...Pfizer and the Challenges of the Global Pharmaceutical Industry Case Study Introduction This report is to summarize the results of Pfizer’s challenges on global pharmaceutical industry and analyze driving factors of competition. I briefly give the industry definition describing the scope of the analysis. The paper has the following major goals: 1) To analyze the current situation, major competition challenges and the prospects of the pharmaceutical industry; 2) To assess Pfizer’s position as a major players of the global pharmaceutical industry and make a comparative analysis of other business practices and financial results using the VRIO method; 3) To recommend Kindler opportunities for further strengthening of their positions by conducting Porter 5 forces. Pharmaceutical Industry Overview Historically, the pharmaceutical industry has developed, produced and marketed one of the most profitable and high margin drugs for many years. This industry has gone through substantial changes in the last few decade and pharmaceutical firms face major challenges, including headline-grabbing litigation, imminent patent expirations, new technologies, rising drug development costs, generic drug substitution, international competitors, and complex public policy issues. Competition Challenges and Prospects A firm must develop a product-market diversification strategy otherwise it may face substantial setbacks once the product loses momentum. It’s important...
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...| Pfizer Stock Report | | Fall 2013 Research Project | | Pfizer Stock Report | | Fall 2013 Research Project | Saint Joseph’s University Contents II. Introduction 2 III. Macroeconomic Review 3 IV. Stock Market Analysis 6 V. Industry Analysis 8 VI. Company Strategic Analysis 10 VII. Company Financial Analysis 12 VIII. Application of Valuation Methodologies 13 IX. Conclusion and Recommendations 15 X. Exhibits 16 A. Exhibit A 17 B. Exhibit A 17 XI. References 18 Introduction Pfizer, headquartered in New York, NY, is committed to applying science and global resources to improve the health and well-being of individuals of all stages of life. Ian Read, CEO, leads the company through innovation and solid long term performances on the NYSE. Pfizer is also on the London, Euronext and Swiss exchanges. They make every effort to provide everybody with access to affordable, top of the line, safe remedies and health related services to those in need. Some of Pfizer’s most famous products include, Lipitor, Lyrica, Diflucan, Zithromax, Viagra, and Celebrex. Pfizer is committed to providing sustainable solutions to the biggest health issues in the world by continuously reviewing and updating their products and services to reduce their environmental footprints. The company maintains the highest ethical standards in all that they do such as sales and marketing to research and development. Pfizer, along with all industry...
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...Reference…………………………………………………………………………10-11 Introduction/Overview To start a company, a person or group of people must realize that it is a bumpy ride from the beginning, and that only those who are prepare enough will succeed. They have to follow multiple rigorous steps and come up with innovative strategies to prove that they have what it takes to be successful in the business. Pfizer Inc. is a company that has proven itself throughout time. They are the world’s largest research based pharmaceutical company and were also recognized by Fortune magazine as the world’s largest pharmaceutical company by profit and second largest by revenue, only next to Johnson and Johnson (Fortune, 2013). Pfizer Inc. have evolve throughout the years along with science and have been responsible for the discovery and marketing of some of the world’s most innovative drugs like, Lipitor (use to decrease cholesterol), Lyrica (use for treatment of fibromyalgia), Zithromax (a renown antibiotic), and many others. Although they focus mainly on human drugs, they also produce animal and consumer healthcare products. The company have apply their science and global resources to help and make a positive impact in the quality of life and health of millions of people and animals around the world. To prove their commitment and dedication to health and business improvement, in 2012...
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...SUPPLY CHAIN AT PFIZER Global pharmaceutical companies are modelled with a supply chain, which ensures that the right drug reaches the right people at the right time and in the right condition. The pharmaceutical firms also ensure 100% product availability at optimum cost by carrying huge inventory, which maintains 100% fill rate. Manufacturers are also trying to cut down development time to save costs. So, pharmaceutical companies today are designing the supply chain to be as responsive as possible to reduce entry time to the market thereby increasing profit margins. PFIZER’S GLOBAL SUPPLY CHAIN Complexity of Pfizer Supply chain can be judged from the following numbers: 3000+ Formulations 89 Manufacturing Sites 200 Transportation Centres 500+ Suppliers 54 Internal Logistics Centres 175 sites for distribution networks A unique feature of the Pfizer’s supply chain is that it operates two very different types of supply chains at all times. One supply chain supports the drug development phase and the other one to sell a successful drug in the market. While one supply chain is focused on facilitating a quick completion of the clinical trials to obtain a quick approval, the aim of the other supply chain is to meet sales targets. As a result the drivers motivating the supply chain design are speed and high availability respectively. After a drug is launched, a completely different set of objectives, drivers, and constraints become dominant. Now, the focus shifts from...
