Pharmaceutical Industry: Structure and Government Regulations
Fairleigh Dickinson University- College at Florham
Pfizer is one of the world’s largest pharmaceutical companies by revenues, established in 1849, headquartered in New york, U.S.A. Pfizer started as a manufacturer of fine chemicals such as camphor, iodine, borax, citric acid and cream of tartar. The development of deep tank fermentation technique increased the production rate of citric acid by five fold and unlocked secrets to mass production of penicillin to meet high demand of this antibiotic during World War II. Further development of ...view middle of the document...
Each of these segments is led by an executive with clear accountability for results - from product development following proof of concept to providing access to patients and through to the end of the product's life cycle. (1)
➢ CEO & Chairman: Ian Read
➢ CFO Finance & Executive Vice President: Frank A D’amelio
➢ President of Global R&D: Mikael Dolsten
➢ President: Pfizer Global Manufacturing: Anthony Moddaluna
➢ Executive VP: Worldwide Human Resources: Chuck Hill
Pfizer is enjoying patent over lots of brands and branded generic for the honey-moon period of the drug, in addition to this the company is also involved in manufacture and sale of generics through it’s Greenstone and Aurbindo subsidiary. Research collaborations are an integral element of Pfizer’s pharmaceutical strategy, and collaborates with multiple other pharmaceutical companies to make drugs easily accessible to patients who cannot afford the medication and for boundless innovative vaccines and medication to prevent and treat disease conditions.
Pfizer is organized into nine principal operating divisions: Primary Care, Specialty Care, Oncology, Emerging Markets, Established Products, Consumer Healthcare, Nutrition, Animal Health and Capsugel. Pfizer is one of the leading companies that focuses on innovations of investigational new drug approval and research for betterment and well-being of patients.
• Pfizer has adapted several tactics over years to stay as a leading pharmaceutical company. Lipitor Is one of the best example illustrating how Pfizer manages to sale more branded during its patent and continues the same even after it lost its patent in December 2011.
• Advertising directly to consumers during patent years to boost the usage from 2000 to 2010.
• Pfizer introduced coupons for patients and paid good rebates to insurer and PBM’s as an incentive for continuous use of branded drug even after the launch of generic. Thereby continuing sales roughly 3 times more than expected when a drug loses patent protection.
• During the last year of patent protection Pfizer increased the drug price while it was still under patent from $1,290 per patient/year in 2006 to $1,939 in 2011.
• Pfizer not only paid Ranbaxy to delay its launch of initial generic for Lipitor but also launched a generic via Watson, sharing 70% of its Lipitor related profits (1).
Pfizer aims for success by operating in a fair and ethical manner. Pfizer emphasizes ethical behavior in all of their affairs, and language associated with ethical behaviors is part of the company’s overall culture. All of the company’s dealings are to be conducted with honesty and integrity.
Code of Conduct:
It’s foremost responsibility of an employee to abide by the company’s policy on code of conduct. Pfizer’s policies on business conduct, first written more than 20 years ago, are reviewed annually to ensure they meet...