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The World of PfizerBy,Ankit Dubey MBAS 1312Amol Ubarhande MBASMohsin Shaikh MBASSumit Joshi MBASVinayak Shinde MBAS

History of PfizerThe company, Pfizer, is named afterGerman-American cousinsCharles Pfizerand Charles Erhart. In 1849 these two cousins launched a chemicals business called Charles Pfizer and Company.The cousins expanded their company by buying property to build its lab and factory. During the 1980s and 1990s Pfizer underwent a period of growth and maintained that growth by the discovery and marketing products such as; Zoloft, Lipitor etc.That original facility was used by Pfizer until 2005. Pfizer then closed its original plant along with several others plans and established its original administrative headquarters at Manhattan.Today Pfizer has four divisions which include; Human Health, Consumer Healthcare, Animal Health, an Corporate Groups.

Hierarchy of Pfizer

What Are Pfizer's Aspirations? We have before us the opportunity to become an enduring leader, contributing more to human health than any company in history.Hank McKinnellChairman of the BoardChief Executive Officer, Pfizer Inc

Pfizer India Pursuing InnovationThe pursuit of innovation is basic to Pfizer's culture. It shapes our strategy, defines our purpose, and governs every facet of our operations -- from research and development (R&D) that leads to pharmaceutical inventions, to the transfer of knowledge to patients and providers, to the way we respond to the changing marketplace.Pfizer scientists have produced innovative breakthroughs in a wide range of research areas, including depression, erectile dysfunction, high cholesterol, HIV infection, hypertension, bacterial infections and systemic fungal infections. And today we're taking on some of the world's most difficult diseases, including cancer, arthritis, and osteoporosis.

Pfizer in IndiaPfizer Limited has a turnover of INR.947.98 crs for the year ended March 31, 2013The company was awarded the FICCI SEDF (Socio Economic Development Foundation) Certificate of Commendation for its social responsibility effortsPfizer has won several awards including that for the multinational pharmaceutical company of the year and the most respected MNC

Location & PeopleHeadquartered in MumbaiOver 4,000 colleagues spread across IndiaState-of-the-art manufacturing facilities at Thane, Maharashtra Academic ContributionFormed theAcademy of Clinical Excellence (ACE)in collaboration with Bombay College of Pharmacy to provide professional training to investigators and other clinical research personnel

We have also partnered with other pharmaceutical companies, contract research organisations and investigators to establish theIndian Society for Clinical Research (ISCR),a professional society aimed at raising the standards of clinical research

Pfizer Education and Research League (PEARL)is a new initiative in which Pfizer seeks to partner with institutes to improve existing clinical research and continuing medical educational capabilities

Key PeopleMr. R.A. Shah Chairman.Mr. R.A. Shah is a leading Solicitor and a Senior Partner of M/s. Crawford Bayley & Co., a firm of Advocates & Solicitors. He specializes in a broad spectrum of corporate laws in general, with special focus on Foreign Investments, Joint Ventures, Technology and License Agreement, Intellectual Property Rights, Mergers and Acquisitions, Industrial Licensing, and Anti Trust Laws, Company Law and Taxation. He is the Chairman/Director of various public limited companies and Chairman/member of Audit Committees.Mr. R.A. Shah was first appointed on the Board on November 9, 1965.

Mr. Pradip P. Shah DirectorMr. Pradip Shah holds an MBA from the Harvard Business School. He is also a Chartered Accountant and a Cost Accountant and ranked first in India in the Chartered Accountancy Examination.Mr. Pradip Shah is the ex-Managing Director of CRISIL, Indias first and the largest credit rating agency. Prior to founding CRISIL, Mr. Pradip Shah assisted in founding the Housing Development Finance Corporation (HDFC) in 1977. Mr. Shah has also served as a consultant to USAID, the World Bank and the Asian Development Bank. Mr. Shah is a Director on the Board of several reputed companies. He is also a member of various prestigious committees/commissions. Mr. Pradip Shah is presently the Chairman of Indasia Fund Advisors Pvt. Ltd. Mr. Pradip P. Shah was appointed to the Board on December 7, 1999.

Mr. Aijaz Tobaccowalla Managing Director (w.e.f. August 16, 2012)Mr. Aijaz Tobaccowalla is the Managing Director of Pfizer Limited and Wyeth Limited.Fondly called as Jazz, he is an experienced global leader and has worked in the United States, Europe, and Asia supporting established and emerging markets. He has extensive pharmaceutical experience and is a strategist with global delivery capability. He has designed and delivered consistent results in a global marketplace including areas of Business Intelligence, Sales Force Automation, R&D systems, ERP, e-Business and Manufacturing Systems.

