Industry & Company Profile

Industry and Company Profile
Industry: Pharmaceutical Preparation Manufacturing

Companies: Johnson & Johnson and Pfizer Inc. SIC Code: 2834; NAICS Code: 325412
Mike S Pena
MGMT 1100-01 Fall 2012
Reasoning for Industry Selection:

Pharmaceutical products have been in my life since the beginning of time. I remember depending on them to survive when I had pneumonia. I also depended on them when I suffered from seizures and when I had to deal with my pain after my meniscus repair surgery. Pharmaceutical products have also been around the lives of my loved ones. My four year old brother once greatly depended on them as a result of his poor nutrition and my grandmother usually consumes six to seven pills a day to control all her different types of pain. After analyzing some of the categories from which we could select an industry, I realized that I wanted to learn more about how these pharmaceutical companies research, develop, and sell their products and how they benefit from our consumption. As a student of the Lally School of Management and Technology at Rensselaer Polytechnic Institute, analyzing such a big industry would also provide me with a good insight into how the macroeconomic environment affects an economy. Also, both Pfizer Inc. and Johnson & Johnson are top-of-the-line international companies and by researching their operations I would acquire an insight into how the pharmaceutical industry operates, not only in the United States (U.S.), but also around the world.
Industry Company Profile
Fall 2012
Table of Contents
Industry Profile.Page 3 Company Profiles...Page 37 Johnson & Johnson...Page 37 Pfizer Inc.Page 55 Personal Thoughts.Page 90 Appendices..Page 91 Appendices for Johnson & Johnson ...Page 91 Appendix A0Page 91 Appendix A1....Page 91 Appendix A2Page 92 Appendix B1....Page 92 Appendix B2....Page 93 Company HistoryPage 94 Appendices for Pfizer Inc......Page 99 Appendix A0Page 99 Appendix A1....Page 99 Appendix A2..Page 100 Appendix B1..Page 101 Appendix B2..Page 101 Company History..Page 102 Appendix C: Relevant Financial Ratios...Page 107 Appendix D: History of the Pharmaceutical Industry......Page 110 Endnotes...Page 139
Mike S Pena
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Industry Profile:i
Industry Name:
SIC Code 2834: Pharmaceutical Preparations NAICS Code 325412: Pharmaceutical Preparation Manufacturing
Overview of Industry:
Since World War II, which established the American drug industry on a permanent footing, pharmaceutical firms have enjoyed a high level of profitability. The discovery and development of dozens of life-saving medications in company research labs created enormous demand for pharmaceuticals, while patent protection and sophisticated marketing structures maintained sales and profits. The high cost of drug development and marketing, though, tended to concentrate industry earnings in several large firms. Pharmaceutical manufacturers produce a wide range of products for human and veterinary treatment. The majority of these firms' products are produced in final form for consumption such as ampoules, tablets, capsules, vials, ointments, medicinal powders, solutions, and suspensions. Industry output consists of two important lines. Pharmaceutical preparations promoted primarily to the dental, medical, or veterinary professions are called "ethical" drugs or prescription drugs. Those sold openly to the public are usually described as "over-the-counter" (OTC) drugs. Industry firms may also produce therapies derived from genetic engineering or related biotechnology processes. Because there are numerous specialties within the industry such as, numerous forms of cancer, AIDS, hypertension, cholesterol, and neurological drugs, many of the leading producers may at first only compete with one or two others on a product-by-product basis. This pattern partially derives from the enormous research costs usually involved with producing a new drug, a reality that has led many drug makers to specialize in few therapeutic fields. The pharmaceutical industry is one of the world's most dynamic and lucrative in terms of sales volume. Despite rising pressure from government agencies and employers to lower drug prices, worldwide pharmaceutical spending increased 11 percent in 2003. According to IMS Health, a company which provides market intelligence to the pharmaceutical and health care industries, that year, spending totaled an approximate of US$500 billion. Of this total, US$230 billion was attributed to the United States and Canada. By 2006, reports stated that the global spending on prescription drugs topped US$643 billion, with the U.S. accounting for nearly half the global market with US$289 billion in annual sales. The European Union and Japan followed the U.S. in the global pharmaceutical market. A source of continuing vigilance within the industry is the expiration of brand-name patents. While laws vary by country, in most world markets a new drug may be patented (produced exclusively by its originator or firms authorized by the patent holder) for a fixed term. After the term expires, which is sometimes as long as 17 years, the compound is open to generic competition, and therefore, market forces usually bring prices down substantially from the levels obtained during the founding company's monopoly. In developing countries, they have the option of proving a substantial need that can override Mike S Pena penam2@rpi.edu Page 3
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the patent issue and obtain cheaper versions of the drugs on a need basis. Pharmaceutical companies often offer the necessary drugs at no cost or a greatly reduced cost to developing countries in need. Another key issue for the industry is controlling the cost and duration of research and development (R&D). A rising share of company sales are guided towards R&D, and development times have also been rising. The U.S. industry, the world's largest, averages 10 to 15 years to bring a new drug to the market. This is the key reason pharmaceutical companies are granted limited-term patents to exclusively produce and market their new drug in order to regain their cost of the R&D. As a result, a number of major firms engage in resource-sharing schemes such as joint ventures with other companies or undertake internal restructuring to arrive at a more cost-efficient workflow. Pharmaceutical consultants also influence companies towards obtaining a better data management that could eventually optimize current production and reduce inventory. A continuing trend in this industry was the increasing percentage of marketing targeted directly to consumers. For example, drug makers spent an estimated US$2.27 billion in 2000 on consumer advertising, an increase of 41 percent from 1999. According to a study by Harvard University and MIT, a 10 percent increase in direct-to-consumer advertising resulted in a 1 percent increase in sales. Additionally in the pharmaceutical industry, there are two recent trends that might affect the global market. The first one is related to Japanese price cuts encouraging drug makers to branch out into new directions and markets. The second trend involved global countries traditionally focused on brand name drugs reaching toward new industries to balance lagging sales. This includes producing generic drugs or even partnering with other companies to reduce the costs associated with research and development. The industry has shown consistent and substantial growth over the previous five years, and is expected to continue to grow. Despite the economic downturn of the early 2000s, the pharmaceutical industry has remained robust. The aging population of the United States bodes well for the industry as prescription drug purchases are expected to increase significantly in the coming years.
History of Industry: Please see Appendix D for a complete history of the Pharmaceutical Preparation
Manufacturing Industry
Global Sales and Profits (Aggregate Data):

The global pharmaceuticals market is worth US$300 billion a year, a figure expected to rise to US$400 billion within three years. The 10 largest drugs companies control over one-third of this market, several with sales of more than US$10 billion a year and profit margins of about 30%. Six are based in the United States and four in Europe. It is predicted that North and South America, Europe and Japan will continue to account for a full 85% of the global pharmaceuticals market well into the 21st century. Companies currently spend one-third of all sales revenue on marketing their products - roughly twice what they spend on research and development. Both brand name and generic pharmaceutical products are sold to similar markets with the primary difference being the total revenue generated. In 2012, the sale of brand name pharmaceuticals is estimated Mike S Pena penam2@rpi.edu Page 4
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to generate $156.3 billion in revenue whereas the sale of generic pharmaceuticals will generate $52.8 billion. The top three classes of drugs based on spending in 2010 were oncologist (cancer drugs), respiratory agents, and lipid regulators. Over the past five years, Lipitor ($7.2 billion) and Nexium ($6.3 billion) have been the number one and two top selling drugs in terms of healthcare spending in the United States. Since the last recorded record, there has been an exponential increase in the revenues of the industry and all of the companies. Data Highlights: All data comes from the following Business & Company Resource Center webpage, unless otherwise noted: http://galenet.galegroup.com.libproxy.rpi.edu/servlet/BCRC?vrsn=unknown&rcd=sic&locID=nys l_ca_rpi&srchtp=ind&c=1&icd=4841&iType=sic&mode=i&ste=69&tbst=tsIS&cind=4841++Cable+and+Other+Pay+Television+Services&tab=1&n=25&bConts=16163 The following table shows the Fortune 500 ranking of the companies in the industry: Revenues Rank 1 2 3 4 5 6 7 8 9 10 11 12 Company Pfizer Johnson & Johnson Merck Abbott Laboratories Eli Lilly Bristol-Myers Squibb Amgen Gilead Sciences Mylan Allergan Biogen Idec Celgene $ millions 67,932.00 65,030.00 48,047.00 38,851.30 24,286.50 21,244.00 15,582.00 8,385.40 6,129.80 5,419.10 5,048.60 4,842.10 % change from 2010 0.20 5.60 4.50 10.50 5.20 9.00 3.50 5.50 12.50 10.20 7.00 33.50 Profits $ millions 10,009.00 9,672.00 6,272.00 4,728.40 4,347.70 3,709.00 3,683.00 2,803.60 536.8 934.5 1,234.40 1,318.20 % change from 2010 21.20 -27.50 628.50 2.20 -14.20 19.60 -20.40 -3.40 55.50 155,650.00 22.80 4.00
The following table shows the revenues by industry: Year 2010 Mike S Pena Industry Pharmaceutical Preparation Manufacturing $1,521,290,200,000 penam2@rpi.edu Page 5
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2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
$1,402,575,200,000 $1,277,580,600,000 $1,145,424,600,000 $932,875,300,000 $915,885,100,000 $770,901,300,000 $674,977,600,000 $679,286,900,000 $533,872,500,000 $459,467,100,000
The following chart shows the revenues by industry:
The following table shows the revenues by company: Year Company Johnson and Johnson Novartis AG Bayer Ag $65,030,000,000 $58,600,000,000 $49,798,600,000 $61,587,000,000 $50,624,000,000 $61,897,000,000 $44,267,000,000 $63,747,000,000 $43,740,000,000 $61,095,000,000 $38,947,000,000 $53,324,000,000 $36,749,000,000 $50,514,000,000 $32,212,000,000 penam2@rpi.edu Merck and Company Inc. $48,057,000,000 $45,987,000,000 $27,428,300,000 $23,850,300,000 $24,197,700,000 $22,636,000,000 $22,011,900,000 Page 6
Pfizer Inc. 2011 $67,425,000,000 2010 $67,809,000,000 2009 $50,009,000,000 2008 $48,296,000,000 2007 $48,418,000,000 2006 $48,371,000,000 2005 $47,405,000,000 Mike S Pena
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2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990
$52,516,000,000 $44,736,000,000 $32,373,000,000 $29,024,000,000 $26,045,000,000 $16,204,000,000 $13,544,000,000 $12,504,000,000 $11,306,000,000 $10,021,400,000 $8,281,300,000 $7,477,700,000 $7,230,200,000 $6,950,000,000 $6,406,000,000
$47,348,000,000 $41,862,000,000 $36,298,000,000 $32,317,000,000 $29,172,000,000 $27,471,000,000 $23,657,000,000 $22,629,000,000 $21,620,000,000 $18,842,000,000 $15,734,000,000 $14,140,000,000 $13,753,000,000 $12,447,000,000 $11,232,000,000
$28,247,000,000 $24,864,000,000 $23,151,000,000 $19,070,000,000 $21,832,000,000 $19,979,000,000 $31,702,000,000
$22,900,000,000 $22,485,900,000 $21,445,800,000 $21,199,000,000 $40,363,200,000 $32,714,000,000 $26,898,000,000 $23,636,900,000 $19,828,700,000 $16,681,100,000 $14,969,800,000 $10,498,200,000 $9,662,500,000 $8,602,700,000 $7,672,000,000
The following chart shows the revenues by company:
The following table shows the sales per employee by industry: Industry Pharmaceutical Preparation Manufacturing $437,551
Mike S Pena
penam2@rpi.edu
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The following chart shows the sales per employee by industry:
The following table shows the sales per employee over time by industry: Year 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 Industry Pharmaceutical Preparation Manufacturing $426,110 $406,567 $416,531 $397,518 $345,373 $357,390 $323,272 $306,259 $327,926 $290,071 $333,227
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The following chart shows the sales per employee over time by industry:
Global Employment/Workforce:
The Business & Company Resource Center webpage indicates that there are 1235 companies in the Pharmaceutical Preparation Manufacturing industry that employ about 3 million workers. Since the last recorded record, there has been an exponential increase in the workforce. Data Highlights: All data comes from the following Business & Company Resource Center webpage, unless otherwise noted: http://galenet.galegroup.com.libproxy.rpi.edu/servlet/BCRC?vrsn=unknown&rcd=sic&locID=nys l_ca_rpi&srchtp=ind&c=1&icd=4841&iType=sic&mode=i&ste=69&tbst=tsIS&cind=4841++Cable+and+Other+Pay+Television+Services&tab=1&n=25&bConts=16163 The following table shows the number of companies by industry: Number of Companies Industry Pharmaceutical Preparation Manufacturing 1,235
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The following chart shows the number of companies by industry:
The following table shows the number of companies over time by industry: Year 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 Industry Pharmaceutical Preparation Manufacturing 1,998 1,997 1,777 1,692 1,332 1,238 1,153 1,045 1,166 907 615
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The following chart shows the number of companies over time by industry:
The following table shows the number of employees by industry: Number of Employees Industry Pharmaceutical Preparation Manufacturing 3,237,669
The following chart shows the number of employees by industry:
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The following table shows the number of employees by industry: Year 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 Industry Pharmaceutical Preparation Manufacturing 3,570,185 3,449,799 3,067,190 2,881,443 2,701,069 2,562,704 2,384,684 2,203,943 2,071,467 1,840,486 1,378,841
The following chart shows the number of employees by industry:
Global Regulations:
Regulation in the United States:
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The Food and Drug Administration makes or breaks this industrys potential for sales. The FDA must give approval to market the product in the U.S. The U.S. rigorous approval process is respected around the world and in many countries approval by the FDA is enough to approve a product in a foreign country. In order to get marketing approval for a drug, a drug company must show it is safe for human consumption through animal and human testing. A drug company must also prove it is effective for the illness it intends to alleviate. The FDA does not mandate a particular methodology. The scientific community has established a four Phase method for establishing the effectiveness. Phase I Animal and toxicity studies. Phase II Investigational New Drug Application is filed to test in small numbers of humans and allow the transportation of unapproved drugs. These trails usually involve a few hundred patients. These trials will also involve determining the most effective dosage for the Phase III trial. Phase III Large scale trials are conducted involving thousands of patients to prove the product is effective against a specific disease. Human trial subjects must provide consent to be part of the experimental group. The results must be statistically valid and include the determination of side effects that may exist in the general population. During this phase pharmacoeconomic data is generated. Pharmacoeconomic data involves the costs involved in using the product versus standard current treatment, competitor products or non-treatment options. The information is used for insurance and government reimbursement purposes. If insurance plans or government reimbursement is available, the drug will suffer in the market place. Phase IV Post approval marketing testing. These types of trials are conducted to generate marketing data that will be used in the competitive market. The trials usually involve one or more competitor products. The Environmental Protection Agency (EPA) is involved in insuring the disposal of unused products and waste material as biological hazardous waste. Regulation in Western Europe: A pharmaceutical product can only be placed on the market in the European Union and the broader European Economic Area (EEA) when one of certain conditions are met: When an authorization has been granted by the European Commission via the centralized procedure (Community authorization) for all EU markets. When a marketing authorization has been granted by the competent authority of a Member State for its own territory (national authorization, which can be the subject of mutual recognition between Member States).
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When an authorization has been granted through a decentralized procedure. The marketing authorization holder must be established within the EU or the EEA.
The centralized procedure was established in 2005 following the revision of EU pharmaceutical legislation in 2004. This procedure includes an application by the developer of a new pharmaceutical product to the European Medicines Agency (EMA) which is responsible for the scientific evaluation of the safety, efficacy and quality of the new product. Since the adoption of new EU pharmaceutical legislation, regulators have adapted their science to the fast pace of biotechnological advancements. The regulatory framework plays an important role in bringing fast access to innovative medicines. Recent reflections on (re-) new(ed) regulatory processes, such as accelerated assessment or progressive approvals, pave the way to even faster approvals. This benefits innovation and patients. Regulation in Japan: When the Japanese health care system was originally established in 1961, it was appropriately designed to serve a young population with greater needs for acute rather than chronic care. As the population aged, and Japans economic growth slowed, the Japanese Government began to look for ways to reduce health care costs. For example, beginning in September of 1997, patients faced higher insurance copayments, a move the Government hoped would curb demand for medical products and services. However, sufficient change could not be affected through modifications to the established system, and the MHW mandated a reform plan to incorporate several objectives. A formal health care reform bill was made in the spring of 1999, which established clear delineations in insurance programs for old versus young patients and acute versus chronic conditions. The pharmaceutical pricing system in Japan is based on set reimbursement prices, which are paid to health care providers for products disbursed, and the actual prices charged by wholesalers for those products. The difference between these two prices is a profit for the physician, a system which encourages excessive prescribing and negotiations of discounts from the wholesalers. The Government has undertaken certain measures to mitigate these factors, such as setting the reimbursement price as a percent of the physicians actual price and reducing reimbursement prices when the number of prescriptions exceeds a predetermined limit. Nonetheless, the history of reimbursement pricing has played a significant role in shaping the innovative pharmaceutical industry. Regulatory authorities: The following list includes some of the regulatory authorities of the pharmaceutical industry around the world: International Conference on Harmonisation of Technical Requirements for Registration of Pharmaceuticals for Human Use (ICH) European Medicines Agency (EMEA) penam2@rpi.edu Page 14
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Therapeutic Goods Administration (Australia) (TGA) U.S. Food and Drug Administration (FDA) Ministry of Health, Labour and Welfare (Japan) Medicines and Healthcare products Regulatory Agency (MHRA) Central Drugs Standards Control Organisation (India) (CDSCO) Ukrainian Drug Registration Agency Medicines Authority (Malta)
Global Standards:
The quality of pharmaceuticals has been a concern of the World Health Organization (WHO) since its inception. The setting of global standards is requested in Article 2 of the WHO Constitution, which cites as one of the Organizations functions that it should develop, establish and promote international standards with respect to food, biological, pharmaceutical and similar products. Every government allocates a substantial proportion of its total health budget to medicines. This proportion tends to be greatest in developing countries, where it may exceed 40%. Without assurance that these medicines are relevant to priority health needs and that they meet acceptable standards of quality, safety and efcacy, any health service is evidently compromised. In developing countries considerable administrative and technical effort is directed to ensuring that patients receive effective medicines of good quality. It is crucial to the objective of health for all that a reliable system of medicines control be brought within the reach of every country.
