Swot analysis of Pfizer. Pfizer Inc. is a pharmaceutical US multinational company. Charles Pfizer and Charles F. Erhart were the founders of Pfizer, and they laid the foundation of the pharmaceutical brand in 1849. The headquarter of the company is at 235 East 42nd Street, New York, NY 10017, USA.
Pfizer’s main products and services are animal health, pharmaceutical, contact lenses, generic drugs, diagnostics, vaccines, over-the-counter-drugs, Celebrex, Viagra, Zithromax, Diflucan, antidepressant, Zoloft, Blockbuster drug, and many more.
According to an estimate, the annual revenue of Pfizer in 2020 was 41.908 billion dollars. Out of which, the net income of the country was 9.165 billion dollars. The pharmaceutical brand has employed over 88300 employees across the world.
Today, we’ll discuss the swot analysis of Pfizer. It’s going to analyze the internal and external factors impacting one of the world’s largest pharmaceutical companies. Here’s the swot analysis of Pfizer;
Strengths of Pfizer
Response to Pandemic
Pfizer had a remarkable and quick response to the development of the vaccine for covid-19, and then its mass production and distribution across the globe. Many experts and analysts in the pharmaceutical industry are saying that Pfizer’s vaccine got approval much quicker than any other brand in the history of vaccines.
Pfizer is a well-established brand name and people recognize it from across the globe. It’s because the medicine brand has produced some of the most famous products over the years. Nexium24HR, EpiPen, Xanax, Viagra, and Advil are some of the tops.
Pfizer has been in the pharmaceutical industry for more than 170 years since 1849. It has evolved and transformed from a small shop to a multinational corporation. It was two entrepreneurs and they laid the foundation of the medical business.
Research & Development
Research and development is the key area in the pharmaceutical industry. According to an estimate, Pfizer has an annual R & D budget of over 8 billion US dollars. It’s the world’s highest expense in the medical industry. It’s because the brand is developing medicines and vaccines in various fields like neurology, cardiology, oncology, and immunology.
According to an estimate, the market capitalization of Pfizer is 194 billion US dollars in 2021, and the company has an annual sale of 50 billion dollars. However, the pharmaceutical brand was the world’s 2nd largest company in terms of profit and revenue.
According to an estimate, the market value of Pfizer in 2021 is 203 million dollars. It ranks at the 64th position in the list of Fortune 500 companies. It falls under the category of the world’s largest pharmaceutical company.
Weaknesses of Pfizer
Limited Supply of Vaccines
Pfizer has been failing to meet the demand of the covid-19 vaccines; especially it happened at the end of 2020 with initial doses. That’s why it has prompted Congress to reevaluate its vaccine delivery and distribution plans. It’s because the company has received billions of dollars of funding from the federal government to mass-produce the vaccines.
Pfizer has had to deal with thousands of lawsuits over the issue of medical injuries caused by its medical products. In fact, the company has the record of paying the highest fine in the medical industry. For instance, the judge ordered the brand to pay a penalty of 2.3 billion dollars over the claim of illegal marketing practices.
Opportunities available to Pfizer
Merger & Acquisition
Pfizer has a long history of building partnerships, acquisitions, and mergers over the years. For instance, the company has recently merged its Upjohn department with Mylan MV. The goal of the brand is to proliferate the growth of the Upjohn division that hasn’t been performing well.
Many hospitals in the UK have found evidence that the Pfizer vaccine of covid-19 is four times decreasing the symptoms of covid-19 infections. Cambridge University Hospitals NHS Foundation Trust has also conducted a study, and its peer review is yet to support the earlier observed evidence.
Approval of Vaccine
The Strategy Group of Experts (SAGE) of WHO on immunization has recently recommended that the BioNTech mRNA vaccine of covid-19 is safe and effective. The approval and recommendation from the SAGE is a great promotion to the company’s product.
Pfizer made an alliance with BioNTech at the beginning of 2020 when the covid-19 was spreading across the globe. Both companies developed a vaccine at the end of 2020 and it received approval within a week. However, FDA permitted the mass distribution of vaccines across the US. The company is yet to meet the target of worldwide distribution.
Threats Pfizer has to face
Pfizer is facing the severe of mass production and mass distribution of the vaccine since it has a great demand in the market. Now the management has to make a choice of prioritizing which country should receive the vaccines along with the government policies.
The covid-19 vaccine developed by Pfizer has caused some of the worst allergic reactions in some people. Medical experts are suggesting that it’s because of polyethylene glycol (PEG). It has never been used in any of the approved drugs. PEG triggers anaphylaxis attacks.
Allele Biotechnology has filed an IPR lawsuit against both Pfizer and BioNTech claiming that the companies were testing the vaccines that were developed by mNeonGreen Fluorescent protein of Allele. However, many also claim that the companies never applied for the license.
The profitability of Pfizer has decreased to a great extent when the patent of Fibromyalgia and Lyrica expired. FDA gave the permission of generic products to the 9 other companies. The sale of generic products increased exponentially when they entered the customer market. That’s they the ranking of Pfizer dropped in the Fortune 500 list.
Conclusion: Pfizer Swot Analysis
After an in-depth study of the swot analysis of Pfizer, we have concluded that Pfizer is one of the world’s largest pharmaceutical companies. The expiration of patents, generic products, allergic reactions, and lawsuits are some of the top challenges. Pfizer should utilize its brand name and resources to further develop the vaccine and keep an eye on the expiration dates of patents.