Mr. Uday Khanna DirectorMr. Uday Khanna is a Chartered Accountant. Mr. Khanna is the Chairman of Lafarge India Private Limited and also Chairman of Bata India Limited. Mr Khanna was appointed to the Board on May 21, 2012.

Mr. Vivek Dhariwal Executive DirectorMr. Vivek Dhariwal holds a Bachelors Degree in Chemical Engineering from the Indian Institute of Technology, Mumbai and a Masters Degree in Chemical Engineering from the University of Kentucky, Lexington, USA.Mr. Dhariwal was appointed to the Board on May 21, 2012.

Mr. S. Sridhar Executive DirectorMr. S. Sridhar is a Chartered Accountant by profession with over 20 years of experience in the finance field. Mr. Sridhar joined Pfizer in June 2008. He assumed additional responsibility of the Distribution function from May 2013. Before joining Pfizer, Mr. Sridhar was the Finance Director in India Hub of Diageo India Pvt. Mr. Sridhar was appointed to the Board on May 14, 2013.

Products of Pfizer (India)

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Animal Products

Drug DevelopmentDrug development is a long, expensive, and failure-prone process. It requires cutting-edge scientific skills, and collaboration across multiple disciplines within the pharmaceutical industry and among educational institutions, research laboratories, government regulators and healthcare professionals. It takes 8-12 years on an average for a new drug to be developed for human use, and only 10 of around 10,000 substances identified as potential drugs will make it to the human testing stage. Whats more, only about one in 10,000 substances identified as potential drugs on preliminary screening will eventually be marketable. Potential new medicines are patented as soon as they are discovered, and the discoverer usually has less than 10 years of exclusive marketing rights remaining by the time regulators approve a medicine for marketing. Drug development goes through three basic stages: discovery, full development and clinical trials.

Drug discovery:The process begins with a new idea directed at chemically modifying a disease process. It involves developing a drug that will react with a new molecular target within the human body. The idea is usually generated from a thorough knowledge and understanding of disease processes and a continuing involvement with research in the specific therapeutic area of interest.Full development:Drugs that are shown to work the best in Phase 2 studies have the least side effects, are expected to be the most economically viable, and are mass tested on thousands of patients. This phase of drug development is called Phase 3 or full development. New medicines are very expensive in the early years of sales to pay for the cost of drug development, publicize the benefits of the new therapeutic option, and provide returns to shareholders of the company.Clinical research:Human trials are carried out when pre-clinical data demonstrates that it may be useful in treating a disease, and reasonably safe for initial testing in humans, among other things. A clinical trial has to be properly designed and planned to provide reliable efficacy and safety data. It also has to be approved regulatory authorities and by an Ethics Committee that permits the trial to be conducted at a particular institute.

CSRPfizer foundation joins Pfizer India to support the survivors of the Himalayan Tsunami

Continued In June 2013, Himalayan floods devoured most of the regions of the State of Uttarakhand, washing away homes and displacing approximately150,000people.

The death toll due to the catastrophe reached approximately10,000 people,as per media reports.

Uttarakhand was a tourist destination known for its scenic beauty and the revered Kedarnath temple that attracted thousands of tourists every year, a staggering70,000tourists were trapped in the Himalayan hills. The Indian government had to induct the Indian army to airlift people to safety. Damage to roads and bridges blocked access to drinking water, primary healthcare facilities, food and clothing.

Large number of expectant mothers in the region was rendered helpless with no access to quality healthcare facilities. The Uttarakhand floods washed away houses rendering many homeless. Overall, healthcare rehabilitation was one of the prime needs of the extensively damaged districts within the state of Uttarakhand. Efforts were being made to supplement the government initiatives to ensure quality primary care to the residents of impacted region.

As the entire nation stood up in solidarity to rebuild their lives, Pfizer India colleagues also stepped forward to demonstrate theOne Pfizerspirit by supporting their fellow Indians. Pfizer India colleagues owned and drove the clothes donation campaign at HQ in Mumbai, with the support of NGO partnerGoonj.The response was so overwhelming that colleagues across Goa and Hyderabad shipped the clothes to the Goonj dropping centre in Mumbai.

In addition to this,approximately700 Pfizer colleaguesacross India voluntarily donated a days basic salary, amounting to a total of$16,000to our NGO partner Habitat for Humanitythat will help rebuild/restore houses of the victims.

