Your Ideal PfizerWith the release of blockbuster drugs like Viagra and Lipitor it is no surprise that with the celebration ofthe company’s 150th anniversary, it was recognized by Forbes magazine as “Company of the Year” forits success in discovering and developing innovative drugs for human discovery. (Pfizer Inc.)MissionOur mission is to apply science and our global resources to improve health and well-being at every stageof life. We strive to set the standard for quality, safety and value in the discovery, development andmanufacturing of medicines for people and animals. (Pfizer Inc.)VisionWe will become the worlds most valued company to patients, customers, colleagues, investors,business partners, and the communities where we work and live. (Pfizer Inc.)Weaknesses & ThreatsPatent ExpirationThe most significant weakness that Pfizer is facing is the expiration of current patents. Within the nextfew years, patents on many leading drugs expire. This is an enormous weakness as Lipitor, their top-leading drug, accounting for over 23% of their annual revenue and will no longer be protected within ina few short months. After these patents expire, competing companies participating in the genericmarket will be able to produce a generic form of Lipitor and sell it at a fraction of the price. Lipitor is onlyone of the leading drugs that have patents expiring in coming years. (Refer to Appendix A) Losses willoccur within upcoming years as more patents expire. Another issue is that although new drugs are beingdeveloped, the rate at which new drugs will be entering the market does not keep pace with the ratethat patents are expiring. (Pfizer Inc., 2011)Generic CompetitionAs Pfizer’s patents begin to expire within the next few years, the generic competition poses a majorthreat. It is known that some top leading drugs are no longer protected and that generic competitors areable to produce identical drugs for a fraction of the price. This is threatening, as they will lose largeportions of sales.Economic DownturnThe economy is also a threat to Pfizer. If consumers do not have the funds to acquire necessary drugsthey may not purchase needed drugs at all, switch to generic brands or find alternative treatments.
Counterfeit Drug MarketIn 2010, nearly 1,700 incidents of counterfeit drugs were reported; triple the number from 2004according to the Pharmaceutical Security Institute (PSI), a group privately funded by drug makers. This isa major threat to pharmaceutical companies as it is a growing black market. Estimates to the size of themarket range from US $75 billion to $200 billion a year. The majority of the counterfeit market is comingfrom Asia in particular China, and India. Last year an estimate by PSI of 800 pharmaceutical productswhere produced and sold illegally. (Kaiser Health News, 2010)If you were the CEO of Pfizer, using your knowledge and expertise of the industry, what would you do? How you would re-align Pfizer and make the most of its opportunities and strengths against its weaknesses and threats? What would your ideal Pfizer look like?