Comments
Centrum Broking
Pfizer (Buy)
Target: ₹4,700
CMP: ₹4,111.70
Pfizer’s Q4-FY20 results were below our estimates primarily due to lower sales and EBITDA. Revenues declined by 6 per cent YoY. The adjusted growth for the quarter and year ended March 31, 2020, would have been 3.5 per cent and 5.8 per cent respectively.
The current quarter sales have been impacted by the divesture of rights and interests in certain brands and the Covid-19 pandemic. The costs have been mostly similar or lower except the employee costs, which short up 24 per cent YoY in Q4. Gross margins for the quarter stood at 61.9 per cent Vs 65.7 per cent YoY Vs 62.7 per cent QoQ.
Tax reversal of ₹44.5 crore saved the bottom line to that extent. Top brands for Pfizer continue to reflect an average growth of 7.5 per cent for the quarter. The leading brands: Magnex, Prevenar 13, Wysolone, Minioress and Corex DX delivered average double-digit growth cumulatively in Q4, ahead of the market growth rate of 10 per cent.
The company recently launched Zavicefta (patented product), with an excellent initial sale ramp-up. The company now awaits the next planned patented product launch of Zinforo.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.