Pfizer - $PFE.US

What’s Pfizer Business Model?

Pfizer Inc. operates as a pharmaceutical company. The Company offers medicines, vaccines, medical devices, and consumer healthcare products for oncology, inflammation, cardiovascular, and other therapeutic areas. Pfizer serves customers worldwide.

What Pfizer is doing in more details?

Pfizer Inc. is one of the world’s largest research-based pharmaceuticals firm, producing medicines for cardiovascular health, metabolism, oncology, inflammation and immunology, and other areas, with products that fetch approximately $1 billion or more in annual revenue.

Its products include a portfolio of 20 globally recognized solid oral dose brands, including Lipitor, Lyrica, Norvasc, Celebrex and Viagra, as well as a US-based generics platform, Greenstone, that was spun-off in late 2020 and combined with Mylan to create Viatris.

Pfizer operates around the world and gets over 50% of its revenue from its US markets.

Where Pfizer is Operating?

Pfizer operates through three business segments — Pfizer Biopharmaceuticals Group (Biopharma), Upjohn and Consumer HealthCare prior to the separation of the Upjohn Business.

The company now operate as a single operating segment engaged in the discovery, development, manufacturing, marketing, sales and distribution of biopharmaceutical products worldwide.

The company managed its commercial operations through a global structure consisting of two businesses?Biopharma, and Upjohn.

Its business have included therapeutic areas such as internal medicine (includes innovative brands from two therapeutic areas, Cardiovascular Metabolic and Pain, as well as regional brands); oncology (includes innovative oncology brands of biologics, small molecules, immunotherapies and biosimilars across a wide range of cancers); hospital (global portfolio of sterile injectable and anti-infective medicines, as well as Pfizer CentreOne); vaccines (innovative vaccines across all ages?infants, adolescents and adults?in pneumococcal disease, meningococcal disease, tick-borne encephalitis and COVID-19); inflation and immunology (innovative brands and biosimilars for chronic immune and inflammatory diseases); and rare disease (innovative brands for a number of therapeutic areas with rare diseases, including amyloidosis, hemophilia and endocrine diseases).

Where is the geographical reach of Pfizer?

The US is Pfizer’s single largest market, accounting for over 50% of revenue.

Its other segments are emerging markets (includes Asia (excluding Japan and South Korea), Latin America, Eastern Europe, the Middle East, Central Europe, Turkey, and Africa), about 20% of revenue, developed Europe, nearly 20% of revenue, and developed Rest of the World (Japan, Canada, South Korea, Australia, and New Zealand), some 10% of revenue.

In all, the company sells products in more than 125 countries.

Pfizer has major manufacturing facilities in Belgium, Germany, India, Ireland, Italy, Japan, Singapore, and the US. In all, it operates nearly 45 plants around the world.

Pfizer corporate headquarters is located in New York.

What is Pfizer’s Sales and Marketing Strategy?

Pfizer markets its pharmaceuticals directly to hospitals, retailers, clinics, government agencies, and to pharmacies. Most of its sales are conducted through wholesale distributors including McKesson, Cardinal Health, and AmerisourceBergen, which combined account for about 40% of revenue.

The company also markets directly to consumers in the US through direct advertising. In addition, the company sponsors general advertising to educate the public on disease awareness, prevention and wellness, important public health issues, and patient assistance programs.

Pfizer’s advertising expenses totaled approximately $1.8 billion in 2020, $2.4 billion in 2019 and $2.7 billion in 2018, respectively.

What is Pfizer Financial Performance?

Revenues increased $736 million, or 2%, to $41.9 billion in 2020 from $41.2 billion in 2019, reflecting an operational increase of $1.1 billion, or 3%, and an unfavorable impact of foreign exchange of $331 million, or 1%.

Excluding the impact of the Consumer Healthcare transaction, revenues increased 8% operationally, reflecting strong growth in Vyndaqel/Vyndamax, Eliquis, Ibrance outside developed Europe, Inlyta, Xeljanz, Xtandi, Prevenar 13 outside the U.S., oncology biosimilars and certain products in the Hospital therapeutic area in the U.S.

The company’s net income decreased to $9.6 billion in 2020 compared from the prior year with $16.3 billion.

