Pfizer is one of the largest and most profitable pharmaceutical companies in the world. Its global operations enable the company to benefit from varied economic upswings in different regions, despite crises in others. Founded in 1849, the business has grown to global proportions. The company’s organizational size is a testimony to its global success. In spite of issues in the United States because of the recession of the late 2000s, Pfizer remains highly successful in its global operations. However, the firm faces the challenge of patent expirations on some of its most profitable products.
Pfizer has many top-selling products in the market. Its organizational size and large market share support further business growth. However, the firm must use its strengths in proactive steps to overcome market and industry risks.
Pfizer’s Top Products
Pfizer has many highly successful products. The top performers are as follows:
- Lyrica – treatment for epilepsy, neuralgia, neuropathy and fibromalgia
- Prevnar – vaccine to prevent pneumococcal infection
- Celebrex – treatment for arthritis and joint pain
- Lipitor – reduces LDL cholesterol levels
- Enbrel – treatment for rheumatoid arthritis and spondylitis
- Viagra – treatment for erectile dysfunction
Pfizer has many other products that perform profitably, but the products listed above are the ones with the best performance for the business.
Company Size and Market Share
Pfizer’s business size is observable through a number of performance indicators. The total sales of the company reached $49.6 billion in 2014. This performance level is about 4% lower than the recorded performance level a year earlier. Nonetheless, in taking the long term, Pfizer’s performance has remained stable over time, even during the economic crisis in the United States. This stable performance is linked to the company’s strategies in overseas markets, especially those that are not significantly exposed to the American recession.
Pfizer has leading market shares in a number of segments. As of 2015, the firm has a 75.84% share of the infectious and respiratory diseases market segment, and a 76.11% share of the consumer healthcare and vaccines market segment. Pfizer has significant market shares in other segments: 14.37% in the cardiovascular and metabolic diseases market segment, and 13.18% in the central nervous system disorders market segment. Pfizer’s market shares are high compared to those of its competitors.
Pfizer’s Strengths and Risks
One of Pfizer’s strengths is its large organizational size. This large size allows the company to continue its projects and ventures in research and development through its vast financial resources. The company is also strong because of the uniqueness of many of its products, which have patent protection. Also, Pfizer acquired Wyeth in 2009. The acquisition has made Pfizer an even more powerful player in the pharmaceutical industry.
The risks in Pfizer’s business include the impending expiration of the patents of many of its unique products. These expirations could make the company weaker because competitors could then produce copies of these products. Other risks in Pfizer’s business include multiple lawsuits the firm faces with regard to its patents and other aspects of the business.
Pfizer could decline because of the impending expiration of a number of its patents. However, the company has the opportunity to develop new products. These new products should sustain Pfizer’s performance. The company needs to increase its efforts in research and development of new products to counteract the negative effects of the expiration of its patents.
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- U.S. Bureau of Labor Statistics (2015). The pharmaceutical industry.
- U.S. Department of Commerce (2015). The Pharmaceutical and Biotech Industries in the United States.
- U.S. Internal Revenue Service (2015). Pharmaceutical Industry Overview.