Pfizer - Stock Update

The pharmaceuticals and animal healthcare business is growing stably and is ex-
pected to grow at around 10% during the CY08. In 9mCY08, both the businesses
have grown 11.3% and 18.1% to Rs.4.35bn and Rs.623mn, respectively. The com-
pany has launched two new products (CHAMPIX and CYKLOKAPRON) from the
parents' portfolio during the Q1CY08 and might launch two more products in
CY08. The management expects the animal health business to grow at around
15% in CY08. However, the income from clinical research and development service
will remain under pressure due to severe competition at the international level
along with the entry of new players from other Asian countries like Korea, Malay-
sia, Philippines and Indonesia.
The company has transferred four consumer healthcare brands to J&J for Rs2.15bn
in January 2008. The transfer includes the trademarks relating to Benadryl,
Caladryl, Benylin and Listerine and certain assets related thereto. All other brands
and the consumer healthcare team will continue to be an integral part of the com-
pany. Going forward, the consumer healthcare portfolio will include key brands
such as Gelusil, Nebasulf, Selsun, Ferradol, Neko and Waterbury's compound. The
company is confident that there is tremendous potential in its brands, and business
strategies will be put in place to maximize opportunities and drive growth in the
consumer health business