Cash held by the company at the end of fiscal 2020 increased to $1.8 billion. Cash provided by operations was $14.4 billion while cash used for investing and financing activities were $4.3 billion and $9.6 billion, respectively.

Main uses of cash were purchases of short-term investments and principal payments on short-term borrowings.

What is Pfizer Future Strategy?

Pfizer is committed to strategically capitalizing on growth opportunities by advancing its own product pipeline and maximizing the value of its existing products, as well as through various business development activities.

The company views its business development activity as an enabler of its strategies and seek to generate growth by pursuing opportunities and transactions that have the potential to strengthen the company’s business and its capabilities.

Pfizer assesses its business, assets and scientific capabilities/portfolio as part of its regular, ongoing portfolio review process and also continues to consider business development activities that will advance its business.

Following the recent spin-off and combination of the Upjohn Business (which was its global, primarily off-patent branded and generics business) with Mylan, which created a new global pharmaceutical company, Viatris, in November 2020 and the formation of the Consumer Healthcare JV in 2019, the company saw the culmination of Pfizer’s transformation into a more focused, innovative science-based biopharmaceutical products business.

The company’s significant recent business development activities in 2020 include: the April 2020 agreement with BioNTech to develop, manufacture and commercialize an mRNA-based coronavirus vaccine program, BNT162, aimed at preventing COVID-19, the June 2020 agreement to co-develop and commercialize Valneva’s Lyme disease vaccine candidate, VLA15, the September 2020 entry into a strategic collaboration with CStone to develop and commercialize a PD-L1 antibody, sugemalimab, and to bring additional oncology assets to China, the November 2020 spin-off and combination of the Upjohn Business with Mylan, and the December 2020 entry into a collaboration with Myovant to jointly develop and commercialize relugolix in advanced prostate cancer and women’s health in the U.S. and Canada.Pfizer’s growth strategy is driven by five “Bold Moves” that help us deliver breakthroughs for patients and create value for shareholders and other stakeholders.

What is Pfizer’s Background?

Pfizer was founded by cousins Charles Pfizer and Charles Erhart in 1849.

What is Pfizer’s History?

Charles Pfizer and his cousin, confectioner Charles Erhart, began making chemicals in Brooklyn in 1849. Products included camphor, citric acid, and santonin (an early antiparasitic).

The company, incorporated in 1900 as Chas. Pfizer & Co., was propelled into the modern drug business when it was asked to mass-produce penicillin for the war effort in 1941.

Pfizer discovered Terramycin and introduced it in 1950. Three years later it bought drugmaker Roerig, its first major acquisition.

In the 1950s the company opened branches in Belgium, Canada, Cuba, Mexico, and the UK, and began manufacturing in Asia, Europe, and South America. By the mid-1960s Pfizer had worldwide sales of more than $200 million.

Beginning in the late 1950s, Pfizer made Salk and Sabin polio vaccines and added new drugs, such as Diabinese (antidiabetic, 1958) and Vibramycin (antibiotic, 1967). It moved into consumer products in the early 1960s, buying BenGay, Desitin, and cosmetics maker Coty (sold in 1992).

It bought hospital products company Howmedica in 1972 (sold in 1998) and heart-valve maker Shiley in 1979. In the 1980s Pfizer expanded its hospital products division, buying 18 product lines and companies.

In 1995 Pfizer bought SmithKline Beecham’s animal health business and Procter & Gamble’s Bain de Soleil skin care line (sold in 1999).

Pfizer made headlines (and lots of men happy) when the company won FDA approval for Viagra in 1998. The little blue pill became a pop icon, and made the company a household name.

When Warner-Lambert said in 1999 that it would merge with American Home Products (now Wyeth), Pfizer sued to prevent the union and eventually succeeded with its own hostile bid.

The merger with Warner-Lambert was completed, and CEO William Steere retired. Pfizer also sold its animal feed additive business.

Pfizer, IBM, and Microsoft in 2001 formed a joint venture to sell software to automate prescription writing and other administrative procedures in physicians’ offices.

Determined to narrow its focus on pharmaceuticals, the company in 2002 sold its Tetra fish care, then sold its Adams confectionery and Schick-Wilkinson Sword shaving products businesses in 2003.