Industry Related Professional and Trade Associations:

The following list includes some of the industry related Professional and Trade Associations around the world: American Association of Colleges of Pharmacy (AACP) 1426 Prince Street Alexandria, Virginia 22314-2841 Tel: (703) 739-2330 Fax: (703) 836-8982 http://www.aacp.org Founded in 1900, the American Association of Colleges of Pharmacy (AACP) is the national organization representing the interests of pharmaceutical education and educators. Comprising all 82 U.S. pharmacy colleges and schools including more than 4,000 faculty, 36,000 students enrolled in professional programs, and 3,600 individuals pursuing graduate study, AACP is committed to excellence in pharmaceutical education. American Association of Pharmaceutical Scientists (AAPS) 2107 Wilson Blvd, Suite 700 Arlington, VA 22201-3046 Mike S Pena penam2@rpi.edu
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Tel: 703 243 2800 Fax: 703 243 9650 Email: aaps@aaps.org AAPS Pharmaceutica is the Web portal for the American Association of Pharmaceutical Scientists (AAPS), a professional, scientific society of more than 10,000 members employed in academia, industry, government and other research institutes worldwide. Founded in 1986, AAPS aims to advance science through the open exchange of scientific knowledge, serve as an information resource, and contribute to human health through pharmaceutical research and development. American Pharmaceutical Association (APhA) 2215 Constitution Avenue, NW Washington, DC 20037-2985 Tel: (202) 628-4410 Fax: (202) 783-2351 http://www.aphanet.org/ The American Pharmaceutical Association (APhA), the national professional society of pharmacists, was founded in 1852 and is the first established and largest professional association of pharmacists in the United States. The more than 50,000 members of APhA include practicing pharmacists, pharmaceutical scientists, pharmacy students, pharmacy technicians, and others interested in advancing the profession. The Association is a leader in providing professional information and education for pharmacists and an advocate for improved health of the American public through the provision of comprehensive pharmaceutical care. The Association of Independent Research Institutes (AIRI) P.O.Box 844 Westminster, MD 21158 Tel: (410) 751-8900 Fax: (410) 751-2662 http://www.airi.org/ The Association of Independent Research Institutes (AIRI) is a nationwide association of eighty-eight (88) independent, not-for-profit research institutes. These institutes are an integral part of the United States research community. Their scientists, who include nine Nobel laureates, perform outstanding research as judged by peers and funding agencies, and they train both graduate and postdoctoral students. These institutions, an important complement to university-based research, provide an environment that many scientists find preferable and more productive. Australian Pharmaceutical Manufacturers Association (APMA) Level 7, 88 Walker St North Sydney NSW 2060 Tel (02) 9922 2699 Mike S Pena penam2@rpi.edu Page 16
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Fax (02) 9959 4860 http://www.apma.com.au/index.html The APMA is the non-profit professional and trade association of Australia's prescription pharmaceutical industry. Its member companies are engaged in the research, development, manufacture, marketing and export of prescription pharmaceuticals, and the ongoing improvement of medical and scientific knowledge about its products. Canada's Research-based Pharmaceutical Companies 55 Metcalfe Street, Suite 1220 Ottawa, Ontario K1P 6L5 Tel.: (613) 236-0455 Reception Fax: (613) 236-6756 http://www.canadapharma.org/ Canada's Research-based Pharmaceutical Companies is the national association representing the 20,990 Canadians who work for this country's 61 research-based pharmaceutical companies. Each member company shares a single primary objective: to discover new medicines which improve the quality of health care available for every Canadian. Comprised of companies of all sizes, the Association's membership is part of the global pharmaceutical industry whose members are responsible for developing in excess of 90% of the medicines that are available today. The Coalition for the Advancement of Medical Research (CAMR) 1400 I St., NW, Suite 530 Washington, DC 20005 http://www.stemcellfunding.org/fastaction/ The Coalition for the Advancement of Medical Research (CAMR) is comprised of universities, scientific societies, patients' organizations, and other entities that are devoted to ensuring that federal funding will be available for stem cell research using fertilized eggs developed for in vitro fertilization and that the current federal guidelines overseeing the research are retained. Council for Chemical Research (CCR) 1620 L Street NW #620 Washington, DC 20036 Phone: 202-429-3971 Fax: 202-429-3976 http://www.ccrhq.org The Council for Chemical Research (CCR) is an organization based in Washington, D.C., whose membership represents industry, academia, and government. CCR was formed in 1979 to promote cooperation in basic research and encourage high quality education in the chemical sciences and engineering. The mission of the CCR is to enhance research in chemistry-based sciences, engineering, and technology that benefits society and the national well-being, through productive interactions among Mike S Pena penam2@rpi.edu Page 17
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industrial, academic, and governmental research sectors. CCR's membership represents most of the U.S. chemical research enterprise, currently comprising more than 200 companies, universities, and government laboratories with a combined R&D budget of more than $7 billion. Drug Information Association 800 Enterprise Road, Suite 200 Horsham, PA 19044 Tel: 215 442 6100 Fax: 215 442 6199 Website: http://www.diahome.org The DIA (Drug Information Association) is a non-profit, multi-disciplinary, member-driven scientific association with a membership of over 22,000. These members are primarily from the regulatory agencies, academia, contract service organizations, pharmaceutical, biological and device industry, and from other health care organizations. International Society for Pharmaceutical Engineering (ISPE) ISPE Headquarters 3816 W. Linebaugh Ave, Suite 412 Tampa, Florida 33624 USA Te1: 1-813/960-2105 Fax: 1-813/264-2816 http://www.ispe.org ISPE, the International Society for Pharmaceutical Engineering, is a world-wide, not-for-profit volunteer Society of technical professionals who apply their practical knowledge in the regulated healthcare manufacturing industries. ISPE is committed to the advancement of the educational and technical efficiency of its members through forums for the exchange of ideas and practical experience. National Academy of Sciences 2101 Constitution Avenue, NW Washington, DC 20418 Phone: (202) 334-2000 http://www.nas.edu For advice on the scientific issues that frequently pervade policy decisions, the nation's leaders often turn to the institution that was specially created for this purpose: the National Academy of Sciences and its sister organizations ; the National Academy of Engineering, the Institute of Medicine, and the National Research Council. The Academies and the Institute are honorary societies that elect new members to their ranks each year. The Institute of Medicine also conducts policy studies on health issues, but the bulk of the institution's science-policy and technical work is conducted by its operating arm, the National Research Council, created expressly for this purpose. These non-profit organizations provide a public service by working outside the framework of government to ensure independent advice on matters of Mike S Pena penam2@rpi.edu Page 18
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science, technology, and medicine. They enlist committees of the nation's top scientists, engineers, and other experts -- all of whom volunteer their time to study specific concerns. The results of their deliberations have inspired some of America's most significant and lasting efforts to improve the health, education, and welfare of the population. National Association for Biomedical Research (NABR) 818 Connecticut Avenue NW, Suite 200 Washington, DC 20006 Tel: 202.857.0540 Fax: 202.659.1902 http://www.nabr.org/ The National Association for Biomedical Research (NABR) is the only national, nonprofit organization dedicated solely to advocating sound public policy that recognizes the vital role of humane animal use in biomedical research, higher education and product safety testing. Founded in 1979, NABR provides the unified voice for the scientific community on legislative and regulatory matters affecting laboratory animal research. NABR's membership is comprised of over 350 public and private universities, medical and veterinary schools, teaching hospitals, voluntary health agencies, professional societies, pharmaceutical companies and other animal research-related firms. Parenteral Drug Association (PDA) PDA Headquarters 3 Bethesda Metro Center, Suite 1500 Bethesda, MD 20814 Tel: (301) 656-5900 E-mail: info@pda.org PDA Training and Research Institute (TRI) UMBC Technology Center 1450 South Rolling Road Baltimore, MD 21227 Tel: (410) 455-5800 Fax: (410) 455-5802 info-tri@pda.org PDA Europe Office Postfach 620 Arlesheim CH-4144 Switzerland Tel: +41 61 703 1688 Fax: +41 61 703 1689
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E-mail: lyda@pda.org http://www.pda.org/ PDA is a non-profit international association of more than 9,500 scientists involved in the development, manufacture, quality control and regulation of pharmaceuticals and related products. The association also provides educational opportunities for government and university sectors that have a vocational interest in pharmaceutical sciences and technology. The mission of PDA is to support the advancement of pharmaceutical technology by promoting scientifically sound and practical technical information and education for industry and regulatory agencies. In addition to sponsoring education conferences and courses, PDA publishes the PDA Journal of Pharmaceutical Science and Technology and the PDA Letter that focuses on industry and regulatory news. In keeping with its fifty-year history of promoting the growth of pharmaceutical science and technology, PDA introduced its latest contribution, the PDA Training and Research Institute (TRI), in May 1997. Pharmaceutical Research and Manufacturers of America (PHRMA) 1100 Fifteenth Street, NW Washington, DC 20005 Tel: +1.202.835.3400 http://www.phrma.org The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country's leading research-based pharmaceutical and biotechnology companies, which are devoted to inventing medicines that allow patients to live longer, healthier, happier, and more productive lives. Investing more than $26 billion in 2000 in discovering and developing new medicines, PhRMA companies are leading the way in the search for new cures. Pharmaceutical Society of Australia (PSA) Pharmacy House 44 Thesiger Court DEAKIN ACT 2600 PO Box 21 CURTIN ACT 2605 Tel: 02 6281 1366 Fax: 02 6285 2869 http://www.psa.org.au/ The Pharmaceutical Society of Australia (PSA) is the national professional organisation for pharmacists in Australia. PSA was established by the state professional pharmaceutical societies in 1977, some of which had been in existence for over 100 years, and is a federation. The establishment of PSA provided the profession not only with a national identity, but an opportunity to more effectively regulate its affairs, to achieve better coordination in consultation and liaison with the Commonwealth Government, other professions and industry. The society is the leading advocacy organisation for pharmacists, influencing Mike S Pena penam2@rpi.edu Page 20
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attitudes, opinions and policies through representation, networking, consultation and a range of publications and health promoting programs and resources. Belgian Pharmacists Association (APB) rue Archimde/Archimedesstraat 11 1000 BRUSSELS Tel 02/285.42.00 Fax 02/285.42.85 E-mail: info@mail.apb.be http://www.apb.be The Belgian Pharmacists Association (APB) is the national federation of pharmacists association, representing all independent pharmacists. The APB is the interlocutor of all official bodies, on the regional, national and international level. Research!America 908 King Street Suite 400 East Alexandria, VA 22314 Tel: 703.739.2577 Fax: 703.739.2372 Toll free: 1.800.366.CURE http://www.researchamerica.org/ Research!America is the nation's leading non-profit, non-partisan voice for making medical and health research a higher national priority. Its membership represents more than 400 academic institutions, independent research laboratories, teaching hospitals, private industries, professional societies, voluntary health agencies and philanthropies. Research!America's mission is to make medical and health research a much higher national priority. Royal Pharmaceutical Society of Great Britain Academy of Pharmaceutical Science 1 Lambeth High Street London SE1 7JN Tel 020 7735 9141 Fax 020 7735 7629 E-mail: enquiries@rpsgb.org.uk http://www.rpsgb.org.uk/science/apsindex.html The Association of the British Pharmaceutical Industry (ABPI) 12 Whitehall, London SW1A 2DY Tel: +44 (0) 20 7930 3477 Fax: +44 (0) 20 7747 1414 Mike S Pena penam2@rpi.edu Page 21
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The Association of the British Pharmaceutical Industry SCOTLAND The Royal College of Physicians 9 Queen Street Edinburgh, EH2 1JQ Tel: +44 0131 247 3688 Fax: +44 (0) 131 225 4865 http://www.abpi.org.uk The Association of the British Pharmaceutical Industry (ABPI) is the trade association for about a hundred companies in the UK producing prescription medicines. Its member companies research, develop, manufacture and supply more than 90 per cent of the medicines prescribed through the National Health Service (NHS). The National Pharmaceutical Association (NPA) Mallinson House 38-42 St Peter's Street St Albans Herts AL1 3NP Tel 01727 832161 Fax 01727 840858 E-mail npa@npa.co.uk http://www.npa.co.uk "Help" is the single main reason for the existence of the NPA - amplified by our guiding ethos and aim to "make life easier, business more profitable and the future more secure for all our members". Each of the NPA departments maintains constant contact with members, serving their needs and responding to their problems and interests. The Canadian Pharmacists Association (CphA) Canadian Pharmacists Association 1785 Alta Vista Drive Ottawa, Ontario, Canada K1G 3Y6 Tel: In Canada 1-800-917-9489 Tel: Outside Canada (613) 523-7877 Fax (613)523-0445 http://www.cdnpharm.ca/ The Canadian Pharmacists Association is the national organization of pharmacists committed to providing leadership for the profession of pharmacy. CPhA's web site is your link to a comprehensive source of pharmacy practice support material, patient information and news on the association's advocacy efforts and membership benefits. Mike S Pena penam2@rpi.edu Page 22
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Pharmaceutical Manufacturers Association of Canada 55 Metcalfe Street, Suite 1220 Ottawa, Ontario K1P 6L5 Tel.: (613) 236-0455 Fax: (613) 236-6756 Public Affairs & Corporate Services Fax: (613) 236-6861 Federal & Provincial Affairs Fax: (613) 236-7919 http://www.pmac-acim.org/ Canadian Society for Pharmaceutical Sciences (CSPS) Bev Berekoff, Administrator 2121 Dentistry/Pharmacy Centre University of Alberta Campus Edmonton, Alberta, Canada, T6G 2N8 http://www.cspscanada.org The Canadian Society for Pharmaceutical Sciences was founded in 1996 to promote excellence in pharmaceutical research. The site provides details of membership, news, upcoming events, job opportunities and a message board. There is also access to the full-text of the current issue of the Journal of Pharmacy & Pharmaceutical Sciences. Published on the Web by the University of Alberta. Pharmaceutical Scientific Society (PSS) Tanta University Faculty of pharmacy Tanta - Egypt Tel: (+2 040 3335466) - (+2 040 3346007) Fax: (+2 040 3335466) psstanta@samerkotb.bizland.com http://www.pss.8m.net/ Our Mission: To improve the scientific level of Tanta Pharmacy School graduates , to make social and entertainments events and to research and develop in the field of pharmacy . European Society of Clinical Pharmacy President of the ESCP Prof. dr. Yechiel Hekster C/o Theda Mansholtstraat 5b 2331 JE Leiden The Netherlands Tel: 31 (0)71 5722430 Fax: 31 (0)71 5722431 E-mail Y.Hekster@klinfarm.azn.nl http://www.escp.nl/ Mike S Pena penam2@rpi.edu Page 23
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ESCP was founded in October 1979 during the 8th European Symposium on Clinical Pharmacy in Lyon, France. The aim of the Society is to develop and promote the rational and appropriate use of medicinal products and medical devices by the individual and by society. At the moment ESCP International Office has 3 staff members, 1 full-time director and 2 part-time secretaries. The Pharmaceutical Society of Hong Kong Duke of Windsor Social Service Building, 4/F 15 Hennessy Road Hong Kong Fax : (852) 2808 0162 Email: pharmacisthk@hotmail.com http://www.medicine.org.hk/pshk/ The Pharmaceutical Society of Hong Kong is the official pharmacist professional body recognized by the Hong Kong Government. It was established since July 1949, and all along it concentrates on pharmacy related matters and its development. The Society has a close relationship with the government agency. In 1970, the old Pharmacy Board was replaced by a new Pharmacy & Poisons Board with three of its members are nominated by the Pharmaceutical Society of Hong Kong. With such representation within the Board, the Society influences the government more effectively and directly in pharmaceutical policies and issues. The Society membership consists of pharmacists working in government agency, public and private hospitals, community pharmacies, pharmaceutical manufacturers and wholesale dealers. multinational pharmaceutical companies and academic institutions. The Society aims at promoting the development of pharmaceutical services in Hong Kong. It also liaises with overseas counterparts regularly. It actively participates in local community events to promote the function of pharmacist profession and to educate the public on general drug information, for example: public exhibition, public talks and seminars, etc. It is the Society's goal to contribute in building up a healthy population in Hong Kong. Indian Pharmacological Society (IPS) http://www.geocities.com/Athens/Delphi/2038/main.htm OBJECTIVES : The Society is instituted: 1. To foster the science of Pharmacology. 2. To promote research in pharmacology and allied disciplines, with particular reference to the current health needs of the country & national health policy. 3. For the advancement of pharmacology in the country. 4. To collect evaluate, disseminate and to employ scientific knowledge about drugs for the benefit of the country.
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Malaysian Pharmaceutical Society Society's Secretariat No 5B, Lorong Rahim Kajai 13 Taman Tun Dr. Ismail 60000 Kuala Lumpur, Malaysia Tel: (60)3 - 7729 1409 Fax: (60)3 - 7726 3749 E-mail: mspharm@po.jaring.my http://www.mps.org.my/html/index.htm The Malaysian Pharmaceutical Society (Persatuan Farmasi Malaysia) is the National association for pharmacists in Malaysia. Its motto is "BERKHIDMAT UNTUK KESIHATAN RAKYAT" or "SERVICE TOWARDS A HEALTHY SOCIETY". Among the aims of the Society are: 1. To promote and maintain the honor and interest of the profession of pharmacy. 2. To encourage and further the development of Pharmacy and Pharmaceutical Education and to foster intra-professional relationship among members. 3. To improve the Science of Pharmacy for the general welfare of the public by fostering the publication of scientific and professional information relating to the practice of pharmacy and aid in the development and stimulation of discovery, invention and research. 4. To uphold and enhance the standard and ethics of the profession. 5. To affiliate an co-operate with any organization as may be deemed desirable in furthering the aims of the Society. 6. To represent the views of the members in matters affecting the common interest of the profession. 7. To assist in improving the health services in the country. 8. To enhance the professionalism of pharmacists, the Society endorsed the Code of Conduct For Pharmacists And Bodies Corporate as established by the Pharmacy Board. Pharmaceutical Society of New Zealand Pharmacy House 124 Dixon Street PO BOX 11 640 Wellington New Zealand Tel: 04 802 0030 http://www.psnz.org.nz
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The Purpose of the society is to promote excellence in the practice of pharmacy to improve the health of New Zealanders. Saudi Pharmaceutical Society P.O. Box 2457 King Saud University Riyadh 11451 Saudi Arabia Tel: 966-1-467-5575 Fax Fax: 966-1-467-6789 http://www.sps-sa.org/ Our Mission: Scientific, educational society that aim to develop different branches of pharmacy profession, and to propagate the concept of pharmaceutical care in The Kingdom of Saudi Arabia. The Swiss Society of Industrial Pharmacists (GSIA) http://www.gsia.ch/ The Scope of the GSIA:

To foster scientific interests of the members To establish contacts and share knowledge with Swiss and foreign societies in related fields To represent the industrial pharmacist To establish career development opportunities for members To support and award outstanding work in pharmaceutical sciences To contribute to a top-level education for pharmacists with special focus on industrial interests
Turkish Pharmacists' Association Farabi Sok. No: 35 06690 ankaya/ANKARA Tel: (0312) 467 25 12 Fax: (0312) 467 75 85 http://www.teb.org.tr/ Industry Related Periodicals & Newsletters: Pharma Industry Magazines:
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Drug Discovery & Development (http://www.dddmag.com/) magazine delivers insight into the full landscape of technologies, tools, and business/regulatory strategies that help scientists and executives accelerate the pace and productivity of drug research and development. Drug Discovery News (ddn)(http://www.drugdiscoverynews.com/) is the pharmaceutical industry's source for global news, information about issues, trends, and products pertaining to drug discovery and development. Pharma Manufacturing(http://www.pharmamanufacturing.com )is an American publication that features information about changing government regulations, new technologies and best practices that will enable pharmaceutical professionals to improve process efficiencies. PharmTech (http://pharmtech.findpharma.com) is a comprehensive information source for professionals in the global pharmaceutical manufacturing and drug development community Pharmaceutical Processing (http://www.pharmpro.com/) the publication for pharmaceutical professionals responsible for the research, manufacture and packaging of pharmaceutical, biological, biopharmaceutical, cosmetic and toiletry products. Pharmaceuticals and Healthcare Insight (http://www.pharmaceuticalsinsight.com )is a weekly magazine provides subscribers with regulatory analysis, market intelligence and forecasts on global pharmaceuticals & healthcare markets. Pharma Magazine (http://pharma.ddm.co.uk/)UK based bi-monthly issue focuses on R&D, raw materials, packaging, manufacturing, QAQC, business, management, and marketing. Pharma Focus Asia (http://www.pharmafocusasia.com) covers important issues and trends shaping the future of the pharma industry across Asia and rest of the world. Next Generation Pharmaceutical (http://www.ngpharma.com/) is a US magazine covers interviews with key industry figures , user stories ,case studies and In-depth technical articles . Bio-IT World (http://www.bio-itworld.com/) provides breaking news, analysis, and opinion on enabling technologies that drive biomedical research and drug development, with emphasis on predictive biology, drug discovery, informatics, personalized medicine, and clinical trials. Pharmaceutical Commerce (http://www.pharmaceuticalcommerce.com )is an American magazine that provides a comprehensive directory of products and services offered by the pharmaceutical manufacturers, suppliers and traders. Pharmaceutical Field (http://www.pharmafield.co.uk/)is the only UK magazine dedicated to pharmaceutical and healthcare sales. PharmaTimes (http://www.pharmatimes.com/)is the UK independent monthly magazines for the pharmaceutical, biotechnology and healthcare industries. penam2@rpi.edu Page 27
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Eye for Pharma (http://www.eyeforpharma.com)features business information, reviews, reports, Q&A, and about latest industry trends. Scrip Reports (http://www.scripintelligence.com) offers business reports about global pharma industry. Pharma & Bio Ingredients (http://www.pharmabioingredients.com ) is a web-based magazine that publishes in-depth articles on a variety of topics such as large and small molecule drug discovery, excipients, scale-up, sourcing and patents. Pharma Poland News (http://www.pharmapoland.com )is a bi-weekly newsletter that displays news, trade statistics, current trends, trade shows and legislation governing the pharmaceutical industry of Poland. Express Pharma (http://www.expresspharmaonline.com/) (formerly Express Pharma Pulse) is India's foremost pharmaceutical and biotechnology publication. It covers spanning market news, business strategy, R&D issues, Government policies, technology updates and HR practices offer valuable insight into the changes and developments taking place across the industry. Modern Pharmaceuticals (http://www.modernpharma.in/) (Subscription required) is India's a bi-monthly magazine dedicated to covering business management issues, key technologies, and the latest manufacturing trends in Indian and international pharmaceutical & allied industry. Pharm Exec (http://pharmexec.findpharma.com/pharmexec)is an American magazine for global business and marketing leaders. Contract Pharma (http://www.contractpharma.com/)is a print and online magazine focused on contract services for the pharmaceutical and biopharmaceutical industries. Pharmaceutical Formulation & Quality (http://www.pharmaquality.com/)content meets the informational needs of research, formulation, development scientists, all levels of senior management, research and development, information technology, compliance, and validation departments. BioPharm International magazine(http://biopharminternational.findpharma.com/) integrates the science and business of biopharmaceutical research, development and manufacturing. Chromatographyonline(http://chromatographyonline.findanalytichem.com/) is the global resource for technical information on the field of chromatography and the separation sciences. Spectroscopy(http://spectroscopyonline.findanalytichem.com/) is the global resource for technical information on the field of Spectroscopy . Chromatohraphy Techniques(http://www.laboratoryequipment.com/)is the source for chromatography information on the Weband enewsletter series. penam2@rpi.edu Page 28
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Applied Clinical Trials (http://appliedclinicaltrialsonline.findpharma.com/) magazine, the global, peer-reviewed journal whose coverage features the process of managing clinical trials at the intersection where pharmaceutical product developers meet the strictly regulated medical researchers who test their new drugs. PharmaVOICE(http://www.pharmavoice.com) magazine, provides multiple perspectives on the business challenges, trends, and topics impacting the life-sciences by engaging compelling personalities from diverse industry sectors in a thought-provoking dialog to facilitate and improve business-to-business relationships. World Pharmaceuticals Frontiers (http://www.worldpharmaceuticals.net/) magazine is the premier information source for the world's leading pharmaceutical companies, with reliable and accurate intelligence on emerging trends and breakthrough technologies to help them make critical business decisions.
More Pharmaceutical journals:

http://www.ecv.de/ http://www.pharma-food.de/ http://www.life-science-technologien.de/ http://www.cav.de/ http://www.process.vogel.de/ http://www.industria-farmaceutica.com/ http://www.pharm-europe.com/ http://www.gitverlag.com/go/lvt/ http://www.dei.de/ http://www.verfahrenstechnik.de/ http://www.cpp-net.com/
Industry Forecasts/Outlook:
The pharmaceutical industry continues to witness major challenges like unstable prescription trends, EU pricing pressure, intensifying generic competition, pipeline failures and limited late-stage catalysts. The next five years are expected to reflect a significant imbalance between new product introductions and Mike S Pena penam2@rpi.edu Page 29
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patent losses. According to IMS Health, this is the main reason global pharmaceutical market growth will be restricted to the mid-single digits (5-8%) through 2014. Over the next five years, products that currently generate more than $142 billion in sales are expected to face generic competition, including Lipitor, Plavix and Zyprexa. In fact, 2011 itself will see products worth more than $30 billion losing patent protection. This includes products like Lipitor, Plavix, Zyprexa and Levaquin. These products generated more than $15 billion in sales in 2010. The effect of the genericization of these products will be felt mostly in 2012, which will be a challenging year for several companies. At the same time, new products are not expected to generate the same level of sales as products losing patent protection. With revenue growth slowing down, companies have been resorting to cost-cutting and share buybacks to drive bottom-line growth. Additionally, the pharmaceutical sector continued to witness major merger and acquisition (M&A) deals in 2010. With most of the big pharmaceutical companies already facing or likely to face patent challenges for their blockbuster products, the companies have been looking towards M&As and in-licensing activities to make up for the loss of revenues that will arise with key products losing patent exclusivity. There has been an increase in the M&A activity over the last few quarters. Major deals include Johnson & Johnson's (JNJ) acquisition of medical devices maker MicrusEndovascular Corp. and Merck KGaA's (MKGAF) acquisition of Millipore Corporation. Johnson & Johnson is currently looking to buy out the rest of Dutch biopharmaceutical company Crucell NV. This acquisition should not only help strengthen Johnson & Johnson's portfolio, it should also allow the company to build its presence in the vaccines market, given Crucell's expertise in the manufacture, discovery and commercialization of vaccines. Meanwhile, pharmaceutical giant Pfizer (PFE) recently completed its acquisition of King Pharmaceuticals. With this deal, Pfizer is looking to strengthen its presence in the pain management market. Oncology also remains a much sought-after therapeutic area with companies like SanofiAventis (SNY) and Celgene (CELG ) strengthening their presence in this market through acquisitions. Meanwhile, generic player Mylan's (MYL) purchase of Irish injectable drug maker Bioniche Pharma Holdings Ltd. provides Mylan with a direct entry into the North American injectable drugs market.
Elsewhere, companies have been looking towards biotech firms to build their product portfolios. Prime examples include Johnson & Johnson's acquisition of Cougar Biotechnology, Roche's (RHHBY) acquisition of Genentech, Bristol-Myers Squibbs' (BMY ) acquisition of Medarex, Sanofi-Aventis' acquisition of Fovea Pharmaceuticals SA, Astellas Pharma's acquisition of OSI Pharmaceuticals and Abbott Labs' (ABT) acquisition of Facet.Sanofi-Aventis has also been in the news with its agreement to acquire biotech company Genzyme Corp. (GENZ). There is a high probability that this M&A trend will continue in the future. Also, there will be a significant increase in collaborations for the development of pipeline candidates. Instead of developing a product from scratch, which involves a lot of funds, pharmaceutical companies are shopping for mid-tolate stage pipeline candidates that look promising. Small biotech companies are also approaching the Mike S Pena penam2@rpi.edu Page 30
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collaboration strategy in the market. Most of these companies find it challenging to raise cash, thus making it difficult for them to survive and continue with the development of promising pipeline candidates. Therefore, seeking deals with other pharmaceutical companies with a big amount of capital seems reasonable. Furthermore, another recent trend seen in the pharmaceutical sector is a focus on emerging markets. Companies like Mylan, Pfizer, Eli Lilly (LLY), GlaxoSmithKline (GSK) and Sanofi-Aventis are all looking to expand their presence in India, China, Brazil and other emerging markets. Until recently, most of the commercialization efforts were focused on the US market (the largest pharmaceutical market) along with Europe and Japan. However, emerging markets are slowly and steadily gaining more power and several companies are now shifting their focus to these areas. Emerging markets should give strong sales as a result of the higher demand for medicines. Several factors like government initiatives for healthcare, new patient population, and increasing use of generics should help to increase demand. Therefore, growth in emerging markets could help stabilize the base business during the industry's 201015 patent cliff. According to IMS Health, the global pharmaceutical industry should record growth of 5-7% in 2011 representing sales of approximately $880 billion. Pharmaceutical markets, consisting of 17 countries, are slated to grow in the range of 15-17% in 2011, representing sales of $170-$180 billion. China, which is now the third largest market in the world, is expected to grow 25-27% to more than $50 billion in 2011. As far as developed markets are concerned, Japan is slated to grow 5-7% in 2011. Major European markets like the UK, Germany, France, Italy and Spain are expected to deliver combined growth of 1 3%. A similar growth rate is expected from Canada. The US market, which is expected to retain its position of the single largest pharmaceutical market, is predicted to grow 3-5% to $320-$330 billion.
My Assessment of the Industry:

The pharmaceutical industry develops, produces, and markets drugs licensed for use as medications. Pharmaceutical companies can deal in generic and/or brand medications and are subject to a variety of laws and regulations regarding the patenting, testing and marketing of drugs. Over a period of time many of these chemical companies moved into the production of pharmaceuticals and other synthetic chemicals and they gradually evolved into global players.
PEST Analysis:
A Pest analysis is concerned with identifying and evaluating the Political, Economic, Social and Technological factors that are likely to impact the business in the period of time under study.
Political:
The impact of pharmaceutical products in social welfare has indirectly increased political intervention in the industry including tighter regulatory and pricing legislation. International and national organizations such as the World Health Organization (WHO) and the Food and Drug Administration (FDA), enforce Mike S Pena penam2@rpi.edu Page 31
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policies and rigorous testing to guarantee consumers a high quality and efficient product. Furthermore, pricing policies are different in each country. However, they are strictly related to whether the product is patented or generic. Companies who develop new products in the market are awarded a patent, which monopolizes their products for a temporary period of time (usually 1015 years). Patents allow companies to retrieve the R&D costs invested in the creation of their products. Also, the creation of patented products has positively affected the temporary monopolies by substantially increasing their profits. After the patents expire, the government allows smaller firms to introduce generic drugs (effective copies of the branded product with little differentiation in the market). The low R&D investment required by these small companies, allows generics to be sold to the public at cheaper prices.
