Mumbai, Nov. 27: Pfizer India’s famed protein supplement brand Protinex is finally changing hands.
The company today announced that it has finalised a three-year phased sales-transition co-promotion and manufacturing support agreements for Protinex with EAC Nutrition of Denmark.
Under the arrangement, EAC Nutrition will share revenues and profits over three years with Pfizer India, in addition to paying it $ 7 million (Rs 33.7 crore) outright. During this period, Pfizer India would continue to provide manufacturing support for the product, the company told stock exchanges today.
Pfizer India explained that the development follows Pfizer Products Inc. USA and Pfizer Corporation Panama’s sale of the Dumex trademark and the Protinex brand to EAC Nutrition, a Danish foods company.
The company added that the phased three-year arrangements for Protinex is part of a strategy to gradually increase focus on its core competencies in pharmaceutical products without a significant immediate impact on revenues, profits or ongoing operations.
EAC’s core business being nutrition, the Protinex brand is expected to provide extension opportunities within the broader and larger milk-based nutritional powder beverage market in which EAC has a significant presence in several countries, the company noted.
Incidentally, today’s development comes after Pfizer India earlier denied reports that said it was scouting for partners to market Protinex. In fact, the move failed to take industry analysts by surprise, who pointed out that the brand had witnessed a fall in sales over some time.
While sales of the brand are put at close to Rs 30 crore, the consideration received by Pfizer indicates that it has obtained a premium of at least 12 per cent.