Pfizer eyes deals to raise emerging markets presence
June 15, 2009
An executive for Pfizer Inc, the world''s largest drugmaker, is looking to conclude deals in emerging markets over "few months" to raise its share of a market estimated at about $80 billion, reported by Reuters. Pharmaceutical companies are increasingly turning their attention to developing nations as they face tougher conditions in more mature markets. The drugmaker struck a $68 billion deal in January to acquire U.S. rival Wyeth to help shore-up profits, and in May signed licensing agreements with two Indian-based companies, including Aurobindo Pharma Ltd, as it seeks new growth opportunities in generics and emerging markets. Pfizer is seeking to add $3 billion in annual sales by 2012 in developing markets and is targeting China, Brazil, Mexico, Russia, Turkey, India and to a lesser extent the Middle East to help lift its 4 percent market share. Pfizer, which posted $48 billion in revenue last year, faces severe sales declines in the coming years from patent expirations to its own products, including its blockbuster Lipitor cholesterol treatment. It has responded with the purchase of Wyeth, and the restructuring of its operating model around separate units including generic drugs and emerging markets. The company expects growth in the Middle East of about 10-12 percent over the next five years as opportunities arise from sustained economic activity in the world''s largest oil exporting region.