Economic:
Although the industry seems recession proof, economic recession affects the industry in countries with welfare systems and high healthcare spending as a proportion of GDP such as the UK and Korea (between 7 and 8%), as healthcare provisions decrease in times of recession. Arbitrage through tax minimization can be obtained through manufacturing in low tax countries such as the Republic of Ireland and Puerto Rico; combined with opportunities for parallel trade through the Single European Market. Parallel trade is nothing but free movement of the product across Europe without any trade barriers that could eventually affect the price of the product. In the pharmaceutical industry, the US and Japanese markets remain the largest. Along with Japan, Latin America is the other emerging economy in the industry. Moreover, as pharmaceutical products are exported to countries around the globe, exchange rates and currency problems sometimes arise. For example, while Canada has an inflexible pricing and reimbursement criteria, the US does not have price controls. As a result, the price of a drug in America is high compared to Canada, leading to the damage of the brand image of a company in consumers minds as they might pay more money for the same product.
Sociographic/Demographic:
The major feature demographically is the greying population, which is beneficial for the industry as people over 65 years of age consume four times as many pills as those under, suggesting that firms should focus their R&D on this age market. Greater media coverage has raised awareness of the drugs available resulting in heightened Direct-To-Costumer (DTC) advertising and increasing availability of Over-TheCounter (OTC) drugs and creating a pull strategy. Consequently, patient expectancy has risen, placing the obligation on the providers to deliver quality and value for money. On a global scale, private healthcare systems, such as the one in the US, mean that poorer people are unable to afford quality healthcare and that a portion of the market is left unexploited. Increased awareness over personal issues such as impotence and obesity has led to the development of lifestyle drugs. However, cardio-vascular disease remains the biggest market. The AIDS epidemic in Africa remains a market under supplied because of a lack of funding on the continent. Another demographic concern is different manners in which different races metabolize drugs. This leads to difficulties in the clinical trial stages, thus making globally effective drugs hard to implement.
Technological:
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Technological advancements within the industry focus mainly on biotechnology and the Human Genome Project. These have affected the industry by increasing the cost of R&D while the discovery of new chemical entities has fallen. Strategically, the industry can incorporate functional genomics, which aims to develop drugs to meet specific targets. Also Pharmacogenomics, the study of why different populations metabolize drugs differently, will allow drugs to aim specifically at those who benefit the most. The extensive investment will reduce R&D costs in the long-term. On the demand side, the greater use of personal computers is improving methods of handling information including formularies of available drugs, thus creating awareness of generic alternatives to traditional higher priced branded originals. Therefore all manufacturers must compete in price and differentiation. Related to the PC boom is the growth of the internet. This has a greater effect in the US where 71% of households have access to information about health issues, the second most searched subject on the internet. However, European use is more varied with just 12% access in Spain and 65% in Sweden. Strategically, this offers the pharmaceutical industry the opportunity to build DTC advertising and thus awareness of the products available.
5 Forces Analysis:
According to Porters theory, there are five forces behind industry competition: the rivalry among existing firms, the threat of new entrants, the bargain power of buyers and suppliers, and the threat from substitutes. The five forces analysis provides an insight into the profitability and the competitiveness in the pharmaceutical industry.
Competitive Rivalry:
The pharmaceutical industry is one of the most competitive industries in the country with as many as 10,000 different players. The top player in the country has only 6% of the market share and the top five have 18%. There are very high growth prospects and very low entry barriers. Fixed cost requirement is low and the need for working capital is high. Additionally, growth rate in the market remains high and profitability is increasing particularly in generic firms with the US market as the biggest growing market. A series of high profile mergers, such as the GlaxoWellcome and SmithKline Beecham, intensified competition to a smaller number of more powerful global firms. With no switching costs for consumers and the growth of generics, the rivalry has intensified dramatically.
Threat of Entry:
Research based pharmaceutical companies remain difficult to enter with R&D unpredictable and costly. Legislation and increasing clinical trials make lab to launch 12 years on average, and more cautious purchasing and price controls from governments have flattened and shortened the product life cycle, resulting in huge risks for any potential entrant. Consequently, the search for blockbuster products (drugs generating more than $1 billion of revenue for its owner each year) is the aim, but less than 1% of all drugs can be classified as blockbuster. However, opportunities through generics and parallel importers show lesser barriers for potential entrants to this field. Fewer required R&D costs leading to lower pricing has resulted in weakened brand loyalty for the big players. In conjunction with new formularies Mike S Pena penam2@rpi.edu Page 33
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allowing doctors to elect cheaper alternatives via IT and growing media coverage and Internet, the traditional large muscle marketing sales forces are unnecessary. There are also no switching costs from branded to generic drugs.
Power of Buyers:
Ethical (prescription) drugs comprise 80% of the market and are purchased almost entirely by the government. This gives them great bargaining power. The legislations on fixed patent periods suggest that governments intentionally moved to weaken the position of pharmaceuticals in order to decrease prices through generics. Individual pharmacists are also controlled by government price controls as the reimbursement varies between products. This requires companies to justify both price and quality more substantially than in the previous period. IT growths offer doctors greater choice via formularies of the cheaper generics. The concern for the industry is that brand loyalty has been destroyed and there is no switching costs for customers on both ethical and OTC drugs. Greater awareness through IT and the media means that patient expectations are higher; thus they are more willing to switch. Consequently, pharmaceuticals must aim to switch users to drugs with greater patent protection prolonging product life cycle.
Power of Suppliers:
Although the pharmaceutical industry depends upon several organic chemicals, suppliers have a very low bargaining power. There are only a limited number of suppliers in the market. Each of them develops very specific chemical products to satisfy the demand of the pharmaceutical companies. The suppliers in the pharmaceutical market focus on a low-cost strategy as the brand image, role of quality, and the service provided are not considered by the buyers. The pharmaceutical industry can also switch from their suppliers without incurring a very high cost. Therefore, the size of the large pharmaceutical companies gives them the power over suppliers.
Threat of Substitutes:
Growing relevance due to legislation allowing generics as patents expire and economic change, including European integration, result in parallel trade from lower fixed cost companies. Strategically, pharmaceuticals must lower prices or develop differentiation as the patent expires. Alternatively, firms could focus marketing on products with longer patent protection. Another factor as eastern markets open to the big firms is Chinese Herbal Remedies, which while remaining popular in such markets, are also growing in popularity in the western world.
SWOT Analysis
SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis provides information about the firms resources and capabilities inside the competitive environment in which it operates.
Strengths
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The strengths of the pharmaceutical industrys SWOT analysis document the internal industry components that are providing value, quality goods and services and overall excellence. The internal industry components can include physical resources, human capital or features the industry can control. For example, the pharmaceutical industrys strengths could include low operating overhead, firm fiscal management, low staff turnover, high return on investment (ROI), state-of-the-art laboratory equipment and an experienced research staff.
Weaknesses:
The weaknesses of the pharmaceutical industrys SWOT analysis document the internal industry components that are not providing significant added value or are in need of improvement. The internal industry components can include physical resources, human capital or features the industry can control. For example, the pharmaceutical industrys weaknesses could include high-risk business modeling, disengaged Board of Directors, dated medical equipment, poor branding, low staff morale or diseconomies of scale, long period for the development of new products, high investments on R&D and advertising, and regulatory and legal issues with the FDA.
Opportunities:
The opportunities of the pharmaceutical industrys SWOT analysis document the external industry components that provide a chance for the industry (or factions of the industry) to grow in some capacity or gain a competitive edge. The external industry components should be environmental factors or aspects outside the industrys control, yet reflective of the business marketplace. For example, the pharmaceutical industrys opportunities could include recently published research, an increase in health-conscious consumers, increased demand for pharmaceutical products, changes in Food and Drug Administration standards or decreases in employee health care costs, and removal of trade barriers.
Threats:
The threats of the pharmaceutical industrys SWOT analysis document the external industry components that could create an opportunity for the industry (or factions of the industry) to decline, atrophy or lose some competitive edge. The external industry components should be environmental factors or aspects outside the industrys control, yet reflective of the business marketplace. For example, the pharmaceutical industrys threats could include increased government regulation, a declining economy, increasing research and development (R&D) costs or a decrease in the global population, availability of a big range of substitutes, low entry barriers for some countries, low customer loyalty and generics.
Summary of Industry Analysis

The pharmaceutical industry, from the point of view of generic drug companies and name brand firms alike, must realize that large pharmaceutical companies drive the market. They are responsible for nearly all of the research and development done in the field of medicine, on top of their cutting edge technological research and large scale production levels. Because of this, there is a need to protect their Mike S Pena penam2@rpi.edu Page 35
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intellectual property. The 20 year patent system in place is effective; however, big pharmaceutical research companies must not be allowed to maintain their patents for additional years through gaps in the legal system. The next realization necessary is the potential effectiveness of generics at combating health issues in the developing world, and providing inexpensive drugs across the globe. Given the changing trends in the industry's global value chain and gradual shifts in international trade patterns, if the former pioneers (US, UK, Switzerland, and Germany) wish to remain competitive, they need to expand the development of new drugs. Otherwise, they will face continuing competition from developing nations as outsourcing investment in drug discovery and product development has grown. Also, as major patents expire and generic companies in countries like Israel and India enter these markets, this will put added pressure from emerging economies on the former pioneer nations. The political determinants that govern the pharmaceutical industry are all regulated by the FDA. Their laws and guidelines rule all production and manufacturing codes. The government established this organization to protect the health and safety of all customers by ensuring the quality of all drugs produced. As a result the regulations are extremely strict and few drugs are actually passed and reach the open market. Like the FDA, each nation has its own rules and regulations, and American companies look for other nations to ensure stronger sales. Entering the field takes a big amount of capital, due to the time needed to research, test and produce the drugs. Also drugs that have already been created are protected under WTO patents. But, once a successful drug is marketed, the industry can be very lucrative. The demand for pharmaceuticals is relatively stable even if other markets decrease in an economic fall, so with constant research and production of new drugs, a company can largely benefit. This, therefore, would ensure global competitiveness and success for a corporation if the drugs also passed the other nations regulations. Over the past 50 years, the pharmaceutical industry has experienced tremendous growth and change. Along with this growth has come a series of pressures to unite the industry under international standards and regulations. These international regulatory guidelines have increased the barriers to entry in the international market and have driven top firms to create voluntary corporate standards. Also, the idea of "corporate social responsibility" has recently emerged as companies attempt to avoid liability issues and decrease their impact on the environment. In addition, environmental certification issues are a becoming driving force for change in the pharmaceutical industry. In the future, if pharmaceutical companies are able avoid liability issues by adjusting social and environmental regulations, they will be very competitive in the international marketplace. Both generics and name brand drugs have their strong points. The true test for the industry in the coming years will be striking a balance that allows each side to improve the other. With patents protected, name brand companies will drive research and development while generics will work to make inexpensive versions widely available globally. With the success the generic companies achieve, the name brand companies will be continually motivated to improve in order to repeat the cycle, and the compromise will always evolve. Mike S Pena penam2@rpi.edu Page 36
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Company Profiles:ii
Johnson & Johnson
Company Name: Johnson & Johnson Hyperlink/URL: http://www.jnj.com Primary SIC : 2834 - Pharmaceutical preparations Secondary SIC: 2676 - Sanitary paper products 3842 - Surgical appliances and supplies 2844 - Toilet preparations 2833 - Medicinals and botanicals 2843 - Surface active agents 2835 - Diagnostic substances 2836 - Biological products exc. diagnostic 3851 - Ophthalmic goods 3841 - Surgical and medical instruments 6719 - Holding companies, nec Primary NAICS: 325412 - Pharmaceutical Preparation Manufacturing Secondary NAICS: 322291 - Sanitary Paper Product Manufacturing 334510 - Electromedical and Electrotherapeutic Apparatus Manufacturing 325611 - Soap and Other Detergent Manufacturing 325411 - Medicinal and Botanical Manufacturing 325613 - Surface Active Agent Manufacturing 325413- In-Vitro Diagnostic Substance Manufacturing 325414- Biological Product (except Diagnostic) Manufacturing 339115- Ophthalmic Goods Manufacturing 339112- Surgical and Medical Instrument Manufacturing 551112- Offices of Other Holding Companies Incorporation Year: 1886 Official Correspondence Address: One Johnson & Johnson Plaza, New Brunswick, NJ 08933 United States Telephone Number: 732 524-0400 Exchange: New York Stock Exchange Stock Ticker: JNJ Publicly Traded Since: 1944 Shares Outstanding (#,date): $2.8 billion, 10/26/2012 Market Value ($US, date): $195.5 billion, 10/26/2012 Mike S Pena penam2@rpi.edu Page 37
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Fiscal Year End (mm/dd/yyyy): 01/ 01/2012 Employees (Domestic/Foreign): 117,900 employees Subsidiaries: Subsidiaries Acclarent, Inc. ALZA Corporation Alza Development Corporation Alza Land Management, Inc. Animas Corporation Biosense Webster, Inc. Centocor Biologics, LLC Centocor Research & Development, Inc. CNA Development LLC Codman & Shurtleff, Inc. Cordis Corporation Cordis International Corporation Cordis LLC Cougar Biotechnology, Inc. Crescendo Pharmaceuticals Corporation Crucell Holdings Inc. DePuy, Inc. DePuy Mitek, Inc. DePuy Orthopaedics, Inc. DePuy Products, Inc. DePuy Spine, Inc. DePuy Spine Sales Limited Partnership Diabetes Diagnostics, Inc. Ethicon Endo-Surgery, Inc. Ethicon Endo-Surgery, LLC. Ethicon Endo-Surgery Services, L.P. Ethicon, Inc. Ethicon LLC ISO Holding Corp. J&J Holdings (Nevada), Inc. Janssen Alzheimer Immunotherapy Research & Mike S Pena penam2@rpi.edu Percent Owned 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Country United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States Page 38
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Development, LLC Janssen Biotech, Inc. Janssen-Cilag Manufacturing, LLC Janssen Global Services, LLC Janssen Ortho LLC Janssen Pharmaceuticals, Inc. Janssen Products, LP Janssen Research & Development, LLC Janssen Supply Group, LLC JJHC, LLC JNJ International Investment LLC Johnson & Johnson Consumer Companies, Inc. Johnson & Johnson Development Corporation Johnson & Johnson Finance Corporation Johnson & Johnson Health Care Systems Inc. Johnson & Johnson International Johnson & Johnson Japan Inc. Johnson & Johnson (Middle East) Inc. Johnson & Johnson Sales and Logistics Company, LLC Johnson & Johnson Services, Inc. Johnson & Johnson Urban Renewal Associates Johnson & Johnson Vision Care, Inc. Joint Medical Products Corporation JOM Pharmaceutical Services, Inc. LifeScan, Inc. LifeScan LLC LifeScan Products, LLC McNeil Consumer Healthcare Latin America LLC McNeil Consumer Pharmaceuticals Co. McNeil Healthcare LLC McNeil LA LLC McNEIL MMP, LLC McNeil Nutritionals, LLC McNEIL-PPC, Inc. Mentor Texas L.P. Mentor Worldwide LLC Micro Typing Systems, Inc. Micrus Endovascular LLC Middlesex Assurance Company Limited Mike S Pena penam2@rpi.edu
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United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States United States Page 39
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Neutrogena Corporation Nitinol Development Corporation Noramco, Inc. OMJ Pharmaceuticals, Inc. Omrix Biopharmaceuticals, Inc. Ortho Biologics LLC Ortho-Clinical Diagnostics, Inc. Ortho-McNeil Finance Co. Patriot Pharmaceuticals, LLC Refresh Holdings, Inc. Rutan Realty LLC Scios Inc. SterilMed, Inc. SterilMed Holdings, Inc. SurgRx, Inc. Therakos, Inc. Therapeutic Discovery Corporation Veridex, LLC Wellness & Prevention, Inc. Apsis Beijing Dabao Cosmetics Co., Ltd. Berna Biotech Korea Corporation Berna Rhein B.V. Biosense Webster (Israel) Ltd. Cilag Advanced Technologies GmbH Cilag AG Cilag GmbH International Cilag Holding AG Cilag Pharmaceuticals GmbH Cordis Cordis de Mexico, S.A. de C.V. Cordis Europa N.V. Cordis Medizinische Apparate GmbH Crucell Holland B.V. Crucell N.V. Crucell Sweden AB Crucell Switzerland AG DePuy France Mike S Pena penam2@rpi.edu
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DePuy International Limited DePuy International (Holdings) Limited DePuy (Ireland) DePuy Medical Private Limited DePuy Mitek Sarl DePuy Motion Sarl DePuy Orthopadie GmbH DePuy Spine Sarl DePuy UK Holdings Limited EES Holdings de Mexico, S. de R.L. de C.V. Ethicon Ethicon Ireland Ethicon PR Holdings Ethicon Women's Health & Urology Sarl Ethnor Farmaceutica, S.A. FMS Future Medical System SA GMED Healthcare BVBA High Wycombe Property Management Limited Janssen Alzheimer Immunotherapy Janssen Alzheimer Immunotherapy (Holding) Limited Janssen Biologics B.V. Janssen Biologics (Ireland) Janssen Cilag Farmaceutica S.A. Janssen-Cilag Janssen-Cilag AG Janssen-Cilag B.V. Janssen-Cilag, C.A. Janssen-Cilag de Mexico S de R.L. de C.V. Janssen-Cilag Farmaceutica, Lda. Janssen-Cilag Farmaceutica Ltda. Janssen-Cilag GmbH Janssen-Cilag Limited Janssen-Cilag NV Janssen-Cilag Pharmaceutical S.A.C.I. Janssen-Cilag Pharma GmbH Janssen-Cilag Pty. Ltd. Janssen-Cilag, S.A. Janssen-Cilag, S.A. de C.V. Janssen-Cilag S.p.A. Mike S Pena penam2@rpi.edu
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Janssen de Mexico, S. de R.L. de C.V. Janssen Inc. Janssen Infectious Diseases-Diagnostics BVBA Janssen Korea Ltd. Janssen Pharmaceutica NV Janssen Pharmaceutical Janssen Pharmaceutical K.K. Janssen R&D Ireland J.C. General Services CVBA J-C Health Care Ltd. JHC Nederland B.V. JJC Acquisition Company B.V. Johnson & Johnson AB Johnson & Johnson AG Johnson & Johnson (China) Investment Ltd. Johnson & Johnson (China) Ltd. Johnson & Johnson Consumer Holdings France Johnson & Johnson Consumer Services EAME Ltd. Johnson & Johnson Consumer (Thailand) Limited Johnson & Johnson de Argentina, S.A.C.e I. Johnson & Johnson de Chile S.A. Johnson & Johnson de Colombia S.A. Johnson & Johnson de Mexico, S.A. de C.V. Johnson & Johnson de Venezuela, S.A. Johnson & Johnson do Brasil Industria E Comercio de Productos Para Saude Ltda. Johnson & Johnson European Treasury Company Johnson & Johnson Finance Limited Johnson & JohnsonFinancial Services GmbH Johnson & Johnson Gesellschaft m.b.H. Johnson & Johnson GmbH Johnson & Johnson Group Holdings G.m.b.H Johnson & Johnson Hellas Commercial and Industrial S.A. Johnson & Johnson Holding GmbH Johnson & Johnson (Hong Kong) Limited Johnson & Johnson Inc. Johnson & Johnson Industrial Ltda. Mike S Pena penam2@rpi.edu
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Johnson & Johnson International Financial Services Company Johnson & Johnson (Ireland) Limited Johnson & Johnson Kft. Johnson & Johnson K. K. Johnson & Johnson Korea, Ltd. Johnson & Johnson Korea Selling & Distribution Limited Liability Company Johnson & Johnson Limited Johnson & Johnson Limited Johnson & Johnson Limitada Johnson & Johnson LLC Johnson & Johnson Luxembourg Finance Company Sarl Johnson & Johnson Management Limited Johnson & Johnson Medical B.V. Johnson & Johnson Medical (China) Ltd. Johnson & Johnson Medical GmbH Johnson & Johnson Medical Korea Limited Johnson & Johnson Medical Limited Johnson & Johnson Medical Mexico, S.A. de C.V. Johnson & Johnson Medical NV Johnson & Johnson Medical Products GmbH Johnson & Johnson Medical (Pty) Limited Johnson & Johnson Medical Pty Ltd Johnson & Johnson Medical S.A. Johnson & Johnson Medical (Shanghai) Ltd. Johnson & Johnson Medical S.p.A. Johnson & Johnson Medical (Suzhou) Ltd. Johnson & Johnson Middle East FZ-LLC Johnson & Johnson (New Zealand) Limited Johnson & Johnson Nordic AB Johnson & Johnson Pacific Pty. Limited Johnson & Johnson Poland Sp. z o.o Johnson & Johnson, Prodaja medicinskih in farmacevtskih izdelko, d.o.o Johnson & Johnson (Proprietary) Limited Johnson & Johnson Pte. Ltd. Mike S Pena penam2@rpi.edu
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Ireland Ireland Hungary Japan Korea (South) Korea (South) India United Kingdom Portugal Russia Luxembourg United Kingdom Netherlands China (Peoples Rep. Of) Germany Korea (South) United Kingdom Mexico Belgium Austria South Africa Australia Argentina China (Peoples Rep. Of) Italy China (Peoples Rep. Of) United Arab Emirates New Zealand Sweden Australia Poland Slovenia South Africa Singapore Page 43
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Johnson & Johnson Pty. Limited Johnson & Johnson S.A. Johnson & Johnson, S.A. de C.V. Johnson & Johnson Sante Beaute France Johnson & Johnson Sihhi Malzeme Sanayi Ve Ticaret Limited Sirketi Johnson & Johnson SDN. BHD. Johnson & Johnson S.E. d.o.o. Johnson & Johnson S.p.A Johnson & Johnson, s.r.o. Johnson & Johnson Swiss Finance Company Limited Johnson & Johnson Taiwan Ltd. Johnson & Johnson (Thailand) Ltd. Johnson & Johnson Vision Care (Ireland) Latam International Investment Company Latam Properties Holdings Lifescan Canada Ltd. Lifescan Scotland Limited McNeil AB McNeil Consumer Healthcare GmbH McNeil Denmark ApS McNeil GmbH & Co. oHG McNeil Healthcare (UK) Limited McNeil Manufacturing Pty Ltd McNeil Products Limited McNeil Sweden AB Medos International Sarl Medos Sarl Mentor Medical Systems C.V OBTECH Medical Sarl OMJ Ireland OMJ Manufacturing OMJ PR Holdings Omrix Biopharmaceuticals Ltd. Ortho-Clinical Diagnostics Ortho-Clinical Diagnostics Ortho-Clinical Diagnostics GmbH Ortho-Clinical Diagnostics K.K. P.T. Johnson & Johnson Indonesia Mike S Pena penam2@rpi.edu
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Shanghai Johnson & Johnson Pharmaceuticals, Ltd. Tasmanian Alkaloids Pty. Ltd. Tibotec-Virco Comm. VA Turnbuckle Investment Company Vania Expansion Xian-Janssen Pharmaceutical Ltd.
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China (Peoples Rep. Of) Australia Belgium Ireland France China (Peoples Rep. Of)
Products (or Brands): Consumer Baby Care Products for the ones you love Johnsons Johnsons Bedtime Johnsons Head-To-Toe Fragrance Free Baby Lotion Baby.Com Desitin Natusan Babycenter.Com Penaten Primage
Skin & Hair Care Care for your skin and hair. Bebe Clean & Clear Roc Vendome Neutrogena Johnsons Skin Id Rogaine Aveeno Lubriderm Piz Buin
Wound Care & Topicals Care for cuts, scrapes, rashes and itching. Band-Aid Brand Adhesive Bandages penam2@rpi.edu Page 45
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Bengay Savlon Neosporin Cortaid Daktarin Compeed Tucks Hemorrhoidal Ointment Johnson & Johnson Red Cross Brand
Oral Health Care Care for your whole mouth. Listerine Rembrandt Listerine Whitening Reach
Women's Health Products for womens health care needs. Stayfree O.B. Carefree K-Y
Over-the-Counter Medicines Relief for pain, colds, coughs, allergies and more. Tylenol Sudafed Mylanta Zyrtec and Zyrtec-D12-Hour Motrin Imodium Pepcid Nicorette Benadryl Rolaids Dolormin
Nutritionals Products for a healthier diet. Splenda Lactaid Benecol Mike S Pena
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Viactiv
Vision Care Products for vision care. Visine Acuvue Brand Contact Lenses
Pharmaceutical Cancer and blood diseases: Procrit Velcade
Central nervous system disorders: Pain Axert Duragesic Invega Risperdal
Medical devices & diagnostics Blood glucose monitors and insulin delivery Blood screening Clinical lab equipment Joint and spine implants Stents
Competitors : Procter & Gamble Co. Pfizer Inc Johnson & Johnson Dow Chemical Co. Merck & Co., Inc Abbott Laboratories Du Pont (E.I.) de Nemours & Co Lilly (Eli) & Co. Bristol-Myers Squibb Co. Amgen Inc Baxter International Inc. Gilead Sciences, Inc. penam2@rpi.edu Page 47
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Mylan Inc Allergan, Inc Celgene Corp. Forest Laboratories, Inc. Watson Pharmaceuticals, Inc. Hospira Inc Perrigo Company Albemarle Corp. Endo Health Solutions Inc Covance Inc. Edwards Lifesciences Corp PAREXEL International Corp. Leucadia National Corp.
