As Pfizer and Johnson & Johnson were among the top ten companies, the total revenue generated in 2016 is equivalent to 5.2 percent of the market value. Firstly, as Pfizer, Inc, the world’s second largest pharmaceutical company, the New York City-based company only had generated approximately 53 billion US dollars of the total revenue. This reflects the vulnerability of Pfizer towards the local economy because the major production of well-known drugs were carried out within US such as Lipitor, Lyrica, Enbrel and Viagra. In addition, with an extensive level of research and development within and outside of US, Pfizer is exposed to global economy where 60 percent of its total revenue, almost 26.4 billion dollars were generated from abroad. To illustrate, Pfizer has over 500 subsidiaries including research and developments departments and manufacturing companies and also with the total 98,000 employees in operations throughout the world. Due to Pfizer operates internationally, Pfizer faces foreign exchange risk, geographic risk, and also legal risk. The exposure of foreign risk was due to over 60 percent of Pfizer’s total revenue is from non-U.S. markets. Pfizer able to reduce its geographic risk by operating globally, so any changes of economic condition of one market would not affect others and also Pfizer is vulnerable to legal risks such as patent rights and trademarks. With having drug manufacturing as their core business, the company faces many legal issues related to
As Pfizer and Johnson & Johnson were among the top ten companies, the total revenue generated in 2016 is equivalent to 5.2 percent of the market value. Firstly, as Pfizer, Inc, the world’s second largest pharmaceutical company, the New York City-based company only had generated approximately 53 billion US dollars of the total revenue. This reflects the vulnerability of Pfizer towards the local economy because the major production of well-known drugs were carried out within US such as Lipitor, Lyrica, Enbrel and Viagra. In addition, with an extensive level of research and development within and outside of US, Pfizer is exposed to global economy where 60 percent of its total revenue, almost 26.4 billion dollars were generated from abroad. To illustrate, Pfizer has over 500 subsidiaries including research and developments departments and manufacturing companies and also with the total 98,000 employees in operations throughout the world. Due to Pfizer operates internationally, Pfizer faces foreign exchange risk, geographic risk, and also legal risk. The exposure of foreign risk was due to over 60 percent of Pfizer’s total revenue is from non-U.S. markets. Pfizer able to reduce its geographic risk by operating globally, so any changes of economic condition of one market would not affect others and also Pfizer is vulnerable to legal risks such as patent rights and trademarks. With having drug manufacturing as their core business, the company faces many legal issues related to