Essay on Pfizer Case Analysis

1571 Words Oct 28th, 2012 7 Pages
1) After spending years of effort to integrate Warner Lambert and Pharmacia into Pfizer, should its management have avoided another huge acquisition like Wyeth? Should Pfizer have gone after smaller bio tech firms in a series of small acquisitions in 2008 and 2009? A number of these bio tech firms could have been acquired for the $68 billion price of the huge Wyeth acquisition. Present arguments for and against buying several small firms versus one large firm.

In my opinion, when it comes to the option of bigger or smaller firm acquisition, Pfizer should have invested in a large acquisition like wryeth. This is because Pfizer’s focus is not really on how many firms it can acquire but proceeds and profit margins these acquisitions can
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Lastly Pfizer anticipates cost reductions of up to 4m from the large acquisitions it has invested in with a combination of the acquired firms with wyreth included.

However, Pfizer could also consider biotech firms on grounds that many consumers are moving further away from chemical drugs and towards bio tech ones.

Added to this bio tech firms can be a good acquisition for Pfizer to increase its diversity.

Over roll, I suggest Pfizer invests in a large firm with good customer worth product lines that can bring in larger sales as compared to smaller firms because profits matter more than number of acquisitions.

However a better alternative could be for Pfizer to concentrate on marketing already researched drugs as this has been a huge success for the company thus far even leading to scrutiny for dropping marketing of Excubera and this could also help it reduce its long term debt while increasing cash flow.

2) Why is it that Pfizer’s labs were not so productive at turning out successful drugs after the major acquisitions of Warner Lambert in 2000 and Pharmacia in 2003? How could these integration efforts harm Pfizer’s own research efforts?

Pfizer’s inability to produce successful drugs after the major acquisitions can be attributed to the fact that the company was more focused on integrating these acquisitions and lacked focus on developing new products. According to
Simon 2007, Pfizer’s labs “laced focus for too

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