Geographic Operation Areas: The business of Johnson & Johnson is conducted by more than 250 operating companies located in 60 countries, including the United States, which sell products in virtually all countries throughout the world. The products made and sold in the international business include many of those described above. However, the principal markets, products and methods of distribution in the international business vary with the country and the culture. The products sold in international business include not only those developed in the United States, but also those developed by subsidiaries abroad. Investments and activities in some countries outside the United States are subject to higher risks than comparable U.S. activities because the investment and commercial climate may be influenced by restrictive economic policies and political uncertainties. Company History: Please see the Appendix for Johnson & Johnson. Description of Business: Johnson & Johnson is a holding company. Through its subsidiaries, Co. is engaged in the research and development, manufacture and sale of a range of products in the health care field. Co. has three business segments: Consumer The Consumer segment includes a range of products used in the baby care, skin care, oral care, wound care and women's health fields, and nutritional and over-the-counter pharmaceutical products, and wellness and prevention platforms. The Baby Care franchise includes the JOHNSON'S Baby line of products. Major brands in the Skin Care franchise include the AVEENO; CLEAN & CLEAR; JOHNSON'S Adult; NEUTROGENA; RoC; LUBRIDERM; DABAO; and VENDOME Mike S Pena penam2@rpi.edu Page 48
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product lines. The Oral Care franchise includes the LISTERINE and REACH oral care lines of products. The Wound Care franchise includes BAND-AID brand adhesive bandages and NEOSPORIN First Aid products. Major brands in the Women's Health franchise are the CAREFREE Pantiliners; o.b. tampons and STAYFREE sanitary protection products. The nutritional and over-thecounter lines include SPLENDA No Calorie Sweetener; the range of TYLENOL acetaminophen products; SUDAFED cold, flu and allergy products; ZYRTEC allergy products; MOTRIN IB ibuprofen products; and PEPCID AC Acid Controller. Pharmaceutical The Pharmaceutical segment includes products in the following areas: anti-infective, antipsychotic, contraceptive, dermatology, gastrointestinal, hematology, immunology, infectious diseases, neurology, oncology, pain management, thrombosis and vaccines. These products are distributed directly to retailers, wholesalers and health care personnel for prescription use. Key products in the Pharmaceutical segment include: REMICADE (infliximab), a treatment for a range of immune mediated inflammatory diseases; STELARA (ustekinumab), a treatment for moderate to severe plaque psoriasis; SIMPONI (golimumab), a treatment for adults with moderate to severe rheumatoid arthritis, psoriatic arthritis, and ankylosing spondylitis; VELCADE (bortezomib), a treatment for multiple myeloma; ZYTIGA (abiraterone acetate), a treatment for metastatic castration-resistant prostate cancer; PREZISTA (darunavir), INTELENCE (etravirine) and EDURANT (rilpivirine), treatments for HIV/AIDS; INCIVO (telaprevir), for the treatment of hepatitis C; NUCYNTA (tapentadol), a treatment for moderate to severe acute pain; INVEGA SUSTENNA (paliperidone palmitate), for the acute and maintenance treatment of schizophrenia in adults; RISPERDAL CONSTA (risperidone), a treatment for the management of Bipolar I Disorder and schizophrenia; XARELTO (rivaroxaban), a treatment for the prevention of thrombosis following total hip or knee replacement surgery and for the prevention of stroke in patients with atrial fibrillation; PROCRIT (Epoetin alfa, sold outside the U.S. as EPREX), to stimulate red blood cell production; LEVAQUIN (levofloxacin), for the treatment of bacterial infections; CONCERTA (methylphenidate HCl), a treatment for attention deficit hyperactivity disorder; ACIPHEX/PARIET, a proton pump inhibitor co-marketed with Eisai Inc.; and DURAGESIC/Fentanyl Transdermal (fentanyl transdermal system, sold outside the U.S. as DUROGESIC), a treatment for chronic pain. Medical Devices and Diagnostics The Medical Devices and Diagnostics segment includes a range of products distributed to wholesalers, hospitals and retailers, used principally in the fields by physicians, nurses, therapists, hospitals, diagnostic laboratories and clinics. These products include Cardiovascular Care's electrophysiology and circulatory disease management products; DePuy's orthopaedic joint reconstruction, spinal care, neurological and sports medicine products; Diabetes Care's blood glucose monitoring and insulin delivery products; Ethicon's surgical care, aesthetics and women's health products; Ethicon Endo-Surgery's minimally
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invasive surgical products and sterilization products; Ortho-Clinical Diagnostics' diagnostic products; and Vision Care's disposable contact lenses. Vision and Mission: At Johnson & Johnson there is no vision or mission statement that hangs on the wall. Instead, for more than 60 years, a simple, one-page document (Our Credo) has guided their actions in fulfilling their responsibilities to their customers, their employees, the community and their stockholders. Their worldwide Family of Companies shares this value system in 36 languages spreading across Africa, Asia/Pacific, Eastern Europe, Europe, Latin America, Middle East and North America. The English version of the Credo is below: We believe our first responsibility is to the doctors, nurses and patients, to mothers and fathers and all others who use our products and services. In meeting their needs everything we do must be of high quality. We must constantly strive to reduce our costs in order to maintain reasonable prices. Customers' orders must be serviced promptly and accurately. Our suppliers and distributors must have an opportunity to make a fair profit. We are responsible to our employees, the men and women who work with us throughout the world. Everyone must be considered as an individual. We must respect their dignity and recognize their merit. They must have a sense of security in their jobs. Compensation must be fair and adequate, and working conditions clean, orderly and safe. We must be mindful of ways to help our employees fulfill their family responsibilities. Employees must feel free to make suggestions and complaints. There must be equal opportunity for employment, development and advancement for those qualified. We must provide competent management, and their actions must be just and ethical. We are responsible to the communities in which we live and work and to the world community as well. We must be good citizens support good works and charities and bear our fair share of taxes. We must encourage civic improvements and better health and education. We must maintain in good order the property we are privileged to use, protecting the environment and natural resources. Our final responsibility is to our stockholders. Business must make a sound profit. We must experiment with new ideas. Research must be carried on, innovative programs developed and mistakes paid for. New equipment must be purchased, new facilities provided and new products launched. Reserves must be created to provide for adverse times. When we operate according to these principles, the stockholders should realize a fair return. Strategy Statement: Below is the strategy statement of Johnson and Johnson: We focus on the fundamentals of our business, and manage with future generations in mind. While we keep our eye on social and scientific trends, we make sure our companies balance the short-term and the long-term in their strategic planning. We invest in promising new businesses while maintaining Mike S Pena penam2@rpi.edu Page 50
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leadership positions in high growth businesses. We are focused on sustainability, and constantly review key economic, environmental, and employee health and safety indicators to ensure we are on the right path. This past year we established an internal innovation fund to keep us at the leading edge of transforming health and well-being. Job Information: With the motto, What type of mark will you make? Johnson & Johnson provides its workers a team oriented environment where individual capabilities and potentials are recognized and nurtured. Johnson & Johnson companies are committed to providing a culture that respects employees as individuals, supporting work/life balance through programs and services that can help them be vital in their work, family and personal life. The company provides its customers with well-defined processes and tools to help them drive their career in a meaningful direction. These include: A personal, customized development program Leadership training and online learning Global guidelines for productive career development conversations with their managers Clear succession planning, supported by development programs that are designed to give them specific experiences and skills acquisition for their next target job Flexible career paths hat can enable them to broaden their scope of experience through exposure to different disciplines and companies Career opportunities across three business segments
Johnson & Johnson offer positions in different departments including: Consumer Segment: The Johnson & Johnson Consumer companies offer products, services, and information for Skin & Hair Care, Baby Care, Womens Health, Wound Care & Topicals, Over-the-Counter medicines, Nutritionals, Oral Health care, and employer health and wellness programs. Their research and product development strategies are rooted in technology and consumer insights, in keeping with their vision: Bringing science to the art of healthy living. This segment offers career opportunities with many of the worlds most well known and respected brands, providing employers with a solid grounding in the dynamics of strong customer focus. Pharmaceutical Segment: The Johnson & Johnson Pharmaceuticals segment aggressively addresses the most critical needs of the patients around the world through five major therapeutic areas: Oncology, Cardiovascular/ Metabolism, Neuroscience (including pain), Infectious Diseases and Vaccines, and Immunology. In both developed and emerging markets, their medicines bring a powerful measure of hope to people who suffer from the ravages of infection and disease. Medical Devices & Diagnostic Segment: Mike S Pena penam2@rpi.edu Page 51
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The Johnson & Johnson Medical Devices and Diagnostics (MD&D) franchises comprise the worlds largest medical technology business. Treatment areas include: orthopedics; sports medicine; heart and vascular disease; neurological disease; general, bariatric, hernia, urologic, and plastic surgery; medical diagnostics and blood screening; infection prevention; womens health and urology; diabetes and obesity; and vision care. My Assessment of Johnson & Johnson: SWOT Analysis Strengths A Substantial Marketing Arsenal Johnson & Johnson can call upon a network of subsidiaries armed with significant sales and marketing skills, as well as expertise in a number of therapy areas. The company possesses a global sales force which serves to attract joint venture possibilities. Strategic Acquisitions Johnson & Johnson has maintained a stable financial position by utilizing cash reserves to finance timely corporate acquisitions. Its Triple A Credit Rating represents a company able to take advantage of opportunities that arise without being limited by burdensome levels of debt. Product Diversification The Johnson & Johnson pharmaceutical portfolio, and its large Medical Devices & Diagnostics (M,D &D) and Consumer Health divisions, serve to reduce dependence upon any one area. The company plans to continue this broadening through 2014. This diversification allows a wider range of choice when pursuing opportunities with the greatest growth prospects. Positive Revenue Growth Projections The potential of an impressive number of new product launches and the promise of achieving forecast sales is said to do well for Johnson & Johnson. An increase at 1.8% Compound Annual Growth rate (CAGR) across 2014 is believed to be achievable. Weaknesses Dependence on the Success of Launch Products Many new launch products are vulnerable to the uncertainty of regulatory review and ultimate market benefits may vary substantially from the forecast. Therefore, reliance upon launch products potentially represents a threat to Johnson & Johnsons outlook. Reliance on Small Molecule Drugs Mike S Pena penam2@rpi.edu Page 52
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Compared to biologics, small molecules are notably more impacted by generic competition. As such, although Johnson & Johnson is engaged in producing new small molecule products after the expiration of their patents, declines are still predicted. This is particularly the case in the US, where generic erosion rates are most aggressive. Johnson & Johnsons small molecule drug sales have declined for the past years and they are expected to fall further. These issues reflect concerns expressed across the pharmaceutical industry with the necessity of finding replacements for billion dollar products as they mature represents an intimidating task. Opportunities Wide Range of Potential Cross-selling Opportunities Johnson & Johnson is in a position to strategically benefit from cross-selling opportunities. Using the disease life cycle as a base, the company could exploit its product line in CV, oncology, diabetes and I&I therapy to formulate linkages between patents and care-giving resulting in greater efficiency. Maximizing its balance between Pharmaceuticals, Diagnostics, and Medical Devices could result in increased revenues. Potential to Exploit Biologics Market The addition of further biologics to its portfolio can serve as a buffer as more molecule patents expire. J&J is experienced in the development and commercialization of biologics, including the therapeutic proteins Procrit and Natrecor, and monoclonal antibodies Remicade, ReoPro, Simponi and Stelara. This represents an opportunity to gain key IP, product rights or strengthen discovery capabilities. Threats Dependence on the Success of Launch Products Many new launch products are vulnerable to the uncertainty of regulatory review and ultimate market benefits may vary substantially from the forecast. Therefore, reliance upon launch products potentially represents a threat to Johnson & Johnsons outlook. Negative Impact of Recent Product Recalls Johnson & Johnson has recently had the misfortune of having to recall more than 40 medicines. FDA inspectors required the company to recall childrens medications after discovering the company had not looked into dozens of consumer complaints about "black or dark specks" in Tylenol and other products. The company stands to take a hit to its reputation as congressional lawmakers are blasting the company's competence and integrity. Conclusion Johnson & Johnson Corporation was founded in 1886 by Robert Wood Johnson, an American entrepreneur and industrialist. Inspired by the developing scientific understanding of proper sanitation and Mike S Pena penam2@rpi.edu Page 53
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germ theory, Johnson aimed to make antiseptic surgical procedures easier. Through numerous targeted acquisitions and research over the next century, the company steadily diversified its business to encompass pharmaceuticals, medical devices, and consumer packaged goods. Johnson & Johnson (J&J) is one of the largest healthcare firms in the world and one of the most diversified. Its operations are organized into three business segments: pharmaceutical, which generates 47 percent of revenues and 58 percent of operating profits; medical devices and diagnostics, which account for 36 percent of revenues and 31 percent of operating profits; and consumer, which contributes 17 percent of revenues and 11 percent of operating profits. J&J's pharmaceutical products include drugs for family planning, mental illness, nervous system diseases, gastroenterology, oncology, immunotherapy, cardiovascular disease, pain management, allergies, and other areas. The medical devices and diagnostics segment includes surgical and patient care equipment and devices, diagnostic products, joint replacements, coronary stents, and contact lenses. The company's well-known line of consumer products includes the Johnson's baby care line, the Neutrogena skin and hair care line, o.b. and Stayfree feminine hygiene products, the Reach oral care line, Band-Aid brand adhesive bandages, Imodium A-D diarrhea treatment, Mylanta gastrointestinal product s, Pepcid AC acid controller, Tylenol, Motrin, and St. Joseph pain relievers, and Benecol and Splenda sweeteners. J&J generates about 40 percent of its revenues outside the United States, through its network of 200 operating companies in 57 countries, selling products around the world. During the past couple of years, several macroeconomic factors, including a continued economic slowdown, had a severe impact on the health care industry and consequently, on Johnson & Johnson. There were also costs associated with U.S. health care reform. Additionally, Johnson & Johnson faced lost sales and increasing remediation costs resulting from consumers over-the-counter product recalls, as well as generic competition in pharmaceutical businesses. However, they continued to grow earnings while maintaining investments for future revenue and increased profits. With these investments, they hope to develop a number of exciting new products that have the potential to address significant unmet health care needs. Year after year, Johnson & Johnson has seen relatively flat revenues (around $60 billion), but the companys net income decreased for the past year. A reduction in the percentage of sales devoted to selling, general and administrative costs (from 31.99% to 31.54%) was a key component in the bottom line growth in the face of flat revenues. Additionally, there are enough liquid assets to satisfy current obligations. Accounts Receivable is typical for the industry, with 57.39 days worth of sales outstanding. Last, inventory levels, relative to the Cost of Goods Sold, are typical for the industry but have shown a consistent increase during the last 3 years. This implies a potential loss of efficiency or pricing power. In a tough global economy, they maintained their financial discipline. Johnson & Johnson generated free cash flow of approximately $10 billion and an increase in worldwide sales held there AAA credit rating. They also executed a $1.1 billion debt offering at the lowest interest rate for long-term corporate debt in history. The company had a one-year decline in total shareholder return of about half a percent. Over longer time frames, they continue to compare favorably to most stock indices, beating all major sector performance benchmarks on a three-year and 10-year basis. The one-year decline in shareholder return Mike S Pena penam2@rpi.edu Page 54
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was disappointing, but reflects both the uncertainty around health care reform that affected many companies in the pharmaceutical industry and the impact of their consumers product recalls. Competition in the health care industry lies mostly in specific markets. For example, a new diabetes drug is not going to have any effect on an existing cholesterol drug, no matter how successful it is. This concept is especially true in the case of Johnson & Johnson, which due to its diverse product offerings in multiple segments of the industry, simultaneously competes in hundreds of distinct markets. With this in mind, success in this competitive environment requires substantial investments in research and sales. Johnson & Johnson's major competitors include Pfizer, Merck, and Novartis. In the medical devices space, its competitors include Medtronic (MDT) and Boston Scientific (BSX). In the orthopedic implants segment, it competes with Zimmer Holdings (ZMH) and Stryker (SYK). Besides the economic crises in past years Johnson & Johnson has managed to stay one of the top leading pharmaceutical companies. Despite problems with the healthcare reform they continued to grow. Even though sales fell in 2010 by 1.3%, their earnings increased. Considering the estimate revision trends and the magnitude of revisions, it is clear that a negative outlook is to come in the near future. However, Johnson & Johnson has been trying to counter declining sales of some of its important products by bringing in new ones through in-licensing deals and acquisitions. Johnson & Johnsons diversified business model, robust pipeline, strong financial position, and lack of cyclicality will help the company negotiate the tough times and maintain their AAA credit rating.
Pfizer Inc.
Company Name: Pfizer Inc. Hyperlink/URL: http://www.pfizer.com Primary SIC: 2834 - Pharmaceutical preparations Secondary SIC : 2835 - Diagnostic substances 2048 - Prepared feeds, nec Primary NAICS: 325412 - Pharmaceutical Preparation Manufacturing Secondary NAICS : 325413 - In-Vitro Diagnostic Substance Manufacturing 325998 - All Other Miscellaneous Chemical Product and Preparation Manufacturing Incorporation Year: 1849 Official Correspondence Address: 235 East 42nd Street, New York, NY 10017 United States Telephone Number: 212 733-2323 Exchange: New York Stock Exchange Stock Ticker: PFE Mike S Pena penam2@rpi.edu Page 55
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Publicly Traded Since: 1942 Shares Outstanding (#,date): $7.47 billion, 10/26/2012 Market Value ($US, date): $189.95 billion, 10/26/2012 Fiscal Year End (mm/dd/yyyy): 12/31/2011 Employees (Domestic/Foreign): 103,700 employees Subsidiaries: Subsidiaries 685 TA LLC A. H. Robins (Philippines) Company, Inc. A. H. Robins International Company A/O Pfizer AC Acquisition Holding Company Agouron Pharmaceuticals, Inc. AHP Holdings B.V. AHP Holdings Pty. Limited AHP Manufacturing B.V. Allabinc de Mexico, S.A. de C.V Alpha-Lux Investments S.ar Alpharma (Belgium) BVBA Alpharma (Bermuda) Investments Ltd. Alpharma (Bermuda) Ltd Alpharma (Bermuda), LLC Alpharma (Luxembourg) S.A.R.L. y Compania Limitada Alpharma (Luxembourg) S.ar.l. Alpharma Animal Health (Beijing) Trading Co. Ltd. Alpharma Animal Health (Shenzhou) Co., Ltd. Alpharma Animal Health (Yantai) Co., Ltd. Alpharma Animal Health Company Alpharma Animal Health Italia S.r.l. Alpharma Animal Health Pty Ltd. Alpharma Bermuda G.P. Alpharma Canada Corporation Alpharma de Argentina S.R.L. Alpharma do Brasil Ltda Alpharma Euro Holdings, LLC Alpharma Holdings (Barbados) SRL Mike S Pena Percent Owned 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% Country United States Philippines United States Russia United States United States Netherlands Australia Netherlands Mexico Luxembourg Belgium Bermuda Bermuda United States Chile Luxembourg China (Peoples Rep. Of) Hong Kong China (Peoples Rep. Of) United States Italy Australia Bermuda Canada Argentina Brazil United States Barbados Page 56
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WL de Guatemala, Sociedad Anonima 100% W-L LLC 100% Wyeth (Asia) Limited 100% Wyeth (Far East) Limited 100% Wyeth (H.K.) Limited 100% Wyeth (Hong Kong) Holding Company Limited 100% Wyeth (Malaysia) SDN. BHD. 100% Wyeth (Shanghai) Trading Company Limited 100% Wyeth (Singapore) Pte. Ltd. 100% Wyeth (Thailand) Ltd. 100% Wyeth AB 100% Wyeth Advertising Inc. 100% Wyeth Australia Pty. Limited 100% Wyeth Ayerst Inc. 100% Wyeth Ayerst SARL 100% Wyeth Consumer Healthcare Ltd. 100% Wyeth Consumer Healthcare Pty. Limited 100% Wyeth Egypt Ltd. 100% Wyeth Egypt Trading Ltd. 100% Wyeth Europa Limited 100% Wyeth Farma, S.A. 100% Wyeth Holdings Corporation 100% Wyeth Ilaclari A.S. 100% Wyeth Industria Farmaceutica Ltda. 100% Wyeth KFT. 100% Wyeth Korea, Inc. 100% Wyeth Lederle S.p.A. 100% Wyeth Lederle Vaccines S.A. 100% Wyeth Limited 100% Wyeth LLC 100% Wyeth Nutritional (China) Co., Ltd. 100% Wyeth Nutritionals (Singapore) PTE. LTD. 100% Wyeth Nutritionals Inc. 100% Wyeth OOO 100% Wyeth Pakistan Limited 100% Wyeth Pharmaceutical Co., Ltd. 100% Wyeth Pharmaceuticals Central America Services, S.A. 100% Wyeth Pharmaceuticals Company 100% Wyeth Pharmaceuticals FZ-LLC 100% Mike S Pena penam2@rpi.edu
Guatemala United States United States Hong Kong Hong Kong Hong Kong Malaysia China (Peoples Rep. Of) Singapore Thailand Sweden United States Australia United States Luxembourg United States Australia Egypt Egypt United Kingdom Spain United States United States Brazil Hungary Korea (South) Italy Belgium India United States China (Peoples Rep. Of) Singapore United States Russia Pakistan China (Peoples Rep. Of) Panama Puerto Rico United Arab Emirates Page 70
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Wyeth Pharmaceuticals Inc. Wyeth Pharmaceuticals India Private Limited Wyeth Pharmaceuticals Limited Wyeth Pharmaceuticals S. de R.L. de C.V. Wyeth Philippines, Inc. Wyeth Puerto Rico, Inc. Wyeth Regional Manufacturing (Singapore) PTE. LTD. Wyeth Research Ireland Limited Wyeth S.A. Wyeth S.A. de C.V. Wyeth Subsidiary Illinois Corporation Wyeth Whitehall Export GmbH Wyeth Whitehall SARL Wyeth-Ayerst (Asia) Limited Wyeth-Ayerst International Inc. Wyeth-Ayerst Promotions Limited Yusafarm D.O.O.
