About Pfizer Inc.
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 about 10 products that fetch approximately $1 billion or more in annual revenue. Its top prescription products include cholesterol-lowering Lipitor, pain management drugs Celebrex and Lyrica, pneumonia vaccine Prevnar, and erectile dysfunction treatment Viagra, as well as arthritis drug Enbrel, antibiotic Zyvox, and blood-thinner Eliquis. The company also makes and sells generic drugs and consumer health products. Pfizer operates around the world and gets about 55% of its revenue from international customers.
Pfizer operates through three business segments -- Pfizer Biopharmaceuticals Group (Biopharma), Upjohn and Consumer HealthCare. Biopharma is the largest segment, accounting for about 75% of revenue. Biopharma is a science-based medicines business that includes six business units – Oncology, Inflammation & Immunology, Rare Disease, Hospital, Vaccines and Internal Medicine. The Hospital unit commercializes the global portfolio of sterile injectable and anti-infective medicines and includes Pfizer's contract manufacturing operation, Pfizer CentreOne.
The Upjohn segment, which brings in approximately 20% of revenue. Upjohn is a global, primarily off-patent branded and generic medicines business, which includes a portfolio of 20 globally recognized solid oral dose brands, as well as a US-based generics platform, Greenstone. Upjohn products are used to treat non-communicable diseases across a broad range of therapeutic areas including cardiovascular, pain and neurology, psychiatry, urology, and ophthalmology. Pfizer currently has about 10 blockbusters, or products that bring in more than $1 billion in revenue: Lyrica, the Prevnar13 suite, Enbrel, Eliquis, Ibrance, Lipitor, Norvasc, Sutent, Xeljanz, and Chantix. The company is working to launch new blockbusters from its robust R&D pipeline to make up for off-patent losses. It has about 95 projects in clinical stages of development.
Pfizer merged its consumer health operations, include such leading brands as Advil, Centrum, and Robitussin, with those of GlaxoSmithKline in 2019. Pfizer retains more than 30% stake in the joint venture.
The US is Pfizer's single largest market, accounting for nearly 45% of revenue. Its other segments are emerging markets (includes China, Latin America, and Africa), about 25% of revenue, developed Europe, nearly 20% of revenue, and developed Rest of the World (Japan, Canada, South Korea, Australia, and New Zealand), more than 10% of revenue. In all, the company sells products in more than 125 countries.
Pfizer has major manufacturing facilities in Belgium, China, Germany, India, Ireland, Italy, Japan, Singapore, and the US. In all, it operates nearly 50 plants around the world.
Pfizer corporate headquarters is located in New York.
Sales and Marketing
Pfizer markets its pharmaceuticals directly to doctors, hospitals, nurses, pharmacists, retailers, clinics, benefit management firms, managed care organizations, employer groups, government agencies, and to patients themselves. Most of its sales are conducted through wholesale distributors including McKesson, Cardinal Health, and AmerisourceBergen, which combined account for more than 35% 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.
It sells its consumer health care products through distributors, pharmacies, retail chains, grocery stores, convenience stores, and other channels.
Pfizer's advertising expenses totaled approximately $2.6 billion, $3.1 billion, and $3.1 billion in years 2019, 2018, and 2017, respectively.
Pfizer's revenue has fluctuated in recent years as patents expired on several profitable drugs.
Revenues in 2019 decreased $1.9 billion, or 4%, to %51.8 billion from $53.6 billion in 2018, reflecting an operational decrease of $545 million, and an unfavorable impact of foreign exchange of $1.4 billion.
Net income was $16.3 billion, $5.1 billion higher than 2018, due to a 9% decrease in cost of sales as well as the favorable impact of the completion of the Consumer Healthcare joint venture transaction with GSK, the impact of foreign exchange of $279 million, the impact of hedging activity on intercompany inventory of $261 million, and lower royalty expense for Lyrica due to the patent expiration.
The company had about $1.4 billion in cash and equivalents in 2019 compared to $1.2 billion the year before. In 2019, operations generated $12.5 billion. Investing activities used $3.9 billion, and financing activities used another $8.5 billion.
Pfizer sits atop the pharmaceutical market with a medicine cabinet overflowing with drugs and therapies that treat ailments, diseases, and chronic problems around the world.
At the beginning of 2019, Pfizer began to manage its commercial operations through a new global structure consisting of three businesses—Pfizer Biopharmaceuticals Group, Upjohn, and Pfizer's Consumer Healthcare business. With this, Pfizer is transforming itself into a more focused, global leader in science-based innovative medicines. In addition, it is taking steps to restructure its organizations to appropriately support and drive the purpose of the three core functions of its focused innovative medicines business: R&D, Manufacturing and Commercial.
In terms of R&D, Pfizer's focus is on oncology, inflammation and immunology, vaccines, internal medicine, rare diseases, and hospitals. Its priorities are on delivering a pipeline of highly differentiated medicines and vaccines, advancing its capabilities, and advancing new models for partnerships with creativity, flexibility, and urgency to deliver innovation to patients as quickly as possible.
Over the five-year period from 2018 through 2022, Pfizer plans to invest approximately $5 billion in capital projects in the US, including the strengthening of its manufacturing presence in the U.S. In 2019, it announced an additional half billion-dollar investment for the construction of a state-of-the-art gene therapy manufacturing facility in Sanford, North Carolina.
In terms of business operations, Pfizer has simplified operations, built digital capabilities throughout the company, and increased the use of robotics to automate some processes. Further, the company has increased investment in areas driving growth and reduced spending in less strategic areas.
Mergers and Acquisitions
Pfizer has made a number of acquisitions to beef up its development-stage and commercialized offerings and ward off losses from patent expiration.
In 2019 Pfizer acquired Array BioPharma Inc., which develops drugs to treat cancer, for about $11.4 billion. Pfizer said the deal would strengthen its biopharmaceutical business and its oncology-related offerings. Array's drugs BRAFTOVI and MEKTOVI are used in combination to treat colorectal cancer. As part of Pfizer, Array has access to greater research resources and wider marketing reach.
Also, in 2019 Pfizer acquired Therachon, headquartered in Basil, which is developing rare genetic disease treatments, for some $340 million plus approximately $470 million in potential milestone payments.
Pfizer was founded by cousins Charles Pfizer and Charles Erhart in 1849.
235 E 42nd St Rm 107
New York, NY 10017-5703
Phone: 1 (212) 733-2323
Employer Type: Publicly Owned
Stock Symbol: PFE
Stock Exchange: , NYSE
COO: Albert Bourla
EVP Business Operations and CFO: Frank A. D'Amelio
Chairman and CEO: Ian C. Read
Employees (This Location): 2,500
Employees (All Locations): 88,300
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