Pfizer is an American pharmaceutical industry that was founded during

the year 1849 and is headquartered in New York, United States. Pfizer is
a large pharmaceutical company in the world. The company has been
listed in the New York Stock Exchange and is also ranked No. 57 in the
Fortune 500 list during the year 2018. Pfizer discovers, develop, and
manufacture leading prescription drugs.

The company is committed to applying science and global resource to

improve health and comfort at all stage of life. Pfizer commits to provide
safe, affordable, and effective medicines and health care service to
the people who require them. It has excellent research
and development that creates many innovative and
breakthrough products. Its brand value is increased by its mergers and
acquisitions with big pharmacy brands.

Due to its strong brand value, Pfizer does see some competitors in this
sector. Through this article, let us discuss the top Pfizer competitor.

Page Contents

Pfizer Inc. Analysis:

1) Glaxo Smith Kline (GSK)
Products, Markets, Strengths, Risks,
Recommendations
UPDATED ONUPDATED ON AUGUST 19, 2018 BY LAWRENCE GREGORY

Pfizer’s global headquarters in New York

City. Pfizer Inc.’s top products, organizational size, market share and strengths enable
the firm to address risks through proactive steps suitable in the pharmaceutical industry.
(Photo: Public Domain)
Pfizer Inc. is a leading pharmaceutical company in the global market. The company’s
multinational operations enable it to benefit from economic upswings in various regional
markets, despite crises in others. Founded in 1849, Pfizer is a well-known brand around
the world. The company’s organizational size is representative of its global success.
Despite economic challenges in the United States, which is the biggest market for
biopharmaceutical products, Pfizer Inc. maintains profitability and business growth.
However, the company experiences challenges linked to the expiration of some of its
most valuable patents. This condition requires strategic action that exploits major
opportunities in the market to ensure business growth and development. Such
expiration reduces the revenue potential of the business, as generic drug firms reduce
Pfizer’s market share for the products with expired patents. The company must
implement strategies to ensure long-term growth despite major changes in its patent
portfolio.

Pfizer Inc. manufactures many top-selling products in the market. The company’s
organizational size and large market share support further business growth. However,
the firm must use its strengths along with proactive steps to overcome market risks and
industry risks. Pfizer needs to develop competencies that protect its business against
such risks. Strategies to build competitive advantages are needed, considering the
adverse effects of changes in the market.

Pfizer’s Top Products

Pfizer Inc. has highly successful products that have become popularly known
internationally. With a massive research and development (R&D) arm, the company
continues to develop and introduce novel products that benefit the business and its
consumers. Some of Pfizer’s top-performing products 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, especially products that initially
have no direct competitors in the market. The company benefits from patented drugs to
dominate target market segments. However, as the pharmaceutical industry is dynamic,
the company experiences changes in its business competencies. For example, by 2020,
all of Pfizer’s patents for Viagra will be expired. Some of these patents have already
expired in 2012. The market situation for the drug is expected to change as more firms
are likely to produce drugs with the same active ingredient, competing based on price.
In addition, the company’s continuous R&D investment leads to continual change in its
product mix and corresponding shifts in its market position.
Organizational 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, and $52.5 billion in 2017.
These statistics indicate that the business is growing, in spite of challenges in the
industry. Also, in the long term, Pfizer’s performance remains stable. For example, even
during economic crises, the company keeps its business profitable by virtue of its
international presence. Emerging markets and various developed markets support the
business when economic crises affect other areas.

Pfizer has leading market shares in a number of segments. In 2015, the firm had 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. The company remains
one of the world’s leading pharmaceutical firms, with leading shares in various market
segments. Pfizer’s market shares are high compared to those of its competitors.

Pfizer Inc.’s Strengths and Business Risks

One of the major business strengths of Pfizer Inc. is its popular brand. This brand is
known worldwide for innovative pharmaceutical products. In addition, the company’s
large organizational size is a strength that leads to capabilities that smaller companies
do not have. This organizational size enables economies of scale and research and
development capabilities. The company is also strong because of the uniqueness of
many of its products, which have patent protection. Moreover, Pfizer acquired Wyeth in
2009. The acquisition made the company an even more powerful player in the global
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 such products. Other risks in Pfizer’s business
include multiple lawsuits regarding patents and other aspects of the business. These
lawsuits could lead to financial losses. Furthermore, counterfeiting in some regions
could reduce Pfizer’s revenues and tarnish its brand image.