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
United States India Ireland Mexico Philippines Puerto Rico Singapore Ireland Argentina Mexico United States Austria Luxembourg United States United States United States United States
Products (or Brands): From the most common medical concerns to some of the biggest health challenges facing our world today, Pfizer prescription medicines help to treat and prevent a range of illnesses for people around the world. Some of these prescription medicines include: Accupril (quinapril HCI tablets) Accuretic (quinapril HCl/hydrochlorothiazide) Advil Brands (ibuprofen) Alavert (loratadine) Aldactazide (spironolactone and hydrochlorothiazide tablets) Aldactone (spironolactone tablets) Alsuma (sumatriptan injection) Altace (ramipril) Ampicillin (ampicillin for injection, USP) Anbesol Antivenin (Micrurus fulvius) (Equine Origin) North American Coral Snake Antivert (meclizine HCI) Aricept (donepezil hydrochloride) tablets Aromasin (exemestane tablets) Arthrotec (diclofenac sodium/misoprostol) tablets penam2@rpi.edu Page 71
Mike S Pena
Fall 2012
Atgam (lymphocyte immune globulin, anti-thymocyte globulin [equine] sterile solution) Avinza (morphine sulfate extended release capsules) Azulfidine (sulfasalazine tablets, USP) Bacitracin for Injection BeneFIX (coagulation factor IX (recombinant)) Bicillin C-R (penicillin G benzathine and penicillin G procaine injectable suspension) Bicillin L-A (penicillin G benzathine and penicillin G procaine injectable suspension) Bosulif (bosutinib) Caduet (amlodipine besylate/atorvastatin calcium) Calan (verapamil hydrochloride tablets) Caltrate (Calcium & Vitamin D) Camptosar (irinotecan HCI injection) Cardura (doxazosin mesylate) tablets Caverject (alprostadil for injection) Cefotaxime (cefotaxime for injection) Celebrex (celecoxib capsules) Celontin (methsuximide capsules, USP) Centrum Brands Cerebyx (fosphenytoin sodium injection) Chantix (varenicline) tablets ChapStick Cisplatin (cisplatin injection) Cladribine (cladribine injection) Cleocin Phosphate (clindamycin phosphate) Colestid (micronized colestipol hydrochloride tablets) Cordarone (amiodarone hydrochloride) Corgard (nadolol) Cortef (hydrocortisone tablets, USP) Cortisporin (neomycin and polymyxin B sulfates) Corvert (ibutilide fumarate injection) Corzide (nadolol and bendroflumethiazide tablets) Covera-HS (verapamil hydrochloride extended-release tablets) Cyklokapron (tranexamic acid injection) Cytarabine (cytarabine injection) Cytomel (liothyronine sodium tablets) Cytotec (misoprostol tablets) Daypro (oxaprozin caplets) Depo-Estradiol (estradiol cypionate injection, USP) Depo-Medrol (methylprednisolone acetate injectable suspension, USP) penam2@rpi.edu Page 72
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Fall 2012
Depo-Provera (medroxyprogesterone acetate injectable suspension) Depo-subQ Provera 104 (medroxyprogesterone acetate injectable suspension 104 mg/0.65 mL) Depo-Testosterone (testosterone cypionate injection, USP) Detrol (tolterodine tartrate tablets) Dexamethasone (dexamethasone for injection, USP) Didrex (benzphetamine hydrochloride tablets) Diflucan (fluconazole) Dilantin (phenytoin oral suspension, USP, phenytoin tablets, USP, and extended phenytoin sodium capsules, USP) Dimetapp Dipentum (olsalazine sodium capsules) Doxorubicin Hydrochloride (doxorubicin hydrochloride) Dristan Effexor (venlafaxine hydrochloride) Elelyso (taliglucerase alfa) for injection Ellence (epirubicin hydrochloride injection) Embeda (morphine sulfate and naltrexone hydrochloride) Emcyt (estramustine phosphate sodium capsules) Enbrel (etanercept) Eraxis for injection (anidulafungin) Estring (estradiol vaginal ring) Etomidate (etomidate) Famotidine (famotidine injection) Feldene (piroxicam) FiberCon(calcium polycarbophil) Flagyl (metronidazole tablets) Flector Patch (diclofenac epolamine topical patch) 1.3% Fluconazole (fluconazole injection, USP) Fludarabine (fludarabine phosphate injection, USP) Flumazenil (flumazenil) Gelfilm (gelfilm absorbable film) Gelfoam Powder and Sponge (absorbable gelatin powder and absorbable gelatin compressed sponge) Gemcitabine (absorbable gelatin) Genotropin (somatropin [rDNA origin] for injection) Geocillin (carbenicillin indanyl sodium) Geodon (ziprasidone HCI) Glipizide Glucotrol (glipizide) penam2@rpi.edu Page 73
Mike S Pena
Fall 2012
Glynase PresTab (micronized glyburide tablets) Glyset (miglitol tablets) Halcion (triazolam tablets) Haloperidol (haloperidol injection) Hemabate (carboprost tromethamine injection, USP) Heparin Sodium Injection (heparin sodium injection) Humatin (paromomycin sulfate) Capsule Idamycin (idarubicin hydrochloride for injection, USP) Inderal LA (propranolol hydrochloride) Inlyta (axitinib) tablets Inspra (eplerenone) Intal Inhaler (cromolyn sodium inhalation aerosol) Intal Nebulizer (cromolyn sodium inhalation solution) Kemadrin (procyclidine hydrochloride) Levoxyl (levothyroxine sodium tablets) Lincocin (lincomycin injection, USP) Lipitor (atorvastatin calcium) tablets Lomotil (diphenoxylate hydrochloride with atropine sulfate) Lo/Ovral (norgestrel and ethinyl estradiol tablets) Lopid (gemfibrozil tablets, USP) Lybrel (90 mcg levonorgestrel/20 mcg ethinyl estradiol) tablets Lyrica (pregabalin) capsules Medrol (methylprednisolone tablets, USP) Menest (esterified estrogens tablets) Methotrexate (methotrexate injection, USP) Minipress (prazosin hydrochloride) capsules Mycobutin (rifabutin capsules, USP) Mylotarg (gemtuzumab ozogamicin for injection) Nardil (phenelzine sulfate tablets, USP) Navane (thiothixene capsules) Neosporin G.U. Irrigant (neomycin sulfate polymyxin B sulfate solution for irrigation) Neumega (oprelvekin) Neurontin (gabapentin) Nicotrol NS (nicotine nasal spray) Nicotrol Inhaler (nicotine inhalation system) Nitrostat (nitroglycerin tablets, USP) Norgestrel Ethinyl Estradiol (norgestrel and ethinyl estradiol tablets) Norpace (disopyramide phosphate capsules) Norvasc (amlodipine besylate) penam2@rpi.edu Page 74
Mike S Pena
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Ogen (estropipate tablets, USP) Ondansetron (ondansetron for injection, USP) Oxaliplatin (oxaliplatin injection, USP) Oxecta (oxycodone HCl tablets, immediate-release) Paclitaxel (injection) Pamidronate Disodium (pamidronate disodium) Paclitaxel Injection (paclitaxel injection) Pantoprazole Sodium (delayed-release tablets) Pediotic Suspension Sterile (neomycin and polymyxin B sulfates and hydrocortisone otic suspension, USP) Penicillin G Procaine (penicillin G procaine injectable suspension) Pfizerpen for Injection (penicillin G potassium) Phospholine Iodine (echothiophate iodide for ophthalmic solution) Pipracil (piperacillin sodium) Premarin (conjugated estrogens) Premphase (conjugated estrogens plus medroxyprogesterone acetate tablets) Prempro (conjugated estrogens/medroxyprogesterone acetate tablets) Preparation H Prepidil Gel (dinoprostone cervical gel) Prevnar 13 (Pneumococcal 13-valent Conjugate Vaccine [Diphtheria CRM197 Protein]) Primatene Tablets Pristiq (desvenlafaxine) extended-release tablets Procardia (nifedipine) Propranolol Hydrochloride (propranolol hydrochloride extended-release capsules) Prostin E2 (dinoprostone vaginal suppository) Prostin VR Pediatric (alprostadil injection, USP) Protonix (pantoprazole sodium) Provera (medroxyprogesterone acetate tablets, USP) Rapamune (sirolimus) Rebif (interferon beta-1a) sc injection ReFacto (Antihemophilic Factor [Recombinant]) Relistor (methylnaltrexone bromide) subcutaneous injection Relpax (eletriptan HBr) Revatio (sildenafil) tablets R-Gene 10 (10% arginine hydrochloride injection, USP) Rifampin (for injection, USP) Robitussin Septra Tablets (trimethoprim and sulfamethoxazole) Silvadene Cream 1% (silver sulfadiazine) penam2@rpi.edu Page 75
Mike S Pena
Fall 2012
Skelaxin (metaxalone) Solu-Cortef (hydrocortisone sodium succinate for injection, USP) Solu-Medrol (methylprednisolone sodium succinate for injection, USP) Sonata CIV (zaleplon) Somavert (pegvisomant for injection) Spiriva HandiHaler (tiotropium bromide inhalation powder) Sutent (sunitinib malate) Synarel (nafarelin acetate nasal solution) Synercid I.V. (quinupristin / dalfopristin for injection) Tapazole (methimazole tablets) Tessalon (100mg perles and 200mg capsules benzonatate, USP) Thalitone (chlorthalidone tablets) ThermaCare Thrombi-Gel (thrombin / gelatin foam hemostat) Thrombin-JMI (thrombin, topical, bovine origin) Thrombi-Pad (3x3 hemostatic pad) Tigan (trimethobenzamide hydrochloride) Tikosyn (dofetilide) Tilade Inhaler (nedocromil sodium inhalation aerosol) Tobramycin Injection, USP Toposar (etoposide injection, USP) Torisel (temsirolimus) injection Toviaz (fesoterodine fumarate extended release tablets) Trecator (ethionamide tablets) Trelstar (triptorelin pamoate for injectable suspension) Tussigon (hydrocodone bitartrate and homatropine methylbromide) Tygacil (tigecycline) Unasyn (ampicillin sodium/sulbactam sodium) Vancomycin (sterile vancomycin hydrochloride) Vecuronium Bromide (vecuronium bromide for injection) Venlafaxine Hydrochloride (extended-release capsules) Vfend (voriconazole) Viagra (sildenafil citrate) tablets Vibramycin (doxycycline calcium, doxycycline hyclate, doxycycline monohydrate) Vinorelbine (vinorelbine injection) Viroptic (trifluridine ophthalmic solution) Vistaril (hydroxyzine pamoate) Xalatan (latanoprost ophthalmic solution) Xalkori (crizotinib) penam2@rpi.edu Page 76
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Xanax (alprazolam tablets) Xyntha (antihemophilic factor (recombinant), plasma/albumin-free) Zaleplon (capsules) Zarontin (ethosuximide capsules, USP and ethosuximide) Zinecard (dexrazoxane for injection) Zithromax (azithromycin) Zmax (azithromycin extended release) for oral suspension Zoloft (sertraline HCI) Zosyn (piperacillin and tazobactam for injection) Zyvox (linezolid)
Competitors: Procter & Gamble Co. Pfizer Inc Johnson & Johnson Dow Chemical Co. Merck & Co., Inc Abbott Laboratories Du Pont (E.I.) de Nemours & Co Lilly (Eli) & Co. Bristol-Myers Squibb Co. Amgen Inc Baxter International Inc. Gilead Sciences, Inc. Mylan Inc Allergan, Inc Celgene Corp. Forest Laboratories, Inc. Watson Pharmaceuticals, Inc. Hospira Inc Perrigo Company Albemarle Corp. Endo Health Solutions Inc Covance Inc. Edwards Lifesciences Corp PAREXEL International Corp. Leucadia National Corp.
Geographic Operation Areas: Mike S Pena penam2@rpi.edu Page 77
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Pfizer is a leading pharmaceutical company, operating in 180 countries worldwide: Company Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Synbiotics (Pfizer) Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer King Pharmaceuticals (Pfizer) Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Mike S Pena Location Buenos Aires, Argentina Baulkham Hills, Australia Bentley, Australia Queensland, Australia Victoria, Australia West Ryde, Australia Vienna , Austria Anderlecht, Belgium Bornem, Belgium Elsene, Belgium Louvain-la-Neuve, Belgium Nossagem, Belgium Puurs, Belgium Sao Paulo, Brazil San Diego, CA San Diego, CA San Diego, CA South SF, CA Dalian, China Shanghai, China Suzhou, China Wuxi, China Groton, CT Prague, Czech Republic Ballerup, Denmark Helsinki, Finland St. Petersburg, FL Poce-sur-Cisse, France Franfurt, Germany Freiburg, Germany Illertissen, Germany Karlsruhe, Germany Psychiko, Greece penam2@rpi.edu Page 78 Business Type Solid Oral Dosage Forms
Animal Health Animal Health
Clinical Research Gelatin Capsules Animal Health Animal Health Logistics Packaging Peptides / Monoclonal Antibodies Small Molecules / Biologics Veterinary Diagnostics Biologics
Capsules Small Molecules / Biologics Animal Health Clinical Trials / Research
Small Molecules / Biologics
Fall 2012
Pfizer Pfizer Animal Health Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Ft. Dodge Labs Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer King Pharmaceuticals (Pfizer) Pfizer King Pharmaceuticals (Pfizer) Pfizer Pfizer Pfizer Pfizer King Pharmaceuticals (Pfizer) Pfizer Pfizer Mike S Pena
Budapest, Hungary Charles City, IA Mumbai, India Thane, India Askeaton, Ireland Dun Laoghaire, Ireland Grange Castle, Ireland Newbridge, Ireland Ringaskiddy, Ireland Shanbally, Ireland Sligo, Ireland Aprilia, Italy Ascoli Piceno, Italy Catania, Italy Nagoya, Japan Tokyo, Japan Andover, MA Cambridge, MA Brandon, MB Toluca, Mexico Kalamazoo, MI Rochester, MI Chesterfield, MO St. Louis, MO Durham, NC Sanford, NC Lincoln, NE Auckland, New Zealand Bridgewater, NJ Madison, NJ Monmouth Junction, NJ penam2@rpi.edu
Animal Health
Nutritionals Sterile Parenterals Biologics Solid Dosage Forms API production Biologics
Animal Health / Small Molecules
Small Molecules / Vaccines / Biologics Small Molecules / Biologics
Small Molecules / Biologics Small Molecules / Biologics Small Molecules / Biologics Medical Devices / Small Molecules Poultry Health Small Molecules / Vaccines / Biologics Animal Health Animal Health Small Molecules / Biologics Small Molecules / Vaccines / Biologics Small Molecules / Vaccines / Biologics Page 79
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Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Canada Inc - PGM Orangeville Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer Pfizer King Pharmaceuticals (Pfizer) Pfizer Regenerative Medicine Pfizer Pfizer Pfizer King Pharmaceuticals (Pfizer)
Morris Plains, NJ Peapack, NJ Pearl River, NY Rouses Point, NY Franklin, OH Orangeville, ON Collegeville, PA Karachi, Pakistan Warsaw, Poland Barceloneta, PR Caguas , PR Vega Baja, PR Kirkland, QC Saint-Leurent, QC Gateway West, Singapore Madrid, Spain Stockholm, Sweden Strangnas, Sweden Hsinchu, Taiwan Bristol, TN Cambridge, UK Gosport, UK Havant, UK Walton Oaks, UK Middleton, WI
Small Molecules / Biologics Small Molecules / Biologics Small Molecules / Vaccines / Biologics Small Molecules / Vaccines / Biologics Small Molecules / Biologics
Small Molecules / Vaccines / Biologics
Company History: Please see Appendix for Pfizer Inc. Description of Business:
Mike S Pena
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Pfizer is a research-based biopharmaceutical company. Co.'s healthcare portfolio includes human and animal biologic and small molecule medicines and vaccines, as well as nutritional products and consumer healthcare products. Co. manages its operations through five operating segments: Primary Care; Specialty Care and Oncology; Established Products and Emerging Markets; Animal Health and Consumer Healthcare; and Nutrition. The Primary Care operating segment includes revenues from human pharmaceutical products primarily prescribed by primary-care physicians, and may include products in the following therapeutic and disease areas: Alzheimer's disease, cardiovascular (excluding pulmonary arterial hypertension), erectile dysfunction, genitourinary, major depressive disorder, pain, respiratory and smoking cessation. Examples of products in this segment include Celebrex, Chantix/Champix, Lipitor, Lyrica, Premarin, Pristiq and Viagra. The Specialty Care and Oncology operating segment comprises the Specialty Care business unit and the Oncology business unit. Specialty Care business unit includes revenues from human pharmaceutical products primarily prescribed by physicians who are specialists, and may include products in the following therapeutic and disease areas: anti-infectives, endocrine disorders, hemophilia, inflammation, multiple sclerosis, ophthalmology, pulmonary arterial hypertension, specialty neuroscience and vaccines. Examples of products in this business unit include BeneFIX, Enbrel, Genotropin, Geodon, the Prevnar/Prevenar franchise, Rebif, ReFacto AF, Revatio, Xalatan, Xyntha and Zyvox. Oncology business unit includes revenues from human prescription pharmaceutical products addressing oncology and oncology-related illnesses. Examples of products in this business unit include Aromasin, Sutent, Torisel and Xalkori. The Established Products and Emerging Markets operating segment comprises the Established Products business unit and the Emerging Markets business unit. Established Products business unit generally includes revenues from human prescription pharmaceutical products that have lost patent protection or marketing rights in certain countries and/or regions. Typically, products are transferred to this business unit in the beginning of the fiscal year following loss of patent protection or marketing rights. Examples of products in this business unit include Arthrotec, Effexor, Medrol, Norvasc, Protonix, Relpax and Zosyn/Tazocin. Emerging Markets business unit includes revenues from all human prescription pharmaceutical products sold in emerging markets, including Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey. The Animal Health and Consumer Healthcare operating segment comprises the Animal Health business unit and the Consumer Healthcare business unit. Animal Health business unit includes worldwide revenues from products and services to prevent and treat disease in livestock and companion animals, including vaccines, parasiticides and anti-infectives. Consumer Healthcare business unit generally includes worldwide revenues from non-prescription products in the following therapeutic categories: dietary supplements, pain management, respiratory and personal care. Products marketed by Consumer Healthcare include Advil, Caltrate, Centrum, ChapStick, Preparation H and Robitussin. Mike S Pena penam2@rpi.edu Page 81
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The Nutrition operating segment generally includes revenues from a line of infant and toddler nutritional products sold outside the U.S. and Canada. Products in this segment include infant milk formula brands for newborns and toddlers: Co.'s Gold line includes brands S-26 and/or SMA, and its Illuma brand. Co. also commercializes specialty formulas such as S-26 Gold Hypoallergenic, S-26 Gold Anti-Regurgitation, S-26 Gold Lactose-Free, and S-26 Picky Eater. Co.'s biopharmaceutical products include Lipitor, for the treatment of elevated low-density lipoproteincholesterol levels in the blood; Lyrica for the management of post-herpetic neuralgia, neuropathic pain related to diabetic peripheral neuropathy, the management of fibromyalgia, and as adjunctive therapy for adult patients with partial onset seizures in the U.S., and for neuropathic pain (peripheral and central), adjunctive treatment of epilepsy and general anxiety disorder in certain countries outside the U.S.; Prevenar 13, its 13-valent pneumococcal conjugate vaccine for the prevention of various syndromes of pneumococcal disease in infants and young children and in adults 50 years of age and older; Enbrel for the treatment of moderate-to-severe rheumatoid arthritis, polyarticular juvenile rheumatoid arthritis, psoriatic arthritis, plaque psoriasis and ankylosing spondylitis; Celebrex for the treatment of the signs and symptoms of osteoarthritis and rheumatoid arthritis worldwide and for the management of acute pain in adults in the U.S. and certain markets in the European Union; Viagra for the treatment of erectile dysfunction; Norvasc for treating hypertension; Zyvox for the treratment of serious Gram-positive pathogens; Xalatan, a prostaglandin, used to reduce elevated eye pressure in patients with open-angle glaucoma or ocular hypertension; Xalacom, a fixed combination of prostaglandin (Xalatan) and beta blocker (timolol); Sutent for the treatment of advanced renal cell carcinoma, including metastatic renal cell carcinoma and gastrointestinal stromal tumors after disease progression on, or intolerance to, imatinib mesylate; Geodon/Zeldox, an atypical antipsychotic for the treatment of schizophrenia, as monotherapy for the acute treatment of bipolar manic or mixed episodes, and as an adjunct to lithium or valproate for the maintenance treatment of bipolar disorder; and its Premarin family of products to address moderate to severe menopausal symptoms. Co.'s biopharmaceutical products also include Genotropin, a human growth hormones, which is used in children for the treatment of short stature with growth hormone deficiency, Prader-Willi Syndrome, Turner Syndrome, Small for Gestational Age Syndrome, Idiopathic Short Stature (in the U.S. only) and Chronic Renal Insufficiency (outside the U.S. only), as well as in adults with growth hormone deficiency; Detrol/Detrol LA, a muscarinic receptor antagonist, primarily prescribed for overactive bladder; Vfend, an agent for treating yeast and molds; Chantix/Champix, an aid to smoking-cessation treatment in adults 18 years of age and older; BeneFIX and ReFacto AF/Xyntha, which are hemophilia products using manufacturing that assist patients with a lifelong bleeding disorder; Effexor, an antidepressant for treating adult patients with major depressive disorder, generalized anxiety disorder, social anxiety disorder and panic disorder; Zosyn/Tazocin, its intravenous antibiotic; Pristiq for the treatment of major depressive disorder in the U.S. and in various other countries; Caduet, a single pill therapy combining Lipitor and Norvasc for the prevention of cardiovascular events; Revatio for the treatment of pulmonary arterial hypertension; Prevnar/Prevenar (7-valent), its 7-valent pneumococcal conjugate vaccine for preventing Mike S Pena penam2@rpi.edu Page 82
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invasive, and, in certain international markets, non-invasive pneumococcal disease in infants and young children; Aricept, a dispensed medicine to treat symptoms of Alzheimer's disease; Spiriva, which is indicated in the U.S. for the long-term, once-daily, maintenance treatment of bronchospasm related to chronic obstructive pulmonary disease (COPD), including chronic bronchitis and emphysema, and for reducing COPD exacerbations; Xalkori,a therapy targeting anaplastic lymphoma kinase (ALK), for the treatment of patients with locally advanced or metastatic non-small cell lung cancer that is ALK-positive as detected by an FDA-approved test; and Inlyta for the treatment of patients with advanced renal cell carcinoma after failure of one prior systemic therapy. Co. also markets vaccines, anti-infectives, anti-inflammatories, antiemetics and parasiticides, including the following products: Startect, a novel dual-active parasiticide that provides management of parasitic worm infestation in sheep; Improvac/Improvest, a novel gonadotropin releasing factor (GnRF) product for swine that prevents boar taint; Fostera PCV, a vaccine that protects pigs against porcine circovirus; Palladia, a treatment of mast cell tumors, a common form of cancer that affects dogs; Convenia, an antiinfective for dogs and cats that provides full course of therapy from a single injection; Cerenia, a selective NK-1 receptor antagonist for the treatment and prevention of vomiting in dogs and for the prevention of motion sickness; Revolution/Stronghold, a topically administered parasiticide for dogs and cats that controls a number of different parasites such as fleas and heartworm; Rimadyl, which relieves pain and inflammation related to canine osteoarthritis and soft tissue orthopedic surgery; Draxxin and Excede, which are a single dose anti-infective used to treat infections in cattle and swine; Zulvac, a vaccine that protects cattle and sheep against bluetongue disease; and Bopriva, a novel GnRF vaccine which temporarily reduces undesirable bull behaviors such as fighting. Vision: Working together for a healthier World Mission: Our mission is to apply science and our global resources to improve health and well-being at every stage of life. Commitments: Pfizer Inc. is committed to: Advance wellness, prevention, treatments and cures. Bring the best scientific minds together to challenge the most feared diseases of our time. Set the standard for quality, safety and value of medicines. Use our global presence and scale to make a difference in local communities and the world around us. Promote curiosity, inclusion and a passion for our work. Be a leading voice for improving everyones ability to have reliable and affordable health care. penam2@rpi.edu Page 83
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Maximize our financial performance so we can meet our commitments to all who rely on us.
Strategy Statement: Pfizer Venture Investments (PVI), the venture capital arm of Pfizer, Inc., was founded in 2004 and invests for return in areas of current or future strategic interest to Pfizer. As part of the Worldwide Business Development, and Innovation division, PVI seeks to remain at the forefront of life science advances, looking to identify and invest in emerging companies that are developing compounds and technologies that have the potential to enhance Pfizer's pipeline and shape the future of our industry. With a $50M annual budget for private investments, PVI may invest up to $10M per round in selected companies in any stage of development, with a strong focus on growth stage opportunities. Other investments, including fund investing, spinout opportunities, and PIPEs will also be considered as appropriate. They actively manage Pfizers current portfolio and seek to make new investments. They consider investments in a broad array of healthcare related areas, including therapeutics, platform technologies, diagnostics, drug delivery, pharmaceutical services, healthcare IT, and other technologies impacting drug discovery and development. They will consider companies at all stages of development, including start-ups, spinouts, and consortia investments. While primarily U.S. focused, international investments may represent up to 20% of the portfolio. They have the ability to lead or join a syndicate of investors and will seek board representation as appropriate. Job Information: Pfizer is deeply committed to create an environment where colleagues can achieve success while contributing to the improved health of the world. As Pfizer continues to develop healthcare products and expand their company globally, they are consistently looking for new talent To make the world a healthier place. Right now, they are seeking to fill positions in every area of our business in all areas of the world. Because they are a global company with resources dedicated to developing a variaty of medicines that span a wide range of health issues, Pfizers advanced commercial operating structure is comprised of eight diverse health care businesses: Primary Care Primary Care is Pfizer's largest business Unit, operating globally in markets, including the US, Europe, Canada, Korea, and Australia / New Zealand. Pfizer's success relies on a commitment to advancing needed treatments and improving patient care. With a heritage of developing many of the world's lifechanging medicines, and our flexible, nimble market approach, Pfizer Primary Care will continue its #1 position in primary care for years to come. Types of experience for which they typically recruit: Sales Mike S Pena
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Clinical Development and Medical Affairs Marketing Strategy
Specialty Care Pfizer's Specialty Care Business Unit features a successful portfolio of market-leading medicines spanning many therapeutic areas and a rich pipeline of promising new products. Types of experience for which they typically recruit: Sales Marketing Market Research Strategy Clinical Development and Medical Affairs Market Access
Oncology Pfizer Oncology is committed to the discovery, investigation and development of innovative treatment options to improve the outlook for cancer patients worldwide. Their strong pipeline, one of the most robust in the industry, is studied with precise focus on identifying and translating the best scientific breakthroughs into clinical application for patients across a wide range of cancers. Types of experience for which they typically recruit: Market Research Business Development Clinical Development and Medical Affairs Field Operations Market Access Marketing Sales Strategic Alliances and Partnerships
Emerging Markets The Emerging Markets Business Unit is devoted to meeting the diverse medical needs, across all disease areas, of patients in Emerging Markets around the world in an innovative, socially responsible and commercially viable manner. By having a singularly focused unit, they are able to move more quickly and with greater flexibility than ever before, yet they still have the power, scale, capabilities, and support of a large organization. Mike S Pena penam2@rpi.edu Page 85
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Types of experience for which they typically recruit: Strategy Marketing Market Access Sales (outside US) Clinical Development and Medical Affairs
Established Products The worldwide off-patent marketplace too often suffers from quality and supply reliability issues, The Established Products Business Unit was created in 2008 to provide underserved patients with affordable medicines characterized by Pfizer's reputation for quality, safety, and innovation. Types of experience for which they typically recruit: Analytics Business Development Clinical Development and Medical Affairs Marketing Sales Strategic Alliances and Partnerships
Pfizer Consumer Healthcare Pfizer Consumer Healthcare (PCH) is among the largest over-the-counter (OTC) health care products companies in the world, with a global footprint of operations in more than 90 countries. Pfizer Nutrition Pfizer Nutrition is a business unit within Pfizer Inc. and one of the most diversified health care companies in the world. Pfizer Animal Health Pfizer Animal Health is a world leader in the discovery, development and manufacture of innovative animal vaccines, medicines, diagnostic products and genetic tests, investing more in research and development than any other animal health company. Pfizer Medical The Pfizer Medical business unit strives to speed the pace of biomedical progress in safeguarding the health of those who trust in their products and in enabling the best health outcomes through our information and expertise. Mike S Pena penam2@rpi.edu Page 86
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Pfizer Global Supply The PGS Vision is the foundation for Pfizers success as a global supply organization. With the companys recent acquisition of Wyeth and its shift to a commercial business unit structure, they identified the need to update the Vision in a way that reflects the contemporary environment in which we operate. Pfizer believe that providing fast, flexible and innovative supply solutions is entirely compatible with demanding high standards for quality, safety and environmental protection. As they provide a continuous supply of new and newly acquired products, they hold themselves as well as their supply network accountable to deliver quality products at competitive prices, making sure that what they offer is always in stock, wherever in the world it is needed. Types of experience for which they typically recruit: Quality Operations Manufacturing Operators Scientists Materials Management Operations Management Operational Excellence Engineering and Maintenance
Research and Development At Pfizer, scientific research is the core of their business. They share a common research vision and remain committed to strong partner relationships that continue to break new ground in their understanding of human and animal biology and chemistry.
