“We have hired somebody to look into the entire model, and by the end of the quarter, we will take a decision as to how we want to move forward on this,” Pfizer director (finance) Kewal Handa said addressing a conference call last week.

“We are looking at a sustainable model to enable Pfizer capture the value in vaccine, particularly when we are not the original manufacturer,” he added.

Pfizer had earlier entered into a co-marketing agreement with Shantha Biotech for marketing the latter’s recombinant DNA vaccine for hepatitis-B under the brand Hepashield for a consideration Rs 6 crore.

The hepatitis-B vaccine market had witnessed a price war by other manufacturers, including Serum Institute, resulting in a low realisation from these vaccines, analysts said.

Mr Handa attributed the impact on the growth rates in the last quarter, to the company’s inability to move forward with a right business model as far as vaccines are concerned.

The agreement with Shantha Biotech also provides Pfizer the right of first refusal to exclusively co-market any new product that Shantha Biotech would develop in future.

On the likelihood of marketing streptokinase and interferon vaccines currently being developed by Shantha Biotech, Mr Handa said: “We did examine these and other products, but have not executed our right of refusal. We are currently negotiating with them on these products.”

Meanwhile, the company is looking at acquisition opportunities in the animal health segment to gather critical mass. Mr Handa admitted that the company’s animal health business is passing through a phase of recession along with margin squeeze due to generic competition.

The company’s major product in this segment, Coxistac, accounting for 20-30 per cent volumes in the animal health business is under tremendous pressure.

To counter the decline in the animal health business, the company has launched canine vaccines in this segment, Mr Handa said.

The company has also launched a sertraline product from the parent’s stable, which is used for anti-depression under the brand name Daxid. This is the second new product launched in India in the current year by the company after Fumycin for candidiasis.