Pfizer Inc. Company Report

pfizer

Pfizer Inc. (code:PFE)

Company Name Pfizer Inc.
Stock Exchange NY Stock Exchange (PFE)
Listings London PFZ
Euro Listings
Swiss
Industry Pharmaceuticals
Sector Health Care
Founder(s) Charles Pfizer
Charles Erhart
Founded 1849
Headquarters New York
CEO Ian Reed
Employees 91000
Revenue 58.98B
EBITDA 25.34B
Subsidiaries Agouron Pharmaceuticals
G.D. Searle & Company
Grenstone
Parke-Devis
Warner Lambert
Wyeth
Main Competitors Merck
GlaxoSmithKline
Novartis
AstraZeneca

1.Overview

overviewPfizer Inc. (PFE) is the worlds largest and wealthiest pharmaceutical enterprise. The company produces and develops biologic and molecule medicines and vaccines for people, livestock and animal companions. Top prescription products in the diversified portfolio of the company include cholesterol-lowering Lipitor, pain management drugs Celebrex and Lyrica, pneumonia vaccine Prevnar, and erectile dysfunction treatment. The company was founded 1849 and is headquartered in New York city. Its major research locations are the United States and the U.K. Pfizer has presence on nearly every market in the world and its products are being sold in over 150 countries.

1.1 Product segments

product-segmentsConsumer Healthcare and Nutrition – The Consumer Healthcare segment consists of non-prescription products in the following therapeutic categories: dietary supplements, pain management, respiratory and personal care. Some of the pharmaceuticals offered on this market are: Advil, Caltrate, Centrum, ChapStick, Preparation H and Robitussin. In the Nutritions portfolio is included a line of nutrition supplements for new born babies and toddlers, exclusively sold outside of North America.

Primary Care – The Primary Care business focuses on prescription medicines for health disorders such as Alzheimers disease, major depressive disorder,  respiratory and smoking cessation.

Specialty Care and Oncology – The Specialty Care and Oncology also revenues from prescription drugs prescribed by specialist physicians for endocrine disorders, hemophilia, inflammation, multiple sclerosis, ophthalmology, pulmonary arterial hypertension and vaccines. In the field of Oncology the company develops products like Aromasin against breast cancer, Sutent for kidney carcinomas and Xalkori for treatment of non-small cell lung cancer.

Established Products and Emerging Markets – The pharmaceuticals that have lost patent protection in specific countries are manufactured and developed under the supervision of the Established Products and Emerging Markets business unit. Examples of such medicines are Medrol for blood disorders, Relpax for migraine treatment and Protonix prescribed for acid-related damage to the esophagus. The Emerging markets division is focused on pharmaceuticals in Asia, Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

Animal Health – The Animal Health segment researches prevention drugs for animal diseases, vaccines and anti-infectives.

1.2 Top management and employees

top-management-and-employeesPfizer`s board of directors is annually elected. Chairman of the Board and CEO is Ian Read. Previously he served as Senior Vice President of Pfizer from 2006 through 2010. The rest of the board of directors are independent specialists. Oliver Brandicourt is President and General Manager of the Emerging Markets division. Before this assignment he held senior operational positions at Pfizer. Frank DAmelio is Chief Financial Officer of Pfizer and Executive President, Business Operations. He was Senior Executive Vice President of Integration and Chief Administrative Officer of Alcatel-Lucent, responsible for the integration of the Alcatel-Lucent merger.

1.3 Financials

financialsThe company`s revenue for 2012 totaled USD 58.99 billion. Pfizer generated total earnings before interest, taxes, depreciation, amortization (EBITDA) of USD 26,58 billion for the fiscal 2012. Pfizer spends a notable amount of its revenue on research and development. In 2012, the company’s R&D budget was 7.9 billion U.S. dollars, or more than 13 percent of its total revenue. Pfizer is also spending a large portion of its revenue on advertising, and the company is usually in the Top 10 list of biggest advertising budgets, spending billions each year.

1.4 Shareholder structure and stock exchange listing

shareholder-structureThe company is listed on the New York Stock Exchange and also on the London, Euronext and Swiss stock exchanges. Pfizer is included in S&P 500 and Dow Jones stock indexes. The major share of the company is owned by institutional investors – 74.73%. The mutual fund holders consist 37.99% other institutions hold 36.74% and the individual stakeholders are 0.20%. Top Stockholders of the pharmaceutical giant are:

Top Owners of Pfizer Inc. June 17, 2013

Stockholder Stake Shares Total value ($) Shares Total
owned bought / sold change
The Vanguard Group, Inc. 4.75% 336,677,440 9,167,726,691 5,309,166 1.60%
SSgA Funds Management, Inc. 4.40% 312,093,885 8,498,316,489 -8,405,533 -2.62%
BlackRock Fund Advisors 3.86% 273,569,218 7,449,289,806 3,894,732 1.44%

2. Subsidiaries

subsidiariesAgouron Pharmaceuticals Inc. The companys operations consist of the discovery, development, manufacture, and marketing of therapeutic products, which play roles in cancer, AIDS, and other serious diseases. Its product, VIRACEPT, was a drug for the treatment of HIV infection. Based in California, it employs 990 people.

G.D. Searle & Company or just Searle is a company focusing on pharmaceuticals, agriculture, and animal health. It was acquired by Pfizer from Monsanto in 2003. The company held patents for Metamucil (laxative), Dramamine (motion sickness), Aspartame( sweetener).

Wyeth was acquired by Pfizer in 2009. The company produces a wide range of pharmaceuticals, which gross 3 billion in sales annually. Pfizer acquired Wyeth for 68 billion. Among Wyeths famous brands are Advil, Caltrate, Centrum, and Robitussin.

3. Competitors

competitorsPfizer is ranked number one in the Pharmaceuticals industry and number 40 in the overall ranking of Fortune 500 . Other major competitors are Johnson & Johnson and Merck.

Fortune 500: Pharmaceutical industry May 2012

Revenues Profits
Rank Company Fortune 500 rank $ millions % change from 2010 $ millions % change from 2010
1 Pfizer 40 67,932.00 0.2 10,009.00 21.2
2 Johnson & Johnson 42 65,030.00 5.6 9,672.00 -27.5
3 Merck 57 48,047.00 4.5 6,272.00 628.5
  • Johnson & Johnson is the sixth-largest consumer health company and the world’s fifth-largest biologics company. It has over 275 subsidiaries and presence in 60 countries. The company is employing nearly 128 000 people world wide and is headquartered in New Jersey, USA. Johnson & Johnson focuses exclusively on the human health and well being through all stages of life. It operates in three segments: Consumer, Pharmaceutical, and Medical Devices and Diagnostics.
  • Merck & Co. Inc. is a global drug manufacturer dedicated to the discovery and development of broad range of human and animal health care products. Main research areas of the enterprise are heart and respiratory well-being, vaccines and consumer care products. Mercks business is divided in four market segments: Pharmaceutical, Animal Health, Consumer Care and Alliances. The company employs approximately 38 000 people and operates in 66 countries.
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