Each of these areas is led by a Pfizer executive who is charged with leading their team through the bench to bedside process and, ultimately, achieving real world results. The business units and divisions that make up our organization are supported by an internal infrastructure comprised of: Finance and Business Operations Global Procurement & Operations Worldwide Business Development & Innovation Legal Compliance Human Resources Policy, External Affairs & Communications
My Assessment of Pfizer Inc.: Mike S Pena
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SWOT Analysis Strengths Pfizer Inc. is the number one and the largest pharmaceutical company in the world. This contributes greatly to its income and revenues. It also has a reputation of high quality and a good popularity in the market. Pfizer Inc. has strong R&D departments with innovation and broad therapeutic coverage. It has existing patent protection for a number of years on key products and its marketing strength in major geographical and therapeutic areas could potentially increase its revenues. Weaknesses Due to being the largest pharmaceutical company in the world, it may have too many branches, many of which may not be as supervised as others. It may sacrifice the quality of its products due to the high demand and it may resort to cost-cutting and therefore, may lose the initial quality of its popular products. Pfizer Inc. also has a very limited penetration of the biologics market and a continuous discontinuation of products in the latter stages of development, which have decreased their net revenues. Opportunities Pfizer Inc. has the opportunity to merge or take over potentially profitable companies in small countries. It can also establish a stronghold in as many countries as possible, outnumber competitors production and invest more in media advertisement to potentially increase profits. Additionally, Pfizer has high quality research and development abilities. In 2010, five products enter human clinical trials and one was approved by the FDA and the Phase III portfolio contained 24 programs. On February 1, 2011, Pfizer announced a focus on disease areas, which can deliver great medical and commercial success. Threats Having many competitors for a certain product may lessen the chances of getting better reception for that product. An investment in a country with an unstable economy may lessen the chance of a good stronghold in that country. Upon the expiration or loss of patent protection for one of Pfizers products, a generic manufacturer of that product could produce severe losses in the Pfizer sales market, which can adversely affect their business. Healthcare reforms during the past couple of years required drug companies to reduce drug prices, which will increase Pfizers costs and decrease its revenues. Conclusion Pfizer Inc. (Pfizer), incorporated on June 2, 1942, is a research-based, global biopharmaceutical company. The Company manages its operations through five segments: Primary Care; Specialty Care and Oncology; Established Products and Emerging Markets; Animal Health and Consumer Healthcare, and Nutrition. The Companys diversified global healthcare portfolio includes human and animal biologic and small molecule medicines and vaccines, as well as nutritional products and consumer healthcare products. The Company's Animal Health business unit discovers, develops and sells products for the prevention and Mike S Pena penam2@rpi.edu Page 88
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treatment of diseases in livestock and companion animals. On January 31, 2011, the Company acquired a 92.5% interest in King Pharmaceuticals, Inc. (King). On February 28, 2011, Pfizer acquired the remaining interest in King. On August 1, 2011, the Company completed the sale of its Capsugel business. In October 2011, it acquired Icagen, Inc. In December 2011, the Company acquired the consumer healthcare business of Ferrosan Holding A/S. Also in December 2011, the Company acquired Excaliard Pharmaceuticals, Inc. Primary Care operating segment includes revenues from human pharmaceutical products primarily prescribed by primary-care physicians, and may include products in the therapeutic and disease areas, such as Alzheimers disease, cardiovascular (excluding pulmonary arterial hypertension), erectile dysfunction, genitourinary, depressive disorder, pain, respiratory and smoking cessation. Examples of products in this segment include Celebrex, Chantix/Champix, Lipitor, Lyrica, Premarin, Pristiq and Viagra. During 2011, sales of Lipitor in the United States were reported in its Primary Care business unit. Specialty Care includes revenues from human pharmaceutical products primarily prescribed by physicians, who are specialists, and may include products in the therapeutic and disease areas, such as anti-infectives, endocrine disorders, hemophilia, inflammation, multiple sclerosis, ophthalmology, pulmonary arterial hypertension, specialty neuroscience and vaccines. Examples of products in this business unit include BeneFIX, Enbrel, Genotropin, Geodon, the Prevnar/Prevenar franchise, Rebif, ReFacto AF, Revatio, Xalatan, Xyntha and Zyvox. Oncology includes revenues from human prescription pharmaceutical products addressing oncology and oncology-related illnesses. Examples of products in this business unit include Aromasin, Sutent, Torisel and Xalkori. The Established Products and Emerging Markets operating segment comprises the Established Products business unit and the Emerging Markets business unit. Established Products generally includes revenues from human prescription pharmaceutical products that have lost patent protection or marketing in certain countries and/or regions. This business unit also excludes revenues generated in emerging markets. Examples of products in this business unit include Arthrotec, Effexor, Medrol, Norvasc, Protonix, Relpax and Zosyn/Tazocin. Emerging Markets includes revenues from all human prescription pharmaceutical products sold in emerging markets, including Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey. The Animal Health and Consumer Healthcare operating segment comprises the Animal Health business unit and the Consumer Healthcare business unit. Animal Health includes worldwide revenues from products and services to prevent and treat disease in livestock and companion animals, including vaccines, parasiticides and anti-infectives. Consumer Healthcare includes worldwide revenues from non-prescription products in the therapeutic categories, such as dietary supplements, pain management, respiratory and personal care. Products marketed by Consumer Healthcare include Advil, Caltrate, Centrum, ChapStick, Preparation H and Robitussin. The Nutrition operating segment includes revenues from a line of infant and toddler nutritional products sold outside the United States and Canada. Examples of products in this segment include the S-26 and SMA product lines, as well as formula for infants. Furthermore, Pfizer, Inc. is a publicly traded company on the New York Stock Exchange, trading under the symbol PFE. Over the past year, Pfizers common stock price has hovered between the $11-$18 price Mike S Pena penam2@rpi.edu Page 89
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range (Yahoo Finance). Pfizer specializes mainly in the pharmaceutical industry, but also operates in the animal health industry. Pfizer, Inc. is one of the major businesses within the pharmaceutical industry holding the largest sales in 2011 of approximately $67 billion. Pfizer, Inc. also has the largest balance sheet in the industry for 2011, holding approximately $188 billion in assets in 2011. Net Income for 2011 accumulated to approximately $9 billion, which has increased since 2008. However, Pfizer has some expense issues because although they have the largest sales in the industry, their net income is in the lower tier of the top companies. One reason for this is the need for more Retained Earnings for the new Wyeth acquisition. Inventories have dropped 20%, raw materials decreased 38%, and Works in Progress fell 36% since 2005. This trend is consistent with Pfizers increase in acquisitions. The drop in all three accounts show that Pfizer is focusing on acquiring drugs that already are in the pipeline, rather than developing them from scratch. This can also be shown by the 494% increase in Interest Due to Subsidiaries. Pfizer needs to generate more cash because of its focus on buying drugs from smaller companies, rather than creating the drugs using raw materials. The increase in interest adds significant risk to Pfizer because both will be expensed against future income if the drugs purchased by Pfizer do not produce revenue. There were two major events that will affect the new financial statements. The first event is the $6.8 billion dollar acquisition of Wyeth Pharmaceuticals. Pfizer expects to save $4 billion annually by combining with Wyeth; those savings will be phased in over three years. The second event is the $2.3 billion record breaking penalty that Pfizer has to pay due to illegal drug promotions. This penalty is the largest civil penalty ever. It will be interesting to see how both of these events affect the financial statements in the future. Nevertheless, in the next five years the company should be on the verge of continuous increase in profitability and as the company has a wide range of products, from OTC drugs to prescription drugs, it can cater to a variety of audiences around the world and ensure its place as the top pharmaceutical company.
Personal Thoughts on Project

The Industry and Company Profile project has been very challenging and time-consuming. Researching the pharmaceutical industry, Johnson &Johnson and Pfizer Inc., required an enormous amount of input. A lot of courage was required to start such a big project and to finish it I just needed to maintain perseverance. This project improved my time management skills and taught me how to properly research using available resources. I am very pleased with the outcome of this project and I hope to have made an effective analysis of the companies inside the industry. Learning more about how Johnson &Johnson and Pfizer Inc. was also very pleasant. I now understand their R&D, marketing, and sales operations and how they have solved past issues in order to remain prosperous in the market. The research segment of the project was not so challenging but it was definitely time-consuming. Having to focus for long periods of time to analyze the pharmaceutical industry sometimes caused stress and frustration. In fact, there were some times when even though I was working for continuous hours, I felt Mike S Pena penam2@rpi.edu Page 90
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that I was not making any progress. Other times, I would be unsuccessful in finding information after spending several hours researching. However, I learned to remain calm through my struggles and to eventually determine where to find the information I needed. These skills will certainly be very beneficial in my near future at school and in my career after graduation. I would like to suggest creating more deadlines for the project. This could help students to better organize their time and to not leave everything for the last minute as it could become very stressful. I would also like to recommend creating personal meetings to track the students progress of the project. Finally, I would like to thank Prof. Peggy McDermott and the Rensselaer Lally School of Management & Technology for providing us with such a great researching experience that has positively impacted our lives.
Appendices:
Appendices for Johnson & Johnson:
Appendix A0. Auditor/Accountant: PricewaterhouseCoopers LLP Appendix A1. Board of Directors Name William C. Weldon Affiliation (company & title) Chairman of the Pharmaceutical Research and Manufacturers of America (PhRMA) Age 63
James G. Cullen
President and Chief Operating Officer of Bell Atlantic 69 Corporation (now known as Verizon) from 1998 to June 2000 President of the University of Michigan Senior Advisor at Apax Partners Head of the North American pharmaceuticals business at Novartis Pharmaceuticals Corporation from 2004 to 2008. Chancellor of Emory University Professor of Biology at the Massachusetts Institute of Technology Director of Target Corporation 68 61
Mary Sue Coleman Ian E. L. Davis
Alex Gorsky Michael M.E. Johns Susan L. Lindquist Anne M. Mulcahy Mike S Pena
51
70 62 59 Page 91
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Leo F. Mullin William D. Perez Charles Prince
Director of Education Management Corporation Senior Advisor to Greenhill & Co., Inc. Senior Counselor for Albright Capital Management LLC Director, Center of Excellence on Health Disparities; Director, Satcher Health Leadership Institute and Poussaint-SatcherCosby Chair in Mental Health, Morehouse School of Medicine
69 65 62
David Satcher
71
Ronald A. Director of American Express Williams Company Appendix A2. Operating Officers Name William C. Weldon Alex Gorsky Dominic J. Caruso Peter M. Fasolo Michael H. Ullmann Douglas K. Chia Position/Title Chairman Chief Executive Officer, Chairman of the Board Vice President, Chief Financial Officer Vice President, Chief Financial Officer Vice President, Chief Financial Officer Secretary
63
Age 63 51 54 49 54 -
Compensation $26,797,939 $6,836,860 $6,442,302 $$$-
Appendix B1. Income Statement (US$ - millions) Net Sales (Net Revenue) Cost of Sales Gross Margin Operating Expenses Mike S Pena 2011 $65,030.0 million $20,273.0 million $68.82516 million -$579.0 million 2010 $61,587.0 million $18,792.0 million $69.48707 million -$651.0 million 2009 $61,897.0 million $18,447.0 million $70.19726 million -$526.0 million Page 92
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Depreciation/Amortization -Net Income EPS Basic EPS Diluted $9,672.0 million $3.53509 $3.48503
-$13,334.0 million $4.84626 $4.78127
-$12,266.0 million $4.44501 $4.39783
Appendix B2. Balance Sheet (US$ - millions) Assets Cash Receivables (net) Inventories Current Assets Fixed Assets (Gross Property & Equipment) Total Assets Liabilities Long-term Debt Accounts Payable Current Liabilities Total Liabilities Equity Common Stock Equity Shares Outstanding (#) $3,120.0 million $3,120.0 million $3,120.0 million $12,969.0 million $5,725.0 million $22,811.0 million $56,564.0 million $9,156.0 million $5,623.0 million $23,072.0 million $46,329.0 million $8,223.0 million $5,541.0 million $21,731.0 million $44,094.0 million $24,542.0 million $10,581.0 million $6,285.0 million $54,316.0 million $31,829.0 million $19,355.0 million $9,774.0 million $5,378.0 million $47,307.0 million $30,426.0 million $15,810.0 million $9,646.0 million $5,180.0 million $39,541.0 million $29,251.0 million 2011 2010 2009
$113,644.0 $102,908.0 $94,682.0 million million million
$2,724.363 $2,738.097 $2,754.321 million million million penam2@rpi.edu Page 93
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Johnson & Johnson Company History: Origin of this firm goes as far back as 1885, when Robert Wood Johnson joined hands with his brothers, James and Edward, to manufacture ready-to-use surgical dressings. They manufactured their first product in 1886. In 1887, this firm was incorporated. In 1920, Johnson & Johnson ventured into consumer products. Later it also began to deal with pharmaceuticals and women's sanitary products. Recent diversification of this firm's business lines include bio-pharmaceuticals, orthopedic devices, and internet publishing. Below is a timeline describing the steps leading up to the development of Johnson & Johnson as well as important dates after its establishment: 1861: Robert Wood Johnson leaves Pennsylvania for Poughkeepsie, NY where he apprentices in his uncle's apothecary shop. 1873: He forms a partnership in New York City with George Seabury to make plaster preparations and other medical products. 1876: After hearing Sir Joseph Lister explain how most post-surgical infections and subsequent deaths are caused by airborne germs in the operating room, Johnson contemplates inventing a new, sterile surgical dressing free from the risk of contamination. This wrap would be more convenient and cost-effective than the only alternative at the time: large, expensive equipment that would bath the operating room in a mist of carbolic acid. 1885: Brothers, James Johnson and Edward Mead Johnson form a partnership to produce medical products in New Brunswick, NJ. 1886: The three brothers combine their businesses into one medical products company. They and 14 employees work on the fourth floor of an old wallpaper factory in New Brunswick. 1887: James, Edward, and Robert Johnson enter the surgical dressings industry by founding Johnson & Johnson. Products include plasters with medicinal compounds in the adhesive and a soft, absorbent cotton and gauze wrap capable of being mass produced. Robert is made president. 1888: Co. boosts its reputation by publishing Modern Methods of Antiseptic Wound Treatment, a book that would remain the definitive source on antiseptic practices for years. The respectability it garners helps sway surgeons who have previously been skeptical about the validity of Lister's ideas and the Johnsons' techniques. Fred B. Kilmer joins the company as its scientific director and begins writing articles for its magazines. 1890: Production of cotton and gauze dressings treated with dry heat begins. This method is developed with the hope of making surgical wraps not only antiseptic but also sterile. 1891: Johnson & Johnson forms its own bacteriology lab in order to better study the problems of airborne germs. 1892: J&J begins manufacturing products under antiseptic conditions while repeatedly subjecting them to dry heat and then steam and pressure. This results in the production of their first truly sterile surgical dressings and prompts them to adopt the slogan, "The Most Trusted Name in Surgical Dressings." 1897: Another surgical technique is improved with J&J's new and improved method of sterilizing catgut sutures. Edward's interests in childhood nutrition lead him to leave J&J and found his own baby formula company, Mead Johnson, which will eventually become part of Bristol-Myers Squibb. penam2@rpi.edu Page 94
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1899: With the help of several prominent American surgeons, the company develops and markets adhesive plaster with zinc oxide. This plaster is stronger and hardens more quickly to prevent irritation of patients with sensitive skin. 1910: James becomes president upon his brother's death. 1916: J&J purchases the Chicopee Manufacturing Corp., a maker of gauze and textiles, in order to meet production demands. 1919: Co. looks to expand internationally by first establishing an affiliate in Canada. 1921: Earle E. Dickson invents the Band-Aid to help his wife, who constantly cuts herself when chopping food. Johnson & Johnson accepts the idea for production. As reward for creating one of J&J's most recognizable products, Dickson is given a vice-presidential position. Johnson's Baby Cream and many other products are introduced as a result of product diversification initiatives. 1924: First European affiliate is established in Great Britain after Robert Wood Johnson, Jr. and J. Seward Johnson, the sons of Robert W., complete their tour of the world in search of expansion possibilities. 1931: J&J opens first affiliate in Australia. 1932: Robert, Jr. becomes president and begins a program of decentralization that provides the ever-increasing number of affiliates and divisions with autonomy. He develops a corporate vision that says it is responsible to customers first, employees second, and the environment and community third; annual sales are about $11 million. 1941: J&J forms a separate division for suture production. 1949: J&J renames its suture division, Ethicon, Inc. due to its diversification in ethical surgical products. 1956: First Swedish division begins production. 1959: Co. acquires McNeil Laboratories, Inc., makers of prescription pharmaceuticals. Also purchases Cilag-Chemie, a Swiss pharmaceutical company. 1960: McNeil Labs introduces Tylenol pain-relieving products. 1961: J&J buys Janssen Pharmaceutica of Belgium and its Japanese affiliate begins production. 1963: Robert, Jr. resigns from his position as chairman but remains active in the business. Philip B. Hofmann, originally with the company as a shipping clerk, is elected chairman. For the first time in J&J's history, the chairmanship goes outside of the family. 1968: Acquires a veterinary products manufacturer, Pitman Moore, which is later divested. Robert, Jr. dies at the age of 74. Annual sales are about $700 million. 1973: Greek division starts production. Richard B. Sellars succeeds Hofman as CEO and chairman of the board. 1974: Expansion and diversification continues with the purchase of the Dr. Carl Hahn Co., German producer of women's sanitary products. 1975: J&J increases mass-production and slashes prices of Tylenol in response to competitor's claims of exact same ingredients but lower price. As a result, Tylenol surpasses even Anacin to become the best selling, over-the-counter pain medicine. 1976: The company focuses its attention on consumer products. As a result, Tylenol becomes the Johnson and Johnson's best selling product. James E. Burke replaces Sellars as CEO and chairman. 1977 May: Co. purchases Extracorporeal Medical Specialties, a manufacturer of dialysis and intravenous treatment products. 1977: McNeil Labs become two companies: McNeil Pharmaceutical and McNeil Consumer Products Co. penam2@rpi.edu Page 95
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1978: J&J holds about half of the feminine hygiene products market due to its innovative advertising of Carefree and Stayfree sanitary napkins on television. 1979: Co. purchases Technicare Corp., a diagnostic imaging company. 1980: J&J purchases Iolab Corp., one of the first companies to make intraocular lenses used in cataract surgery. Its success allows the company to enter other eye care markets such as ophthalmic pharmaceuticals. Sales for the year are approximately $5 billion. 1981: Due to lost market share to Proctor & Gamble's Pampers, Johnson & Johnson discontinues U.S. production of disposable diapers. Opens its first company in the Republic of Korea. 1982 Sept.: In Chicago, IL seven people die from cyanide-laced Tylenol capsules. J&J recalls all Tylenol products and stops advertisements. To halt plummeting stocks, J&J offers consumer incentives to exchange capsules for tablets or refunds and distributes coupons for $2.50 off any Tylenol product. FDA determines that the tampering occurred at the retail level, not during Manufacturing. Regardless, J&J implements three layers of protection against tampering thereafter. 1982: Costs in recalls, advertising, and repackaging exceed $240 million. 1983: Johnson & Johnson discontinues production of Zomax, its new drug for arthritic pain, because it is causally linked to the deaths of five people using it. To improve marketing strategies, the company forms Johnson & Johnson Hospital services. 1985: Co. founds its first affiliate in Egypt. 1986: Another Tylenol scare occurs in New York. Johnson & Johnson responds by manufacturing all its products with three layers of tamper resistant packaging. Co. acquires LifeScan, Inc., a maker of blood-sugar level monitors for use by diabetics at home. Also purchases the Penaten Group, Germany's largest maker of baby toiletries. Diagnostic imaging business is sold to General Electric. Annual sales are about $7 billion. 1987: Annual sales are about $8 billion. 1989: Ralph S. Lauren, from the consumer section of the company, is elected chairman; Robert N. Wilson, previously head of pharmaceuticals, becomes president. Joint venture with Merck Consumer Pharmaceuticals Co. to market non-prescription products, such as Mylanta, begins. After acquiring L'Oreal's sanitary protection business in France, consumer products (except sanitary protection) are consolidated as Johnson & Johnson Consumer Products, Inc. 1989: Surgikos, Inc. and J&J Patient Care, Inc., a wound care products maker, are consolidated as Johnson & Johnson Medical, Inc. Co. decides to discontinue plans to buy Playtex, Inc.'s tampon business. Johnson and Johnson's annual income exceeds $1 billion for the first time. Tylenol sales alone are about $500 million annually, and the company's annual sales approach $10 billion. 1990: Opens administrative offices in Moscow, Russia and its first offices in Hungary, Poland, and the Yugoslav Republic. A joint venture in China, Johnson Shanghai Ltd., begins its production of Band-Aids. DuPont's blood-screening operations are bought. Co.'s child development toys division and the Lunite division of Chicopee are divested. Several Latin American plants are closed due to economic uncertainty. 1991: Joint ventures with Fujisawa to market a new antibiotic and with Chiron to do the first hepatitis C screening test begin. Johnson & Johnson China Ltd. is formed and operations in the Czech Republic begin. Net earnings are approximately $1.5 billion on $12.4 billion in annual sales. 1992 May 22: Johnson & Johnson acquires the rights to Savlon OTC products in over 70 countries. J&J has 166 companies in almost 50 countries worldwide.
