Pfizer And Allergan Deal : An Effective Strategy Adopted By Pfizer

The twenty-first century has seen pharmaceutical companies grow in unprecedented size and strength. Due to the unprecedented growth the larger pharmaceutical companies have gained leverage and power in the prescription drug industry, but they lack innovation to market and they seek ways to help the business continue to increase its profits. The pharmaceutical industry was once ethically sound and was a valuable player in the development of human health. However, overtime with the lack of innovation pharmaceutical companies are becoming an unethical market that exploits patients, doctors and anyone else it can to increase its profitability. With eyes only on profitability this can create a hazard for patients because there

One primary goal of Pfizer is to deliver sustained, excellent product by outperforming Pfizer’s competitors and must differentiate itself adequately from its competitors. Competitive advantage is central to strategic management in that it will produce and sustain superior performance. To be competitive in a business environment, often it requires the company to have a product or service different and better than other organizations competing in the same marketplace. According to Wadman (2007) “Pfizer and the rest of the pharmaceutical industry need to develop more sophisticated drugs, targeted at a smaller number of people more quickly, efficiently and at a lower cost” (p. 1). Once Pfizer’s strengths, weaknesses, opportunities, and threats are assessed and analyzed, managers must decide a set of strategies to reduce or eliminate its weaknesses and capitalize on its strengths and maximize opportunities. An example is Porter’s three generic strategy approaches of differentiation, cost leadership, and focus strategy by using differentiation strategies to differentiate Pfizer from its competitors. Strategies are essential; however, it is useless unless they are effectively implemented levels of the company. Business-level strategies are typically developed and implemented by heads of business units and are first approved by top management. The functional level strategy is the last level that focuses on developing strategies for managing the various departments to

New opportunities always exist in the healthcare industry, and Pfizer can be well-positioned to take advantage of these opportunities. It recently acquired Vicuron Pharmaceuticals which gave it instant access to that company's two major antibiotics. In addition, the company's pipeline includes inhalable insulin—likely to be a popular alternative to the injectable form. The company also continues to actively support its over-the-counter mouthwash—Listerine—classified as a "drug" because of its antiseptic properties (McTigue Pierce, 2005).

Opportunities for Pfizer exist in two areas, first being the restructuring into a more lean and competitive organization and second is the penetration into emerging markets such as China and India who are now more able to purchase their products. With sales of approximately $50 billion per year, Pfizer has the opportunity to streamline its operations, cut costs, and add flexibility to the organization. If successful in this, they can better realize their profits and invest that money into future competitive products for the market.

The Pharmaceutical industry has been in the spotlight for decades due to the fact that they have a reputation for being unethical in its marketing strategies. In The Washington Post Shannon Brownlee (2008) states, “We try never to forget that medicine is for the people. It is not for the profits. The profits follow.” This honorable statement is completely lost in today’s world of pharmaceutical marketing tactics. These tactics are often deceptive and biased. Big Pharma consistently forgets their moral purpose and focuses primarily on the almighty dollar. Big Pharma is working on restoring their reputation by reforming their ethical code of conduct.

Pfizer’s ethical responsibility is to control the distribution of their cold and allergy medications, as meth cannot be made without the ingredients found in these types of medicines. Controlling the purchase of these over the counter medications may decrease the number of small toxic labs and the manufacturing of meth in the State of Arkansas.

The Pfizer case provides an introduction to external analysis. The case highlights the pharmaceutical industry, which has enjoyed extraordinary long-run profitability. The case also demonstrates how broad changes in broad environmental factors (i.e. demographics, technology, culture, etc.) have an impact on industry competition. The case is not especially complex, so it is not overwhelming as a first case.

Since the beginning of the agreement Warner Labs was aware that the partnership with Pfizer represented the risk of an hostile takeover, because of this Warner carefully designed a defensive agreement that allow the partnership, at the same time that avoiding somewhat the anticipated movement and merge proposal.

The pharmaceutical industry includes companies that research, develop, market or distribute generic and branded drugs. The industry expanded during the 1980’s and drugs to treat heart disease and AIDS were prominent. Consumer demand for nutritional supplements and alternative medicine increased during the 1990’s with the Internet facilitating direct purchases of drugs. Advertising for direct consumption of pharmaceutical drugs became more prominent; pharmaceutical companies were criticized for over medicating personality or social problems.

The costs of capital and capital structures for Pfizer Inc. and its two competitors Merck & Co. Inc. and Johnson & Johnson in the pharmaceutical industry are analyzed in this memo.

It is an honor for me to lead Pfizer at this important time for both our company and the industry. I’ve spent my entire career at Pfizer and during this time I have seen the industry change and evolve in terms of customers’ needs, regulatory standards and where growth occurs. Among these changes, one of the most important has been the increasing pressure from payers, governments and society to deliver greater value. That’s why I believe there is a fundamental question facing the industry and Pfizer. Simply stated, it is: Do we have a research model that will consistently produce results that improve the lives of patients

•Allergan’s (AGN) September 20th purchase of NASH treatment pharmaceutical companies Tobira ($1.7 billion) and Akarna ($50 million) left many investors wondering about the disease’s market potential and major players.

In summary of the Pfizer case study, the organization realized executives and key employees were spending 20-40% of their time on support work rather than knowledge work. In response, the company started a “magic button” process. When an employee would like to pass off the tasks that are monotonous or lack luster they can press the “magic button”. The tasks are assigned to individuals of an outside organization for completion. The result is an increase of employee productivity.

Pfizer Inc is a multinational investment company. It ventures in the medical and pharmaceutical industry. It is renowned as a giant pharmaceutical company, founded in 1849. It is based in the United States, New York, Manhattan at Midtown. It is the largest universal producer and trader of pharmaceuticals (Turner, 2005, pg 161). Some of the products availed to the market by the company are Lipitor, Lyrica, Diflucan, Zithromax, Zoloft, Viagra and Celebrex. These products are targeted to patients and persons in need of enhancements in their body systems and anatomy. It has an employee capacity of 12000 people in all its departmental sectors and sub-branches. The sub-branches are distributed all over and in all continents (Turner, 2005, pg 163).

Pfizer is known as one of the first and one of the world’s largest Pharmaceutical company that was establish in 1849. It was founded by two cousins called Charles Pfizer and Charles F. Erhart in New York City. Pfizer was as a manufacturer for fine chemicals but because of the discovery that was made in 1950 which made the company the path towards becoming the research-based pharmaceutical that it is update. The product that was first produced was the palatable form of sautonin which was used to treat intestinal worm. The Headquarters of Pfizer is located in New York City, with its research headquarters in Groton, Connecticut, which is nowadays the top multinational corporation that is sold all over the world. It is ranked as the second in the US and Japan market, and Novartis in first place and Roche in third place. The Pfizer Inc. is consisted with a trademark that is called PFIZER. Because of Pfizer’s strategies, Pfizer