Pfizer’s new launches and core brands support growth and margin expansion

Investment View and Key Drivers

In its July 10, 2026 annual report analysis, ICICI Securities maintained its BUY recommendation on Pfizer with a target price of Rs 6,000. This implies a 31 per cent upside from the report’s CMP of Rs 4,596.

The positive view is based on growth from established brands, early traction from recently launched products, wider reach through collaborations, and improved profitability from sourcing and overhead-cost optimisation.

FY26 Financial Performance

Pfizer reported FY26 revenue of Rs 25,197 million, representing 10.4 per cent year-on-year growth. Adjusted PAT increased 19.1 per cent year on year to Rs 7,588 million.

Gross-margin expansion of 43 basis points was largely attributed to a better product mix. Overhead rationalisation, lower freight and forwarding costs, lower legal and professional fees, and lower travel costs also supported margins. Pfizer declared an FY26 dividend of Rs 75 per share and ended the year with cash and cash equivalents of about Rs 31,108 million.

Core Brands and Hospital Portfolio

Core brands remained central to performance. Prevenar-13 retained leadership in private pneumococcal vaccines, with a 52 per cent volume share and a 60 per cent value share according to IQVIA MAT March 2026 data.

• Eliquis: Grew 30 per cent year on year in FY26 and held a 37 per cent share of the represented oral anticoagulant market despite generic competition.
• Zavicefta: Held a 42 per cent share in the Ceftazidime plus Avibactam category.
• Emblaveo: Launched in October 2025 for multidrug-resistant Gram-negative bacterial infections, broadening Pfizer’s antibacterial offering. Future growth is expected from scaling the brand and increasing engagement with prescribers and institutions.

New Launches and Collaborations

New launches are an important incremental growth lever. Prevenar-20, launched in August 2025 as a single-shot 20-valent pneumococcal vaccine for adults, had been administered to about 0.2 million adults by March 2026. It gained a 12.1 per cent value share in pneumococcal vaccines within eight months.

Pfizer also launched Nurtec ODT, rimegepant 75 mg, for acute migraine treatment, targeting neurologists and psychiatrists. An agreement with Cipla covering four key brands is expected to broaden the reach of those products. In addition, a five-year marketing and supply agreement with Mylan covers the CNS brands Ativan and Pacitane.

Portfolio Developments and Areas of Moderation

Portfolio developments outside the main growth brands were mixed. In women’s health, Pfizer held an 11 per cent market share across represented segments, including a 24 per cent share in folic acid and combination products and a 19 per cent share in combined oral contraceptives. Ovral L received approval for additional indications.

The Becosules franchise gained one percentage point of share in the approximately Rs 30,000 million vitamins market, although Becosules and Becosules-Z sales declined in MAT March 2026. Prevenar-13 sales declined 2.6 per cent, while Folvite and Ovral-L sales also declined during the same period. These trends highlight the company’s dependence on new launches and core-brand execution.

Earnings Outlook

ICICI Securities forecasts FY27E revenue of Rs 27,560 million and EBITDA of Rs 10,093 million, with EBITDA margin rising to 36.6 per cent. For FY28E, it estimates revenue of Rs 29,879 million, EBITDA of Rs 11,148 million and adjusted EPS of Rs 217.6. Cash and cash equivalents are forecast at Rs 36,336 million in FY27E and Rs 42,582 million in FY28E.

The report does not state a separate valuation methodology or earnings-estimate revision.