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1993: J&J opens its second plant in Shanghai. The company introduces the first daily-wear disposable contact lenses. Johnson & Johnson Advanced Behavioral Technologies, Inc. is formed to work towards world leadership in prevention and behavior science application. Also, J&J acquires skin and hair care products manufacturer RoC, S.A. of France. 1994: Neutrogena is acquired to strengthen the company's consumer soap and skin care line. The advent of the managed care market leads to the creation of J&J Health Care Systems, which includes the former J&J Hospital Services and J&J Advanced Behavior Technologies. 1995: Johnson & Johnson purchases Mitek Surgical Products for a $128 million stock trade. Cordis, a medical equipment producer, acquiesces to a hostile takeover bid by J&J for an $1.8 billion stock trade. 1996 Jan.: J&J receives FDA approval to market Retin-A for reducing wrinkles, thus ending seven years of controversy that sparked federal lawsuits for alleged false product claims. 1996 Feb.: The FDA approves Renova as a prescription-only product for diminishing facial wrinkles and age spots. 1996 July: An arbitrator orders Johnson & Johnson to relinquish control of its HIV home-based test business, siding with fired employee John Gibbons who asserts he has contracted rights to the test. J&J sues to overturn to the ruling. 1996: Johnson & Johnson's home-based HIV test, Confide, is the first home HIV test to be approved by the FDA for sale. Purchases Indigo Medical Inc. 1997 Feb.: Acquires Innotech, Inc. for $13.75 per share. 1997 June: Agrees to merge with Biopsys Medical Inc. in a $310 stock transaction designed to increase J&J's stake in the women's health care market. 1997 Aug.: Due to sluggish consumer demand, the company pulls Confide from store shelves. 1997: J&J is the world's largest producer of consumer, pharmaceutical, diagnostics, and professional health care products. The company owns over 170 operating units in 50 countries worldwide. 1998 Dec.: In response to sluggish sales, J&J launches a restructuring which includes the closing of 36 factories and the layoff of 4,000 employees. Cost savings is estimated at roughly $250 million. J&J loses to Amgen Inc. its rights to sell a new anemia treatment. 1998: Announces plans to acquire FemRx, Inc., a maker of treatment for gynecological disorders, for $22 million and DuPuy, Inc. for $35 per share. Tylenol comes under increasing scrutiny for its toxic effects in doses slightly higher than normal. 1999 Feb.: Acquires S.C. Johnson & Son, Inc., a dermatology products business. 1999 April: J&J and Tyco International Ltd. settle three separate patent infringement suits against each other in a deal that involves the exchange of no money. 1999 Oct.: J&J acquires Centocor, Inc., manufacturer of antibody technology and acute vascular care and immunology products, for $4.9 billion. 2000 Feb.: J & J Medical pays $85 million to acquire Innovasive Devices, Inc., maker of devices for sports medicine surgery. 2000 March: Johnson & Johnson Medical sells its global medical glove business to Pacific Dunlop Ltd. for $98 million. J&J announces that it will increase its stake in Discovery Laboratories, Inc. Diet Rite soda containing the new no-calorie sweetener Splenda (also known as Sucralose) is launched; this sweetener is produced by J&J's McNeil Specialty Products Co. 2000 May: Ansell Healthcare Products Inc. agrees to acquire J&J Medical's Canadian condom business, maker of the Shields brand. penam2@rpi.edu Page 97
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2001: J&J pays $12.3 billion to acquire drug delivery systems maker Alza. The firm increases its dividend to shareholders for the 40th consecutive year. 2002 April: Bill Weldon takes over as CEO. The firm increases its research and development spending to roughly $4 billion. 2003: J&J pays $2.4 billion for Scios Inc., maker of Natrecor, a treatment for congestive heart failure. The firm introduces the Cypher, a drug-coated stent that becomes the leading coronary stent in the industry. 2004 Jan.: Boston Scientific launches the Taxus drug-coated stent, which usurps J&J's Cypher as the industry leader. 2004 Dec.: J&J initiates a $25.4 billion takeover bid for Guidant Corp., the second-largest manufacturer of heart rhythm stabilization devices. 2004: J&J establishes Veridex to focus on the development of diagnostic oncology products. The new unit begins planning its first release, Cell Search System, which is able to detect the number of tumor cells present in a blood sample. Acquisitions include Egea Biosciences, as well as full ownership of Johnson & Johnson MSD Europe from joint venture partner Merck Consumer Pharmaceuticals Co. 2004: Profits climb 18% to $8.5 billion on revenues of $47.3 billion. 2005 Jan.: The firm recalls 300 of its Cypher stents sold to U.S. healthcare providers after discovering that the coating failed to meet regulations. J&J joins a consortium of drug manufacturers developing a prescription discount card for uninsured Americans. 2005 April: Shareholders approve the takeover of Guidant. The deal is subject to regulatory approval in Europe and the U.S. 2005 June: In a unanimous decision, the Supreme Court rules that manufacturers of generic drugs are exempt from patent infringement considerations in early-stage research. Designed to protect pharmaceutical companies, like J&J, that prefer to launch research on developing generic forms of rival blockbuster drugs prior to patent expiry, the ruling reinforces the Drug Price Competition and Patent Restoration Act passed in 1984. 2005 June: The biomaterial-based devices manufacturer Closure Medical Corp. is acquired. 2005 July: The company forges a deal with the U.S. Olympic Committee, becoming its official healthcare products partner for the 2006 Winter Games and the 2008 Olympic Games. 2005 Sept.: In a patent infringement case involving a breast cancer detection implant, the company is ordered to pay Florida-based surgeon John Corbitt and physician assistant Lori Leonetti $2 million plus 10 percent of revenues from the device. 2006 Feb.: Johnson & Johnson snaps up the insulin delivery company Animas Corp. for $518 million. 2006 June: Johnson & Johnson agrees to buy Pfizer's consumer health care business for $16.6 billion. 2006 June: Subsidiaries Scios and Alza reveals plans to eliminate about 500 jobs. 2006 Oct.: ColBar LifeSciences Ltd. is acquired in a $159 million deal. 2007 May: Johnson & Johnson Pharmaceutical Research & Development and JanssenCilagannounce plans for a new pharmaceutical research facility in Mumbai, India. 2007 May: Paladin Labs Inc.'s Squire Pharmaceuticals Inc. acquires Johnson & Johnson's diaper rash cream Zincofax. 2007 Aug.: Plans to eliminate 4,800 jobs in the company's pharmaceutical and heart-device divisions are announced. penam2@rpi.edu Page 98
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2008: Johnson & Johnson agrees to acquire Mentor Corp., bolstering the company's business in the area of aesthetic devices. 2009 Mar.: A branded employee store opens at J&J's New Brunswick, N.J. headquarters. 2009: Israel-based biopharmaceutical company Omrix Biopharmaceuticals is acquired for $438 million.
Appendices for Pfizer Inc:

A0. Auditor/Accountant: KPMG A1. Board of Directors Name Ian C. Read Affiliation (company & title) Chairman and Chief Executive Officer of Pfizer Inc. Boards of Directors of the New York University Medical Center, The New York Botanical Garden and a Member of the Board of Overseers of Memorial Sloan-Kettering Cancer Center. President and Chief Executive Officer of Armstrong Holdings Inc. Director of Alnylam Pharmaceuticals, Inc. Director of Huntsman Corporation Director of Avon Products, Inc. Director of Mattel, Inc. Director of Dell Inc. Age 58
William C. Steere
75
George A. Lorch
70
Dennis A. Ausiello M. Anthony Burns W. Don Cornwell Frances D. Fergusson William H. Gray
66 69 64 67 70
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Helen Hobbs
nvestigator for the Howard Hughes Medical Institute, is a Professor of Internal Medicine and Molecular Genetics at the University of Texas (UT) Southwestern Medical Center Director of Ingersoll-Rand Company Limited and Prudential Financial, Inc.; Fellow, National Academy of Public Administration; Trustee, Annie E. Casey Foundation; Member of the Board of Trustees of the Prudential Foundation. Non-Executive Chairman and a Director of Nielsen Holdings Director of Wyeth Director of Visa Inc. Director of Target Corporation Director of Regeneron Pharmaceuticals, Inc.
60
Constance J. Horner
70
James M. Kilts John P. Mascotte Suzanne Nora Johnson Stephen W. Sanger Marc Tessier-Lavigne
64 72 54 66 52
A2. Operating Officers Name Charles H. Hill Douglas M. Lankler Freda C. LewisHall Kristin C. Peck Amy W. Schulman Sally Susman Mike S Pena Position/Title Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice President Executive Vice Age 56 46 56 40 51 50 penam2@rpi.edu Compensation $$$4,573,993 $$5,764,662.00 $Page 100
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President Matthew Lepore Mikael Dolsten Olivier Brandicourt Geno J. Germano Vice President Division Officer Division Officer Division Officer 53 56 51 $$6,976,735.00 $$4,812,107.00
B1. Income Statement (US$ - millions) Net Sales (Net Revenue) Cost of Sales Gross Margin Operating Expenses Depreciation/Amortization Net Income EPS Basic EPS Diluted 2011 $67,425.0 million $15,085.0 million $77.6270 million $54,663.0 million 5585.0 million $8,739.0 million $1.11232 $1.10508 2010 $67,809.0 million $16,279.0 million $75.9929 million $58,387.0 million 5404.0 million $8,298.0 million $1.02837 $1.02378 2009 $50,009.0 million $8,888.0 million $82.2272 million $39,182.0 million 2877.0 million $8,630.0 million $1.23006 $1.22370
B2. Balance Sheet (US$ - millions) Assets Cash Receivables (net) Inventories Current Assets Fixed Assets (Gross Property & Equipment) Total Assets Liabilities Mike S Pena penam2@rpi.edu Page 101 2011 $3,539.0 million $13,608.0 million $7,769.0 million $57,728.0 million $30,522.0 million $188,002.0 million 2010 $1,735.0 million $14,612.0 million $8,405.0 million $60,468.0 million $32,298.0 million $195,014.0 million 2009 $1,978.0 million $14,645.0 million $12,403.0 million $61,670.0 million $33,924.0 million $212,949.0 million
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Long-term Debt Accounts Payable Current Liabilities Total Liabilities Equity Common Stock Equity Shares Outstanding (#)
$34,931.0 million $3,836.0 million $28,069.0 million $105,812.0 million $445.0 million $7,575.0 million
Pfizer Inc. Company History: Pfizer Inc. was established in 1849 in Brooklyn, New York. Charles Pfizer and Charles Erhardt, two German-American cousins, founded a chemicals business and produced an anti-parasitic- santonin, which was a great success. But Pfizer's business began to grow with production of citric acid in 1880s. Total sales of Pfizer had reached almost $3 million by 1910. By 1950s, Pfizer had set up business in countries like Belgium, Canada, Iran, Panama, Turkey, and United Kingdom. Below is a timeline describing the steps leading up to the development of Pfizer Inc. as well as important dates after its establishment: 1849: With the help of a $2,500 loan from his father, Charles Pfizer, a chemist, and confectioner Charles Erhart found a partnership to manufacture bulk chemicals in Brooklyn, New York. Their first products are boric and tartaric acids and iodine preparations. 1880: The company's leading product, citric acid, is introduced; it is used in medicines, flavorings, industrial solvents, and soft drinks. 1900 April 21: Charles Pfizer & Co. is incorporated. 1923: Pfizer scientists discover an industrial process for making citric acid by fermenting sugar, initiating the company's venture and eventual expertise in fermentation technology. 1926: John McKeen graduates from Brooklyn Polytechnic Institute and begins work for Pfizer the next day. 1928: Sir Alexander Fleming discovers penicillin and its usefulness as an antibiotic. The U.S. government approaches Pfizer's company due to its expertise in fermentation. Soon afterward, Pfizer employee Dr. Jasper Kane begins his own experiments. An old ice plant in Brooklyn is purchased for $3 million. Within four months John McKeen, future chairman and president, has converted the plant into the largest facility for manufacturing penicillin in the world. 1942: By this time, the early production difficulties of low and inconsistent quantity and quality have been overcome; the company has increased production from10 units per millimeter to 2,000 units per millimeter. Pfizer's first flask of penicillin, worth $150,000, is divided into vials for the medical departments of the U.S. Army and Navy. penam2@rpi.edu Page 102
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1943: The American government controls production of penicillin and limits it to use by the armed forces only. John L. Smith, Pfizer president, and John McKeen, supply penicillin to a doctor at the Brooklyn Jewish Hospital, against explicit federal government regulations, where it is used to cure bacterial infections. 1946: Restrictions on penicillin use are lifted. Pfizer purchases Groton Victory Yard, a World War II shipyard, to be converted into penicillin manufacturing facilities. Sales reach $43 million. 1949: Many companies have begun manufacturing penicillin, leading to price reductions; the price for 100,000 units has dropped from $20 to less than 2. Companies who formerly purchased Pfizer's bulk chemicals have also begun making their own. McKeen becomes company president and changes Pfizer's business strategy. 1950: Company sales have increased 800% over the past 11 years. 1950: In the search for a broad spectrum antibiotic to replace penicillin and streptomycin, Pfizer discovers oxytetracycline, which is effective against about 100 diseases. McKeen introduces it as Terramycin, the company's first ethical drug; it is promoted by a small sales force that visits doctors and hospitals and provides copious amounts of free samples. 1951: After twelve months on the market, Terramycin's sales account for 25% of Pfizer's total $60 million in sales. 1952: McKeen's advertising tactics, which include golf tournaments, hospitality suites at medical conventions, and a $500,000 multi-page advertisement in the Journal of the American Medical Association, offend the conservative medical community. The entire Terramycin campaign has cost $7.5 million since its introduction. 1957: While promoting the reputability of a new antibiotic called sigmamycin, a Pfizer ad uses the professional cards of eight physicians. This is challenged as false and Pfizer is criticized for defying Pharmaceutical Manufacturers Association regulations against soliciting physicians' endorsements. Pfizer officials admit that the cards are fictitious and could have been misleading; the ad is changed. 1959: William C. Steere, Jr. joins Pfizer as a medical service representative. 1961: Enters the consumer products business with the acquisition of Thomas Leeming and Co., Inc. and Pacquin, Inc., manufacturers of such well known brands as Ben-Gay and Pacquin hand creams. 1961: Company headquarters move across the East River to Manhattan. 1962: The Firm allots $17 million for research and announces plans for a "five by five" program which includes $500 million annual sales by 1965. 1963: Coty, Inc., manufacturers of a world famous line of cosmetics and fragrances is acquired. 1964: Sales surpass $480 million. 1965: By this time John J. Powers, head of international operations, helps expand Pfizer's foreign markets into 100 countries; international sales account for $175 million of worldwide sales of $220 million. Pfizer is arguably the largest pharmaceutical manufacturer in the U.S. 1965: Fourteen companies have been acquired over the past four years, including manufacturers of vitamins, antibiotics for animals, chemicals, and cosmetics. Unlike other pharmaceutic al companies, Pfizer uses common equity to borrow cash and has half their cash reserves. Also unlike many large pharmaceutical companies, Pfizer is not dependent upon one drug's sales; Terramycin, the company's largest selling drug, generates up to $20 million annually by this time. 1965: Powers replaces McKeen as CEO and president. The company now has 38 international subsidiaries. penam2@rpi.edu Page 103
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1969: Edmund T. Pratt, Jr. is elected to the board of directors and is named chairman and president of Pfizer International. 1971: Pratt becomes president of Pfizer Inc. 1972 Dec.: Pratt is president, chairman of the board, and CEO. Gerald Laubach replaces Powers as company president. 1972: Vibramycin, an antibiotic developed in the 1960s, has sold well and becomes one of the company's better selling drugs. 1972: Annual sales surpass $1 billion for the first time. The medical device field is entered with the acquisition of Howmedica, a leading manufacturer of orthopedic implants. 1977: Company assets and sales have grown to $1.5 billion and $2 billion respectively. Increasing oil prices cause comparable increases in prices for raw materials. Low incidences of respiratory infections slow sales for antibiotics. Also, soft drink sales slip, hurting citric acid sales. 1980: Pfizer is one of two U.S. companies among the top10 pharmaceutical companies in Europe and the largest foreign health care and agricultural product manufacturer in Asia. 1981: The two new executives change company strategy, investing $190 million for R&D, a 100% increase from four years ago. A comprehensive licensing program with foreign pharmaceutical companies has been implemented; royalties are paid in exchange for marketing rights on new drugs. Joint-ventures and partnerships are entered into only if no other options are available. Powers is delegated to oversee international operations. 1982: Feldene, an anti-inflammatory, generates $314 million. Minipress, an antihypertensive, reaches $80 million in sales three years after its introduction. 1982: Ben Gay, an ancient liniment originally marketed by Pfizer for relief of arthritis pains, is remarketed for the health-conscious 1980s as a fitness aid; this campaign utilizing superstar athletes costs $6.3 million, but generates comparable sales. Annual sales are $3.4 billion with net income of $333 million. 1983: Two new drugs have been acquired: exclusive U.S. marketing rights for Procardia, a treatment for angina licensed from Bayer AG in Germany, and a promising Japanese antibiotic, Cefobid. 1983: Annual sales have reached $3.5 billion and the company spends one of the largest amounts of money in the industry on research, million. To improve profit margin, Pratt begins selling some of the company's less profitable acquisitions. 1985: Annual sales exceed $4 billion for the first time with net income of $580 million. 1986: The first precipitated calcium carbonate (PCC) plant is built; PCC facilitates the paper industry's conversion from acid to alkaline papermaking technology resulting in more durable, low cost paper. 1986: A five-year, $16 million agreement with Oncogene Science Inc., a company involved in genetically engineered products used to treat and test cancers, begins. 1988: Annual sales eclipse $5 billion; net income is almost $800 million. Pfizer's Oral Care division acquires Plax, a pre-brushing dental rinse that helps remove placque. 1989 Oct.: Procardia XL, an improvement on the original Procardia is introduced. 1989: Aviax, a broad spectrum agent to prevent coccidiosis (a major disease in poultry), is filed with the U.S. Food and Drug Administration (FDA). 1990: Pfizer ranks 73rd among "Fortune 500" companies in sales and 27th in net income. Nine of the company's pharmaceuticals, covering all four major therapeutic categories, have worldwide annual sales of $100 million or more. FDA approves Chy-Max, a genetically engineered product sold to companies that manufacture milk products. penam2@rpi.edu Page 104
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1991 May 01: William C. Steere, Jr. becomes president and CEO. 1991 Aug.: Pfizer begins developing Reactine, a low-sedating, one-a-day drug effective in treating hay fever and itching. Procardia XL becomes the company's best selling product without needing a price increase; along with Diflucan, an anti-infective, Procardia XL sales amount to $1.2 billion. 1991: Annual sales are almost $7 billion. Research and development spending has doubled every five years over the past decade, resulting in a $770 million R&D budget. The company has manufacturing facilities in over 65 countries and sells products in more than 140. 1991: Two promising new animal health drugs are being developed: Advocin, an antibacterial agent used to control respiratory infections in livestock, and Dectomax, a versatile antiparasitic effective against both internal and external parasites. 1991: Two new products are introduced: Zithromax, an azalide antibiotic used for a broad range of respiratory and skin infections; and Reactine, a low sedating antihistamine. Pfizer signs another five-year agreement with Oncogene and acquires about 4.5% of the company for $3.5 million. 1992 March 01: Ed Pratt retires, to be replaced by Bill Steere as chairman of the board and CEO. 1992: Pfizer pays $3.1 million for violating the federal Clean Water Act due to operations of its former iron oxide facilities in Easton, Pennsylvania. Pfizer remains one of largest producers of pharmaceuticals. 1994: The company receives regulatory approval to market the first one-dose oral treatment for a type of yeast infection that affects 75% of women at least once in their lifetime. Announces plans to boost its research and development budget from $1.1 billion this year to $1.3 billion in 1995. 1995 Jan.: Looking to extend its reach into the animal health market, Pfizer acquires SmithKline Beecham's animal health business for $1.5 billion. 1995 April: The company's stock splits two-for-one. 1995 Dec.: Cultor Ltd. purchases Pfizer's food science group for $352.2 million; the divestiture reflects the company's continued focus on its healthcare businesses. 1995: The company invests $115 million in the formation of Pfizergen, a consortium with Immusol, Myco, AEA Technology, and Oxford Technology focused on commercializing genomics. Acquires the Bain de Soliel skin-care line from Proctor and Gamble. 1995: The National Heart, Blood and Lung institute issues a warning to doctors regarding the safety of taking large doses of nifedipine, a blood pressure medication sold by Pfizer under the brand name Procardia. 1996 Jan.: The FDA approves Zyrtec for the treatment of chronic urticaria and perennial and seasonal allergic rhinitis. 1996: Pfizer is the world's fastest growing major pharmaceutical company. The company's animal health business is the world's largest. 1997: The FDA approves Trovan, a new broad-spectrum antibiotic discovered and developed by Pfizer, for treatment of 14 bacterial infections. Pfizer launches Lipitor, a treatment for elevated cholesterol, with Warner-Lambert. 1998: Pfizer secures approval for its impotency treatment, Viagra, and sales of the drugs immediately skyrocket, despite that fact men with heart disease are advised to not take the drug. Pfizer divests its catheter and angioplasty balloon making unit to Boston Scientific and its electrosurgical instruments operation to United States Surgical. 1999 Nov.: Pfizer stuns analysts when it makes an unsolicited $82 billion offer to take over Warner-Lambert, despite the fact that Warner-Lambert is in the middle of merger talks with penam2@rpi.edu Page 105
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American Home Products. Pfizer also expresses interest in acquiring Monsanto Co.'s Searle unit, with whom it jointly markets Celebrex. 1999: Tikosyn, a heart rhythm treatment, receives preliminary FDA approval. The Japanese government approves the sale of Viagra. Pfizer and Searle introduce the arthritis medication Celebrex, which generates more than 7 million prescriptions in six months. The FDA imposes limits on the use of Trovan as a result of reports linking use of the drug to severe liver failure and death. 2000 Feb.: Warner-Lambert accepts the $90 billion bid from Pfizer. The merged company is estimated to have revenues in excess of $28 billion a year, making it the second-largest pharmaceutical company in the world. Pfizer shareholders will own 61 % of the group, which will retain the Pfizer name and headquarters in New York City. 2000 June: Pfizer completes its takeover of Warner-Lambert, merging Warner-Lambert assets into a new worldwide consumer healthcare division. 2001 Nov.: Pfizer removes the Warner-Lambert name from its consumer health division, which it renames Pfizer Consumer Healthcare. The FDA approves osteoarthritis treatment Bextra, a cox-2 inhibitor developed by a joint venture between Pfizer and Pharmacia. 2001: The FDA orders Pfizer to discontinue an advertisement that claims its Estrostep birth control pill does not contribute to weight gain. The European Commission grants approval to Pfizer for the marketing of antifungal treatment Vfend. Sales grow 9% to $32.2 billion, while net income soars 109% to $7.78 billion 2002 Feb.: The firm's antibiotics plant in Terre Haute, Indiana, is cited for several manufacturing deficiencies by the FDA. 2002 June: Pfizer and Pharmacia Corp. announce plans to merge. 2003: Earnings decline 57% to $3.9 billion on revenues that climb 40% to $45.1 billion. Acquisitions include the $1.3 billion purchase of Esperion Therapeutics Inc. Pfizer and Pharmacia complete their $60 billion merger. 2003 Aug.: Pfizer loses its monopoly on the U.S. impotence treatment market when rivals GlaxoSmithKline and Bayer jointly launch Levitra. 2004: Advanced Medical Optics pays $450 million for the surgical ophthalmology unit of Pfizer. TEVA pays $85.3 million for Dorom Srl, Pfizer's generics marketing unit based in Italy. Omega Pharma pays $163 million for 60 over-the-counter European brands from Pfizer. 2004 Aug.: To offset the impact of rival drugs like Levitra, Pfizer introduces a $100 million television advertising campaign, dubbed "Wild Thing", for it blockbuster erectile dysfunction drug Viagra. 2004 Nov.: Because they make no mention of Viagra's side effects, the FDA orders Pfizer to halt its "Wild Thing" commercials. 2004: Sales of Lipitor grow from $9.23 billion to $11 billion. Lipitor is now the best-selling drug in the world. Profits for the firm more than double to $11.3 billion. Sales reach $52.5 billion. 2005 Jan.: Pfizer joins a consortium of drug manufacturers developing a prescription discount card for uninsured Americans. 2005 June: In a unanimous decision, the Supreme Court rules that manufacturers of generic drugs are exempt from patent infringement considerations in early-stage research. Designed to protect pharmaceutical companies, like Pfizer, that prefer to launch research on developing generic forms of rival blockbuster drugs prior to patent expiry, the ruling reinforces the Drug Price Competition and Patent Restoration Act passed in 1984.
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2005 Sept.: The $81 million expansion of two manufacturing plants in northern Puerto Rico is finished, increasing the company's investment in that country to $2.2 billion. 2005 Sept.: The company announces it will expand its Strangnas, Sweden, facility to include biologics manufacturing. 2005: Pfizer reveals intentions to unveil 20 new medications in the Chinese market by 2010. 2005 Oct. 31: The Pfizer China Research and Development Center opens in Shanghai. 2005 Dec.: Corporate Marketing Vice President Peter Rost, who filed a whistleblower lawsuit against the company in mid-2003 over the alleged illegal sale of the human growth hormone genotropin, is fired. 2006 July: Vice Chairman Jeffrey B. Kindler is named CEO, succeeding Hank McKinnell, who continues to serve as chairman. 2006 Oct.: The Oxford, United Kingdom-based DNA vaccines firm PowderMed Ltd. is acquired. 2007: In order to save approximately $2 billion by late 2008, a restructuring plan is announced. 2007 Apr.: A $165 million joint research program, focused on ophthalmic product development, is developed with pSivida Limited. 2007 Sept.: Pfizer reveals plans to shutter its Sandwich, United Kingdom-based manufacturing plant, leading to the loss of 420 jobs. 2007 Nov.: In a $164 million deal, Pfizer agrees to acquire Wellesley, Mass.-based Coley Pharmaceutical Group Inc. 2008 Feb.: The company agrees to acquire Encysive Pharmaceuticals Inc. in a deal worth approximately $195 million. 2008: Construction of a $300 million biologics complex is planned in County Cork, Ireland. 2008: A three-yearm $15 million scientific research, clinical development and clinical care and policy collaboration is forged with the University of Pennsylvania School of Medicine. 2008: More than 10,000 jobs are eliminated. 2008: The company halts research on obesity, digestive disorders, and cardiovascular disease. 2009: Plans are made to elimiate as many as 800 research jobs. 2009: Pfizer reveals plans to acquire Wyeth for $68 billion. 2009: A H.I.V. drug jopint venture is formed with GlaxoSmithKline, giving both firms a combined 19 percent market share. 2009: The elimination of 19,500 workers, and cost reductions of $4 billion, are announced in connection with the Wyeth deal. 2009 Nov.: A new research and development center is planned for Wuhan, China.