Recommendations: Proactive Steps

The risks in Pfizer’s business and industry environment present challenges that the
company must strategically address. These risks have the potential to reduce the
company’s business performance. Nonetheless, when considering its strengths, the
corporation has the competencies to counteract such risks and mitigate their effects on
the business. While there is no single best solution to these risks and the problems they
impose on the company, the following are appropriate recommendations for Pfizer Inc.:
 1. Maintain aggressive R&D
2. Develop strategic alliances with complementary firms
3. Diversify the business through business development or acquisitions

It is recommended that Pfizer Inc. maintain an aggressive approach in the area of

research and development. R&D capabilities are a major competency that the company
can use to support business growth. Aggressive R&D is a necessary approach to
mitigate the effects of competitive forces in the industry. Another recommendation is to
develop strategic alliances that complement Pfizer’s current business. For example, the
company can enter into agreements with more major distributors and sellers in
emerging markets to strengthen its presence worldwide. On the other hand,
diversification is a recommendation for improving Pfizer’s risk exposure linked to
limitations resulting from focusing the business mainly within the pharmaceutical
industry.

References

 Gereffi, G. (2017). The pharmaceutical industry and dependency in the Third

World (Vol. 4964). Princeton University Press.
 Lakdawalla, D. N. (2018). Economics of the pharmaceutical industry. Journal of
Economic Literature, 56(2), 397-449.
 Lee, B. (2017). Viagra: Get ready for it to become generic, cheaper, and more
available. Forbes.
 Martin, K. D., Josephson, B. W., Vadakkepatt, G. G., & Johnson, J. L. (2018).
Political management, research and development, and advertising capital in the
pharmaceutical industry: A good prognosis? Journal of Marketing, 82(3), 87-107.
 Pfizer, Inc. – Annual Reports.
 Pfizer, Inc. – Form 10-K.
 Song, Chie Hoon, and Jeung-Whan Han. (2016). Patent cliff and strategic switch:
Exploring strategic design possibilities in the pharmaceutical
industry. SpringerPlus, 5(1), 692.
 U.S. Department of Commerce – International Trade Administration – The
Biopharmaceutical Industry in the United States.
A top Pfizer competitor, Glaxo Smith Kline is a popular pharmaceutical
company that was established during the year 2000 and is
headquartered in London, United Kingdom. It was formed after a merger
of Glaxo Wellcome and SmithKline Beecham. The company has its
business operations in about 100 countries by having a strong presence
in Europe, the US, and Asia-Pacific.

Over the years it tries to expand its product portfolio by investing heavily
in Research & Development. Glaxo Smith Kline focuses on developing a
strong research team. The company has made progress in respiratory,
cardiovascular medicine, HIV etc.

The company has established a strong sales and distribution network

worldwide. This ensures that its products are available everywhere and
also enhance the ability to provide newer products to the customer.
Glaxo Smith Kline has declared a consumer healthcare and vaccines
joint venture during the year 2015 and due to which it is a top Pfizer
competitor.

2) Cipla

Cipla is a well-known pharmaceutical industry that was established

during the year 1935 and is headquartered in Maharashtra, India. The
company mainly develops medicines to treat various diseases like
respiratory, diabetes, arthritis, cardiovascular, depression, and weight
control. The company generated an increase of about 20% every year
during the year 2016.

The key strength of Cipla’s brand success is its focus on Research and
Development. It has its strong focus to develop new products and also to
improvise the drug delivery systems and expand product applications. It
also receives a lot of support from many manufacturing plants across the
cities.

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It has a wide range of products that includes APIs and also formulations
on various health care products for humans and animal. It produces
about 2000 products in about 65 categories and also has an intense
focus to increase its product range. The company provides great support
to cancer patients by offering patients with low-cost medicines. It has
also initiated a ‘No Touch Breast Scan’ that makes it stay ahead
towards technology. As Cipla’s products are well-recognized by many
regulatory authorities of many countries, it is indeed a top Pfizer
competitor.

3) Bristol-Myers Squibb

Also a top Pfizer competitor, Bristol-Myers Squibb is a popular

pharmaceutical company formed during the year 1887 and is
headquartered New York, United States. The company produces
prescription pharmaceuticals and biologics in many therapeutic areas
that include cardiovascular disease, cancer, diabetes, hepatitis, and
psychiatric disorders. The company is a global company and is
dedicated to discover, manufacture, and deliver innovative medicines
with the intention to help patients overcome serious diseases.

Bristol-Myers Squibb produces new medicines on regular basis. It also

provides free medications to eligible patients who face financial
problems in the US. It has its presence worldwide and has about 44000
people working for them across the globe.

The company tries to expand its business strategy with the acquisition of
many other companies. Upgrading to new technologies has
strengthened the brand.

4) Johnson & Johnson

Johnson & Johnson is medical equipment and the pharmaceutical
industry that was formed during the year 1886 and is headquartered in
New Jersey, United States. It is one of the strongest brands in the world
for Baby products and for pharmacy. It is the largest healthcare provider
where their products range from pharmaceutical products to consumer
healthcare products. The company has its business operations in three
segments namely Pharmaceuticals, Consumer Products, and Medical
Devices and Diagnostics. Being in the industry for about 125 years, it
has committed to take care of people.

