Pfizer Inc., a corporation organized and existing under the laws of the State of Delaware,
HEREBY CERTIFIES AS FOLLOWS:
1. The name of the corporation is Pfizer Inc. The name under which it was originally
incorporated was Chas. Pfizer & Co., Inc. The date of filing its original Certificate of
Incorporation with the Secretary of State was June 2, 1942.
2. This Restated Certificate of Incorporation was duly adopted in accordance with Section 245 of
the General Corporation Law of Delaware.
3. This Restated Certificate of Incorporation only restates and integrates and does not further
amend the provisions of the Certificate of Incorporation as amended or supplemented heretofore
and there is no discrepancy between this Restated Certificate of Incorporation and the text of the
Certificate of Incorporation as amended or supplemented heretofore.
4. The text of the Certificate of Incorporation as amended or supplemented heretofore is hereby
restated without further amendments or changes to read as herein set forth in full:
FIRST: The name of the Corporation is and shall be Pfizer Inc. (hereinafter in this Restated
Certificate of Incorporation called the "Corporation").
SECOND: The principal office and place of business of the Corporation in the State of
Delaware is located at 1209 Orange Street, in the City of Wilmington, County of New Castle;
and the name and post office address of the registered agent of the Corporation in the State of
Delaware is The Corporation Trust Company, 1209 Orange Street, in the City of Wilmington,
County of New Castle, Delaware.
THIRD: The nature of the business, or objects or purposes to be transacted, promoted.
CAPITAL STRUCTURE AT THE BEGINNING & AS OF TODAY
With $2,500 borrowed from Charles Pfizer's father, cousins Charles Pfizer andCharles
Erhart, young entrepreneurs from Germany, open Charles Pfizer & Company as a fine-
chemicals business. A modest red-brick building in the Williamsburg section of Brooklyn,
New York, serves as office, laboratory, factory, and warehouse.
Their first product is a palatable form of santonin — an antiparasitic used to treat intestinal
worms, a common affliction in mid-19th century America. Combining their skills, Pfizer, a
chemist, and Erhart, a confectioner, blend santonin with almond-toffee flavoring and shape
it into a candy cone. The "new" santonin is an immediate success and the company is
The first domestic production of tartaric acid and cream of tartar, products vital to the food
and chemical industries, is launched by Pfizer.
As demand for painkillers, preservatives, and disinfectants soars during the Civil War,
Pfizer expands production of tartaric acid (used as a laxative and skin coolant) and cream of
tartar (effective as both a diuretic and cleansing agent) as well as other vital drugs to help
meet the needs of the Union Army. Among these are iodine, morphine, chloroform,
camphor, and mercurials, which, in addition to medicinal applications, are used in the
emerging field of photography, the new medium photographer Mathew Brady employs to
chronicle the Civil War.
The expansion propelled by the Civil War continues and Pfizer's revenues double. The
company now has a substantially increased product line and 150 new employees. To
accommodate this growth, it buys and renovates a post-Revolutionary-era building at 81
Maiden Lane in Manhattan and moves its headquarters there. The site carries the Pfizer
name for nearly a century.
Using imported concentrates of lemon and lime, Pfizer begins manufacturing citric acid.
Pfizer soon becomes America's leading producer of citric acid. As new drinks like Coca-
Cola™, Dr. Pepper™, and Pepsi-Cola™ gain popularity, demand for citric acid soars. It
becomes Pfizer's main product and the launching pad of its growth in the decades to follow.
Spurred by America's westward expansion and its own growing number of clients west of
the Mississippi, Pfizer opens offices and a warehouse in Chicago, Illinois, its first location
outside of New York.
On December 27, cofounder Charles Erhart dies and leaves a partnership worth $250,000 to
his son William. However, the agreement stipulates that Charles Pfizer can buy William
Erhart's share at half its inventory value — an option Charles Pfizer quickly exercises,
consolidating ownership of the company in his hands.
A leader in the American chemical business, Pfizer marks its 50th anniversary. Its portfolio
includes a wide array of industrial and pharmacological products, anchored by citric acid,
camphor, cream of tartar, borax, and iodine. The company has offices in New York and
Chicago, and its contacts in the import-export business crisscross the world.
A statement made by Charles Pfizer at the company's 50th anniversary celebration reveals
where the company stands as it moves into the 20th century and into an increasingly
competitive marketplace: "Our goal has been and continues to be the same: to find a way to
produce the highest-quality products and to perfect the most efficient way to accomplish
this, in order to serve our customers. This company has built itself on its reputation and its
dedication to these standards, and if we are to celebrate another 50 years, we must always be
aware that quality is the keystone."
CORPORATE LEADERSHIP & STRUCTURE
Pfizer's Executive Leadership Team is the company's senior-most leadership and decision-
making management body. It brings together our top leaders to focus on major financial,
strategic and operational decisions for the company.
To maximize new opportunities in biomedical research, and bring more innovative
medicines to more patients more quickly, Pfizer has created two distinct research
organizations. The PharmaTherapeutics Research & Development Group focuses on the
discovery of small molecules and related modalities; and The BioTherapeutics Research &
Development Group focuses on large-molecule research, including vaccines.
Pfizer has also developed an enhanced commercial operating structure. Pfizer has
nine diverse health care businesses: Primary Care, Specialty Care, Oncology, Emerging
Markets, Established Products, Consumer Healthcare, Nutrition, Animal Health and
Capsugel. Each of these businesses is led by an executive with clear accountability for
results - from product development following proof of concept to providing access to
patients and through to the end of the product's life cycle. The businesses are provided with
the resources to pursue attractive growth opportunities and to deliver benefits to all who rely
on us around the world. With this structure, we are able to rapidly capitalize on
opportunities to advance our business by increasing support for successful new medicines,
forging partnerships with key customers, entering into co-promotion and licensing
agreements, investing in new technologies to add value to our core product offerings, and
acquiring new products and services from outside the company.
BOARD OF DIRECTORS
Pfizer's Board of Directors, which is elected annually by shareholders, is the ultimate
decision-making body of the Company except with respect to those matters reserved to the
shareholders. The Board selects the senior management team, which is charged with the
conduct of the Company's business. Having selected the senior management team, the Board
acts as an advisor and counselor to senior management and ultimately monitors its
performance. Currently, the Board has 16 directors, a substantial majority of whom meet all
of the independence requirements under the New York Stock Exchange Listing Standards
and Pfizer Director Qualifications Standards.
Dennis A. Ausiello, M. D:- Member of our Audit Committee, our Science and Technology
Committee and our Corporate Governance Committee.
Michael S. Brown, M.D.:- Director of Regeneron Pharmaceuticals, Inc. Our Director since 1996.
Chair of our Science and Technology Committee and member of our Corporate Governance
M. Anthony Burns:-Our Director since 1988. Member of our Audit Committee, our Corporate
Governance Committee and our Executive Committee.
Robert N. Burt:-Chairman of the Board of FMC Technologies, Inc. and its Chief Executive Officer
during 2001.. Our Director since 2000. Member of our Compensation Committee and our Science
and Technology Committee.
W. Don Cornwell:-Vice Chairman of the Board of Directors of Granite Broadcasting Corporation
since August 2009.
Frances D. Fergusson:-Director of Wyeth from 2005 until October 2009. She is also a Director of
Mattel, Inc. Our Director since October 2009.
William H. Gray III:-Chair of our Corporate Governance Committee and a member of our Science
and Technology Committee.
Constance J. Horner:-. Member of our Corporate Governance Committee and a member of our
James M. Kilts:-Member of our Compensation Committee and our Science and Technology
Jeffrey B. Kindler:-Mr. Kindler is Chair of our Board's Executive Committee and a member of the
Pfizer Executive Leadership Team.