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...Pharmaceutical Supply Chain Abstract • The global pharmaceutical supply chain is very complex and critical to a $650 billion dollar value industry which ensures the world population has necessary medicines. • Manufacturers have the responsibility to produce sufficient quantities of drugs to meet a growing global demand while maintaining quality to ensure safety. • Global and local regulatory agencies around the world have a daunting task to monitor manufacturers, raw material suppliers, and stem counterfeit pharmaceutical production. • Wholesale distributors, importers, and retail pharmacies have a large amount of power in the supply chain as they pull the demand from the manufacturers and provide the medicines to end-consumers. • In a changing industry where there are fewer blockbuster drugs and increasing use of generic offerings, manufacturers as well as participants at all levels of the supply chain must look for areas to improve efficiencies to be profitable in the long-run. Pharmaceutical Supply Chain Analysis 2 Introduction A transparent and efficient pharmaceutical supply chain contributes significantly towards improving the availability of essential medications. The reality across the world is that pharmaceutical supply and distribution consists of different stakeholders from both the public and private sectors to create complex systems. In a heavily regulated field, globalization has placed increasing demands on regulatory agencies to ensure the safety and...
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...the operational strategy of Pfizer Inc. Worlds’ leading pharmaceutical manufacturer A report prepared by Dr Amit Roy Contents 1.0 Executive Summary 4 2.0 Background 5 3.0 Key Financial information 5 4.0 Order Qualifiers and Order Winners 6 4.0.1 Safe clinical trials and drug delivery methods to objects 6 4.0.2 Health and safety standards 7 4.0.3 License to manufacture 7 4.0.4 Off license manufacturing 7 4.0.5 License to distribute the products in a specific regions 7 4.0.6 Quality of products 7 4.0.7 Cost 8 4.0.8 Supply chain 8 4.0.9 Capacity 8 4.0.10 Innovation 8 4.0.11 Market offering 9 4.0.12 Human resources 9 4.0 Pfizer’s broad order winners and operational strategy 9 4.1.13 Improving the Performance of the Innovative Core 9 4.1.14 Engine for Sustainable Innovation 10 4.1.15 Making the Right Capital Allocation Decisions 14 4.1.16 Earning Respect from Society 15 4.1.17 Creating an Ownership Culture 16 4.1.18 Corporate Governance 17 5.0 Conclusion 17 6.0 References 18 1.0 Executive Summary This report investigates the operational strategy of Pfizer, world’s leading pharmaceutical company in terms of their order...
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...Secretary of Defense Corporate Fellows Program FINAL REPORT PFIZER, INC. LTC David J. Clark, USA April 2003 USAWC CIVILIAN RESEARCH PROJECT Product Counterfeiting in China and One American Company’s Response A Case Study and research report on corporate activity relating to national security and strategy Prepared for the Director of the Secretary of Defense Corporate Fellowship Program by David J. Clark Lieutenant Colonel United States Army Secretary of Defense Corporate Fellow Dr. Clayton Chun Project Advisor The views expressed in this academic research paper are those of the author and do not necessarily reflect the official policy or position of the U.S. Government, the Department of Defense, or any of its agencies. It also does not reflect any policy or position of Pfizer Incorporated. U.S. Army War College Carlisle Barracks, Pennsylvania 17013 - This Page Intentionally Left Blank - ABSTRACT AUTHOR: Lieutenant Colonel David J. Clark TITLE: Product Counterfeiting in China and One American Company’s Response FORMAT: Civilian Research Project DATE: 4 April 2003 PAGES: 36 CLASSIFICATION: Unclassified When America, the world’s largest economy, interacts with China, the world’s most populated country, matters of strategic and global importance are inevitably raised. Using his fellowship position in a major U.S. corporation as a vantage point, the author describes the impact...
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...organization to remain competitive. Growth strategies arise from an organization’s SWOT where clear guidelines identify areas of focus. Achieving this requires innovation and alliances on products and services that will create a competitive advantage. Successfully execution requires a strategic manager who can effectively and successfully drive strategic objectives, then report its performance to the leadership team (Thompson & Strickland, 2013). This paper will examine how Pfizer utilized growth, innovation and execution strategies as well as acquisitions and mergers to become the number one global pharmaceutical company. The organization’s SWOT analysis (Thompson & Strickland, 2013) showed its strength in being innovative, opportunities to create more products, weakness in its dependence on successful products, and threats in generic competition and regulatory laws. The company’s corporate culture, strategic innovative through the top-down leadership approach, a unified tagline “OWN IT!” (Pfizer, 2013), and a strategy map demonstrates that all employees are ultimately responsible for their individual roles to drive success throughout the organization. Additionally, this paper will present a student created strategy map identifying areas the organization reports on annually. Theory Definitions Thompson and Strickland (2013) define that growth strategies arise when an organization utilizes its strength, weakness, opportunities, and threat (SWOT) to create a competitive...
