Pfizer falls 9% after withdrawing Corex from India

Moneylife Digital Team 14 March 2016

Pfizer says it stopped manufacture and sale of its cough syrup Corex in India, which recorded a sale of Rs176 crore for first three quarters of FY2016

Pharmaceutical company Pfizer said it has decided to stop producing and selling its cough syrup Corex in India. This follows direction from the Indian government prohibiting the company from selling fixed dose combination of Chlopheniramine Maleate and Codeine Syrup. Following the announcement, the company shares ended 9% down to Rs1,760 on the BSE.

In a regulatory filing, Pfizer said, "... the Government of India vide notification no SO 909(E) dated 10 March 2016 has prohibited the manufacture for sale, sale and distribution of fixed dose combination of Chlopheniramine Maleate and Codeine Syrup with immediate effect. In view of this, the Company has discontinued the manufacture and sale of its drug Corex with immediate effect."

"The above prohibition is likely to have an adverse impact on the revenues and profitability of the Company. It may be noted that Corex recorded a sale of Rs176 crore for the nine months ended 31 December 2015," Pfizer added.

Meanwhile, the Delhi High Court on Monday granted interim stay of notification restraining sale of pharma major Pfizer’s cough syrup ‘Corex’ and directed the government not to take coercive steps against the company. The court’s order came on a plea moved by Pfizer who contended that no show cause notice or hearing was granted prior to the notification.

Pfizer opened Monday at Rs1,890, its high for the day. However, soon after it started to fall to touch Rs1,753 toward the end of the trading. But it managed to recover and close at Rs1760.80, still 8.67% down from previous close.

Pfizer ended Monday about 9% down at Rs1,760 on the BSE, while the benchmark Sensex closed marginally higher at 24,804.

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