George A. Lorch:-Member of our Compensation Committee and our Science and Technology
John P. Mascotte:-He served as a Director of Wyeth from 1995 until October 2009. Our Director
since October 2009.
Dana G. Mead, Ph.D:-Our Director since 1998. Chair of our Compensation Committee and a
member of our Science and Technology Committee.
Suzanne Nora Johnson:- Member of our Audit Committee, our Compensation Committee and our
Science and Technology Committee.
Key Pfizer Pharmaceutical Products: Aricept, Aromasin, Arthrotec ,Caduet, Camptosar,
Celebrex, Chantix , Detrol/Detrol ,Effexor ,Enbrel, Eraxis, Fragmin ,Genotropin,
Geodon/Zeldox ,Lipitor ,Lyrica , Mylotarg,Norvasc ,Prevnar ,Rebif ,Relpax ,Revatio ,Spiriva,
Sutent ,Torisel, Vfend, Viagra , Xalatan/Xalacom , Zmax , Zoloft , Zyvox
Key Pfizer Animal Health Products: Draxxin , Excede , Naxcel/Excenel ,
RespiSure/Stellamune ,Dectomax , Rimadyl , Revolution/Stronghold , Clavamox/Synulox
,BoviShield , Lutalyse ,Slentrol , Cerenia , Convenia ,Improvac/Vicac ,West Nile Innovator
MARKET SHARE & DETAILS
‘There were times not long ago that drug companies were merely the size of nations. Now,
after a frenzied two-year period of pharmaceutical mega-mergers, they are behemoths, which
outweigh entire continents. The combined worth of the world’s top five drug companies is twice
the combined GNP of all sub-Saharan Africa and their influence on the rules of world trade is
many times stronger because they can bring their wealth to bear directly on the levers of western
Pfizer is the largest and richest pharmaceutical enterprise in the world. Fortune®
named Pfizer as the fifth-best ‘wealth-creator’ in America. The company is a global leader in
human pharmaceuticals, and also has a large array of consumer health care, confectionery, and
animal health care products. In 2000, its revenues equalled $29,6 billion (£20,14bn), eight of
Pfizer’s pharmaceutical products attained sales of at least $1 billion (£680,4 million) each .
Pfizer’s main competitors are Merck, Glaxo SmithKline, Novartis, Brystol Myers Squibb and
In 2001, Pfizer has budgeted approximately $5 billion (£3,402 bn) for research and
development -more than any other drug company in the world . However, the company is
likely to spend even more money on marketing. Extensive marketing practices (e.g. huge TV
advertising campaigns) have turned some drugs, like Claritin and Viagra, into household names.
According to the Financial Times (26 April 2001), ‘Pfizer has powered its way up the global
ranking list to its unassailable position thanks mainly to its marketing prowess.’
2. Glaxo SmithKline
4. Brystol Myers Squibb
R & D activities: Another potential problem for Pfizer and their R&D activities, as well as their
business in general, is the fact that a large number of their branded drugs either lost their patent
protection or will soon. The problem is that they do not have any suitable replacements for the
revenue that will soon be lost due to the emergence of generic drugs following a branded drugs
loss of patent protection. Their main source of revenue, Lipitor (sales of $13 billion last year),
will lose its patent protection in 2010.
Operational issues: Currently, Pfizer is experiencing operational difficulties and may in the near
future come under hard times financially, making it difficult to define their internationalization
Financial issues: In the case of Pfizer Inc., it was very difficult to identify the category that fits
them best and their strategy. They are involved in a lot of M&A activities. Along with the
difficulties created by their consolidation, it is difficult to classify them because Pfizer might
simply be too global. Following this, one would assume they are global and place them into the
‘global’ archetype. The shortcomings of this conclusion have been discussed, which is mainly
their concentration in the US.
Perhaps the timing of this analysis is the true shortcoming of the classification of Pfizer into an
archetype or an internationalization trend. They are coming into hard times in the financial
market, with a lot of pressure coming from shareholders to increase value. This pressure has
resulted in a negative growth strategy or consolidation. A better time to analyze their strategy
might be in five years when the consolidation efforts have been completed and Pfizer should be
concentrating on economic growth.
M&A issues: M&A activities from a MNC makes it almost impossible to classify their
internationalization trend. This would seem to be the case of Pfizer. In the past decade, Pfizer has
made many acquisitions, following previous mergers of companies below them in the
pharmaceutical food chain. Following these acquisitions, Pfizer is currently shutting down
redundant activities and has already planned future plant closures
CORPORATE SOCIAL RESPOSIBILITY:-
Ensuring Corporate Responsibility: Pfizer Values and Commitments
It is our fundamental belief that values help advance our mission to improve
health for people around the world and create value for our diverse stakeholders. We focus
not simply on what we do but also on how we do it. This means we continually review and
update management policies and procedures to reflect the changing forces in science,
technology and stakeholder expectations. We listen and learn. For example, in 2006-2007
we reviewed and revised our clinical trial policies and advertising practices and translated
our Pfizer Code of Conduct into 36 languages.
At the core of our commitment to corporate responsibility are our stakeholders — the people
who affect and are affected by our business actions. These include patients, physicians,
regulators, customers, colleagues, investors, business partners and communities where we
work and live.
We share one overarching goal with them — good health for all people at a manageable
cost. To help achieve this responsibly, below are the concrete policies and procedures
covering the major facets of our business to which all employees around the world must
At Pfizer we strive to positively impact the health of people around the world. Our
philanthropy is focused on investing the full range of the company's resources — people,
skills, expertise and funding — to broaden access to medicines and strengthen health care
delivery for underserved people around the world. Our philanthropy platform, Pfizer
Investments in Health, offers a coordinated approach to contribute to society beyond
• Treat: Improving access to medicines and health care services
• Teach: Expanding health care worker training and patient education on disease prevention and
• Build: Strengthening the capacity of health care organizations to support prevention,
diagnosis, treatment and care
• Serve: Advocating and sharing best practices to improve health care for the underserved
Through direct engagement and collaboration with local nongovernmental organizations
(NGOs), multilateral organizations (MLOs), governments and private sector partners, we
strive to implement sustainable programs and impact global health outcomes.
-Upholding our corporate responsibility to the communities where we live and work
-Lobbying and Political Contributions
-Medical Education Grants
-Grants for Health Care Quality Improvement & Education
-Medical Education Grants Process
-International Corporate Volunteering: Research on monitoring and Evaluation
1. General. The Board of Directors, which is elected by the shareholders, is the ultimate
decision-making body of the Company, except with respect to those matters reserved to the
shareholders. It selects the Chief Executive Officer and other members of the senior management
team, which is charged with the conduct of the Company’s business. Having selected the senior
management team, the Board acts as an advisor and counselor to senior management and
ultimately monitors its performance. The function of the Board to monitor the performance of
senior management is facilitated by the presence of outside Directors of stature who have
substantive knowledge of the Company’s business.
2. Succession Planning. The Board also plans for succession to the position of Chief Executive
Officer as well as certain other senior management positions. To assist the Board, the Chief
Executive Officer annually provides the Board with an assessment of senior managers and of
their potential to succeed him or her. He or she also provides the Board with an assessment of
persons considered potential successors to certain senior management positions.
