Pfizer's Operations In Europe

Group 8 Ð'- Tuesday Class 2

James Hogan

Ophelie Ngo

Cristina Manso

Stephen Ryan

As one of the leading pharmaceutical companies in the world, Pfizer provides examples of many factors that affect international business. As we have 3 different nationalities in our group, we thought it would be interesting to compare and contrast Pfizer's Operations in each country.

Section 1 - Identifying global business opportunities

We will be looking at how Pfizer examined the markets in Ireland, France and Spain and what actions that they took to maximize business opportunities. We will also explain the role of FDI in Ireland and the history and reasons for the strong growth of this sector.

Section 2 - Analysing international competitors

- We will be looking at Pfizer's competitors on a world stage and on also within each country. Pfizer is a world leader on a global basis but in some countries it is not in a leading position. We try and explain why that is the case.

Section 3 - Assessing the economic and geographic environment

- We will be examining the economies of all three companies and how Pfizer has reacted to the economy changing in each country. Research and Development in each country is highlighted in order to display their respective differences.

Section 4 - Assessing the socio-cultural environment

- We will be looking at how Pfizer's actions in support of the community and the environment. We will also look at the benefits Pfizer gets from locating in Western Europe such as intellectual property protection. There are also "cluster" benefits to be accrued from locating a pharmaceutical company in Cork, for example, in terms of shared knowledge.

Section 5 - Assessing the political and legal environment

- We will be looking at legal implications and Government support for Pfizer's operations in the three countries. We will concentrate on the success of the Irish government in comparison with the lack of progress by the French and Spanish administration.

Section 11 Ð'- Product and target market planning

- We will examine the global promotions for Pfizer and the legal ramifications of advertising. We will be looking at how Pfizer make FDI decisions based on the success of producing products in certain countries.

Section 13 Ð'- Planning and global promotional strategy

- This will cover Pfizer's promotional efforts to boost its market image and the various schemes that they have been involved with.

Section 1 - Identifying global business opportunities:

Pfizer's operations in Ireland consist of 5 operational plants situated around the county and one support group.

Each department focuses on a different area and Pfizer have chosen these areas based on the core competencies available and the geographical location.

These include:

Dublin Sterile Manufacturing Plant:

The number of employees here is estimated to be in the region of 240. The site was opened in 1972. Pfizer has had a pharmaceutical manufacturing presence in Dublin since 1960 with the original production facility located in Blackrock. They began by construction of the Confectionery Manufacturing Plant in 1972 and the Pharmaceutical Manufacturing Plant in 1974. The Confectionery Plant manufactured both Gum Base and finished Chewing Gum, while the Pharmaceutical Plant manufactured a range of Diagnostic Reagents and Sterile Pharmaceuticals. The plants production facilities were changed in the wake of the transfer of the manufacture of Finished Gum to Belgium, and the sale of the Diagnostic product range. Since then this plant has on the continuous expansion of the current product portfolio of Sterile Pharmaceuticals. The site has steadily expanded with the Pharmaceutical Plant introducing new sterile products and the development of a 10,000sq ft sterile manufacturing facility. Pharmaceutical production has increased from an original volume of 750,000 vials to 7.2 million vials in 2000. The Dublin Sterile Plant's primary focus is the production of Sterile Parenteral and Topical vials for human use.

All of Pfizer Ireland sites face the challenge of maintaining compliance in an increasingly complex regulatory environment. This can be particularly challenging in the sterile arena. As part of this effort the site has in excess of 1,000 Standard Operating Procedures (SOP's).

The Plant is a global sourcing unit approved to supply product all over the world.

This department is an excellent example of geographical decisions regarding production facilities (moving Chewing gum manufacture to Belgium) and the health and safety requirements on production.

Little Island Active Pharmaceutical Ingredient Plant. The number of employees is estimated to be around 200. The plant was opened in 1978.

The site started production as Plaistow Limited in 1978 and over the years has manufactured a wide variety of products.

Little Island began manufacturing Gabapentin, the drug substance for NeurontinÐ'® in 1994 and LipitorÐ'® in 1995. In 1997 LipitorÐ'® was launched and because of its phenomenal success a large expansion programme began at both the Little Island and Loughbeg sites. All drug substance for LipitorÐ'® is now supplied from the Little Island site with the intermediates coming from Little Island and Loughbeg.

The plant also contains a very well-equipped pilot plant, which allows us to introduce new products on a small scale, to assess whatever problems might occur in the processes and to work them up to a large scale.

This plant is a good example of a particular site focusing on a core competency (in this case the production of Lipitor) and excelling at it to the extent that it is now the main producing centre of the product. The high levels of research in this plant indicate Pfizer's belief in the technical competencies of the staff.

Loughbeg Active Pharmaceutical Ingredient Plant. The number of employees is estimated to be around 300. The plant was opened in 1984. The Loughbeg Active Pharmaceutical Ingredient Bulk