Johnson & Johnson has a strong presence in each of the categories of

product. This brand is reliable by many medical practitioners worldwide.
The company sees a way to grow further through mergers and
acquisitions with various pharmaceutical and consumer health care
companies like Alza, Neutrogena, and many more. Johnson & Johnson
has an excellent supply chain in place by having an extensive and robust
distribution system that is meant for its product availability in many retail
stores, supermarkets, and medical stores. It has a great brand value and
due to which it is a top Pfizer competitor.

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5) Merck & Co

Merck & Co is a popular brand of the pharmaceutical industry that was

established during the year 1891 and headquartered in New Jersey,
United States. It is one of the largest pharmaceutical companies in the
world. The company has its business operations in both pharmaceutical
and chemical in the country. The main products of the company are
various pharmaceutical products, prescription products, vaccines, animal
health, and chemicals. Merck & Co has strong brand value in the
pharmaceutical industry and it maintains a huge product selection in the
pharmaceuticals.

The company provides medical help to underprivileged in the United

States. Merck & Co increase its brand value by innovating new products
for various causes through its excellent Research and Development. The
company has its presence in Europe, Asia, Africa, America, and
Oceania. Due to its excellent customer loyalty and brand visibility, Merck
& Co is considered one of the top Pfizer competitors.
6) Novartis

A popular Swiss multinational pharmaceutical industry, Novartis was

established during the year 1996 and is headquartered in Basel,
Switzerland. It is the largest pharmaceutical company with respect to
sales and market capitalization. Novartis manufactures many products
like generic drugs, vaccines, over-the-counter drugs, diagnostics,
contact lenses, animal health etc.

Novartis discover, manufacture, and effectively invent pharmacy

products to prevent and cure various kinds of diseases to ease patients
suffering and to enhance the quality of life.

The company has a global reach in about 140 countries and is a new
initiative for setting up the Novartis Biotechnology leadership camp is a
big hit in the market. Its brand value has seen a rise by having many
mergers and acquisitions with other pharmacy industry. Novartis has a
big reputation in the prescription drugs and due to which it is a top Pfizer
competitor.

7) Abbott
A popular health care brand, Abbott was formed during the year 1888
and is headquartered in Illinois, United States. Abbott was established
by Chicago physician Wallace Calvin Abbott to articulate known drugs.
Over the years the company grew to sell many research-based drugs,
diagnostics, medical devices, and many nutritional products.

Abbott develops products for children and adults that include diagnostic
tests, devices, and instruments. It caters to people who look for healthy
lives. It collaborates with Syngene which is a leading contract research
organization to establish its first Research and Development center in
the country.

The company has also acquired an exclusive license to develop a

diagnostic test that is based on many new biomarkers. The company
produces a wide range of specialized medicines, tests and surgical
devices for people of all age groups.

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8) Roche
Yet another top Pfizer competitor, Roche is a Swiss multinational
healthcare company that was formed during the year 1896 and is
headquartered in Basel, Switzerland. The company discovers,
manufacture, and provides innovative therapeutic and diagnostic
products and services that deliver substantial benefits to patients and
healthcare professionals.

The company has about 80,000 employees that are present across the
world like America, Africa, Asia, Australia, and Europe. Roche is a
leading supplier of cancer medicines and also number one in vitro
diagnostics company.

Roche is the only authorized Drug Company that is authorized to

manufacture oseltamivir (Tamiflu) which is a drug against swine flu.
Being the biggest biotechnology company, it has produced about 14
biological products on the market. It has expanded its business by
collaborating with big pharmacy companies for efficient operations.

9) Eli Lilly
Eli Lilly is an international pharmaceutical that was formed during the
year 1876 and is headquartered in Indiana, United States. Eli Lilly’s
products are sold in about 125 countries. The company was established
by Col Eli Lilly, a pharmaceutical chemist and the company is named
after his name. The company produces medicines that help people to
live longer, more active, and healthier.

They operate in various segments like cardiovascular diseases,

oncology, diabetes, neuroscience, critical care, musculoskeletal, and
men’s health. The company has a strong ability to create tactical
associations and marketing partnerships with other companies. Eli Lilly
has a well-established in house Research & Development wing to keep
producing new products.

The company has a global stand for its products thereby increasing
its brand awareness. Due to its global stand, the company is able to sell
drugs worldwide and due to which it is indeed a top Pfizer competitor.

Conclusion
Pharmacy is an important sector worldwide. Pfizer being a large
pharmaceutical company establishes a strong focus in developing new
products to meet various health issues.