Pfizer and the Challenges of the Global Pharmaceutical Industry
Scott Armendariz
Case Overview
Pfizer is facing stagnating performance due to internal and external challenges in the pharmaceutical market place.
With a new CEO at the helm of the company, Pfizer needs to find a way to address these challenges and be able to achieve their annual goals.
Challenges
There are several changes outlined in the case study impacting Pfizer. The first challenge is the increase in pricing pressure by the Pharmaceutical Price Regulation Scheme (“PPRS”) who is trying to set profit margins on all medications. The second challenge is Pfizer’s blockbuster drug “Lipitor”, its biggest contributor to company’s profits, is losing market share. This is due to the ability of generic manufacturers producing follow-‐on drugs quickly reducing Lipitor’s exclusive time in market. Pfizer’s inability to have another blockbuster drug in the pipeline is another variable playing into the stagnate earnings of the company.
Additionally, Pfizer’s therapeutic focus on cardiovascular and metabolism diseases is too narrow which leaves opportunities for other medications to be developed that could address specific ailments for the aging population.
Another challenge is the growing utilization of generic medication eroding the market share for Pfizer’s blockbuster drugs. Lastly, the cost of educating providers in the field is growing at an unsustainable rate and needs to be addressed.
Recommendations The following is a list of recommendations addressing the challenges outlined in the case study: •
It is essential that Pfizer perform an internal and external analysis to identify where opportunities and environmental threats occur. This allows Pfizer to develop a business and corporate strategy.
