Pfizer Competitor Analysis

3807 Words Feb 1st, 2013 16 Pages
RiDUCES and Competitor Analysis
Pfizer, Inc: Branded Pharmaceutical Industry-Oncology Pharmaceuticals
Executive Summary

The value that the branded pharmaceutical industry adds to the US economy is growing slower than US GDP (Snyder, 2012). Rivalry has intensified while the rate of blockbuster drug development has slowed due to an increase in regulation from the government and the industry trade association, PhRMA. The number of new entrants is fairly low and some are exiting or consolidating through mergers and acquisitions. Downstream and upstream factors are crucial to the specialty pharmaceutical sector of this industry since supply and distribution are different than in traditional branded pharmaceuticals. Complementors such as
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This regulation tightens the scope in which these companies compete, intensifying rivalry.
Downstream: Customers (Specialty Pharmacies)
While the eventual end users are the patients receiving the drug, most oncology pharmaceuticals are first sold to specialty and retail pharmacies, and a few are sold to dispensing in-house pharmacies. One way these downstream players impact rivalry is through the recent emergence of new specialty pharmacies, such as Raintree. Raintree and other specialty pharmacies negotiate set prices with pharmaceutical companies. In return, the specialty pharmacy sets rebates and guidelines incentivizing the physicians. As the number of players entering the specialty market has increased, consolidation has become the next step (Pfizer Inc, 2010). Payers, realizing the benefits of consolidation, are beginning to develop preferred networks of providers. This network offers payer and patients options for purchasing specialty products, increasing the leverage of the specialty pharmacy. Thus, rivalries intensify for the pharmaceutical companies.
Upstream: Suppliers (McKesson)
Most manufacturers use McKesson, one of the largest suppliers of oncology and specialty pharmaceutical products. OnMark, a group purchasing organization with a focus on oncologics, is provided through McKesson and enables

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