3. Board Leadership. The independent Directors will annually elect a Chairman of the Board,
who may or may not be the Chief Executive Officer of the Company. If the individual elected as
Chairman of the Board is the Chief Executive Officer, the independent Directors shall also
electLead Independent Director. The Chairman of the Board shall preside at all meetings of the
stockholders and of the Board as a whole. He or she shall perform such other duties, and exercise
such powers, as from time to time shall be prescribed in the Company’s By-laws or by
the Board of Directors. The Lead Independent Director shall preside over executive sessions of
the Company’s independent Directors, facilitate information flow and communication among the
Directors, and perform such other duties as may be specified by the Board and outlined in the
Charter of the Lead Independent Director.
4. Director Independence. It is the policy of the Company that the Board consist of a majority
of independent Directors. The Corporate Governance Committee of the Board has established
Director Qualification Standards to assist it in determining director independence, which either
meet or exceed the independence requirements of the New York Stock Exchange (“NYSE”)
corporate governance listing standards. The Board will consider all relevant facts and
circumstances in making an independence determination, and not merely from the standpoint of
the Director, but also from that of persons or organizations with which the director has an
5. Board Size. It is the policy of the Company that the number of Directors not exceed a number
that can function efficiently as a body. The Corporate Governance Committee considers and
makes recommendations to the Board concerning the appropriate size and needs of the Board
The Corporate Governance Committee considers candidates to fill new positions created by
expansion and vacancies that occur by resignation, by retirement or for any other reason.
6. Selection Criteria. Candidates are selected for, among other things, their integrity,
independence, diversity of experience, leadership and their ability to exercise sound judgment.
Scientific expertise, prior government service and experience at policy-making levels involving
issues affecting business, government, education, technology, as well as areas relevant to the
Company’s global business are among the most significant criteria. Final approval of a candidate
is determined by the full Board.
7. Voting for Directors. In accordance with the Corporation’s By-laws, if none of our
stockholders provides the Corporation notice of an intention to nominate one or more candidates
to compete with the Board’s nominees in a Director election, or if our stockholders have
withdrawn all such nominations by the day before the Corporation mails its notice of meeting to
our stockholders, a nominee must receive more votes cast for than against his or her election or
re-election in order to be elected or re-elected to the Board. The Board expects a Director to
tender his or her resignation if he or she fails to receive the required number of votes for
reelection.The Board shall nominate for election or re-election as Director only candidates who
agree to tender, promptly following such person’s failure to receive the required vote for election
or re-election at the next meeting at which such person would face election or re-election, an
irrevocable resignation that will be effective upon Board acceptance of such resignation. In
addition, the Board shall fill Director vacancies and new directorships only with candidates who
agree to tender, promptly following their appointment to the Board, the same form of resignation
tendered by other Directors in accordance with this Corporate Governance Principle.
8. Director Service on Other Public Boards. Ordinarily, Directors should not serve on more
than four other boards of public companies in addition to the Company’s Board. Current
positions in excess of these limits may be maintained unless the Board of Directors determines
that doing so would impair the Director’s service on the Company’s Board.
9. Former Chief Executive Officer as Director. Effective 2001, upon retirement from the
Company, the former Chief Executive Officer will not retain Board membership.
10. Change in Director Occupation. When a Director’s principal occupation or business
association changes substantially during his or her tenure as a Director, that Director shall tender
his or her resignation for consideration by the Corporate Governance Committee. The Corporate
Governance Committee will recommend to the Board the action, if any, to be taken with respect
to the resignation.
11. Director Compensation. The Corporate Governance Committee annually reviews the
compensation of Directors.
12. Ownership Requirements. All non-employee Directors are required to hold at least
$300,000 worth of Pfizer stock, and/or the units issued as compensation for Board service, while
serving as a Director of the Company. New Directors will have five years to attain this
ownership threshold. Shares or units held by a Director under any deferral plan, are included in
calculating the value of ownership to determine whether this minimum ownership requirement
has been met.
13. Director Retirement. Directors are required to retire from the Board when they reach the
age of 73; a Director elected to the Board prior to his or her 73rd birthday may continue to serve
until the annual shareholders meeting coincident with or next following his or her 73rd birthday.
On the recommendation of the Corporate Governance Committee, the Board may waive this
requirement as to any Director if it deems such waiver to be in the best interests of the Company.
14. Board and Committee Self-Evaluation. The Board, and each Committee, are required to
conduct a self-evaluation of their performance at least annually.
15. Term Limits. The Board does not endorse arbitrary term limits on Directors’ service, nor
does it believe in automatic annual re-nomination until Directors reach the mandatory retirement
age. The Board self-evaluation process is an important determinant for continuing service.
16. Committees. It is the general policy of the Company that all major decisions be considered
by the Board as a whole. As a consequence, the Committee structure of the Board is limited to
those Committees considered to be basic to, or required for, the operation of a publicly owned
company. Currently these Committees are the Executive Committee, Audit Committee,
Compensation Committee, Corporate Governance Committee and Science and Technology
Committee. The members and chairs of these Committees are recommended to the Board by the
Corporate Governance Committee. The Audit Committee, Compensation Committee and
Corporate Governance Committee are made up of only independent Directors. The membership
of these Committees is rotated from time to time. In addition to the requirement that a majority
of the Board satisfy the independence standards noted above in Paragraph 4, Director
Independence, members of the Audit Committee also must satisfy an additional NYSE
independence standard. Specifically, they may not accept directly or indirectly any consulting,
advisory or other compensatory fee from Pfizer or any of its subsidiaries other than their Director
compensation. As a matter of policy, the Board also will apply a separate and heightened
independence standard to members of both the Compensation and Corporate Governance
Committees. No member of either Committee may be a partner, member or principal of a law
firm, accounting firm or investment banking firm that accepts consulting or advisory fees from
Pfizer or any of its subsidiaries.
17. Director Orientation and Continuing Education. In furtherance of its policy of having
major decisions made by the Board as a whole, the Company has a full orientation and
continuing education process for Board members that includes extensive materials, meetings
with key management and visits to Company facilities.
18. Chief Executive Officer Performance Goals and Annual Evaluation. The Compensation
Committee is responsible for setting annual and long-term performance goals for the Chief
Executive Officer and for evaluating his or her performance against such goals. The Committee
meets annually with the Chief Executive Officer to receive his or her recommendations
concerning such goals. Both the goals and the evaluation are then submitted for consideration by
the outside Directors of the Board at a meeting or executive session of that group. The
Committee then meets with the Chief Executive Officer to evaluate his or her performance
against such goals.
19. Senior Management Performance Goals. The Compensation Committee also is responsible
for setting annual and long-term performance goals and compensation for the direct reports to the
Chief Executive Officer. These decisions are approved or ratified by action of the outside
Directors of the Board at a meeting or executive session of that group.
20. Communication with Stakeholders The Chief Executive Officer is responsible for
establishing effective communications with the Company’s stakeholder groups, i.e.,
shareholders,customers, company associates, communities, suppliers, creditors, governments and
It is the policy of the Company that management speaks for the Company. This policy does
not preclude outside Directors, including the Lead Independent Director, from meeting with
shareholders, but it is suggested that in most circumstances any such meetings be held with
21. Annual Meeting Attendance. All Board members are expected to attend our Annual
Meeting of Shareholders unless an emergency prevents them from doing so.
