumbai, where products like
Protinex and Isonex (isoniazid - an anti -TB drug) were manufactured.
Subsequently, this plant also produced Becosules and Corex, both of which remain
mega products till date. Two other manufacturing sites, which were established
during the eighties, one for organic synthesis in West Bengal and the other for
formulations in
In 1960, Pfizer established a large and modern plant at Thane, near
Mumbai, which housed manufacturing, quality control and product research
facilities. This plant has won a number of national safety awards.
Recently, the Thane plant has undergone an upgradation of its facilities
to align with Pfizer global manufacturing standards.
Director Repots:
Financial Result:
The Company recorded sales of Rs.6623.500 millions, an increase of 11%
over Rs.5985.200 millions in the previous year. The Company achieved a net profit
of Rs.1057.200 millions as compared to Rs.681.200 millions for the previous
year showing an increase of 55%.
OUTLOOK:
Pharma Industry in
2006 - An Overview:
The past year was a period of consolidation for the pharmaceutical
industry. Indian pharma companies and MNC pharma companies operating in
The Indian Pharmaceutical Market estimated at Rs.248630.000 millions*, grew
strongly at 12.9% in 2006 with a volume contribution of 10%, new products
contribution of 3% and a price growth that declined by 0.1%. The 2006 growth is
high primarily on account of the significant dip in volumes in March-April 2005
when VAT was implemented in most of the Indian states. On the whole, Indian
companies outgrew the market at 14.2%, while MNCs registered a healthy growth
of 8.7%. Riding on an improved economy, the domestic market which has seen
consistent single digit growths in the past five years, is forecasted to grow at
a CAGR of 13.6% between 2006-2010, to become a Rs.415000.000 millions industry
by 2010 (Source: ASSOCHAM and Cygnus research paper).
Although
Today, the Indian pharmaceutical industry stands at a crossroad.
Attractive opportunities are emerging with generics in developed markets and
the domestic market is becoming increasingly challenging. The rising prevalence
of life-style related diseases coupled with improving healthcare awareness and
purchasing power are driving the growth of the pharma market. The growth is
further aided by the increasing presence of corporate hospitals and retail
outlets as they expand from urban to semi-urban areas that include small towns.
Some large Conglomerates in
Despite the introduction of a product patent regime in 2005, ambiguity
surrounds issues such as the scope of patentability, compulsory licensing,
pre-grant opposition and data protection. All these factors continue to deter
large scale FDIs that could accelerate growth of the Industry. This new regime,
however, may represent unprecedented opportunities for many of the domestic
pharmaceutical companies. So, the domestic industry will have to increase its
spending on R&D if it wants to address these new opportunities and
challenges.
Tighter controls on pricing envisioned in the New Drug policy (due to be
implemented soon) may also affect margins and impact business.
On the international front, the industry still has some catching up to do in
terms of quality assurance while, on the local market, pricing remains a
problem. Though there has been a significant increase in the outsourcing
activities, there is a need for regulatory reform in
The industry is now awaiting developments following the January 2007 draft
publication of the government's National Pharmaceuticals Policy for 2006. The
document contains proposals for far-reaching initiatives aimed at boosting the
domestic industry's global competitiveness, as well as improving the
population's access to medicines.
* All market data based IMS Stockist Audit, December, 2006.
Outlook and Implications:
Despite the cumbersome regulatory procedures, the likelihood of `Big Pharma'
introducing new products in the country is high. 2006 has proved to be more of
a testing ground for the Indian market. The regulatory delays and constant
industry-government wrangling resulted in an overcast climate for many
multinationals that have to wait for more clarity to emerge. While some
uncertainty persists, there is also an element of urgency, with the recognition
that if the wait proves too long, the market potential will be snatched
away.
