This project is about Pfizers pre covid and post covid performance, highlighting the covid impact on the revenue and market share

1. Cracking the Code of Pfizer's Success: A Comprehensive Analysis

2. Agenda Blueprint
• Introduction
• Pre Covid Standing of Pfizer
• Impact of Covid on Pfizer
• Financial Benchmarking
• ESG & Litigation
• Financial Sustainability
• Conclusion

3. HISTORY & BRAND ESTABLISHMENT
• Founded in 1849 by cousins Charles Pfizer and Charles Erhart in Brooklyn, New York.
• Initially operated as a fine chemicals business, producing citric acid and other chemical
compounds.
• Expanded into antibiotics production during the late 19th and early 20th centuries.
• Shift towards pharmaceuticals began with the development of antibiotics, setting the stage for
Pfizer's future success in the pharmaceutical industry
Cornerstones of Pfizer's Market Domination Strategy
• Pfizer's move from chemicals to pharmaceuticals sparked a consumer-focused strategy.
• Through innovative research, Pfizer established itself as a dependable provider of healthcare
solutions.
• It's early branding established trust through quality and innovation in healthcare.
• The pharmaceutical leader emphasized patients by creating health-oriented products within a
consumer-centered strategy.
• Expanding worldwide, Pfizer broadened its impact and enhanced its brand's global recognition.

6. Revenue
Underlying reason for the decline
was competition from generic drugs
that entered the market when key
patents expired
Pfizer’s revenues were also impacted
by the decision to spin off some of
its business segments, such as its
animal health division in early 2010’s
and its Upjohn business in 2020.

8. Patent Cliff
• Around 19 billion USD loss of revenue in 2010-2020 decade due to
expiry of major patents with Lipitor contributing substantially.
• In response to patent expirations, increased R&D investment was
undertaken to fortify the patents pipeline, resulting in a temporary
reduction in revenues.

9. 5-Year Clinical Trial Success Rate
Improvement
Clinical Trial
Success Rates
(NMEs only)
Phase 1
(3-year
avg.)
Phase 2
(5-year
avg.)
Phase
3/Approval
(5-year avg.)
End-to-
End
Success
Rate
Pfizer (2015) 48% 15% 70% 5%
Industry (2015) 63% 31% 51% 10%

10. Pfizer's Operational
Efficiency
• Efficiency Ratios are ratios that determine how effectively a
company is using its resources.
• Three ratios helped us in making a concrete deduction about
its operations.
• Inventory turnover reflects how often a company sells and
replaces its inventory within a specific time period
• Asset turnover ratio measures a company's efficiency in
generating revenue from its assets.
• Accounts payable days represent the average number of days
a company takes to pay its suppliers or creditors

12. PRE-COVID Trends

13. COVID-19 OPERATIONS

17. Vaccine Manufacturing Process
Step 1:
Developing
DNA Plasmids
Step 2:
Frozen, Packaged,
& Transported
Step 3:
DNA Transformed
into mRNA
Step 4:
mRNA
Utilized
Step 5:
Distribution to
Different
Locations

18. Distinctive Features Amidst the Pandemic
Step 1:
Developing
DNA Plasmids
Step 2:
Frozen, Packaged,
& Transported
Step 3:
DNA Transformed
into mRNA
Step 4:
mRNA
Utilized
Step 5:
Distribution to
Different
Locations
 Swift Partnership Response: Just six days after WHO's pandemic declaration on March 17, 2020, Pfizer
partnered with BioNTech, combining mRNA expertise to rapidly develop a potential COVID-19 vaccine.
 Collaboration with other firms: Pfizer's collaborative approach enabled manufacturing 3 billion doses by
2021-end and ongoing operations, expanding facilities, collaborating with CMOs, and employing tech
transfer for secure vaccine production
 Simultaneous Supply Chain Development: Pfizer's manufacturing division innovated, investing $700
million to establish parallel supply chains, ensuring redundancy and meeting escalating vaccine demand.
 Internal Raw Material Manufacturing: Pfizer's intricate vaccine, composed of 280 components, prompted
innovative solutions including in-house manufacturing of key lipid components and a unique cold chain
packaging approach.