That year Pfizer purchased rival Pharmacia for $54 billion, making it the world’s largest research-based pharmaceutical company. Following its two giant acquisitions, the company trimmed some 20,000 people.

In 2004 Pfizer acquired the research divisions of QuoreX, which develops anti-bacterial drugs targeting hospital infections. It also purchased Esperion Therapeutics, a developer of cholesterol drugs headed by Lipitor discoverer Roger Newton, for $1.2 billion.

(Pfizer eventually spun Esperion back off into a private, independent entity in 2008 after its development drugs didn’t pan out as planned, although Pfizer retained some assets and a minority stake in the spinoff.)

In the wake of revelations that Merck’s Vioxx increased the risk for cardiovascular diseases in 2004, Pfizer reviewed its own COX-2 pain medication, Celebrex.

Preliminary studies showed Celebrex increased the risk of heart attack; Pfizer didn’t pull Celebrex off the market but did add a “black box” warning of possible cardiovascular and gastrointestinal risks.

(In 2008 Pfizer reached an agreement in principle to settle for $894 million most of its pending patient lawsuits alleging that Celebrex caused heart attacks and strokes.)

Acquisitions in 2005 included the purchase of Angiosyn, a private biotech working on an anti-angiogenesis therapy for macular degeneration (which can lead to blindness), and Idun Pharmaceuticals, which was developing apoptosis (programmed cell death) inhibitors to treat liver disease, cancer, and other diseases.

That year the company scooped up research partner Vicuron Pharmaceuticals, which had two anti-infective (anidulafungin and dalbavancin) drugs under review by the FDA, and Bioren, which has developed a technology that helps drugs last longer through antibody optimization.

(Pfizer divested Vicuron as part of its cost-cutting efforts in 2009.)

While acquiring new holdings on the pharmaceutical front, Pfizer trimmed its non-pharmaceutical businesses between 2003 and 2005, including operations it acquired with Pharmacia and its European generics portfolio.

The company’s animal health division sold off its diagnostics products division (which manufactured tests for bovine tuberculosis and paratuberculosis) to Swiss firm Prionics.

On the consumer health care front, the population’s increased germaphobia translated into high dollars for Pfizer following the acquisition of Purell. However, Pfizer later unloaded its consumer unit altogether, refocusing efforts onto its core pharmaceutical business.

Johnson & Johnson in 2006 acquired the whole consumer caboodle, including such brands as Benadryl, Listerine, Nicorette, Rolaids, and Sudafed, for $16.6 billion.

To comply with regulatory requirements for the deal, the companies sold Zantac marketing rights in the US to Boehringer Ingelheim for $510 million; they sold the Cortizone, Kaopectate, and Unisom brands to Chattem.

As part of its ongoing acquisition strategy, Pfizer bought biotech firm Rinat Neuroscience, which was developing drugs for pain, Alzheimer’s disease, and other neurological disorders, in 2006.

Pfizer also acquired vaccine technology firm PowderMed that year, and it spent $1.4 billion acquiring Sanofi’s joint rights to inhaled insulin drug Exubera.

(Pfizer dropped Exubera from its product list in late 2007, however, due to lukewarm response from physicians and patients. The company took a $2.8 billion charge as a result).

In 2015 Pfizer completed a $17 billion acquisition of Hospira. Two years later, Pfizer sold Hospira Infusion Systems (HIS) to ICU Medical for $1 billion.

HIS was Pfizer’s global infusion therapy business and included IV pumps and devices. Through the deal, Pfizer gained a stake of about 17% in ICU Medical.

In 2016 Pfizer and Ireland-based Allergan terminated their planned merger, which would have been the largest-ever health care deal.

The $160 billion transaction would have created the world’s largest drug maker, surpassing Johnson & Johnson.

Also in 2016, Pfizer bought Anacor Pharmaceuticals, which has a non-steroid ointment for the treatment of eczema in its pipeline, for $5.2 billion. It also acquired biopharmaceutical firm Medivation for $14 billion, gaining a pipeline of cancer drugs as well as prostate cancer drug Xtandi.

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