...spending years of effort to integrate Warner Lambert and Pharmacia into Pfizer, should its management have avoided another huge acquisition like Wyeth? Should Pfizer have gone after smaller bio tech firms in a series of small acquisitions in 2008 and 2009? A number of these bio tech firms could have been acquired for the $68 billion price of the huge Wyeth acquisition. Present arguments for and against buying several small firms versus one large firm. In my opinion, when it comes to the option of bigger or smaller firm acquisition, Pfizer should have invested in a large acquisition like wryeth. This is because Pfizer’s focus is not really on how many firms it can acquire but proceeds and profit margins these acquisitions can bring in. Basing on the case, its previous large acquisitions such as Warner Lambert and Pharmacia. In 2000 and 2003 where quiet good investments bringing in large profit margin of up to 90% from the Warner. A large problem of staffing is also worsened by over acquisition. According to the case overtime acquired firms have brought in excess staff for Pfizer and this has become a problem as managers for each line have increased and thus larger costs in terms of salaries as well. Larger firm acquisitions have also evidently brought stronger products than Pfizer itself can produce. Drugs such as Lipitor from an acquired firm brought in sales of about 12 billion annually while Pfizer produced drugs have failed i.e. T-pill Furthermore larger acquisitions...
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...alignment happens and be more specific with your sources than this writer was. More comment about the source appears below. Alex _______ Assignment #3: Research Report November 15, 2012 Attempting to establish an internship with Pfizer Inc at this point in time is not in the best interest of Daniel University or its students. The first reason that makes Pfizer Inc. a less than ideal match for Daniel University's internship program is its history of ethical misconduct, especially bribery. In addition, the loss of market exclusivity of Lipitor has resulted in a sharp decline in sales as cheaper generic options have cut into Pfizer's market share. Finally, the decline in sales as a result of the loss of market exclusivity on drugs such as Lipitor has forced Pfizer Inc to resort to drastic cost cutting measures, which may hamper the company's growth potential in the long run and leave post-internship employment prospects for Daniel University students bleak. History of Ethical Misconduct Pfizer Inc has a history of ethical misconduct which heavily incorporates bribery of foreign officials and physicians. Kara Brockmeyer, chief of the division of the S.E.C. that enforces the Foreign Corrupt Practices Act (FCPA) has been quoted stating that, “Pfizer subsidiaries in several countries had bribery so entwined in their sales culture that they offered points and bonus programs to improperly reward foreign officials who proved to be their best customers.” Evidence of this claim can...
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...Pfizer: Ethics and Leadership The selection process used by Pfizer to find a successor to CEO William Steere, who had lead the company to the top of the pharmaceutical industry, lacked a system of checks and balances resulting in a power struggle that ultimately led to distrust and the unraveling of Pfizer’s top brass by an outsider . The power struggle that erupted within Pfizer demonstrates how ethical breaches occur under specific conditions and the resulting damage. It is fascinating to observe how the unethical actions of a few individuals can spiral through an entire organization negatively affecting both the companies and their stakeholders. An economic analysis of Pfizer highlights the mismanagement of resources and the ensuing social and financial costs. Pfizer was founded in 1849 by Charles Pfizer and Charles Erhart as a fine chemicals business in Brooklyn New York. In the 1950’s the company changed its focus from fine chemicals into a research based pharmaceutical company. Pfizer’s growth exploded in the 1980’s and 1990’s with the success of drugs like Lipitor and Viagra. Led by William Steere and fueled by profits from Lipitor, Pfizer was entering its glory years. Under Steere Pfizer stock rose to a record high of $49 a share. When Steere took control in 1991 his emphasis for Pfizer was research and development of pharmaceuticals. Pfizer became a benchmark in the pharmaceutical industry and “was ranked among America’s best managed and most admired companies...
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...Marian Wang, she discusses a particular case in which Pfizer makes “…a deal with certain pharmacy benefit managers … to block generic versions of Lipitor.”(Wang, Pfizer’s Latest Twist on ‘Pay for Delay’) There are a few ethical issues with this: one, the rival companies are infringing on patent laws, two, larger pharmaceutical companies are trying to create as much profit for their company until their patent runs out, and three, Americans in need of the drug are forced to pay higher prices for their drugs. The latter two issues go hand in hand with one another. Patents are used to protect a company’s invention and gives the company exclusive rights to sell that invention. In this case the invention is a drug. But, in the drug business, companies can get a hold of a drug and break down the chemical components making it easy to duplicate. It is not right for competitive companies to be able to easily break down a drug when all the hard work has been done by another and profit. Just because there have been minor adjustments with the chemical structure of the drug gives the rival company the right to market and sell their product. At the same time doesn’t having the exclusive right to an invention like Lipitor create a monopoly for Pfizer? That is what a patent does, it gives the inventor the sole right to sell the product without interference from competitors until either the patent expires, or becomes obsolete. So, shouldn’t Pfizer be able to charge what the “feel” is right...