In domestic terms, the country's 'back office' culture - propagated by the IT
services industry - has flowed into pharma, as Clinical Research and
Manufacturing (CRAM) initiatives are high on the agenda of both large and
medium-sized Indian pharma companies. During the last two years, most Indian
companies have ramped up their capacities and invested in improving
manufacturing standards. Assured in the knowledge that
BUSINESS SEGMENT,
PHARMACEUTICALS DIVISION:
Performance 2006:
The Company has a market share of 2.7% and was ranked tenth in the
pharmaceutical industry in 2006. Compared to the market growth rate of 12.9%,
the Company grew by 11%, driven by strong sales of key brands, new launches and
enhanced productivity of the therapy focused field force. The Company was among
the fastest growing in the Top-10 Companies in the Industry.
The 'key brand' portfolio consisting of Corex, Becosules, Gelusil,
Benadryl, Dolonex, Minipress XL, Amlogard, Magnex, Claribid and Daxid posted an
impressive combined growth of 15.4%. Strategically targeted customer selection,
coupled with high-science communication and promotional programs based on
strong medical rationale were instrumental in growing these brands and
maintaining leadership positions, in their respective therapeutic areas. Seven
of the Company's brands were ranked among the Top-100 Industry brands. Corex
& Becosules continue to rank among the Top-10 pharmaceutical brands
nationally.
Their commitment has been to align with Pfizer Inc.'s portfolio, fuel
organizational growth and deliver the latest medicines to the Indian
population. In line with this commitment, the Company has launched three global
brands in 2006, namely ViagraTM - for erectile dysfunction, LyricaTM - for
neuropathic pain and CaduetTM - for treatment of hypertension associated with
dyslipidemia. All three brands were received enthusiastically by the medical
community and patients alike. Their efforts will remain focused on gaining
wider acceptance for these new launches. In fact, LyricaTM was ranked No. 2
among all new molecules launched in 2006 by IMS audit.
The Company was among the select companies that won the prestigious 'Pharma
Excellence Awards 2006', instituted by the Indian Express Group for excellence
in 'Innovative Products of the Year' category. The Company also had the
distinction of being ranked #1 among all MNCs and #3 among all companies in the
pharmaceutical sector, in the '2006- Most Respected Companies Survey' conducted
by Businessworld magazine.
Marketing and Medical Initiatives:
During the course of the year, the Company's efforts were directed in
building strong relationships with doctors and developing innovative programs
to cater to them and their patient's medical needs. Their program - Prime MD
was designed to create awareness among primary care physicians about diagnosis
and treatment of depression. Prime MD was well received by the doctor community
who has participated in conferences that were addressed by world renowned
speakers. At these conferences the doctors were educated on the latest trends
in medicine.
Another initiative that was highly appreciated was the Company's efforts in the
field of Critical Care by therapy shaping, aimed at establishing the importance
of selecting the right antibiotic for the treatment of serious infections based
on locally generated sensitivity data. Patient Assistance Programs designed to
improve patient compliance, and build brand loyalty through value added
services were initiated to support all the three new products - LyricaTM,
CaduetTM and ViagraTM. This has helped the Company to successfully distinguish
its brands from increasing generic competition.
The Company's commitment to Cardiovascular Care remained on track.
Healthy HeartTm - a disease management program conducted in alliance with the
The Consumer Health Division continued to drive growth through aggressive
promotion in the media as well as to doctors and retailers. An innovative
strategy of product sampling at high consumer traffic points, such as shopping
malls and multiplexes was used successfully to grab eye-balls for the popular
mouthwash, Listerine. Following the global divesture of the OTC business to
Johnson & Johnson in December 2006, the completion of this process in
Field Force - A force to reckon
with:
The field force continues to be the primary point of contact for all their
valued customers. The Company undertook various initiatives to ensure that the
field force was adapting quickly to the changing business dynamics. 2006
witnessed the launch of the Efficiency and Effectiveness (EnE) initiative aimed
at building excellence in the sales force and 'behind-the-scene' processes that
drive it. EnE's core objective is to optimize alignment in the sales &
marketing processes and thus enhance productivity of sales colleagues in each
business call through focused communication and inputs, based on customer's
pre-defined profile and needs. One of the key issues addressed through this
program was the ever-growing need for information from demanding customers
coupled with increasing restrictions in getting access to them. The pilot for
this project was rolled out in two locations in the last quarter of 2006, and
the national rollout will be completed in 2007.
