Pfizer was founded in 1849 in Brooklyn, New York, by Charles Pfizer and Charles Erhart and was incorporated in 1942. The company experienced considerable growth during the half century following its incorporation. After its merger with Warner-Lambert in 2000 and the company’s acquisition of rival Pharmacia in 2003, Pfizer became the world’s largest research-based pharmaceuticals firm.

During this same period, however, the company shed some of its non-pharmaceutical businesses, including the Schick-Wilkinson Sword shaving products division, the Tetra fish-care division, and the Adams confectionary business. Currently, Pfizer’s subsidiaries include Warner-

Lambert, Goedecke, and Parke-Davis.

Pfizer currently markets eight of the world’s top 25 drugs. The firm’s best-known products include pain management drug Celebrex, erectile dysfunction therapy Viagra, antidepressant Zoloft, and cholesterol control aid Lipitor. In addition, Pfizer provides some over-the-counter

(OTC) drugs, including BENGAY rubs, Neosporin antibiotic ointment, Unisom sleep aid, cold remedies Benadryl and Sudafed, and a variety of skin and eye care products. Pfizer also has a veterinary products division.

In 2003, Pfizer amassed $45 billion in sales worldwide, well ahead of its closest rival GlaxoSmithKline. The company depends heavily on a limited number of highly successful drugs, however. In 2003, ten different drugs accounted for over 80% of the firm’s sales.

Pfizer’s growth and success may be attributable to a number of factors, including the firm’s recent acquisitions and its ability to work effectively within various government regulations. The company has enjoyed substantial success marketing its prescription drugs directly to consumers.

Pfizer has also been able to leverage its R & D efforts by developing a number of highly successful and lucrative prescription drugs. In an industry recognized for its R & D capabilities, Pfizer is known as a leader.

One of Pfizer’s most visible drugs is the “little blue pill” Viagra, which received U.S.
Food and Drug Administration (FDA) approval in 1998. Pfizer enjoyed market dominance at first with this product, but intense competition from rivals, including Bayer’s Levitra and Lilly’s Cialis, ensued shortly thereafter. Nonetheless, the product name remains a household word in the United States and many parts of the world. Three drugs—(1) cholesterollowering Lipitor, (2) Norvasc, and (3) Zoloft—account for a significant percentage of overall revenues.
Pfizer acquired pharmaceutical firm Wyeth in 2009 and was able to reduce its workforce by 15% as part of the integration. Pfizer agreed to a $2.3 billion settlement later in the year to settle allegations that it improperly marketed four drugs, including painkiller Bextra. The penalty was the largest health care fraud fine at the time.
Case Challenges
1. Evaluate the effectiveness of Pfizer’s recent acquisitions and divestments?
2. How can Pfizer maintain its leadership position in the world pharmaceutical industry?
3. Identify the ethical considerations that are especially prominent in the pharmaceutical industry. How has Pfizer fared with regard to these factors?