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...Introduction: In this essay, the discussion will focus on the vertical chain of a major pharmaceutical company as well as TCE and its effect on make or buy decision. The vertical chain is ‘’ the process that begins with the acquisition of raw materials and ends with the distribution and sale of finished goods and service.’’ (Besanko et al, 2010, p119) The term vertical integration is used to describe firms that produce and sell their goods without relying on external co-ordination. Firm’s vertical boundaries can identify what to make (internally inside the organization) and what to buy (externally by using the market). Some of the pharmaceutical companies like Pfizer have strong vertical chains. So as to market its drugs in 150 countries, it gives high importance for production that starts by acquiring active pharmaceutical ingredients (API) and shifting them to manufacturing sites all across the globe. These manufacturing sites are either approved under the stringent laws of FDA or EMEA (2 important bodies responsible in monitoring the quality of registered products across the globe). Sometimes Pfizer also uses loan-licensing companies as external manufacturers when in-house facilities are not available or feasible. Once the product is manufactured, it is sent for quality control release and then packed and shipped to the first point of distribution (global hubs). From these locations; depending on the demand from each region; packed products (formulated products) move...
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...The History and Analysis of the Pharmaceutical Industry Pharmaceuticals Industry Analysis 1. 2. 3. 4. 5. 6. 7. 8. Origins and Evolution Environmental Analysis (PEST) Structural Industry Analysis (Porter’s Five Forces) Strategic Issues Facing The Industry Analysis of Key Industry Participants and Strategy Pfizer – SWOT Analysis and Strategy Review Conclusion References 2 2 4 5 6 8 10 10 i Pharmaceuticals Industry Analysis Executive Summary This report provides an analytical strategic review of the pharmaceutical industry; it’s origins, evolution, development and competitive environment within which it operates and the strategic issues facing the industry. The report also offers an overview of the industry, it’s key players, their strategic outlook, the impact of technological developments and other strategic issues facing the industry. The latter sections of the report focuses on the industry’s leading firm, Pfizer\Pharmacia. Page 1 Pharmaceuticals Industry Analysis The Pharmaceutical Industry 1. Origins and Evolution 1 The modern pharmaceutical industry is a highly competitive non-assembled global industry. Its origins can be traced back to the nascent chemical industry of the late nineteenth century in the Upper Rhine Valley near Basel, Switzerland when dyestuffs were found to have antiseptic properties. A host of modern pharmaceutical companies all started out as Rhine-based family dyestuff and chemical companies e.g. Hoffman-La Roche...
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...S.W.O.T analysis for Pfizer Strengths 1. Pfizer's presence in more than 50 countries and one of the largest research based pharmaceutical company globally. 2. Pfizer's is having excellent facilities for R&D to create innovative and breakthrough products 3. M & A with big pharma brands increased Pfizer's brand reputation. (Annual Review, 2013) Weakness 1. Limited scope for growth due to tough competition from other major pharma brands 2. Dependence on Key In-Line Products such as Lyrica, Celebrex , Lipitor, Viagra etc., 3. Pfizer follows global policy throughout its group companies (Annual Review, 2013) Opportunities 1. Synergy by entering strategic agreements with other research or pharmaceutical companies to boost its research 2. Increasing global awareness about healthcare needs 3. Emerging markets through mergers and acquisitions (Form 10K, 2013) Threats 1. Competition from generic drug manufactures is major challenge world wide 2. Increased government regulations and price constraints 3. Counterfeit medicine which appears to be the same as an authentic Pfizer medicine. (Form 10K, 2013) Key Success factors of Pfizer 1. Product development. as per the Pfizer announcement in early 2014 on financial results there are 7 products are in Phase 3 development stage those are Palbociclib, Dacomitinib, ALO-02, Tafamidis, Bococizumab (RN316), Ertugliflozin, Tanezuma for treatment of several diseases (Financial Report, 2013) 2. Capital allocation and expenses...