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...Executive Summary: Pfizer-Wyeth Merger Deal Overview: On January 25, 2009, Pfizer and Wyeth entered into the merger agreement, pursuant to which, subject to the terms and conditions set forth in the merger agreement, Wyeth will become a wholly-owned subsidiary of Pfizer. Upon completion of the merger, each share of Wyeth common stock issued and outstanding will be converted into the right to receive, subject to adjustment under limited circumstances, a combination of $33.00 in cash, without interest, and 0.985 of a share of Pfizer common stock in a taxable transaction. Pfizer will not issue more than 19.9% of its outstanding common stock at the acquisition date in connection with the merger. The exchange ratio of 0.985 of a share of Pfizer common stock will be adjusted if the exchange ratio would result in Pfizer issuing in excess of 19.9% of its outstanding common stock as a result of the merger Deal Terms Breakdown: Transaction Value Transaction Consideration Purchase price per WYE share $50.19 Existing Cash Used $22,213 32.7% Cash per WYE share $33.00 New Debt $22,500 33.1% PFE stock value per WYE share $17.19 Total Cash $44,713 65.8% PFE shares per WYE share 0.985 Stock Consideration $23,289 34.2% Premium to 1/23/09 WYE price 29.3% Total Consideration $67,303 100.0% Total WYE shares (MM,diluted) 1,341 Total Equity...
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...answers. Make sure you explain clearly what you wish to say. Note that the different questions are worth a different number of points. Make sure you base your answer on facts in the case, rather than on any real-world knowledge you may have. If you must make an assumption about information you feel is missing, or about the meaning of a word or phrase that you are not sure about, note your assumption explicitly in your answer. A note of caution– while this case study may seem similar to the Zantac case, you should not assume that what was appropriate in that case is necessarily true here. Questions 1. What were the risks associated with the three specific actions (see p. 4) Warner-Lambert had taken during the development of Lipitor? Why did it take these actions? (10 points) 2. Do a SWOT (strength-weakness-opportunity-threat) analysis of Lipitor and Warner-Lambert (prior to the partnership with Pfizer). Also indicate what you think are the main challenges Lipitor’s marketing strategy should address (List no more than 3 challenges). (25 points) 3. Why did Warner-Lambert/Pfizer team up with the American Heart Association for the pre-launch advertising campaign even though it could not promote its brand name? (10 points) 4. What challenges are Warner-Lambert/Pfizer trying to overcome with the launch strategy they chose for Lipitor? (In your answer make sure you indicate: a. how Lipitor’s positioning for different targets and marketing mix decisions...
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...ETHICAL CULTURAL ANALYSIS: Pfizer Incorporated Prepared by Benjamin Smith Submitted in partial fulfillment of Thomas Edison State College course: 2014AUG PHI-384-GS004: Ethics and the Business Professional. October 23, 2014 [pic] Introduction Pfizer is the second-largest biopharmaceutical company in the world, and largest research-based company in the world (Herper 2014). They are the producers of some of the most popular names in prescription drugs, including Lipitor®, Viagra®, Xanax®, and Zoloft®. They are also one of the leading names of over the counter drugs and supplements such as Advil®, Centrum®, and Robitussin®. Pfizer employs over 78,000 personnel all over the world in most every continent. Its operations encompass researching and development of new medications, vaccines, and therapies; government regulatory compliance; and providing care and support for global healthcare programs. My interest in Pfizer is that I plan on changing careers into the medical field as a physician or research scientist. As the leading research-based pharmaceutical company, I would aspire to work with neuroscientist Dr. Michael Ehlers and his team. This analysis will review Pfizer Incorporated as a responsible, ethical company by analyzing its mission statements, core values, published principles, and code of ethics, how these are reflected in their actions and which ethical concepts are displayed in these actions; how Pfizer prevents and responds to problematic...
