Pfizer Inc Case Study

INTRODUCTION OF PFIZER INC

Pfizer, Inc.

Type

Public (NYSE: PFE)

Founded Brooklyn, New York, USA (1849)

Headquarters New York City, New York, USA

Key people Jeff Kindler, CEO

David Shedlarz, VC

Ian Read, Pres. of Pharma.

Martin Mackay, Pres. of R&D

Industry

Health Care

Products

AccuprilÐ'®

LipitorÐ'®

ViagraÐ'®

Revenue

в-І$48.613 billion USD (2007)

Net income

в-І$8.298 billion USD (2007)

Employees

106,000 (2005)

Slogan

Working for a healthier worldв„Ñž

Website

www.pfizer.com

Pfizer Incorporated (NYSE: PFE) is a major pharmaceutical company, which ranks number one in sales. The company is based in New York City. It produces the number-one selling drug Lipitor (atorvastatin, used to lower blood cholesterol); the oral antifungal medication Diflucan (fluconazole), the long-acting antibiotic Zithromax (azithromycin), the well-known erectile dysfunction drug Viagra (sildenafil citrate), and the anti inflammatory Celebrex (celecoxib) (also known as Celebra in some countries outside USA and Canada, mainly in South America).

Pfizer's shares were made a component of the Dow Jones Industrial Average on April 8, 2004.

With 2005 actual spending of $7.4 billion in research & development (R&D), Pfizer boasts the industry's largest pharmaceutical R&D organization: Pfizer Global Research and Development.

HISTORY OF PFIZER INC

Pfizer is named after German-American cousins Charles Pfizer and Charles Erhardt who launched their chemicals business Charles Pfizer and Company from a building at the intersection of Harrison Avenue and Barlett Street in Williamsburg, Brooklyn in 1849. There, they produced an antiparasitic called santonin. This was an immediate success, although it was the production of citric acid that really kick-started Pfizer's growth in the 1880s. Pfizer continued to buy property to expand its lab and factory on the block bounded by Bartlett Street; Harrison Avenue; Gerry Street; and Flushing Avenue. That facility is still utilized for backshop purposes. Pfizer established its original administrative headquarters at 81 Maiden Lane in Manhattan.

By 1910, sales totaled nearly $3 million, and Pfizer became established as an expert in fermentation technology. These skills were applied to the mass production of penicillin during World War II, in response to an appeal from the U.S. government. The antibiotic was urgently needed to treat injured Allied soldiers, and it soon became known as "the miracle drug". In fact, most of the penicillin that went ashore with the troops on D-Day was made by Pfizer.

By the 1950s, Pfizer was established in Iran, Belgium, Brazil, Canada, Cuba, Mexico, Panama, Puerto Rico and the United Kingdom.

During the 1980s and 1990s Pfizer underwent a period of growth sustained by the discovery and marketing of multiple successful drugs (Zoloft, Lipitor, Norvasc, Zithromax, Aricept, Diflucan, Viagra).

CORPORATE STRUCTURE

Current members of the board of directors of Pfizer are: Michael S. Brown, M. Anthony Burns, Robert Burt, Don Cornwell, William H. Gray, Constance Horner, William Howell, Stanley Ikenberry, Jeff Kindler (chairman), George Lorch, Dana Mead, Ruth J. Simmons, and William Steere.

• Chief Executive Officer (CEO): Jeff Kindler

• Vice Chairman: David L. Shedlarz

• President of Worldwide Pharmaceutical Operations: Ian Read

• President of Global R&D: Martin Mackay

• 2007 Pharmacist of the Year: Mike Militello, Pharm.D., BCPS

Pfizer is organized into four divisions: Human Health ($44.28B in 2005 sales), Consumer Healthcare ($3.87B in 2005 sales), Animal Health ($2.2B in 2005 sales), and Corporate Groups (which includes legal, finance, and HR). On June 26, 2006, Pfizer announced that it would sell its Consumer Healthcare unit (famous for well-known brands like Listerine, Nicorette, Visine, Sudafed and Neosporin) to Johnson & Johnson for $16.6B.

PRODUCTS

Pfizer manufactures pharmaceutical medications and has an annual product marketing budget of $3 billion, which was the fourth-largest in the U.S. as of 2003. Pfizer employs 38,000 sales representatives worldwide.

In 2004, Pfizer’s Zoloft sales totaled $3.15 billion, contributing to 6.5% of Pfizer’s total revenue for 2004 and making it one of 19 drugs that generated more than $2 billion in revenues in the United States.

In 2005, Zoloft sales totaled $3.5 billion, helping to make Pfizer one of the biggest drug makers in the world with approximately $51.3 billion in revenue for 2005. In 2005 Pfizer Inc. spent $7.4 billion on research and development, making Pfizer Global Research and Development the largest pharmaceutical research and development organization.

On September 24, 2007, Pfizer Inc. announced that the European Commission approved Celsentri (generic name, maraviroc and as Selzentry in the United States). Industry experts did forecast annual Celsentri sales of $500 million by 2011.

The following is a list of key prescription pharmaceutical products. The names shown are all registered trademarks of Pfizer Inc.

PRESCRIPTION

Aricept