• Strong sales and marketing infrastructure
• Revived blockbuster credentials in recent years - Lyrica, Sutent and Chantix/Champix
• Strong R&D departments
• Tyler Clymer Favorite Company
• R&D innovation with a broad therapeutic coverage
• Marketing strength in major geographical and therapeutic areas
• Existing Patent protection for a number of years on key products
• Overreliance on Lipitor franchise
• Drought in blockbuster launches between
1999 and 2004 (masked by M&A activity)
• Entrenchment in low growth therapy area
markets such as CV and CNS
• Very limited penetration of biologics market
• Discontinuation of products in the latter stages of development
• Co-marketing agreements can limit Pfizer's global presence
• Increased size and operational complexity makes Pfizer a less agile company
• Restructuring strategy designed to cut costs and create a leaner company
• Funding available to facilitate product/company
• Acquisitions and in-licensing/co- development opportunities
• Biologic market expansion
• Decreasing development time through favorable R&D collaborations and internal efforts
• Emergence of integrated global markets and globalisation for new products
• Co-marketing agreements with companies wishing to capitalize on Pfizer's marketing
• Strengths, providing Pfizer with strong products and therefore revenue growth
• Considerable exposure to generic competition, focal point of which is Lipitor, due to lose
patent exclusivity in 2011
• Further large scale M&A activity could further decline Pfizer's profitability
• Increased competition for core products like Viagra as its high cost encourages use of
cheaper alternative treatments
• An increase in the number of safety issues surrounding Viagra
• Competition from products similar to Pfizer's in R&D that reach the market close to or
before Pfizer's products
• The new economic potential of emergent China, India and competition in diverse
At Pfizer, we're inspired by a single goal: your health. That's why we're dedicated to developing
new, safe medicines to prevent and treat the world's most serious diseases. And why we are
making them available to the people who need them most. We believe that from progress comes
hope and the promise of a healthier world.
PFIZER MISSION STATEMENT:
"We will become the world's most valued company to patients, customers, colleagues, investors,
business partners, and the communities where we work and live."
At Pfizer, public policy is part of the way we relate to the many people who have a
stake in our company and our pharmaceutical products: patients, physicians, insurers,
employers, Pfizer shareholders and employees, journalists, and policy makers. Engaging in
public policy debates is part of our responsibility, because effective public policies can help
create an environment in which innovative new prescription medicines are brought to
market, and patients are able to receive the medicines they need.
We invite you to browse through the Public Policy section of this Web site to learn
about our positions on important health care issues and find more in-depth information
designed for those interested in taking a closer look at the issues.
Access and Affordability
Learn ab out what Pfizer is doing to improve patients' access to high quality health care and
Pricing and Value
Find information about the value pharmaceuticals offer and why Pfizer believes it is critical
to maintain public policies that encourage investment in the development of new treatments
Health Care Reform
Find out what Pfizer is doing to help improve health care in the U.S.
For your convenience, where possible, resources cited throughout the Pfizer public policy
site have been posted in this section.
Pfizer is committed to engaging in public policy debate to help to continually improve the
pharmaceutical industry and increase access to prescription medicine for people around the
PFIZER’S MARKET SEGMENTATION
Pfizer is among the largest companies in the world and among the leaders in the
pharmaceutical industry. From April 2002 until March 2003, the company was able to rank first
in total sales generation. Specifically, the company was able to acquire billions of US dollars,
which in turn led to significant market share and company growth. In addition, Pfizer was able to
out rank its major competitors such as Merck and Co., John & Johnson and GlaxoSmithKline.
Reports have noted that the success of the company was mainly attributed to its effective
marketing efforts, which in fact, have been considered as one of the best in the business industry.
In addition, the safety records of Pfizer is also one of the best; thus, acquiring investors and
establishing trust was easy for the company.
Aside from human health, Pfizer is also manufacturing products under its animal
health product line. One of the market segments of the company are the large cow-calf business
owners. Using the herd-size market segmentation approach, Pfizer primarily caters to large
business owners and operators. While this market segmentation has been effective for the
company, other approaches could possibly maximize the product distribution of the company.
Thus, in this business analysis paper, the herd-size market segmentation approach will be
described and analyzed. Furthermore, based on previous learning and business inputs, other
viable market segmentation approaches that Pfizer may apply will also be identified.
1. Potential Breakthrough in Big Markets
Arthritis,HIV,Schizophrenia,Liver Disease,Alzheimer’s Diesease.
2. Targeting Four New Products Annually.
The acquisition of Pfizer's consumer Health business by J&J can be explained by the differing
strategy of the two companies. While the two companies directly compete with each other they
envision dramatically different ways in which to maximize shareholder value over the long-term
while dealing with similar issues with in the market place. For example, the pharmaceutical
business is facing an increasing number of generics entering the market. Also, both the
pharmaceutical and medical device business are becoming more tightly regulated as to who pays
for the products. Both these issues translate into lost revenues for companies like Pfizer and
In order to compensate for losses from several of its blockbuster drugs losing patent protection
Pfizer adopted a strategy to invest more resources from the company's core pharmaceutical
business. Pfizer is positioning itself for the long term through the development of new drugs.
The company does not value high levels of diversification.
J&J's overall strategy is to stay balanced among the three operating units and add revenue
through growth in each - which has been the historical strategy with the company. Revenue in
2005 was for the consumer business was $9.1 billion, or 18% of J&J's total $50.5 billion in sales
for the year. Investors were initially surprised that J&J did not spend their cash in the
pharmaceutical division where growth had been slowing or in the higher growth medical device
area. Therefore, analysts took that as an indication that there were not better opportunities in
pharmaceuticals and medical devices. However, this deal does reduce the dependence on the
more volatile pharmaceutical and medical device markets. After the deal, the mix consisted of
40% pharmaceuticals, 35% medical devices, and 25%, but pre-deal it consisted of 45%, 38%,
and 18% respectively.
STRATEGIC TOOLS IN ACTION:-
Established Products Business Unit: Pfizer's Established Products Business Unit (EPBU) was
created in 2008 to provide underserved patients with affordable medicines characterized by
pfizer's reputation for quality, safety, and innovation.
Led by David Simmons, President and General Manager, EPBU is a small, flexible unit that
leverages Pfizer's strengths to manage the established product portfolio.
Established products are medicines that have lost patent exclusivity or are close to losing their
exclusivity. Pfizer has over 380 established products, including many familiar brands such as
Norvasc, Zoloft, and Zithromax.
Pfizer's global sales of established products are more than $10 billion annually.
Established Products Business Unit Core Strategy: Established products are traditionally a
shrinking segment of business due to intense generic competition brought on by the loss of
exclusivity (LOE) of the products. Pfizer's Established Products Business Unit is committed to
stabilizing the current base business and transforming it into growth, through strategies like
product enhancements and reformulations; portfolio expansion; licensing and marketing non-
Pfizer molecules; competing in ýnicheý markets like sterile injectables; and managing late stage
lifecycle planning for current products before loss of exclusivity.
The global market for Established Products: Overall, the global market for these products is
big — and growing. In 2006, the established products market was $270B; within the next five
years, it is expected to grow to over $500B. (Source: Evaluate-Pharma)
Benefit to patients: The off-patent marketplace worldwide too often suffers from quality and
supply reliability issues. With its broad established products portfolio and capabilities in low-
cost manufacturing, Pfizer is in an ideal position to supply high quality medicines at affordable
Pfizer's top-selling Established Products: Pfizer is proud of its extensive line of established
products, which includes many familiar brands that have long served patients around the world.
One such medicine, Solu-Medrol, recently celebrated its 50th birthday. Medicines like these are
the foundation on which Pfizer's long-standing reputation for quality and great care for patients
Pfizer's established products range across a variety of therapeutic areas, including anti-infective,
pain and inflammation, cardiovascular disease, central nervous system, and women's health.
