Download Pfizer - Building The Pride

Tyrannosaurus
Rx

Sabrina George

Sheliah Vink

Katherine King
Company Profile
Pfizer/Merck
Pfizer

Research-based

Technologyintensive products

Three business
segments
Merck

Global researchdriven

Broad range of
products

Benefit
services
Market Info on
Pfizer
 Trading
at 43 3/16
 Market
Capital is
$272,674.02 million
 59.7%
of shares held by
institutions
Market Info on Merck

Trading at 89 15/16

Market Capital
$206,904.38
million

53.8% of shares
held by institutions
Net Income

Pfizer $3,179 million
(1999)

Merck $5,891 million
(1999)
Pfizer vs. Merck
“Two of the world’s drug titans are
facing off in a war for dominance -and their strategies couldn’t be more
different. In the end, the presidential
election may decide who wins.”
Fortune Magazine
Lee Clifford
Pfizer
 American
Home Products / Warner
Lambert situation
 Overbid
AHP by more than $10 billion
“Partner of Choice”

Pfizer earned this
nickname by
promoting drugs for
smaller companies
“Predator Of Choice”
o Pfizer earned this
new nickname
after the merger
with WarnerLambert
Merck’s Medco Subsidiary
•
More than 370
million products
delivered yearly
•
On-line pharmacy
business
Merck-Medco
Contracts from
unions, corporations,
insurance carriers,
and HMO’s
Three $80 million
high-tech
pharmacies
Medco’s Training
o
Sensitivity
training for
service reps
includes
cotton
stuffed in
ears, gloves
and vaseline
on glasses.
Strategies
Pfizer’s Strategy
 “Free-spending,
free marketer”
 Unregulated
healthcare
environment
Merck’s Strategy
 Getting
deeper into
managed care
 Medicare
reform
 “far-reaching
inescapable
HMO”
Who Will
Dominate?
Pfizer’s
Competitive Edge

“Marketing
machine”

20,000 sales
reps

Spends 39% of
revenue on
sales and
marketing
Merck’s Competitive Edge
Embracing
managed
care
o Concern for
uncovered
seniors
o
o
Employee
amenities.
Making A Deal With The Devil
 Irked independent pharmacists
 Limited distribution of Fosamax
 An equity stake in CVS ProCare
 Medco’s Your Plan program
Merck’s View
Controlling the means of
distribution would be a
critical advantage in an
environment more hostile
to profits.
Pfizer’s View
“Pfizer is clearly betting that the
medical environment doesn’t
change that much-that people
will continue to pay up for
drugs.”
Sales Force
Pfizer’s Sales Force
o 20,000 sales reps
o Each rep averages
459 visits to doctors
o Very aggressive
approach
Merck’s Sales
Force

11,000 sales reps

Salespeople are
“collegial,”
“responsible,” and
“less aggressive”
Political Effects
Bush Administration
Pfizer benefits
Merck suffers
Gore Administration
 Merck
profits
 Pfizer
takes a
dive
Conclusion
Which one is better?

Based on election

Our vote is for
Merck
Thank You!
Don’t
forget to
vote