Keywords: Pfizer, China, Japan, Generics,

Pfizer to be biggest beneficiary of China pharma market, say Goldman Sachs analysts; firm also set for Japanese generics market

Article | 24 November 2009

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The world’s largest drugmaker, USA-based Pfizer, is eyeing the Japanese generics market and, in an investment review of the company, Goldman Sachs said sales in emerging growth markets would become a significant factor in the company's revenues, a fact that it considers underappreciated by stock market investors. China is the major emerging market for Pfizer.

Reported by numerous news sources, Goldman expects emerging growth markets to produce $3.5 billion of revenue for Pfizer in 2012, of which $3 billion of will come from China.

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In its annual business review for investment professionals held earlier this year, Pfizer said it wants to increase its share of China's biopharma market to 6% in 2012 from its present 4%.

Goldman considers Pfizer to be the best positioned of any western Big Pharma in China. The company also said it expects the emerging markets growth to manifest itself over the next three to five years.

In 2008, about 58% of Pfizer's revenues came from outside the USA and 13% of its net sales were in Asia. Its current annual revenues total about $4.5 billion. Even as it cuts back to save expenses elsewhere in the world, the company has increased its sales force in China, maintained its R&D operation in Shanghai, and built relationships with China CROs and higher education institutes. Pfizer recently completed its acquisition of Wyeth.

Lining up 100 generics for Japan

Meantime, according to the Nikkei business daily, Pfizer plans to begin selling generic drugs in Japan as early as 2011, the Nikkei business daily reported last week. The US company aims to have a line-up of more than 100 generic drugs in Japan, including 70 of its own patent-expired drugs, the Nikkei said. Pfizer is considering manufacturing the products in India and elsewhere, according to the paper.

The Japanese market for generic drugs is estimated to be worth around 400 billion yen ($4.5 billion) this year, the business daily said. Generics account for just one fifth of overall drug sales in volume terms in Japan, compared with more than 50% in the USAS and European markets, the Nikkei noted.