As colleagues wondered what more they could do to help the survivors, they were heartened to learn that Pfizer India HQ donated3000 stripsof Becousule capsules for the survivors through the NGO AmeriCares. In addition to this, Pfizer foundation donated$25,000to AmeriCares for the flood relief. The separate donations will be used to provide medical assistance to the displaced families, especially expectant mothers and children.

Joy of Giving Pfizer India joined hands with Dignity Foundation (www.dignity foundation.com) to celebrate the festival and spread joy among senior citizens. Dignity Foundation, a NGO, is committed to changing the way people look at ageing in India, through opportunities for productive ageing social support services. The Joy of Giving Week is a festival of philanthropy that is celebrated every year from 2nd to 8th of October by engaging people through acts of giving.

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Pfizer India Competitors Dr. Reddy's Laboratories Ltd, is a pharmaceutical company based in Hyderabad,Andhra Pradesh, India. The company was founded byAnji Reddy, who had previously worked in the publicly ownedIndian Drugs and Pharmaceuticals Limited, ofHyderabad, India. Dr. Reddy's manufactures and markets a wide range of pharmaceuticals in India and overseas. The company has over 190 medications, 60active pharmaceutical ingredients(APIs) for drug manufacture, diagnostic kits,critical care, and biotechnology products.

Cipla Limitedis apharmaceutical companybased inMumbai,India. Cipla makes drugs to treatcardiovascular disease,arthritis, diabetes,weight control,depressionand many other health conditions.

Ranbaxy Laboratories Limited is an Indian multinationalpharmaceuticalcompany that was incorporated in India in 1961. The company went public in 1973 Ranbaxy exports its products to 125 countries with ground operations in 43 and manufacturing facilities in eight countries. In 2011, Ranbaxy Global Consumer Health Care received the OTC Company of the year award.

Trouble with IPA The divide between the domestic and multinational drug firms is evident once again with the war of words that has emerged between global drug major Pfizer and the Indian generics drug lobby IPA. Itall started on March 13 when Pfizer made a testimony presentation in front of the US House Committee in a hearing that was specifically on US-India trade and the opportunities and challenges.It said that the India's intellectual property (IP) environment is deteriorating. Pfizer said the business environment for innovative drug firms is not good enough in India.

It also said India is violating international trade laws. Pfizersaid India is notusing compulsory licences in a way thatthe countryshould.It feels there is discrimination in favour of the Indian generic drug firms, and innovative drug firms do not have a position. Pfizer also advised the US government to look at all legal ways in terms of international trade to get back and deal with the Indian counterparts on a direct basis. As a reply to this testimony, Indian pharmaceutical Alliance (IPA) which is the lobby of the Indian generic drug companies, wrote back to Pfizer also marking all the people of the US House Committee saying that the testimony was filed with factual inaccuracies.

The assertions were not correct factually. IPA said that Pfizer has misled Congress in terms of India's IP environment. India is compliant to the TRIPs agreement that it had signed, but not compliant to the optional provisions of TRIPs-Plus agreement which would include giving patent on incremental innovations as well. It also went on to say that it does not discriminate between generic drug firms and Indian drug firms. Only discriminates true innovation versus innovation that lacks enhanced efficacy and compulsory licence was used only when it was required In response Pfizer has got to IPA in a very scathing reply, saying that India is not TRIPs compliant. The 2005 amendments have not reached TRIPs compliance and that MNCs also have to through a very long legal battle and legal route to deal with all the patent challenges. So, back and forth happening again between the Indian firms as well as generic drug companies when it comes to key policy issues.

Pfizers Organizational StructurePfizer Global Pharmaceuticals (PGP)Pfizer, Inc.Pfizer Animal Health (PAH)Pfizer Global Manufacturing (PGM)Products for companion animals and livestockWorldwide network of manufacturing and supply organizationsDivisions with typical MBA hiringConsumer healthcare(over-the-counter products)PCH MarketingPfizer Consumer Healthcare (PCH)Global human pharmaceuticalsPGP FinanceMarket AnalyticsBusiness TechPGP MarketingSalesPharmaceuticals Pfizer Global (PGP)Corporate FinancePfizer, Inc.CorporatePfizer Global Research and Development (PGRD)Global human and animal health research and developmentPGRD Finance

25Most Valued by Our Peers and IndustryOne of the Top 50 Diversity Employers

#2 in Training and Developing Employees

One of the Top 50 Companies in America

One of the Worlds Best Companies for Leaders

100 Best Companies to Work For in AmericaAmericas Most Admired Pharmaceutical CompanyOne of top 25 employers for MBAs

Most Valued to Our PatientsPain/InflammationUrogenital/Gyn.Ophthalmology

Central Nervous SystemInfectious Disease/HIVEndocrinology

OncologyRespiratoryCardiovascularDiabetes

Products of Pfizer (U.S)Pfizer products for humans and animals

Some Human Products includeAdvil, Dextrol, & Nicotrol

2) Some Animal Products includeConvenia, Revolution, Cerenia, & Slentrol

Pfizer also has a program called PfizerPro.com. This website is designed to provide health care professionals access to Pfizer product information.

