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Invesmtent Analysis Report for Pfizer 2008

Autor:   •  March 29, 2011  •  Case Study  •  2,956 Words (12 Pages)  •  1,104 Views

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Introduction

In this report I will give an extensive overview of Pfizer which will begin with their business background and strategy. I will move on from there and discuss their financial statement analysis, accounting analysis, and also the financial structure of the company, as well as any other information that would be important for investors. Lastly, I will present an investment recommendation to potential investors.

Analysis of Company and its Background

Founded in 1849, Pfizer Inc. is a biopharmaceutical company engaged in the discovery, development, manufacture and marketing of prescription medicines for both humans and animals. The company operates in more than 150 countries. It is headquartered in New York City, New York and employed 86,600 people as of December 2008. Pfizer Inc. is the world's largest pharmaceutical company. The company discovers, develops, manufactures and markets prescription medicines for humans and animals.

The company operates in more than 150 countries. The company operates through two business segments: pharmaceutical and animal health. The pharmaceutical segment accounted for approximately 91% of our total revenues in 2008. It also generates revenues from several other businesses including the manufacture of gelatin capsules, contract manufacturing and bulk pharmaceutical chemicals. As these businesses are small, they are grouped under 'corporate/other segment'. While the company's global manufacturing division is based in the US, the company operates plants in about 46 locations around the world. The company's major facilities are located in Belgium, France, Germany, Ireland, Italy, Japan, Puerto Rico, Singapore and the US.

Analysis of Business Strategy

Despite the challenging financial markets, Pfizer maintains a strong financial position. However as a result of the current economical climate the company has experienced a number of difficulties. There is pressure from payer groups on Pfizer to make changes that can include price controls, price cuts and regulatory changes that limit access to certain medicines. These payer groups include the governments of many countries, who are likely to have substantial leverage through their significant purchasing power. There is also a danger that the introduction of legislation relating to Medicare could reduce access of patients to some of Pfizer's products. The success of Pfizer as a business entity is highly dependent on intellectual property rights on its products. When these patents expire, generic drug manufacturers may produce similar generic drugs and undercut Pfizer in the process, thus significantly impacting on Pfizer revenue examples of these occurrences can be seen in 2008 with the expiration of patents on Norvasc, Camptosar and Zyrtec. The success of legal challenges

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