Pfizer and Parke-Davis Indian merge

Pfizer India and Parke-Davis (acquired along with Warner-Lambert) haveagreed to merge, in a move which will see the new group establish itself as the fourth largest drug company, by market share, in India. The merger will become effective December 1, 2002, and the combined company will have sales in excess of 7 billion rupees ($143 million), based on last November's audited results and a domestic market share of 3.7%.

The two firms began the process of merging during October 2000, commencing with the integration of their sales forces (Marketletter October 2, 2000), which swelled to a combined 1,150.

The decision to merge is the logical next step for Pfizer India and Parke-Davis, following the link-up between their parent companies, USA-based Pfizer and W-L, in 2000 (Marketletters passim). Pfizer will hold a 40% stake in the new company. The agreed stock swap ratio will see Parke-Davis shareholders receive four shares in the combined entity for every nine they currently hold in P-D.