Life is our lifes workOur Purpose

We dedicate ourselves to humanitys quest for longer, healthier, happier lives through innovation in pharmaceutical, consumer, and animal health products.Our Mission

We will become the worlds most valued company to patients, customers, colleagues, investors, business partners, and the communities where we work and live.

Our Vision

About our productsSix Pfizer brands feature among the Top 100 pharmaceutical brands in IndiaTwo of Pfizer India's brands -- Corex (Cough Formulation) and Becosules (Multivitamin) -- continue to rank among the Top 15 pharmaceutical drug brandsPfizer has won the Golden Peacock Innovative Product for Magnex (Sulperazon)Becosules has won the Most Trusted Brand Award

Going beyond medicinesIn India, Pfizer instituted the first ever Disease Management Programme -- Healthy Heart in Cardio Vascular Disease (Hypertension, Chronic Stable Angina and Dyslipidemia), in partnership with Apollo Hospital, Hyderabad and Apollo Hospital, ChennaiWe offer Patient Assistance Programmes for Glaucoma, Breast Cancer and Neuropathic PainWe partner with physician associations to develop recommendations / guidelines of managing specific diseases

ContinuePricing Pressure related to price controls enforced by foreign governments and legal changes in Medicare.

Defending intellectual property rights

Legal defense cost, the risk of adverse settlement and settlement expenses.December, 2005- exclusivity of Lipitor granted till 2011.

Fluctuation in foreign exchange rates

People Medicines

Baby Food

Animal Medicines

Competitors of PfizerPfizers main Competitors are Merck, Glaxo SmithKline, & Novartis.Merck is one of the largest pharmaceutical companies in the world. Glaxo SmithKline is a british multinational pharmaceutical, biologics, vaccines, & consumer healthcare company.Novartis is swiss multinational pharmaceutical company that ranks number two in sales world wide.

P/E Ratio ComparisonCompanyP/E RatioTrailing P/E ratioRelative P/E RatioPfizer12.611.80.67*Merck&Co13.214.00.70Glaxosmith16.517.60.87

Pfizer NewsOn September 21st, 2012 Pfizer invited the public to view and listen to a conference call with analysts. On September 26th, 2012 Pfizer announced that the Food and Drug Administration acknowledged a receipt for a new drug called ELIQUIS.On October 1s , 2012 Pfizer announced that its new drug ELIQUIS is demonstrating consistent reduction in strokes & systemic embolism.

Pfizers Stock Trend

RevenuesRevenue : $51 298 million. Net Profit Margin: 15.8%Net Income: $8,085Depreciation: $5,576Increase in Working Capital: $768CAPEX: $2,106Net Interest After Tax: $334.41Free Cash Flow to all security holders: $22,974

Challenges

Diflucan, Neurontin, Accupril, Zithromax and the suspension of Bextra at the request of FDA collectively reduced revenues by 5.7 billion. Revenues of the 4 major drugs with lost exclusivity in the US declined by 44%. 8% Human Health and 7% of total revenue of the year ended 12/31/2005 compared with 13% and 12% .

Zoloft and Norvasc with expiring patents: revenue contribution of $3,256 million and $4,706 million in 2005.

Interpretation of ResultsThe company is undervalued.Despite the loss of exclusivity on certain drugs, it has a sufficient number of new patents and pending approvals to offset the loss in revenues.Synergies and efficiency. Cuts in cost to augment R&D.Long term projects which will generate growth in the future.Future opportunities for generating cash flows include:current demographics of developed countries large number of untreated patients within certain therapeutic categories (ex. High cholesterol) development in emerging markets.

ReferencePfizer India WebsiteWikipedia Forbes WebsiteVarious other online sources

Pfizers Company WebsiteThe Pfizer Company website is broken into seven sectionsAbout Pfizer http://www.pfizer.com/about/Research & Development http://www.pfizer.com/research/Health & Wellness http://www.pfizer.com/health/Responsibility http://www.pfizer.com/responsibility/Products http://www.pfizer.com/products/#AInvestors http://www.pfizer.com/investors/News & Media http://www.pfizer.com/news/