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...Pfizer Executive Summary Company Overview World’s largest global research-based biomedical and pharmaceutical company that discovers, develops, manufactures and markets safe and effective medicines. Mission To be the world’s most valued company to patients, customers, colleagues, investors, business partners and the communities where we work and live. Pharmaceutical Products Aricept Genotropin Spiriva Aromasin Geodon/Zeldox Sutent Caduet Lipitor Vfend Camptosar Lyrica Viagra Celebrex Norvasc Xalatan/Xalacom Chantix Rebif Zmax Detrol/Detrol LA Relpax Zoloft Eraxis Revatio Zyvox Animal Health Products BoviShield Draxxin RespiSure/Stellamune Cerenia Excede Revolution/Stronghold Clavamox/Synulox Improvac Rimadyl Convenia Lutalyse Silentrol Dectomax Naxcel/Excenel Financials Stock Symbol: PFE Price Range: $11-$18 Sales (2008): $48,296,000,000 Net Income: $8,104,000,000 Net Assets: $109,892,000,000 Key Executives CEO: Jeff Kindler CFO: Frank D'Amelio CMO (Chief Medical Officer): Freda C. Lewis-Hall Key Competitors GlaxoSmithKline Johnson & Johnson Novartis AG Roche Holding-AG Sanofi-Aventis Mergers and Acquisitions (2008-2009) Wyeth: announcement of merger 1/26/09, biopharmaceutical Auxilium Pharmaceuticals: 12/08, develops Xiaflex-first in class biologic for treatment of Dupuytren’s contracture and Peyronie’s Disease Schering-Plough...
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...| Pfizer | Memo To: Professor Fear From: Alexander Ouji Date: [ 1/30/2012 ] Re: Pfizer Overview Pfizer is the largest pharmaceutical company in the world. Upon reviewing annual reviews and financial reports from the past 5 years, Pfizer, although dealing with many issues both inherent and external, is keeping a stable financial condition as well as keeping its strategic operations aligned with its goals and objectives. The following is an overview which will further explain the company’s management and financial climate. Strategy Pfizer’s broad goal is to apply science and global resources to improve health and well-being at every stage of life.[1] Their strategy has been to essentially “beat their competitors to the punch” by being the first to develop and market pharmaceutical drugs. They do this by investing heavily in research and development. In the past six years, their average research and development expense has been 8 billion dollars, with 2010 being the highest amount at 9.4 billion.[2] They have continued to spend approximately this amount despite continued efforts to reduce costs in certain parts of their research dealing mainly with diseases including cardiovascular. With such large sums of money being invested in research and development, the huge risks involved highlights the confidence they have in their talent in terms of successfully developing new, brand pharmaceutical drugs. Pfizer is constantly looking to diversify its portfolio...
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...Summary Jordan Cohen, a senior director at the global pharmaceuticals company Pfizer, realized that a lot of skilled employee time was in effect “wasted” on routine tasks such as using Excel and PowerPoint and doing basic research. The PfizerWorks team managed to do what many consider an impossibility to devise a successful innovation from the bottom up in a big company. It was possible because Mr. Cohen already had years of experience in the company, so he could understand and navigate general company politics. Lone, obsessive geniuses may do well in a garage start-up but, in big companies, to make innovation happen, the manager first needs to embrace both the corporate machine and the people in it. On a personal level, Mr Cohen had a keen grasp of his shortcomings and knew when to recruit different thinkers for his team. He understood the iterative nature of the innovation process, accepting that nothing is perfect in the beginning. As a result, while Mr Cohen did run some personal risks in undertaking such a project in this way, he minimized the risks through a careful management of the various stakeholders and created his dream job as head of PfizerWorks. Discussion question 1. Pfizer is the world’s largest research-based pharmaceuticals firm and also a well known Pharmaceutical company. So their most of the work depends on research, developing Strategies and innovate. They were trying to find a new way of system...
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...PFIZER An industry leader, an HR leader, too? November 2011 EXECUTIVE SUMMARY Pfizer, one of the global leaders in pharmaceutical industry, has also been recognized as one of the most admired companies in terms of both business and HR level. In organization’s official site, Pfizer advocates that a great amount of its achievements resides on the importance placed on fulfilling its mission and values, as well as on its dedication to hire, retain and inspire its employees by offering the best growth and development opportunities available in the pharma industry within a positive environment. Pfizer’s moto “Every Colleague, Every Country, Every Day” coupled with “Many Paths, One Passion” expresses organizational culture regarding organizational HR strategy aiming to bind its leading business position to each and everyone’s employee’s excellence. However, the changing hiring requirements, knowledge sharing, leadership style in terms of employee motivation, promotion are some of the key challenges need to be addressed by the HR strategy implementation. i. INTRODUCTION An organization’s human capital management culture should value the workforce as the key asset which will define the organization’s business profile, effectiveness and performance capacity (Champion & Hughes, 2001). Good HR strategy and practices aligned with the organizational strategy and objectives may deliver best HR practices as a route to superior organizational performance (Pilgream...
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