Some of the top-selling Pfizer Established Products are:
Accupril® / Accuretic® – treats high blood pressure and heart failure
Arthrotec® – treats signs and symptoms of osteoarthritis and rheumatoid arthritis
Cardura® / Cardura XL® – treats high blood pressure
Dalacin® / Cleocin® – treats bacterial infections
Diflucan® – treats yeast infections
Fragmin® – anticoagulant
Medrol® – treats inflammation
Neurontin® – treats epilepsy
Norvasc® – treats high blood pressure and chest pain of angina
Relpax® – treats migraine
Xanax® / Xanax XR® treats anxiety
Zithromax® – treats bacterial infections
Zoloft® – treats depression and anxiety
Pfizer Injectables: Pfizer is already an established player in the injectable market, offering
medicines from antibiotics to cancer therapies. Pfizer is committed to making these medicines
accessible and affordable to patients.
Current Pfizer injectable medicines include:
Bacitracin® – treats bacterial infections
Camptosar® – cancer therapy
Cerebyx® – treats epilepsy
Cleocin® – treats bacterial infections
Depo-Medrol® – treats inflammation
Depo-Provera® – birth control
Depo-Testosterone® – hormone replacement
Diflucan® – treats fungal infections
Ellence® – cancer therapy
Idamycin® – treats acute myeloid leukemia
Pfizerpen® – treats bacterial infections
Prostin VR® – treats infant heart defects
Solu-Medrol® – treats inflammation
Unasyn® – treats bacterial infections
Zinecard® – cancer therapy
Zithromax IV® – treats bacterial infections
Pfizer is expanding its portfolio of injectables through agreements with other companies. New
sterile injectables, such as antibiotics like cephalosporins and penicillins, will soon be available
through these agreements.
Greenstone LLC: Greenstone LLC, a subsidiary of Pfizer, manufactures and distributes generic
versions of many Pfizer medicines, including several injectables. It also distributes non-Pfizer
medicines through agreements with other pharmaceutical companies such as India-based
Aurobindo. Greenstone has an established reputation for quality products and consistency of
supply, and is the seventh-largest generic pharmaceutical company in the world by volume of
Quality : Pfizer's reputation depends on the quality and safety of the products it sells. Whether
medicines are produced internally or through agreements with external sources, Pfizer takes an
active role in ensuring a secure supply chain to protect the patients who use its products.
Pfizer has a well established process in place to evaluate and qualify any external supplier. This
process involves several levels of due diligence related to Quality and Supply Chain systems; the
negotiation of Quality and Supply agreements; and extensive product testing. Once a supplier has
been qualified, Pfizer conducts detailed oversight of performance to ensure standards are
WTO POLICY IMPACT ON COMPANY
The WTO’s Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
attempts to strike a balance between the long term social objective of providing incentives for
future inventions and creation, and the short term objective of allowing people to use existing
inventions and creations.
The agreement covers a wide range of subjects, from copyright and trademarks, to
integrated circuit designs and trade secrets. Patents for pharmaceuticals and other products are
only part of the agreement.
The TRIPS Agreement
The balance works in three ways:
• Invention and creativity in themselves should provide social and technological benefits.
Intellectual property protection encourages inventors and creators because they can
expect to earn some future benefits from their creativity. This encourages new inventions,
such as new drugs, whose development costs can sometimes be extremely high, so
private rights also bring social benefits.
• The way intellectual property is protected can also serve social goals. For example,
patented inventions have to be disclosed, allowing others to study the invention even
while its patent is being protected. This helps technological progress and technology
dissemination and transfer. After a period, the protection expires, which means that the
invention becomes available for others to use. All of this avoids “re-inventing the wheel”.
• The TRIPS Agreement provides flexibility for governments to fine tune the protection
granted in order to meet social goals. For patents, it allows governments to make
exceptions to patent holders’ rights such as in national emergencies, anti-competitive
practices, or if the right-holder does not supply the invention, provided certain conditions
are fulfilled. For pharmaceutical patents, the flexibility has been clarified and enhanced
by the 2001 Doha Declaration on TRIPS and Public Health. The enhancement was put
into practice in 2003 with a decision enabling countries that cannot make medicines
themselves, to import pharmaceuticals made under compulsory licence. In 2005,
members agreed to make this decision a permanent amendment to the TRIPS Agreement,
which will take effect when two thirds of members accept it.
Subsidiaries of Pfizer Inc.:
Radiologic Sciences, Inc. California
Shiley Incorporated California
Valleylab Inc. Colorado
Redmond Holdings Inc. Delaware
Howmedica Inc. Delaware
Pfizer Diagnostic Products Delaware
Pfizer Pharmaceuticals, Inc. Delaware
Site Realty, Inc. Delaware
Pfizer Pigments Inc. Delaware
Pfizer Genetics Inc. Delaware
Health Care Ventures, Inc. Delaware
Pfizer Medical Systems, Inc. Delaware
Pfizer Enterprises Inc. Delaware
Strato Medical Corporation Delaware
Infusaid, Inc. Massachusetts
American Medical Systems, Inc. Minnesota
Schneider (USA) Inc. Minnesota
Adforce Inc. New York
Quigley Company Inc. New York
Pfizer International Inc. New York
Howmedica G.m.b.H. Austria
Cadsand Medica N.V. Belgium
Laboratorios Pfizer Ltd. Brazil
176864 Canada Inc. Canada
Orsim, S.A. France
Products S.A.R.L. France
Van Cadsand Beheer B.V. Netherlands
Pfizer Trading Corp. Taiwan
Pfizer Overseas Inc. Delaware
Pfizer Products Corporation Delaware
Pfizer Corporation Austria Austria
Pfizer S.A. Belgium
Pfizer European Service
Center N.V. Belgium
The Kodiak Company Ltd. Bermuda
Pfizer Holding Ltd. Canada
Roerig S.A. Chile
Pfizer A/S Denmark
Pfizer Oy Finland
Pfizer Biogal L.L.C. Hungary
Pfizer Sales Company Limited Ireland
Pfizer Chemical Corp. Ltd. Isle of Man
Compania Distribuidora Del
Centro, S.A. de C.V. Mexico
Pfizer S.A. de C.V. Mexico
Laboratoires Pfizer S.A. Morocco
Pfizer Specialties Limited Nigeria
Pfizer Pharmaceuticals Panama
Pfizer S.G.P.S. Limitada Portugal
Bioquimica Industrial Espanola, Spain
Pfizer S.A. Spain
Pfizer A.G. Switzerland
Pfizer Group Limited United Kingdom
Pfizer Research and Belgium
Development Company N.V.
Kirchimie Ltee. Canada
Pfizer C. & G. Inc. Canada
Pfizer Pension Trustees Ireland
Pfizer International Bank Europe Ireland
Pfizer Service Company Ireland Ireland
Italiana S.r.l. Italy
Pfizer (N.Z.) Ltd. New Zealand
Pfizer Corporation Panama
Howmedica Faimon, S.A. Spain
Pfizer Limited Angola
Pficonprod Pty. Limited Australia
Pfizer Agricare Pty. Ltd. Australia
Pfizer Pty. Ltd. Australia
Pfizer S.A. Colombia
Pfizer S.A. Costa Rica
Pfizer C.A. Ecuador
Pfizer Egypt S.A.E. Egypt
Pfizer Limited Ghana
Pfizer Hellas, A.E. Greece
Pfizer Limited India
PT Pfizer Indonesia Indonesia
Pfizer Kabushiki Kaisha Japan
Pfizer Laboratories Limited Kenya
Pfizer (Malaysia) Sendirian
Pfizer Limitada Mozambique
Pfizer (Namibia) (Proprietary)
Pfizer Laboratories Limited New Zealand
Livestock Feeds PLC Nigeria
Pfizer Products PLC Nigeria
Pfizer A/S Norway
Pfizer Laboratories Limited Pakistan
Pfizer International Corporation
Harmag Inc. Panama
Corporation Farmaceutica S.A.--
Pfizer Inc. Philippines
Pfizer Private Limited Singapore
Pfizer Laboratories South Africa
Pfizer (Proprietary) Limited South Africa
Pfizer Korea Limited South Korea
Pfizer Limited South Korea
Pfizer A.B. Sweden
Roerig A.B. Sweden
Pfizer Limited Taiwan
Pfizer Limited Tanzania
Pfizer Limited Thailand
Pfizer Ilaclari A.S. Turkey
Pfizer Limited Uganda
Laboratorios Pfizer de
Venezuela, S.A. Venezuela
Pfizer Limited Zambia
PHASES OF INTERNATIONALIZATION TREND OF PFIZER :
In the past decade, Pfizer has made many acquisitions, following previous mergers of
companies below them in the pharmaceutical food chain. Following these acquisitions, Pfizer is
currently shutting down redundant activities and has already planned future plant closures
and cutbacks.Currently, Pfizer is experiencing operational difficulties and may in the near future
come under hard times financially, making it difficult to define their internationalization strategy.
