Pfizer launches and Prevenar 20 support revenue growth and margins

Investment View and Business Overview

ICICI Direct Research retains a BUY view on Pfizer Ltd. with a target price of Rs 5,815, compared with the CMP of Rs 4,750. The brokerage's thesis is supported by recent product launches, new SKUs, reforms aimed at improving market penetration and the expectation that Pfizer can stimulate sales growth while maintaining EBITDA margins.

Pfizer operates across 15 therapy areas in domestic formulations, with more than 125 products spanning therapeutics and vaccines. The report describes the company as India's third-largest multinational pharmaceutical company, with a manufacturing facility in Goa. Based on IQVIA MAT June 2026 data, Pfizer's acute-to-chronic mix stood at 74:26.

Q1 FY27 Financial Performance

Q1 FY27 revenue increased about 8% year on year to Rs 653.2 crore, led by power brands including Eliquis in cardiovascular, Magnex, Meronem and Zavicefta in anti-infectives, as well as the newly launched Prevenar 20 vaccine. Becosules, Mucaine and Minipress XL declined, while sales of the flagship Prevenar 13 vaccine were flat year on year.

EBITDA grew about 18% year on year to Rs 248 crore, with EBITDA margin expanding 308 basis points to 37.9%, despite a 173-basis-point decline in gross margin to 63.2%. PAT increased 6.6% to Rs 204.5 crore, although PAT margin contracted about 49 basis points due to lower other income.

Product Launches and Brand Performance

Recent launches are central to the broker's investment thesis. In Q1 FY27, IQVIA data showed Eliquis growing 29%, Meronem 17% and Magnex 107%. The adult pneumococcal conjugate vaccine Prevenar 20 generated about Rs 39 crore in Q1 FY27 according to IQVIA and is expected to strengthen Pfizer's vaccine portfolio.

Over MAT June 2026, Prevenar 20 contributed Rs 116.4 crore. The top 10 brands grew 17.9% year on year to Rs 2,071.3 crore and accounted for 62.3% of IQVIA sales.

Portfolio Expansion and Go-to-Market Initiatives

The report highlights planned additions from Pfizer's parent, including Nurtec ODT for migraine and Emblaveo for drug-resistant bacterial infections. Pfizer has also changed leadership across Internal Medicine, Vaccines and Hospitals, and revised the go-to-market model for certain Internal Medicine products.

In addition, Pfizer entered into an arrangement with Cipla to market, distribute and sell legacy brands in India, including Corex Dx, Corex LS, Dolonex, Neksium and Dalacin C. ICICI Direct views these initiatives as measures to address the sales slowdown in legacy brands and improve growth.

Financial Outlook and Valuation

ICICI Direct forecasts revenue CAGR of about 10% over FY26-FY28E and expects Pfizer to sustain a dividend payout above 30%. The brokerage's estimates are as follows:

The target price of Rs 5,815 is based on a valuation of 28 times FY28E EPS of Rs 207.6.

Key Risks

• The new distribution model may not prove sustainable.
• The parent may launch new products through an unlisted entity.