Pfizer: Looking to Do Deals in Emerging Markets

Pfizer Inc (NYSE: PFE) will use acquisitions and partnerships in an effort to become the number one drug seller in emerging markets such as China. Currently, Pfizer occupies the number three position. The emerging markets sector is worth $80 billion currently, and is expected to grow to $120 billion by 2012.

The remarks came from Jean-Michel Halfon, President of Emerging Markets for Pfizer, in an interview with Reuters. Asked if acquisitions figured in the company’s future, he replied, "We see opportunities coming from the financial crisis ... opportunities to build partnerships in emerging markets."

Pfizer could be excused from making new deals as it would seem to have its hands full. The company is currently digesting its $68 billion purchase of Wyeth (NYSE: WYE), which is expected to close in Q4. But the huge acquisition didn’t stop the company from announcing two licensing deals with Indian pharmaceutical companies in May.

"We will have other elements in the next few months," Halfon continued.

Pfizer’s strategic plan is to add $3 billion in revenue from developing markets by 2012. It will emphasize sales in China, Brazil, Mexico, Russia, Turkey, India and to a lesser extent the Middle East, according to Halfon. Pfizer’s revenues (before the Wyeth acquisition) were $48 billion last year.

Halfon also said that sales in China rose 28% in the first quarter. The addition of Wyeth will give Pfizer a presence in the vaccine and biological markets.

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