19. Collaboration with Other Firms

20. BENCHMARKING

21. Ratio Analysis
Profitability Ratios
Gross Margin
Net Margin
Operating Margin
ROE
Efficiency Ratios
Asset Turnover
Accounts Receivable Turnover
Inventory Turnover
Accounts Payable Days

23. Analysis
Pfizer has consistently stayed above the industry median for
Gross Margin, except in 2021 and 2022. This is due to:
• Increased competition - Pfizer also faced increased
competition from generic drugs and biosimilars in 2021
and 2022. This led to lower prices for some of its products,
which also hurt its gross margin.
• The COVID-19 pandemic - The company spent heavily on
research and development for its COVID-19 vaccine and
treatments, which led to higher costs.
• Additionally, the pandemic disrupted the global supply
chain, which made it more difficult for Pfizer to get the
materials it needed to produce its products.

25. Analysis
2018
The net margins, operating margin, and ROE
were affected in 2018 due to the loss of
exclusivity of products such as Viagra, Lyrica,
Zyvox, Relpax, etc.
2021 and 2022
The margins all increased again in 2021 and
2022, due to the staggering increase in
revenue during the COVID 19 pandemic.

27. Analysis
The asset turnover also rose, showing
improved revenue generation per asset
dollar. This increase is connected to
Pfizer's work on the COVID-19 vaccine,
which boosted revenue.
There was an increase in their accounts
receivable turnover in 2021. This could
be due to the fact that large wholesalers
made up around 80% of Pfizer's Accounts
Receivables in 2021.
There was an increase in the inventory
turnover. This is connected to the
increase in sales of Comirnaty.
There was a drop in Accounts Payable
Days in 2021 – the company showed
signs of improving financial health due
to the COVID-19 vaccine and so it is
possible that this has reduced the
Accounts Payable Days.

28. Pfizer from ESG perspective

29. ESG in pharmaceutical industry:
 Clinical trials -
1. Following ethical and legal concerns
2. Diverse & Inclusive trial group
 Climate Change -
1. Reduction in carbon emissions, focusing on better transportation
2. Energy efficient production, usage of renewable energy sources
 Medication Access-
1. Working on drug pricing (eliminating gouging)
2. Efficient supply chain to provide access to underdeveloped nations
 Waste disposal
 Workplace parity

30. ESG scores
• Scores are based on factors specific to the industry.
• Puts a weight on different criteria
• Assess the performance of the firm in each criteria
• ESG score is a sum-product performance in all the criteria.
• Higher ESG score means a better consideration by the firm
• A score of 70 & above is considered good.

31. COVID Trends

32. What makes a
smaller score
for Pfizer?
• Pfizer lacks behind in the environment and social component, it has a
slightly higher score for the governance component
• Major differences occur from the energy usage – Pfizer is
comparatively less efficient in translating energy to revenue (lower
revenue for every unit of energy consumed)
• Pfizer also has better renewable energy usage
• Pfizer has slightly higher Co2 emissions
• Pfizer has very poor performance in terms of Enivronmental
innovation
• Pfizer has lower donations to revenue ratio – pushing their social
score down
• Pfizer ranks lower in terms of product responsibility and
customer safety

33. Pfizer's focus:
• Clinical trial transparency – Pfizer has released all
the past 10 years data for public view.
• Clinical trial diversity - Pfizer's special significance in
diverse group participation in medical trials
• Wider access to medication – focus on supply chain
management post covid
• Net-zero standard – aims to cut down emissions by
95% 2040.

34. Focus on Pfizer's Lawsuits
benchmarking J&J's lawsuits

35. Lawsuits Trends - Pfizer
Medine Protronix Prempro Chantix
Depo-
Testosterene
Effexor Zoloft Eliquis Lipitor Trovan
Issues/reasons
kidney
problems
Breast
cancer
Psychological
disorders
strokes, blood
clots
birth
defects
Birth
defects
severe
bleeding
diabetes in
women
unapproved
clinical trials
in
children and
liver damage
Approved/dismissed A A A D D A D P A
Amount paid (in
million $)
55 1000 288 N/A N/A N/A N/A N/A 42
Estimated # of
lawsuits
>3500 >10000 >2700 >10000 N/A >700 N/A >1000 N/A
Note: A stands for approved, D for dismissed, P for pending