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...Case 25: Pfizer Porsha Erwin Angel Harvey Curtis Hubbard DeMontrez Johnson Michael Kitchens China Thomas 1 Table of Contents History……………………………………………………………………………..Page 3 Summary…………………………………………………………………………..Page 3 General Environment Analysis……………………………..……………………Page 5 Industry Environment Analysis………………………………………………….Page 6 EFE Matrix………………………………………………………………………..Page 9 Internal Competencies …………………………………………………………...Page 10 IFE Matrix………………………………………………………………………...Page 12 2 History of Pfizer Pfizer Inc. is a research pharmaceutical company. Charles Pfizer started the company in Williamsburg, Brooklyn in 1849. During World War II, Pfizer became concretely established as one of the United State’s top drug companies by producing the antibiotic penicillin for soldiers out at war aboard. By the 1950's, Pfizer began to establish headquarters in Belgium, Brazil, Canada, Cuba, Mexico, and England. This gave Pfizer a platform to be able to compete globally. Expanding aboard is a powerful concept that most companies during this time did not consider. In 2000, Pfizer merged with Warner-Lambert in order to acquire full rights to Liptor. Lipitor is a popular drug used to lower cholesterol levels in the body. In 2002, Pfizer decided to participate in another merger with Pharmacia. This strategic action lead Pfizer to become the world's largest pharmaceutical devoted solely to healthcare. Of course we all know that this was not the only reason why Pfizer...
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...Pfizer Pharmaceuticals Submitted By: Latrell Jackson December 16, 2013 Submitted To: Dr. Diane Hamilton BA 530 Pfizer Pfizer develops and produces medicines and vaccines for a wide range of conditions including in the areas of immunology and inflammation, oncology, cardiovascular and metabolic diseases, neuroscience and pain. Pfizer's products include Lipitor (atorvastatin, used to lower LDL blood cholesterol); Lyrica (pregabalin, for neuropathic pain/fibromyalgia); Diflucan (fluconazole, an oral antifungal medication); Zithromax (azithromycin, an antibiotic); Viagra (sildenafil, for erectile dysfunction); and Celebrex/Celebra (celecoxib, an anti-inflammatory drug) (Pfizer, 2010). Pfizer is made up of three main divisions; pharmaceutical, animal health, and research & development divisions. This paper will focus on the pharmaceutical division, with the emphasis on Viagra, which markets prescription and over the counter medications (Pfizer, 2010). Pfizer’s Pharmaceuticals segment includes its human pharmaceuticals and animal health businesses, as well as Capsugel, a producer of two-piece capsules used in manufacturing prescription and over-the-counter pharmaceuticals and nutritional supplements (Pfizer, 2010). Most of the company’s human pharmaceutical revenues come from products in three major therapeutic classes: cardiovascular diseases, infectious diseases, and central nervous system disorders. The company also has products for the treatment of diabetes, erectile...
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...Case Study: Pfizer Inc. Pharmaceutical Industry: Structure and Government Regulations Fairleigh Dickinson University- College at Florham Shivanshu Kharia 9/29/2013 Foundation: Pfizer is one of the world’s largest pharmaceutical companies by revenues, established in 1849, headquartered in New york, U.S.A. Pfizer started as a manufacturer of fine chemicals such as camphor, iodine, borax, citric acid and cream of tartar. The development of deep tank fermentation technique increased the production rate of citric acid by five fold and unlocked secrets to mass production of penicillin to meet high demand of this antibiotic during World War II. Further development of the fermentation techniques helped in reduction of cost of penicillin, which in turn aroused a need to research a new product with greater profit potential. Although citric acid became main product and launching pad of its growth in decades to follow, it was the discovery of Teramycin in 1950 that opened the doors to research based pharmaceutical company and a leading manufacturer of vitamins. Pfizer’s portfolio includes a wide array of medicines and vaccines for a wide range of conditions including areas of oncology, cardiovascular and metabolic diseases, immunology and inflammation, neuroscience and pain. Pfizer “A pioneering spirit on the frontier of medicine” continues to focus on applying science and global resources to improve health and well-being at every stage of life. ...
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...Pfizer Stock Analysis Pfizer (NYSE: PFE) is involved in the development, manufacturing and marketing of pharmaceutical products. The industry is intensely competitive and there are a few unique characteristics. Pharmaceutical products have long and expensive development periods – upwards of ten years and $100 million depending on the nature of the drug and the scope of the clinical trials process. In order to encourage companies to engage in innovation, companies are given lengthy patent protection for their drugs upon receiving regulatory approval. This allows them to control rates so that they may recover the development cost. A product brought to market is often highly lucrative, so success in the industry depends largely on the firm’s ability to bring product to market and capitalize on the monopoly rates. Pfizer is the world’s largest pharmaceutical firm, with annual sales near $50 billion. After the sale of its consumer health-care division to J&J, prescription drugs now account for more than 90% of sales. Top sellers include cholesterol-lowering Lipitor, Celebrex for arthritis, Viagra for impotence, and Lyrica for epilepsy and some types of neuropathic pain. Recently approved drugs with blockbuster potential include oncology drug Sutent and Chantix for smoking cessation. As most pharmaceutical companies’ in the market, in this type of business it is not simple since there is a lot of research and the development of new drugs in regular basis. Most stocks...