Their stock price has seen consistent decline since February 2004 . They have not made any
significant discoveries recently, which are not helping their business. As a combination of these
2 factors, their internationalization strategy might be non-existent, as they are in the middle of
This means that right now they are consolidating. Consolidation of R&D activities was
only briefly discussed in the article as it pertains mostly to the largest MNC’s with a history of
When classifying a MNC into one of the frameworks developed there are factors that must
be taken into consideration.
It is the physical locations of research sites and development sites that determine where a
company will fit into the framework developed. It is essential to analyze the company and
observe it they keep both R&D activities in their home market, internationalize research
activities, internationalize development activities or both. To do this, there must be a clear
difference in focus at each of the sites analyzed, which proved very difficult to do with regards to
Following the analysis of international locations :
In the case of Pfizer Inc., it was very difficult to identify the category that fits them
best and their strategy. They are in the midst of consolidating, which is one trend that was
discussed by the authors regarding large companies involved in a lot of M&A activities. This is
certainly the case of Pfizer. Along with the difficulties created by their consolidation, it is
difficult to classify them because Pfizer might simply be too global.
Following this, one would assume they are global and place them into the ‘global’
archetype. The classification of Pfizer into an archetype or an internationalization trend. They are
coming into hard times in the financial market, with a lot of pressure coming from shareholders
to increase value.
A better time to analyze their strategy might be in five years when the consolidation
efforts have been completed and Pfizer should be concentrating on economic growth. For the
purpose of evaluating a company in a specific archetype and internationalization strategy, Pfizer
really makes one question their activities and distinguish which activities are research oriented,
which are development, which are mostly done in their domestic market (the US) and which are
mainly done abroad.
The larger the company , the larger the problems with internationalization, like physical
distance, management and control, and NIH syndrome which seem to be tackled quite efficiently
and effectively by Pfizer. Their consolidation is a result of these issues and shareholders are
waiting anxiously for Pfizer to turn operations around. When they are done their reorganization,
a further investigation into their internationalization might lead to a much more clear conclusion.
Until then, Pfizer needs to concentrate on finding a new ‘blockbuster’ drug, or face an even
greater challenge than being classified into an archetype.
RESEARCH AND DEVELOPMENT:
Pfizer researchers and scientists are working to discover and develop new
ways to treat prevent life-threatening and debilitating illnesses like Alzheimer’s disease and
cancer, as well as to improve wellness and quality of life across a range of therapeutic areas.
Pfizer is focusing on developing treatments for unmet medical needs inspired by a single goal:
patient health. This is why it are dedicated to developing promising new medicines to prevent
and treat the world’s most serious diseases. Pfizer believes that from progress come hope, and
the promise of a healthier world. Pfizer’s research & development teams are focused on nine
therapeutic and disease areas that span a broad range of medical needs. Its current pipeline
reflects a therapeutic-area focus with 100 programs in Phase I through Phase III. From March
2008 to September 2008, 21 programs advanced in the pipeline—12 of them in the identified
high-priority disease areas of diabetes, oncology, inflammation/immunology, Alzheimer’s
disease, psychoses and pain. Pfizer’s recently established business units—for Primary Care,
Specialty, Oncology, Established Products, and Emerging Markets—are designed to respond to
customer’s and patients’ changing needs and to ensure the alignment of research and
development activities with these needs.
HRD & CORPORATE CULTURE
Pfizer offers the opportunity to work on exciting and ground-breaking research, access to
unparalleled resources and world-class facilities, and the opportunity to work with some of
the brightest and most driven individuals in the biopharmaceutical industry.
“After looking at Pfizer and getting a better understanding of the company, it's clear that there are
multiple opportunities within the organization to have an impact—in the larger scheme on human
health, and on the individual projects that I will be involved with.”
“Pfizer is a comfortable place to be; there is a laidback atmosphere here. I work in a gorgeous
facility overlooking the water—it's the largest new drug discovery lab in the world. Pfizer has a
reputation for being the best in research. Every day is different; I'm always working on new things. I
feel like I'm part of a company that's making a difference.”
Different people. Different perspectives. One common commitment.
At Pfizer, we know we can make a difference in the quality of life for millions of
individuals worldwide. We also understand that your talent is key to accomplishing this
Currently, we are the number one pharmaceutical company in every major market around
the world. We are also consistently recognized as one of the nation's best employers and
most admired companies. Much of our achievement comes from the importance we place on
fulfilling our mission and values, as well as creating an environment that fosters the growth
and development of our people.
Our environment is open, diverse, and truly supportive
Colleagues from around the world are drawn to Pfizer because of the challenging and often
groundbreaking work we do, our emphasis on innovation, and our industry leadership. They
stay at Pfizer because of our commitment to their growth and development, the respect we
show them as individuals, our emphasis on creativity, diversity and inclusion, and our
corporate values and leader behaviors.
Learning. Growing. Succeeding. This is what a Pfizer career is made of.
At Pfizer, we've long recognized that our colleagues are our most important asset. We value
our colleagues, recognize their talent, encourage their growth and reward their performance.
It's a terrific environment that enables people to contribute, to do their best, and to achieve
Please visit the below sites to meet some of our inspirational colleagues and see how they
have been able to learn, grow and succeed with us.
Think Science Now: Pfizer's online forum about science. Here you can meet members of the
Think Science Now 100 (TSN100), a select group of science and medical professionals from
across Pfizer who are working together for a healthier world.
It Begins with Me: Every Pfizer colleague makes a difference toward meeting the unmet health
needs of people around the world. The colleague stories highlighted in the interactive "It Begins
With Me" website show how each individual contributes to making Pfizer's scientific, medical and
business leadership possible. We invite you to navigate through the site to learn more about some
of the men and women of Pfizer, who are "Working together for a Healthier World."
HISTORY (GROWTH & DIVERSIFICATION OF COMPANY )
The company was incorporated as Charles Pfizer & Co in the US in 1942 but the
original business dates back to a partnership founded in 1849. Until the turn of the century this
partnership produced only citric acid but then began to expand into other chemicals and
pharmaceutical products. A phase of rapid growth began with the production of penicillin in
World War II (it was Pfizer penicillin that arrived with the Allied forces on the beaches of
Normandy in 1944) and the development of the company’s most famous product, the antibiotic
Terramycin in 1949. Based on this strength, Pfizer grew in the 40s and 50s through horizontal
integration in the US as well as through internal development.