36. J&J' lawsuits
Medicine DePuy ASR XL
Pinnacle
Acetabular
cup
Xarelto
Johnson's talcum
powder
Rispersdal Pelvic mesh
Pinnacle hip
implant
Mortin products Transvaginal mesh
Issues/reasons
Dislocation,
metal
poisoning etc.
loosening,
dislocation
Bleeding
Multiple reasons Multiple reasons Multiple
issues
Multiple reas
ons
Misrepresentatio
n
Multiple reasons
Accept/dismissed P P A A A A A A A
Amount paid (in
million $)
N/A N/A 27.8 1200 6.8 50 940 33 20
Estimated # of
lawsuits
>1400 >4000 >25000 >40000 >7000 4000 >9800 N/A N/A
Note: A stands for approved, D for dismissed, P for pending

37. Major comparisons drawn

38. Comparision continued:

39. Comparision continued....
J&J HAS MORE LAWSUITS
THAN PFIZER – PRIMARILY
FROM ITS TALCUM
POWDER
THE RATE CASE DISMISSALS
ARE HIGHER FOR PFIZER
PFIZER AND J&J HAD TO
PAY HUGE PENALTIES, BUT
J&J HAS PAID HIGHER
AMOUNT
POST COVID VACCINE
LAWSUITS ON PATENTS
HAVE RISEN FOR PFIZER
MODERNA FILED A
LAWSUIT ON THE USAGE OF
MRNA TECHNOLOGY
SCRIPPS RESEARCH
INSTITUTE HAS FILED A
LAWSUIT AGAINST ITS
COMIRNATY VACCINE.

40. Post Covid - Financial Sustainability

41. Biggest Challenges
Patent "Cliff" Impact:
Pfizer is confronted with a patent "cliff"
resulting in the loss of market exclusivity for key
drugs.
Blockbuster drugs like Eliquis and Ibrance are
affected, contributing to a projected $18 billion
revenue loss by 2030.
Pfizer's Challenges Post-COVID:
•Pfizer is facing difficulties in convincing Wall
Street about managing a transition.
The transition is expected to reduce annual
revenues by almost a third to approximately $70
billion in 2023 ($100 billion in 2022).

44. Clinical Trials Success
• Historical Clinical Success Rate:
• In 2015, Pfizer's success rate for assets
from first-in-human studies to approval
was just 5%, compared to an industry
average of 10%.
• Improved Success Rate:
• Pfizer reported a success rate of 21%
through 2020, surpassing the industry
average of 11%.

49. Global Expansion & Breakdowns Analysis
• Comirnaty & Paxlovid Success: Revenue growth in 2022 driven by global demand for COVID-19 vaccine and
antiviral treatment. (2019 Annual Report)
• Emerging Markets Focus: Targeting fast-growing emerging markets with urbanization and middle-class
expansion.
• Market Expansion: Supplying medicines and vaccines to 185+ countries, increasing revenue in multiple
international markets.
• Supply Chain Synergies: Allows for a lower inventory turnover ratio. (2020 Annual Report)

53. Post Covid - Financial Sustainability
• Pipeline Diversity: Pfizer's pipeline for the next two years comprises a mix of internally developed candidates and
externally acquired prospects, including potential blockbusters targeting various medical areas.
• Potential Blockbusters: Notable candidates, such as treatments for respiratory disease RSV, migraine, and blood
cancer, hold the potential to generate substantial annual sales, contributing to revenue growth.
• Short-Term Reliance: In the short term, Pfizer relies on the launch of 19 new drugs, projected to yield approximately
$20 billion in annual revenues by 2030, helping offset the impact of patent cliff challenges. (2023 Annual Report)
• M&A Strategy: Pfizer has been actively pursuing acquisitions, investing nearly $30 billion in the past two years. These
strategic moves are projected to contribute around $10 billion in annual revenues by 2030.
• Future Growth: Pfizer's acquisition choices are applauded by most analysts, though some suggest a more
accelerated approach to M&A to meet the goal of generating an additional $15 billion in annual revenues by 2030.

54. Conclusion
• Weak market positioning
• Low clinical trials success rate
Pre Covid Challenges
• Emerged as global leader
• Improved synergies and global partnerships
• Strong clinical trials results and R&D expansion
Covid
• Promising pipeline
• Benefits from Covid expansion
Post Covid Positioning

55. Thank You
• Special thanks to
• Dr Ma
• Sumi
• Jose
• Full –Name maybe a lil bit description

56. References
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