Pfizer SWOT Full

Healthcare – Pfizer Analysis
Company Overview
Founded in 1849, New York City-based Pfizer discovers, develops, manufactures and markets
patented pharmaceuticals, generic drugs and consumer health products. The company employs
approximately 110,000 people and is present in over 100 countries.
Pfizer Inc. (/ˈfaɪzər/)[2] is an American multinational pharmaceutical corporation

headquartered in New York City,[3] with its research headquarters in Groton, Connecticut. It is
one of the world's largest pharmaceutical companies.[4] It is listed on the New York Stock
Exchange, and its shares have been a component of the Dow Jones Industrial Average since
2004.[5] Pfizer ranked No. 57 on the 2018 Fortune 500 list of the largest United States
corporations by total revenue.[6] On December 19, 2018, Pfizer announced a joint merger of
their consumer healthcare division with UK pharma giant GlaxoSmithKline; the British company
will maintain a controlling share (listed at 68%).[7] The company develops and produces
medicines and vaccines for a wide range of medical disciplines, including immunology,
oncology, cardiology, endocrinology, and neurology. Its products include the blockbuster drug
Lipitor (atorvastatin), used to lower LDL blood cholesterol; Lyrica (pregabalin) for neuropathic
pain and fibromyalgia; Diflucan (fluconazole), an oral antifungal medication; Zithromax
(azithromycin), an antibiotic; Viagra (sildenafil) for erectile dysfunction; and Celebrex (also
Celebra, celecoxib), an anti-inflammatory drug. In 2016, Pfizer Inc. was expected to merge with
Allergan, Plc to create the Ireland-based "Pfizer plc" in a deal that would have been worth $160
billion.[8] The merger was called off in April 2016, however, because of new rules from the
United States Treasury against tax inversions, a method of avoiding taxes by merging with a
foreign company.[9] The company has made the second-largest pharmaceutical settlement
with the United States Department of Justice.
SWOT Analysis
Strengths
The world's largest drugmaker in terms of revenue. A focus on R&D to drive growth.
Weakness
Investor calls to split the company into two entities. Previous over-reliance on inorganic
growth.
Opportunities
Greater involvement in personalised medicine. Increasing penetration of emerging markets.
Threats
Increased contribution to US healthcare reform. Further medicine price cuts in Europe.
Healthcare – Pfizer Analysis
Financial Performance of Pfizer

Pfizer continues to post sales growth that is below the industry average. Revenues increased by
2% to USD13,976mn in Q418. A net loss of USD394mn was recorded for the quarter, and this was
mainly due to Hospira-related intangible asset impairment charges of USD3.1bn. On an
operational basis, Pfizer’s Innovative Health business delivered 10% growth, while sales
generated by the Essential Health business fell by 3%. The company expects to deliver revenues
of USD52-54bn in 2019. The midpoint of this range implies essentially flat operational
performance compared to 2018.
Pfizer’s recently launched patented pharmaceuticals are supporting the overall

company.Ibrance(palbociclib) for breast cancer is performing well in developed Europe and Japan.
Eliquis (apixaban) is making oral anti-coagulant market share gains and continued increased
adoption in non-valvular atrial fibrillation. Xeljanz (tofacitinib citrate) is being driven by continued
uptake in rheumatoid arthritis and, to a lesser extent, psoriatic arthritis and ulcerative colitis. The
pneumococcal vaccine Prevenar 13 is seeing increased demand in emerging markets.
Company Strategy
In July 2018, Pfizer announced that it will re-organise into three distinct businesses: an Innovative
Medicines business that will commercialise patented medicines, biosimilars and hospital drugs;
an off-patent branded and generic Established Medicines business; and a Consumer Healthcare
business, which may be spun-off later this year. This development reinforces the current wave of
de-diversification in the pharmaceutical industry.
Risks to outlook include: R&D failures; adverse regulatory decisions; further price cuts in Europe;
increased contributions to US healthcare reform costs; mandatory generic drug substitution in
developed markets; under-achieving external business development activities; faster than
expected competitor development; inability to address generic drug erosion; increasing use of
comparative effectiveness methodologies; and the inefficient integration of acquisitions.

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Healthcare – Pfizer Analysis

Pfizer Inc. (/ˈfaɪzər/)[2] is an American multinational pharmaceutical corporation

Financial Performance of Pfizer

Pfizer’s recently launched patented pharmaceuticals are supporting the overall

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