Under the methodical directive of John Powers, head of international operations and
future president and chief executive officer, Pfizer’s foreign market expanded into 100 countries
and accounted for $175 million (£199 million) in sales by 1965. It would be years before any
competitor came close to commanding a similar share of the foreign market. Pfizer’s 1965
worldwide sales figures of $220 million (£149,7 million) indicated that the company might
possibly be the largest pharmaceutical manufacturer in the US. By 1980 Pfizer was one of the
two US companies among the top ten pharmaceutical companies in Europe, and the largest
foreign health care and agricultural product manufacturer in Asia. Powers guided the company in
a new direction with an emphasis on research and development.
By 1989, Pfizer operated in more than 140 countries. Pfizer entered the 90s facing
controversy about heart valves produced by Shiley, a Pfizer subsidiary. In 1990, 38 fractures of
implanted valves were reported (see also crime section). Pfizer became a household name in the
late 90s with its development of the break-through male impotence drug Viagra, which became
the world’s fastest-selling pharmaceutical product (until overtaken by another Pfizer brand).
Pfizer has worked its way up the global ranking list by way of internal growth and
development, acquisitions, the licensing of products from competitors (Pfizer generously
borrowed research from its competitors and released variants of these drugs. While all companies
participated in this process of ‘molecular manipulation’, whereby a slight variance is produced in
a given molecule to develop greater potency and decreased side effects in a drug, Pfizer was
particularly adept at developing these drugs and aggressively seizing a share of the market),
research & development, and by way of comprehensive marketing efforts.
Pfizer’s successful marketing efforts impinged on other companies in the pharma
sector. (Pfizer’s modern market campaigns broke tradition in the pharma industry. Pfizer’s
Terramycin campaign turned the company –a relative newcomer to the industry—into the largest
advertiser in the American Medical Association’s journal. Some companies did not appreciate
Pfizer’s ‘hard sell’ tactics and attacked Pfizer. However, after Pfizer’s campaign proved to be
highly effective, other companies took a similar lead) It is manifested in the "arms race" of
escalating numbers of sales representatives, particularly in the US; the huge pre-launch
marketing budgets when companies try to make as big a splash as possible; and aggressive TV
advertising campaigns in which drugs are seemingly being treated and presented to the consumer
audience as any other consumer product.
Pfizer recently announced a new mission: to become the world’s ‘most
valued’ company. Pfizer CEO McKinnell declared that the new mission came about
because the old mission set in the 1990s (to lead the pharmaceutical industry) had been
achieved. He explains: ‘Becoming most values simply means that we emerge as the
company recognised as the best by patients, customers, business partners, and the
communities where we live and work. It’s a long term mission focused on making Pfizer’s
success a winning proposition for everyone.
ISSUES IN TECHNOLOGY MANAGEMENT
At Pfizer, partnerships are an integral part of our history and fundamental to everything we
do. We share your vision for bringing innovative products to patients around the world. Our
strong commitment to collaborating with you plays a major role in achieving this goal.
We're interested in working with a wide range of partners, in all phases of scientific and
technical development, throughout the world—including: Biotech, Pharmaceutical
companies, and Academic researchers and institutions
We welcome opportunities for collaboration in areas such as biologics, vaccines, small
molecules and technologies.
Our partnerships focus on several important disease areas, including Oncology, Pain,
Diabetes, Inflammation and Immunology, Alzheimer's disease, and Psychoses.
Our approach to collaboration is simple: Together, we can provide genuine value for
patients and partners. When you partner with us, you'll be part of a team determining the
best path for bringing programs forward. From the beginning, we're interested in exploring
ways to work together that advance the goals of each of our organizations.
To each collaboration, we bring a strong commitment to scientific innovation, proven
development strength, and a record of unprecedented commercial success. And, we're
committed to ensuring that open communication, transparency, and flexibility are at the core
of every partnership.
We hope you'll take a few minutes to learn more about us—and find out how we can work
together for a healthier world.
ISSUES ON INTELLECTUAL PROPERTY RIGHTS
Pfizer spends billions of dollars on medical research each year. The reason that companies
like Pfizer can invest such vast sums is because they know that novel discoveries they make
can be patented, and any products developed can be sold for a period of time on an
exclusive basis to pay for the research not only on that product and the many products that
failed, but more importantly for the products to come.
• Protection of intellectual property is central to any creative endeavor, such as drug discovery,
that requires the commitment of substantial amounts of money. Governments should ensure
that intellectual property will be protected so that private companies can maintain their
investment in research and development.
• Public policy must recognize the direct connection between protection of intellectual property
and medical progress. Pfizer encourages and supports strict enforcement of patent laws
• Pharmaceuticals have one of the lowest effective patent-life of any product - approximately 11
- 12 years.
Disregard for the protection of intellectual property would put medical research at risk.
Private companies cannot afford to commit huge sums of money to research unless they are
assured that a successful product can lead to exclusive sales.
Because of the time-consuming research process, pharmaceuticals have among the lowest
"effective" patent-lifes of any product - that is, the length of time during which they can sell
their product without competitors producing an exact copy.
While patents provide 20 years of protection for the inventor, as shown in Chart 1, most
pharmaceutical products have approximately 11 to 12 years of "effective" patent-life
because patents are applied for and granted early in the development stage, well before
conducting lengthy clinical trials. Effective patent-life has been shrinking in recent years as
generic companies are using the courts to try to get around patents before their expiration
Pfizer encourages the U.S. Government to enforce intellectual property protection not only
in the United States, but to enforce U.S. patent protection in countries outside the United
States. Some countries either disregard patents for drugs in an effort to stimulate the local
production of cheaper versions, or actively establish policies that have the effect of
undermining the protection of intellectual property.
Policymakers should appreciate the direct relationship between investment in research and
future medical progress. Policies that protect the fruits of that research and provide
incentives in the form of effective patents are critical to continued innovation.
LATEST FINANCIAL HIGHLIGHTS & INDICATORS
The pharmaceutical industry develops, produces, and markets drugs licensed for use
as medications. Pharmaceutical companies can deal in generic and/or brand medications. They
are subject to a variety of laws and regulations regarding the patenting, testing and marketing of
Intellectual cooperation in Pharmaceutical Industry
Corporate houses are restructuring their businesses and focusing in core areas and
acquiring technical expertise through collaborations, mergers or acquisitions. Globally in 1997
there were 426 corporate transactions in the pharmaceutical sector with an average value of $
253 million. In 1996 there were 285 transactions with an average value of $ 433 million per
To offset the negative influences of drugs going “off-patent” and to “manage the life-cycle” of
products the major drug manufacturers are gearing up to meet generic competition by adopting
1. Develop brandline extensions and seek extended protection through
“ Controlled release formulations “ and apply for new indications.
2. Enhance investment in R&D in core areas and support initiatives in search of new bioactive
molecules and new chemical entities (NCE). Also lead sponsored collaborations with key
academic groups in areas of modern biotechnology, combinatorial chemistry, genomics etc.,
with clearly defined arrangements on ownership of intellectual property. Corporate mergers
and acquisitions have also been completed to enhance cross – fertilization of expertise, and
cost effective strategic utilization of mutual intellectual assets.
Evolve and execute productive ways of group working with various companies (also with
competitors if necessary) through appropriate licensing arrangements and benefits sharing.
3. Switch brands to over the counter (OTC) sales, reorganize manufacture, grant licenses to
generic manufacturers just before the patents expire to keep competition at bay.
Alternatively the traditional drug companies have chosen to selectively litigate against drug
manufacturers to delay their drug clearance by FDA on grounds of possible patent
infringement. In retaliation generic drug manufacturers are fighting back claiming unfair
blockage of their generic drugs from entering the market.
