SWOT Analysis

1. Kush Dua
MBA
(Pharmaceutical Management)

2. Company Pfizer Inc
Category Pharmaceuticals
Sector Healthcare
Founded 1849
Founded By Charles Pfizer & Charles Earhart
Headquarters New York
Segment Cardiovascular, Infectious Diseases,
Central Nervous System Disorders,
Metabolic Disorders, Arthritis, Oncology,
Dysfunction, Allergy, Urology, Consumer
Health Care, Animal Health

3. Opportunity
Pfizer
Strength
Threat
Weakness

4. Market Leader
Sales of US$44.4billion
Strong credentials
Pfizer has launched some very successful products in past that lead to large
economic growth. E.g. Lipitor(US$12.7billion), Lyrica, Champix
Marketing Strength
Pfizer has commercially outperformed its competitors in past 15 years with
impressive and effective direct consumer marketing
Research & Development
R&D innovation with a broad therapeutic coverage. Largest spender in
R&D sector with an investment of US$9.4billion in 2011
Global Presence
Although major market segment is US, pfizer is also present across Europe,
Asia, Latin America, Canada and Africa.
Workforce
A total of 78,000 employees form a part of the huge workforce of pfizer
Patents
Existing Patent protection for a number of years on key products

5. Mergers & Acquisitions
Mergers and acquisitions with big pharma brands increasing brand
reputation.eg
Wyeth acquisition2009
The combined company was expected to save US$4 billion
Pfizer acquired Warner-Lambert in 2000 for $111.8 bn
Pfizer merged with Pharmacia in 2002. The merger was again driven in part by the
desire to acquire full rights to a product, Celebrex (Celecoxib)
Pfizer announced its acquisition of InnoPharma in 2014 for $360 million
Latest Achievement
On March 28, 2014, the U.S. FDA approved Pfizer's over-the-counter
Nexium (esomeprazole 20 mg) for the treatment of frequent heartburn

6. Heavy reliance on blockbuster drugs
Expiring patents
Negative Brand Image
Negative brand image due to involvement in largest healthcare fraud of
marketing its drug(BEXTRA) illegally which resulted in damaged reputation and enormous
payouts. App. US$4billion was paid by Pfizer to USFDA and US Govt
Loss of Revenue
Pfizer’s revenues dropped by 13% in 2008 due to loss of exclusive rights of
NORVASC and ZYRTEC/ZYRTEC-D and low sales of CHAMPIX
Discontinued Projects
Pfizer discontinued as many as 25 projects during the year 2008-2009
Low spending in R&D compared to competitors
Pfizer ranks 10th when it comes to spending on R&D
Reduction in R&D Budget
Pfizer reduced its R&D budget from US$9.4billion in 2011-12 to US$6.5-
7billion in 2013
Biologics Market
Pfizer has very limited penetration/involvement in biologics market

7. Funds
Operating income of US$ 15.716 billion means huge fund s available for
product/company
Focus on biologics
With huge funds and innovative R&D, Pfizer has an opportunity to develop
new drugs, get into market and drive revenue growth.
Mergers & Acquisitions
Large number of M&A by Pfizer provide to expand its therapeutic coverage
as well as market share and penetration into the global market.
E.g..-Wyeth acquisition in 2009- to save US$4billion annually
Chance for Blockbusters
Boehringer Ingelheim- Spiriva (tiotropium), a novel, once-daily inhaled
treatment for COPD
 Pipeline
Phase2 e.g.- Xeljanz® (tofacitinib), PDE5 Inhibitor, Inlyta® etc.
Phase3 e.g.- Palbociclib, Ertugliflozin(merc), Xeljanz® (tofacitinib) etc.
New Centers
R&D centers in San Francisco, New York, Cambridge
Strengths

8. Competition
Eg- Viagra -high cost leading to cheaper substitutes
Regulatory Concerns
Exposure to generic drugs
Expiring patents
-3% sales growth
Pharmerging companies
Countries like India, China pose a competitive threat in regional markets
Mergers & Acquisitions
Increased M&A by Pfizer may lead to decrease in profitability
Negative Publicity
Economic Downturn

9. 55000
54500
54000
53500
53000
52500
52000
51500
51000
50500
50000
54656
~$3.1bil(6%)
51854
2012 2013
Revenue($million)
8%revenue fall during 2012(Q4)
were negatively impacted by
erosion of branded Lipitor in the
U.S.
Decreased government purchases
of Enbrel in certain emerging
markets

10. 16000
14000
12000
10000
8000
6000
4000
2000
0
9492
15029
6958
9273
14172
6554
Cost of sales SI&A expenses R&D expenses
2012 2013
US$million
Cost of sales, SI&A expenses and R&D expenses aggregately decreased
$1480mil.(5%) reflecting cost reduction and productivity initiatives

11. 25000
20000
15000
10000
5000
0
14570
22003
2012 2013
Profit($million)
The effective tax rate declined 1.2 percentage to 27.5% from 28.7%. This decline
was primarily due to an increase in tax benefits compared to 2012.
Due to this decrease in tax rate and reduction in expenditure, net income or profit
increased 51%

12. 30000
25000
20000
15000
10000
5000
0
25383
14290
16845
24126
14138
Revenue Expenditure Profit
5241
2013 2014