Training and Development:
New launches during the year called for brand new training tools. Innovative
interactive sessions designed and administered by the inhouse training division
replaced the previous monologues on medical and marketing programs. This
empowered the Company's sales teams to go out to the market place and
confidently detail'High Science Products' to doctors, and stay ahead of
competition. OPTILEARN and OPTILEARN PLUS, the e-learning tools also continued
to be successfully utilized to sharpen communication skills and upgrade product
knowledge of the field force.
Another novel training method was the 'Preceptership' program. In this program,
sales colleagues were provided with a unique opportunity to understand a clinician's
perspective in treating patients, and in the process address their needs with
greater focus.
The Company is committed to enhance competencies of all its employees and keep
them abreast of the latest trends by exposing them to classroom as well as
on-the-job training programs, on an ongoing basis.
A Promising Future:
2007 and beyond promises to be an exciting period for the Company. You
will see considerable progress on many fronts, especially in the launch of new
generation medicines from the global Pfizer research pipeline in various
therapies such as cardiovascular, diabetes, anti-infectives and HIV. A number
of customer engaging initiatives and innovative marketing programs have been
planned to sustain these launches. The Company's efforts will also be focused
in expanding current business and penetrating untapped markets through new
ventures in retail, rural and institutional sectors. The older product
portfolio which continues to have significant potential is being promoted through
contract field force agencies.
All these initiatives demonstrate the Company's core commitment to
maintain its position as a leader in meeting their nation's most urgent need -
providing better healthcare for all its citizens.
How Rupee Earned
is spent:
Material Cost 31%Personnel costs 14%Manufacturing and other expenses
27%Interest & Depreciation 2%Exceptional items - net 3%Taxes 8%Shareholders
6%Reserves 9%
BUSINESS SEGMENT: ANIMAL HEALTH
DIVISION:
Animal Health Business:
As the country progresses economically, the ripple effect is observed
across all industries; Animal Health is no different. With the consumption of
milk and meat products improving and the increased spend on pets, this sector
is poised for good growth and investment.
The Animal Health Industry in
Cattle and Poultry segments dominate the Animal Health market in
The Company has expanded its interest in Dairy and Companion Animal
segments and has worked on plans to strengthen their poultry business. The
fundamentals of these segments are stronger than ever before and signal a
greater role in the future growth of industry.
Globally, Pfizer Animal Health announced its agreement to acquire Embrex
Inc. - a move that marks Pfizer's re-entry into the poultry business after a
six-year absence. Embrex is best known for its Inovoject system, which allows
baby chicks to be vaccinated before they hatch.
Dairy Business:
The new and upcoming Indian urban consumer is infused with an eagerness
to self indulge, a far cry from self-denials of yester years. Milk and milk
products already occupy a significant share in total food spend of an average
Indian family and the shift towards increasing the share of dairy products in
the total food spends will receive a further boost with the retail revolution
in the country.
The Dairy segment of the Company has taken significant steps in expanding
its dairy and dairy farm business in terms of new product launches and field
force expansion. The business has grown by 18% in 2006 and is poised to further
increase in growth rate.
Poultry Business:
The Poultry industry faced a major challenge during 2006 with the spread
of Bird Flu in February. The impact was significant and it took the industry
almost all of 2006 to recover.
Recognizing the challenge that disease epidemics can cause, the Company has
increased its thrust in the area of Biosecurity. This coupled with other
planned strategies will result in significant gains to the business ahead.
Furthermore, globally Pfizer's planned re-entry in this segment will have a
positive impact as the Poultry segment in India constitutes close to 50% of the
PAH market.
Companion Animal Business:
The companion animal business continues to grow. The economy has had a
visible impact on this segment primarily due to increase in disposable income
coupled with an overall increase in awareness on pet's health.
They are a dominant player in the Companion Animal business and have a
dedicated team, which plans to grow aggressively through increased reach to
more customers, launch of new products & deploy innovative
strategies.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON DESIGNATED
PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms
and conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.44.01 |
|
|
1 |
Rs.81.74 |
|
Euro |
1 |
Rs.55.04 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|