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...Ethics Introduction There are many cases in which business researchers practice unethical behavior. The following article, The Case of Neurontin: Skewed Research in the Service of Selling, written by Annette B. Ramírez de Arellano, DrPH, gives insight to a perfect scenario. This article discusses how Pfizer illegally urged companies to prescribe a drug for off-label uses. Due to such behavior they were fined and penalized. Many companies that sold the drug made several attempts to convince the Food and Drug Administration, (FDA) to approve some of these uses. Pfizer and Parke-Davis skewed research results to get the FDA to extend the approved uses. Behavior Involved Many pharmaceuticals go through extreme lengths to prove that their product is not only safe but effective. This includes practices which are morally unethical. Neurontin is a drug manufactured by Pfizer and Parke-Davis and has been approved to treat epilepsy, and post-herpetic neuralgia (Annette B. Ramírez de Arellano, 2009). Despite there being only two approved uses, it’s often used for migraines, bipolar disorder, and restless leg syndrome. These uses have not been approved by the FDA. Physicians have been known to presribe Neurontin for other conditions such as hot flashes, insomnia, and ringing in the ears. As time went on and sales increased it was obvious that the unapproved uses by far exceeded the approved uses. Due to such a drastic increases in sales Pfizer began to urge physicians to continue prescribing...
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...brand loyalty patterns and medical condition. [2] Segmentation of market is one of the crucial elements of marketing strategy. Criteria depend mainly on nature of market, therefore creating a problem in deciding the actual method. Maslow hierarchy of needs also explains about satisfying the customer needs in a vertical arranged pyramid with primary psychological needs at the bottom step and with self-actualization needs at highest step with safety needs, belonging needs and esteem needs as intermediate steps in the hierarchy. For my research, I have chosen Pfizer and will explain its segmentation process using Lipitor as an example. Pfizer: Pfizer is one of the world’s largest pharmaceutical company with its portfolio including human and biologic, small molecular medicines, vaccines, nutritional and consumer products. It is located in more than 150 countries with it’s headquarter in New York. Pfizer acquired Wyeth in October ’09 for $68 billion. Its main...
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...Elwood Leftridge Professor Joanne Land Kazlauskas GPS-4278W 05-01-2013 Putting It All Together a Look at Pfizer Pharmaceutical Company Pfizer Pharmaceutical Company is not only the world’s largest research pharmaceutical company in the world, but also the leader of technological advances. This organization has been in operation for over 160 successful years, and has over 117,000 diverse workers employed worldwide from all facets of life. It is important to employ a solid employee workforce within an organization, this can either make or break an organization. “In 2012 Pfizer was ranked #40 among Fortune 500 with 2011 revenue totaling almost 68 million dollars, and a profit margin of over 10 million dollars”(CNN Money, 2013). The purpose of this paper is to break apart Pfizer into four different organizational perspectives, analyze them, and then put them back together again. Or as with the title of the textbook (Reframing Organizations: Artistry, Choice, and Leadership. Vol. 4) suggests to reframe organizations to a particular frame or frames. The frames that I will be using to analyze Pfizer Pharmaceuticals will be the Structural Frame, the Symbolic Frame, the Human Resources Frame, as well the Political Frame. To begin, I will describe the Pfizer organization using Bolman & Deal’s Structural Frame perspective. The structural components that I will discuss will be the Division of Labor, the Leadership Structure, and Roles and Responsibilities of the organization...
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...Merck’s Business Environment MNGT/521 University of Phoenix November 7, 2011 Kevin Wilhelmsen Merck’s Business Environment There are many factors a business, such as Merck, must have in order to be successful, for example strong financial statements, leading technology, and globalization. With the help of income statements, balance sheets, and cash flow statements, a financial analysis can be applied in a wide variety of situations to give business managers the information they need to make critical decisions (Financial Analysis, 2010). They also provide information in regards to the financial health of a company. Pharmaceutical companies are using technology to conduct clinical trials, which has proven to be beneficial to research, development, and the introduction of new products. Globalization is also important for Merck when it comes to product distribution. Outsourcing was been adopted by Merck in order to produce equal quality vaccines and medications at a cheaper cost. Review of Finances Analyzing a company’s income statement, balance sheet, and cash flow is a prime way in determining their success. A comparison can be made between the competition in the industry and a leader can be established. An analysis can also show which company is spending more on research and development and in turn, producing better products. After review of the income statements, Merck’s worldwide sales were $12 billion...
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