Share price of Pfizer jumps 7%, company signs Mylan Pharma for Indian market

[ez-toc]Market Performance

Shares of Pfizer increased on February 24 following the announcement of a marketing and supply agreement with Mylan Pharma. The stock rose by up to 7% during the trading session.

Agreement Details

Pfizer and Mylan Pharma have entered into a five-year marketing and supply agreement for the Indian market. This agreement aims to expand the reach and availability of two neurotherapy products, Ativan and Pacitane, by improving their distribution and in-clinic presence. The sourcing details of these products—whether they will be manufactured in India or imported—have not been disclosed.

Mylan Pharma has a strong presence in the central nervous system (CNS) therapy segment, with resources for specialists such as neurologists and psychiatrists. According to Pfizer, these brands are recognized as leading products in their respective categories.

Market Share

“Pacitane leads in its therapeutic category with 67% market share. Ativan is one of the largest anxiolytic brands in the Benzodiazepine Tranquilizer market with 6% market share, despite facing out of stock situations," Pfizer had said in its annual report for FY24.

Company Financials

In FY22, Pfizer Limited transferred a portion of its off-patented and generic medicine business (Upjohn Business) to Mylan Pharma for Rs 180.48 crore under a business transfer agreement.

Industry Overview

The Indian pharmaceutical sector is closely monitoring international trade policies. Recent statements from the U.S. administration have suggested potential reciprocal tariffs on Indian pharmaceutical exports, which amount to $8 billion annually. India has set a target of $29 billion in pharmaceutical exports for the current fiscal year.

Summary

Pfizer and Mylan Pharma have entered into a five-year agreement to enhance Ativan and Pacitane's market presence in India. Mylan's expertise in CNS therapies is expected to strengthen distribution efforts. Pfizer's financials indicate stable revenue, while industry players remain attentive to evolving global trade policies affecting Indian pharmaceutical exports.