ase Synopsis Founded more than 170 years ago in Brooklyn, New York, Pfizer is one of the largest pharmaceutical companie

[answerhappygod]

ase Synopsis
Founded more than 170 years ago in Brooklyn, New York, Pfizer is
one of the largest pharmaceutical companies in the world. It
produces some of the best-known brand-name drugs, including
Lipitor®, Lyrica®, Viagra®, Xeljanz®, Celebrex®, EpiPen®, and even
Advil®, Robitussin®, and ChapStick®. Despite its long-term
international success, the firm has struggled in recent
decades.
The legal, political, and socioeconomic segments of the external
environment have combined to pose serious threats for Pfizer and
other big pharma companies. Bringing a new drug to market can cost
billions of dollars in R&D, and Pfizer’s biggest successes have
averaged close to $8 billion, largely due to the extensive testing
required by the Food and Drug Administration. When a drug is
finally approved, the firm only has about 10 years left on the
patent, which means it must recoup its R&D costs in a
relatively short amount of time. Thus, the cost of prescription
drugs is quite high. Added to that, firms such as Pfizer and others
need to continue to drive revenue, so they often boost drug prices
even higher. These practices have the vast majority of consumers up
in arms, and even President Trump has spoken out against this
situation.
As an alternative route to securing new drugs and other medical
technologies, Pfizer has made a number of important acquisitions,
on average every 18 months or so. These acquisitions have enabled
the firm to move into growth areas in the pharmaceutical field,
although some analysts predict that there are no truly breakthrough
categories of drugs left to be developed. Pfizer has also made two
attempts to merge with competitors—AstraZeneca and Allergan—with
the intention of relocating Pfizer headquarters in a foreign
country where it will be subject to lower taxes. However, both
attempts have fallen through.
When Ian Read, a Pfizer “lifer,” assumed the position of CEO in
2010, he made some significant changes. He restructured the firm
into two main divisions: Established Products and Innovative
Products. The Innovative Products category was further subdivided
into the Global Innovative Pharma and Global Vaccines, Oncology,
and Consumer Healthcare businesses. He also undertook a change in
organizational culture with a strong emphasis on accountability. To
communicate this message, he had cold coins made with the words
“Straight Talk” on one side and “OWNIT!” on the other. OWNIT! has
since become an empowering aspect of Pfizer’s culture.
Pfizer seems to be challenged on all sides, pressured to produce
innovative products, please shareholders, meet legislative demands,
and assuage consumers who are outraged at the high cost of
prescription medication.
Describe two ways in which Pfizer has gained access
to innovative drugs and other medical technologies. What challenges
do you suppose the firm has faced in pursuing each of these
strategies?