The Current Strategy Of Pfizer's Operation

1780 Words Feb 13th, 2015 8 Pages
Current Strategy The current strategy of Pfizer’s operation has been organized in three operating units. These three segments are Global Innovative Pharmaceutical (GIP), Oncology and Consumer (VOX) and Global Established Pharmaceutical (GEP). GEP, GIP and VOX operating structure is subject to Pfizer’s future strategy. The units have been structured to either be combined with another pharmaceutical firm in a megamerger consolidation to reap economies of scale or to split off as separate entities. The choice is definitely dependent on market conditions. Consolidation in the industry will become a central factor as countries attempt to rein health costs of an aging population. The Financial Times in its February 11, 2015 issue had a full page discussion of the current model: “The high price for Gilead’s miracle hepatitis C drug drew heated criticism from politicians, doctors and the public. Now critics are asking if the US Pharma industry’s premium pricing model can endure. Prized model - Big pharma companies say they rely on US profits to reward investors and finance research. Price war – A new hepatitis C drug enabled insurers to push for discounts to ensure access to patients. Heavy burden – The US has 4.6% of the world’s population but is responsible for 33% of drug spending” (Financial Times, 2015). The headwinds that Pfizer must navigate will only become even more turbulent than their current extremely competitive environment. CEO Ian Reed has a very…

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