ACCT 461 SPRING, 2023

UPJOHN PHARMACIA/PFIZER CASE

1. Provide an update on this company since the Upjohn/Pharmacia merger by reviewing the acquisitions which have occurred over the years, and briefly summarize the 5 largest acquisitions. Provide a summary of REVENUE GROWTH from the time of the case through the present. Summarize the most recent acquisition announcement (March 2023), the acquisition price and how much this acquisition is expected to impact Pfizers future revenue.

2. Compare the company today with the company at the time the case was written, showing a comparison of dollar amount as well as common-size income statements, and comment. Include information on stock price and total market capitalization in your comparison also. Based on this review, do you think Upjohn-Pharmacia was a good merger? Explain why or why not.

3. Find some industry data and indicate how you think Pfizer compares to the industry as a whole, using the most recent annual results. Start with sales volume, but also include any other comparisons you think are relevant.

4. From the most recent 10K, review the segment data from the Notes to the Financial Statements, determine how much of the revenue was from Covid vaccine products and summarize. Discuss how the 2022 results might have looked without this vaccine revenue compared to the prior year. Using the Guidance provided by the company for 2023, summarize how Covid vaccine products will have affected overall company revenues for the period from 2021 to 2023.

5. Form an opinion as to the future prospects for this company in this industry. Read at least one outside article on a drug-related issue which affects the future of this company and reference this in your remarks. ALSO, reference Pfizers drug pipeline in your response and explain the significance of the pipeline to any pharmaceutical company.

6. Review Pfizers stock performance for 2022 and evaluate how Pfizers performance compared with the pharmaceutical industry. Did the stock prices of pharmaceutical companies fare better or worse than the overall markets last year? Cite specific amounts and specific trends to illustrate this.

7. Review Pfizers Non-GAAP disclosures and discuss the items which account for the biggest difference between GAAP and Non-GAAP information. Comment on the change relating to In Process Research and Development costs.

8. Review the history of lawsuits against Pfizer over the years and summarize the largest one. Review the largest lawsuits against pharmaceutical companies over the years and give your opinion on how Pfizer compares to other pharmaceutical companies. Read all of Footnote 16 (Contingencies and Certain Commitments) in the 2022 Annual Report and summarize any actions relating to Covid vaccine and related products.

9. Research how much is spent on lobbying by industry and how the pharmaceutical industry compares to others. How much does Pfizer spend on lobbying and how does this compare to other pharmaceutical companies.

10. Compare the company today with another major company within the industry today, comparing key financial information. How do they differ, if at all? Are their operating structures similar as evidenced by the Income Statements? Compare Income Statements on a common-sized basis in order to do this.

11. OPINION QUESTION: Without doing any further research, and based on your analysis of public companies while youve been at college, do you think large publicly held corporations in the United States have an ethics problem? If so, do you think some industries are more ethically challenged than others? Explain as best you can.