The market for enantiopure drugs was approx $40 billion in 1997. US FDA considers
enantiomers as two separate chemical entities. Thus technologies for “ single isomer
pharmaceuticals “ via asymmetric synthesis & chiral resolution are growing opportunities in
areas of traditional chemistry.
They have been able to procure “ use patents “ for their ICEs. With SEPACOR’s
lifecycle management strategy” it patents its ICEs then licenses them to drug companies before
their “ composition of matter “ patents on the parent blockbuster drug are due to expire. This
arrangement helps the drug companies to extend a product’s lifecycle by the term of the ICE
patents. The first such deal was struck with Hoechst Marion Roussel on Fexofenadine in 1993.
Hoechst will pay Sepacor an upfront fee plus royalties of 4-7% of sales beginning in 2001.
Novartis and others. Contract research is has gained considerable ground in the last few years to
reach a value of $ 3.9 billion growing at a rate of 20 to 30% per annum most of which is contributed by
the pharmaceutical industry Working with high-tech companies also involves developing complex
licensing agreements. For example several small companies with niche technologies have partnered with
very large companies to internationally market their products. The big company on behalf of the small
company has managed IPR protection in various countries.
To ensure success in cooperative working one has to clearly understand the IPR issues related
• filing of patents globally in the relevant markets,
• getting the patent claims tested by a set of experts for their validity,
• appropriate legal arrangements on transmission of Intellectual property rights in various
geographical regions and countries,
• information and material not covered by the technology license,
• IPR ownership & distribution of benefits on further improvement of the licensed technology,
For the first time ever, in 2006, global spending on prescription drugs topped $643
billion, even as growth slowed somewhat in Europe and North America. The United States
accounts for almost half of the global pharmaceutical market, with $289 billion in annual sales
followed by the EU and Japan. Emerging markets such as China, Russia, South Korea and
Mexico outpaced that market, growing a huge 81 percent.
US profit growth was maintained even whilst other top industries saw slowed or no
growth. Despite this, "..the pharmaceutical industry is — and has been for years — the most
profitable of all businesses in the U.S. In the annual Fortune 500 survey, the pharmaceutical
industry topped the list of the most profitable industries, with a return of 17% on revenue.
Pfizer's cholesterol pill Lipitor remains the best-selling drug in the world for the fifth year in a
row. Its annual sales were $12.9 billion, more than twice as much as its closest competitors:
Plavix, the blood thinner from Bristol-Myers Squibb and Sanofi-Aventis; Nexium, the heartburn
pill from AstraZeneca; and Advair, the asthma inhaler from GlaxoSmithKline.
IMS Health publishes an analysis of trends expected in the pharmaceutical industry in 2007,
including increasing profits in most sectors despite loss of some patents, and new 'blockbuster'
drugs on the horizon.
Market leaders in terms of revenue
The following is a list of the 20 largest pharmaceutical and biotech companies ranked by
healthcare revenue. The phrase Big Pharma is often used to refer to companies with revenue in
excess of $3 billion, and/or R&D expenditure in excess of $500 million.
Revenue Company Country Total Revenues Healthcare Net income/ Employees
Rank (USD millions) R&D 2006 (loss) 2006 2006
2008 (USD millions) (USD millions)
1 Novartis Switzerland 53,324 7,125 11,053 138,000
2 Pfizer USA 48,371 7,599 19,337 122,200
3 Bayer Germany 44,200 1,791 6,450 106,200
4 GlaxoSmithKline United 42,813 6,373 10,135 106,000
5 Johnson and USA 37,020 5,349 7,202 102,695
6 Sanofi-Aventis France 35,645 5,565 5,033 100,735
7 Hoffmann–La Switzerland 33,547 5,258 7,318 100,289
8 AstraZeneca UK/Sweden 26,475 3,902 6,063 50,000+
9 Merck & Co. USA 22,636 4,783 4,434 74,372
10 Abbott USA 22,476 2,255 1,717 66,800
11 Wyeth USA 20,351 3,109 4,197 66,663
12 Bristol-Myers USA 17,914 3,067 1,585 60,000
13 Eli Lilly and USA 15,691 3,129 2,663 50,060
14 Amgen USA 14,268 3,366 2,950 48,000
15 Boehringer Germany 13,284 1,977 2,163 43,000
16 Schering-Plough USA 10,594 2,188 1,057 41,500
17 Baxter USA 10,378 614 1,397 38,428
18 Takeda Japan 10,284 1,620 2,870 15,000
19 Genentech USA 9,284 1,773 2,113 33,500
20 Procter & USA 8,964 n/a 10,340 29,258
Source: Top 50 Pharmaceutical Companies Charts & Lists, Med Ad News, September 2007
Market leaders in terms of sales:-
The top 15 pharmaceutical companies by 2008 sales are
Rank Company Sales Based/Headquartered in
1 Pfizer 43,363 US
2 GlaxoSmithKline 36,506 UK
3 Novartis 36,506 Switzerland
4 Sanofi-Aventis 35,642 France
5 AstraZeneca 32,516 UK/Sweden
6 Hoffmann–La Roche 30,336 Switzerland
7 Johnson & Johnson 29,425 US
8 Merck & Co. 26,191 US
9 Abbott 19,466 US
10 Eli Lilly and Company 19,140 US
11 Amgen 15,794 US
12 Wyeth 15,682 US
13 Teva 15,274 Israel
14 Bayer 15,660 Germany
15 Takeda 13,819 Japan
GLOBAL FINANCIAL CRISIS EFFECT ON PFIZER
In 2007, total sales of Pfizer amounted to $48.82 billion. Profits made by this firm were
worth nearly $10.562 billion. Total assets held by Pfizer were worth around $115.246 billion.
Total employee count of Pfizer was around 86,600.
Current financial crisis
Though Pfizer is yet to be affected by global financial crisis, Pfizer's European business
head, Pedro Lichtinger, has been quoted as saying that pharmaceutical companies cannot expect
to remain unaffected by an economic slowdown.
Pfizer just announced it is giving two senior vice presidents bonuses of $1 million
and $1.2 million for their deft handling of the $68 billion Wyeth buyout in the midst of the
global financial crisis. Specifically, they “obtained permanent debt financing during an
unprecedented global financial crisis” and made other decisions to smooth the way to the merger,
consummated with federal approval on Oct. 15.
Frank D’Amelio, senior vice president and chief financial officer, will receive $1.2
million, and Ian Read, senior vice president and biopharmaceuticals group president, will get $1
million, the company said.Pfizer, the world’s largest drug maker, broke a logjam in
pharmaceutical dealmaking and mergers and acquisitions in general. Four of the five banks that
loaned Pfizer $22 billion total to finance the deal had received bailout money from the federal
Troubled Asset Relief Program.
CEO & HIS KEY TEAM MATES
The Pfizer Executive Leadership Team (ELT) is the senior-most leadership,
management and decision-making body of our company.
Jeffrey Kindler Frank D'Amelio
Chief Executive Officer Senior Vice President
and Chairman of the and Chief Financial
Mikael Dolsten Freda C. Lewis-Hall
Senior Vice President & Senior Vice President
President, and Chief Medical
BioTherapeutics Research Officer
& Development •
Martin Mackay Mary McLeod
Senior Vice President & Senior Vice President,
President, Worldwide Human
Research & Development •
Ian Read Cavan Redmond
Senior Vice President & Senior Vice President &
Group President, Group President, Pfizer
Pfizer BioPharmaceutical Diversified Businesses
Natale Ricciardi William Ringo
Senior Vice President & Senior Vice President,
President/Team Leader, Worldwide Business
Pfizer Global Development Strategy &