Appendix C. Relevant Financial Ratios Data from SIC code 2834, Pharmaceutical Preparation Manufacturing Industry 2011 Data Johnson & Johnson SOLVENCY Quick Ratio (times) Current Ratio (times) Mike S Pena 2.10561 2.38113 Pfizer Inc. 2.10561 2.38113 penam2@rpi.edu Industry Norm Data, 2011 UQ 3.2 5.7 MEDIAN LQ 1.4 2.5 0.6 1.4 Page 107
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Current Liabilities to Net Worth [Nw] (%) Current Liabilities to Inventories (%) Total Liabilities to Nw (%) Fixed Assets to Nw (%) EFFICIENCY Collection Period (days) Sales to Inventory (times) Assets to Sales (%) Accounts Payable to Sales (%) PROFITABILITY Return on Sales (%) Return on Assets (%) Return on Nw (%)
39.96% 362.94% 99.10% 55.76%
34.15% 361.29% 128.74% 37.14% 73.6658 days 8.6787 278.83% 5.69%
14.4 145.9 24.9 2
26.7 297.3 48.7 10.8
57.9 813.5 131.4 35
59.39 days 10.35 174,79% 8.80%
26.9 16.3 106 4.1
46.7 8.7 195 10.2
73 5.6 471.7 28.3
14.87% 8.51% 16.94%
12.96% 4.65% 10.63%
8.8 4.3 12
22.8 20.3 17.3
318.6 73.1 72.7
Financial Ratio Calculations Net Worth Calculations: Net Worth = Total Assets- Total Liabilities Johnson & Johnson = $113,644.0 million - $56,564.0 million = $57,080.0 million Pfizer Inc. = $188,002.0 million - $105,812.0 million = $82,190.0 million
1. Quick Ratio (Acid Test Ratio)= (current assets-inventories)/current liabilities a. Johnson & Johnson = ($54,316.0 million -$6,285.0 million)/$22,811.0 million = 2.10561 b. Pfizer Inc. = ($57,728.0 million -$7,769.0 million)/ $28,069.0 million = 2.10561 2. Current Ratio= current assets/current liabilities a. Johnson & Johnson = $54,316.0 million /$22,811.0 million = 2.38113 b. Pfizer Inc. = $57,728.0 million /$28,069.0 million = 2.38113 3. Current Liabilities to Net Worth= current liabilities/net worth X 100% Mike S Pena penam2@rpi.edu Page 108
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a. Johnson & Johnson = $22,811.0 million /$57,080.0 million x 100%= 39.96% b. Pfizer Inc. = $28,069.0 million /$82,190.0 million x 100%= 34.15% 4. Current Liabilities to Inventories= current liabilities/inventories x 100% a. Johnson & Johnson = $22,811.0 million /$6,285.0 million = 362.94% b. Pfizer Inc. = $28,069.0 million /$7,769.0 million x 100% = 361.29% 5. Total Liabilities to Net Worth= total liabilities/net worth x 100% a. Johnson & Johnson = $56,564.0 million/$57,080.0 million x 100% = 99.10% b. Pfizer Inc. = $105,812.0 million /$82,190.0 million x 100% = 128.74% 6. Fixed Assets to Net Worth= fixed assets/net worth x 100% a. Johnson & Johnson = $31,829.0 million /$57,080.0 million x 100%=55.76% b. Pfizer Inc. = $30,522.0 million /$82,190.0 million x 100% = 37.14% 7. Collection Period (days)= accounts receivable/sales x 365days a. Johnson & Johnson = $10,581.0 million /$65,030.0 million x 365 days= 59.39 days b. Pfizer Inc. = $13,608.0 million /$67,425.0 million x 365 days= 73.6658 days 8. Sales Inventory (Inventory Turnover)= annual net sales/inventory (measured in times) a. Johnson & Johnson= $65,030.0 million /$6,285.0 million = 10.35 b. Pfizer Inc. = $67,425.0 million /$7,769.0 million = 8.6787 9. Assets to Sales (%)= total assets/net sales x 100% a. Johnson & Johnson = $113,644.0 million /$65,030.0 million x 100% = 174,79% b. Pfizer Inc. = $188,002.0 million /$67,425.0 million x 100% = 278.83% 10. Accounts Payable to Sales (%)= accounts payable/annual net sales x 100% a. Johnson & Johnson = $5,725.0 million /$65,030.0 million x 100%= 8.80% b. Pfizer Inc. = $3,836.0 million / $67,425.0 million x 100%= = 5.69% 11. Return on Sales (Profit Margin) (%)= net income/net sales x 100% a. Johnson & Johnson = $9,672.0 million /$65,030.0 million x 100% = 14.87% Mike S Pena penam2@rpi.edu Page 109
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b. Pfizer Inc.= $8,739.0 million /$67,425.0 million x 100% =12.96% 12. Return on Assets= net income/total assets x 100% a. Johnson & Johnson = $9,672.0 million /$113,644.0 million x100% = 8.51% b. Pfizer Inc..= $8,739.0 million /$188,002.0 million x 100%= 4.65% 13. Return on Net Worth (Return on Equity)= net income/net worth x 100% a. Johnson & Johnson = $9,672.0 million /$57,080.0 million x 100%= 16.94% b. Pfizer Inc. = $8,739.0 million /$82,190.0 million x 100% = 10.63% Appendix D Industry History Timeline Unless otherwise noted, all data in this section comes from: http://www.timelinesdb.com/listevents.php?subjid=383&dayinhist=0&date1=99999999999&date2=99999999999&words=&title=Pharma&fromrec=0) 1717: Ono Pharmaceutical was founded by Ichibei Fushimiya as an apothecary in Osaka, Japan. In 1947 Ono Pharmaceutical was established. Its shares listed on the Osaka Securities Exchange in 1962 and the Tokyo Stock Exchange in 1963. 1781: Chobei Takeda I (32) started a business selling traditional Japanese and Chinese medicines in Doshomachi, Osaka. In 1925 it was incorporated as Chobei Takeda & Co., Ltd., with capital of 5.3 million yen and Chobei Takeda V as president. The Company changed its name to Takeda Pharmaceutical Industries, Ltd. in 1943. Its English name was changed to Takeda Chemical Industries, Ltd. in 1961. 1875: The Parke-Davis Pharmaceutical company was incorporated. It was originally founded in Detroit, Michigan, by Dr. Samuel P. Duffield, a physician and pharmacist. A partnership of Dr. Duffield and Hervey Coke Parke was formed in 1866, with George S. Davis becoming a third partner in 1867. Duffield withdrew in 1869, and the name Parke, Davis & Company was formally adopted in 1871. 1885: US drug manufacturer Parke-Davis sold cocaine in various forms, including cigarettes, powder, and even a cocaine mixture that could be injected directly into the user's veins with the included needle. 1897 Aug 10: Felix Hoffmann, a German worker for Bayer, rediscovered aspirin (acetyl salicyclic acid), the active ingredient of the willow plants (salicin). In 1832 a French chemist named Charles Gergardt had experiments with salicin and created salicylic acid. On March 6, 1899, Bayer registered Aspirin as a trademark. 1912: Merck chemists in Germany introduced methylene-dioxy-methamphetamine (MDMA), a euphoria-producing psychedelic. Documents from the time showed that MDMA emerged during the company's efforts to develop a potentially life-saving medicine that would help blood to clot. It later became known as "ecstasy." penam2@rpi.edu Page 110
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1916 Jul 11: Dan Patch (b.1896), a record-breaking, Indiana-born, harness race horse, died and was buried in Minnesota. He was the first harness race horse to break the 2-minute mile. In 2008 Charles Leersen authored Crazy Good: The True Story of Dan Patch, The Most Famous Horse in America. Here Leersen details the pharmacopoeia used in racing at the turn of the century. 1916 Sep 21: Ewing Marion Kauffman (d.1993) was born in Garden City, Missouri. In 1950 he formed Marion Laboratories and sold the company to Merrell Dow in 1989. He founded the Ewing Marion Kauffman Foundation in 1966 to foster education and entrepreneurship. 1920 Feb: Emile Coue (1857-1926), French pharmacist, made plans to come to the USA for a lecture tour, in conjunction with the first English translation of his book "Self Mastery Through Conscious Auto Suggestion." Coue had devised the mantra "Every day, in every way, Im getting better and better" to promote his theory of self-improvement through auto-suggestion. 1926 Jul 2: Emile Coue (b.1857 as mile Cou de Chtaigneraie ), French psychologist and pharmacist, died. He introduced a method of psychotherapy and self-improvement based on optimistic autosuggestion. Working as an apothecary at Troyes from 1882 to 1910, Cou discovered what later came to be known as the placebo effect. He became known for reassuring his clients by praising each remedy's efficiency and leaving a small positive notice with each given medication. 1928 May 12: Brothers Joe and Tom Longs opened their first store on Oaklands Piedmont Ave. In 1993 Longs acquired Bills Drugs, a 20 store chain in northern California. In 2008 Longs Drugs was acquired by CVS Caremark for $2.9 billion. 1928: UCB, a Belgian drug firm, was founded by Emmanuel Janssen. 1942 Dec 10: George W. Merck, former president of Merck Pharmaceutical and head of the War Research Service, requested the Chemical Warfare Service to develop a biological warfare program. 1943 Apr 16: Swiss chemist Albert Hoffman (1906-2008) felt the first rush of LSD when a tiny amount of the substance seeped onto his finger during a laboratory experiment. 1943 Apr 19: Swiss chemist Albert Hoffman, following up on an experiment on April 16, deliberately ingested .25 milligrams of LSD and soon began to feel its effects. Hallucinations continued on his bicycle ride home and lasted for some 6 hours. 1955 Apr 12: The Salk Vaccine was declared safe and effective. Salk vaccine shots for polio began to be given out to school kids. The March of Dimes accomplished its mission within 20 years. Research led by Dr. Jonas Salk, of the Univ. of Pittsburgh, and supported by funds (those marching little dimes) raised annually by thousands of volunteers, resulted in the announcement that the Salk polio vaccine was "safe, potent and effective." The foundation also supported the research that led to the Sabin oral vaccine, another safe, effective polio preventative discovered by Dr. Albert B. Sabin. Following the victory over infantile paralysis, the March of Dimes turned its attention to conquering the largest killer and crippler of children: the mental and physical problems that are present at birth. Some 100 million people were given the vaccine during the 1950s and 1960s which was later found to be contaminated with the SV40 simian virus, a possible carcinogen. 1955 Nov 1: McNeill Laboratories introduced Childrens Tylenol Elixir, available only by prescription. 1957: The US FDA approved the drug Propoxyphene. It was marketed as the pain killer under the name Darvon and Darvocet. In 2009 an FDA advisory committee voted 14-12 against continued marketing following safety concerns which linked the drug to sometimes serious and fatal heart rhythm abnormalities. In 2010 US drug makers agreed to stop marketing the drug. 1959: Johnson & Johnson acquired McNeill Laboratories, the maker of Childrens Tylenol. Mike S Pena penam2@rpi.edu Page 111
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1961: Roche's researchers in New Jersey published a report stating that Valium (Daizepam) had only mild side-effects, including fatigue, dizziness and rash, but these were results based on only seven patients. Diazepam (Valium) was approved for use in 1963. In the late 1950s chemist Leo Sternbach (1908-2005) made the discovery that led to Valium while working for Hoffmann-La Roche. 1961: Johnson & Johnson introduced Tylenol for adults. 1961: In California a Kansas City company opened a manufacturing plant in Merced to fabricate cooling towers for industrial use. In 1969 the plant began treating the wood it used with chromium 6, arsenic and copper to combat insects and bacteria. In 1975 Baltimore Aircoil Co., a subsidiary of Merck & Co., bought the plant. In 1985 Merck sold its subsidiary and the plant to Amsted Industries. In 1986 a consultant found evidence of chromium and arsenic contamination at the site. In 1989 state regulators noted high levels of chromium 6 and arsenic in the water of a drainage pond and reported that storm water flowed from the pond into a canal running by homes in the Beachwood area of Merced. Chromium use continued until May 1991. In February 2007 the regional water board mailed notices to residents saying the plant had caused significant chromium and arsenic pollution. As of 2008 some 20 people were dead or dying of cancer in the Beachwood area. A $38 million cleanup effort was in progress. Merck and Amsted faced a lawsuit. 1964: Cytosine, produced under the brand name Tabex, was first marketed in Bulgaria. It was produced by the Bulgarian pharmaceutical company Sopharma AD and became widely available in the Formerly Socialist Economies of Europe (FSE). The cytisine derivative varenicline was approved in 2006 as a smoking cessation drug. 1969 Sep 4: The US Food and Drug Administration issued a report calling birth control pills safe, despite a slight risk of fatal blood-clotting disorders linked to the pills. 1969-1992: Valium was the most prescribed medicine in the US. Leo Sternbach (d.2005) of Roche Holding AG helped develop the drug. 1970: The US FDA approved lithium medication for manic depressives. 1970: India introduced process patents which allowed innovators to protect the way they made drugs, rather than the molecules themselves. 1971 Oct: Earl W. Sutherland Jr. (1915-1974), US pharmacologist, won the Nobel Prize in Medicine for his discoveries concerning the mechanisms of the action of hormones. 1975: Rohypnol was first marketed as a sleeping pill. It was 10 times more powerful than Valium. 1982 Sep 29: Extra-Strength Tylenol capsules laced with cyanide claimed the first of seven victims in the Chicago area. As of 2008 the case remained unsolved. 1982: Marc Lappe (1942-2004), toxics expert, authored Germs That Wont Die: Medical Consequences of the Misuse of Antibiotics. 1982: The sleeping pill Halcion, made by Upjohn Pharm., was OK'd by the FDA. It later displayed side effects such as anxiety, behavior changes, and abnormal thinking. Dosage was reduced and label warning were added and it was banned by Britain in 1991. 1982: In the US capsules of Tylenol laced with cyanide killed 7 people. This brought about a major effort in safe sealing methods by consumer companies. 1982: Austrian Dietrich Mateschitz (b.1944), who had become aware of "tonic drinks" while traveling in Asia, got the idea for the Red Bull energy drink business while sitting at the bar in the Mandarin Hotel in Hong Kong. In the 1970s T.C. Pharmaceuticals of Thailand, founded by Chaleo Yoovidhya, had formulated an energy drink prototype called Krathing Daeng, or Red Bull in English. Mateschitz and Yoovidhya started selling the drink in Austria in 1987. penam2@rpi.edu Page 112
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1983 Jan 4: US Congress amended the Federal Food, Drug and Cosmetic Act with the Orphan Drug Act (P.L. 97-414). Additional orphan drug amendments were passed in 1984, 1985 and 1988. 1983: Amgen Inc. developed the hormone drug erythropoietin (EPO). In 1989 it was approved for the treatment of anemia in patients with end-stage kidney disease. 1983: Nasalcrom, a prescription drug for allergies made by Fisons PLC, was approved by the FDA to be marketed by Rhone-Poulenc Rorer. It was first approved in the US for bronchial asthma in 1968 under the name Intal and in 1996 it was approved for over the counter sale by McNeil Consumer Products, a division of Johnson & Johnson. 1983: The Green Cross Corp., a major Japanese pharmaceutical firm, was later accused of having sold unheated blood products at this time even after learning that they could infect people with the AIDS virus. In 1996 prosecutors raided their offices. Drug company executives, Renzo Matsushita (79), Takehiko Kawano (69) and Tadakazu Suyama (72) pleaded guilty in 1997 and began prison terms in 2000. 1984: Ajay Piramal (29) took over as head of the family business following the sudden death of his brother. Under his leadership the Piramal Group evolved from a textile centric business to a USD 2 billion conglomerate with diversified business interests across pharmaceuticals, packaging, financial services and real estate. In 2012 Piramal moved into health care services and acquired Decision Resources, a Massachusetts fir, that analyzes and crunches data on drugs and treatments. 1986 Feb 17: Johnson and Johnson, maker of Tylenol, announced it would no longer sell overthe-counter medications in capsule form, following the death of a woman who had taken a cyanide-laced capsule. 1986 Nov 1: A fire in a Sandoz factory in Basel left 30 tons of chemicals in the Rhine. 1986: Thrifty Drugs under Leonard H. Straus (d.1998) merged with Pacific Lighting. The Thrifty Corp. had 555 drugstores and the Big Five sports equipment chain. 1987 Mar 20: The Food and Drug Administration approved the sale of AZT, a drug shown to prolong the lives of some AIDS patients. Jerome Horwitz of the Barbara Ann Karmanos Cancer Institute and Wayne State University School of Medicine first synthesized AZT in 1964 under a US National Institutes of Health (NIH) grant. It was developed by Burroughs-Welcome (later part of GlaxoSmithKline). 1987 Dec 29: The antidepressant drug Prozac was allowed to go on the market. It was based on fluoxetine, which increases serotonin levels in the brain by preventing the cells that that produce serotonin from reabsorbing it too quickly. It was discovered by Dr. Ray W. Fuller (1936-1996), Dr. David Wong and Dr. Bryan Molloy of Eli Lilly. 1988 Jan 21: Retin-A got a boost when a study published in the Journal of the American Medical Association said the anti-acne drug could also reduce wrinkles caused by exposure to the sun. 1988 Oct 26: A French pharmaceutical company, Roussel Uclaf, announced it would halt worldwide distribution of RU-486, a pill to induce abortions, because of "an outcry of opinion at home and abroad." The French government ordered the company to reverse itself two days later. 1988 Oct 28: A French pharmaceutical company that manufactured the abortion pill RU-486 announced it would resume distribution on command of the French government. 1988: Eli Lilly launched Prozac (Fluoxetine), an anti-depressant. The US FDA had approved it on Dec 29, 1987. 1989: SmithKline Beckman merged with Beecham Group PCL of Britain to create the worlds 2nd largest drug company. penam2@rpi.edu Page 113
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1989: Merck Corp. announced the discovery of the 3-dimensional structure of the enzyme protease. It was seen as a promising target for attacking the virus that causes AIDS. 1990 May 3: The US federal government approved the use of the drug AZT to treat children infected with the AIDS virus. 1990: In Nigeria 109 children died after taking paracetamol laced with a compound similar to diethylene glycol and also used in engine coolants. 1991 Apr 29: George Sperti (91), inventor of Preparation H, died. 1991 Jun 27: Cor Therapeutics went public and raised $15 million. In 1998 it received partial FDA clearance for Integrillin, an anti-clotting drug. 1991: Imperial Chemical Industries (ICI) of Britain split into two parts, ICI, a chemicals company, and Zeneca, a bioscience and drug company. 1993 Aug 1: Ewing Marion Kauffman (b.1916) founder of Marion Laboratories (1950) and the Ewing Marion Kauffman Foundation (1966), died. 1993: Depo-Provera, an injectable drug for birth control, was released in the US. 1993: Sanofi-Aventis of France introduced its Ambien sleeping pill to the US. 1993: Bjorgolfur Bjorgolfsson (26) left Iceland and started a soft-drink company in St. Petersburg, Russia. He later expanded into brewing, banking, telecommunications and discount pharmaceuticals. By 2006 his stake in the Iceland-based Actavis Group was valued at $1 billion, making him Icelands first billionaire. 1993: The US FDA approved Risperdal, made by Johnson & Johnson, to treat schizophrenia and bipolar disorder in adults. In 2006 approval was expanded to help treat autism in children. 1994 Jan: A synthetic bovine growth hormone became available for use in US cows. The rBST hormone, developed by Monsanto and marketed as Posilac, increased milk output in cows. By 2004 consumers had begun demanding rBST-free milk as part of a rising demand for products free of synthetic antibiotics and hormones. 1994: Merck Corp. selected Ray Gilmartin of Becton Dickinson to succeed P. Roy. Vagelos. 1994: In America 80 million prescriptions were written for drugs that act as calcium channel blockers (CCBs). They were used to treat high blood pressure, angina, cardiac arrhythmias and migraine headaches. 1995 Mar 17: The federal government approved the nation's first chicken pox vaccine, Varivax by Merck & Co. 1995: Upjohn Co. of Kalamazoo merged with Pharmacia AB of Sweden to form Pharmacia & Upjohn. Fred Hassan was called in to lead the new company. 1995: Protease inhibitors, a cocktail drug therapy for AIDS, were first introduced. AIDS became the leading cause of death among Americans aged 25-44. Hoffman-La Roche, a Swiss drug firm, launched the first protease inhibitor. 1995: The FDA approved Riluzole, the 1st drug for use in treating amyotrophic lateral schlerosis (ALS), also known as Lou Gehrigs disease. 1996 Jan 1: Bayer Corp. added Betty Rubble to its mix of Flintstone vitamins. 1996 Jan 24: The FDA approved a fat substitute to be marketed by Proctor and Gamble under the name Olestra. It is know to cause abdominal cramps but not to a medically significant degree. 1996 Jan 29: The FDA was about to approve Redux, a drug to help reduce obesity. It was to be marketed by American Home Products. It is chemically known as dexfenfluramine, a close cousin of Prozax. This class of drugs raise the levels of serotonin in the brain, which provides a feeling of fullness and satisfaction. penam2@rpi.edu Page 114
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1996 Jan 30: The FDA licensed indinavir, viracept, Abbott Labs ritonavir (trade name Norvir) and saquinavir based on short term clinical data between 1995-1997. The new protease-blocking drugs were effective in combating AIDS especially when used in combination with current medicines. The drugs were later found to cause metabolism problems related to fats. 1996 Apr: The diet drug, Redux, was approved for use. 1996 May 31: The Finnish food company Raisio Group has invented a new product that blocks the bodys absorption of cholesterol. The new "pharmafood" is called benecol and based on a plant extract known as beta sitostanol, a plant sterol extracted from Nordic pine trees. 1996 Jun 10: Rupinol, (Rohypnol), also known as Rufi, is a drug that causes amnesia when mixed with alcohol and is gaining popularity among young people. It is sold over the counter in Mexico and other countries outside the US. 1996 Jun 26: At least 30 children died of acute kidney failure after taking contaminated liquid acetaminophen made by a company in Haiti. Another 38 were being treated for acute kidney failure. Glycerin from China was contaminated with diethylene glycol as it was shipped to Haiti. It was then used in children's medication that killed 86 people from 1995-1996. 1996 Jun 28: In the US a federal advisory panel concluded that high doses of standard birth control pills were safe and effective when used as "morning after" pills following unprotected sex. 1996 Jul 11: A report stated that Malaria infects 300 million people each year and kills 1.5 to 2.7 million. A drug, artemether, derived from a Chinese herb was appearing to be as effective as quinine. 1996 Jul 19: A Food and Drug Administration advisory committee recommended, with some conditions, that the abortion-inducing drug RU-486 be approved. 1996 Aug: The main ingredient of Redux and other diet drugs was linked to a rare but deadly lung disorder. 1996 Sep 18: The Food and Drug Administration declared the French abortion pill RU-486 safe and effective, but withheld final approval until later. The pill would be taken with the drug misoprostol, which was already approved for other purposes. 1996 Oct 18: Researchers at Onyx Pharmaceuticals reported that they had genetically altered a common adenovirus to selectively attack and kill tumor cells. 1996 Nov 7: Merck researchers announced a new class of antibiotics that attack bacteria that have grown resistant to current drugs. 1996: In Nigeria Pfizer Inc. tested an unapproved drug on children for an often deadly strain of meningitis. In 2006 Nigerian medical experts concluded that Pfizer violated international law and was never authorized by the Nigerian government to give the unproven drug Trovan to nearly 100 children and infants at a field hospital in Kano, where they were being treated. 1997 Feb: Lipitor, a cholesterol reducing drug from Warner-Lambert, became available. It was developed by Bruce D. Roth. In 2003 sales of Lipitor, marketed by Pfizer, reached $9.2 billion. 1997 Jul 8: The Mayo Clinic and the government warned the diet-drug combination known as "fen-phen" could cause serious heart and lung damage. The drugs were withdrawn in September. In 2000 a federal judge approved a $3.75 billion national settlement of health claims due to use of the drugs. 1997 Jul 25: An FDA drug panel endorsed Rituximab, a drug designed to treat B-cell lymphoma. It was made by Genentech and IDEC Pharmaceuticals. In November Genentech and Idec (later Biogen Idec), received FDA approval for Rituxan for non-Hodgkins lymphoma. penam2@rpi.edu Page 115
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1997 Aug 27: It was announced that the diet drugs, Redux and Pondimin, caused brain damage in animals at doses similar to those taken by humans. 1997 Sep 15: Two of the nation's most popular diet drugs -- dexfenfluramine and fenfluramine -were pulled off the market because of new evidence they could seriously damage patients' hearts. 1997 Dec 22: The FDA approved Mercks drug Propecia for countering baldness. 1997 Dec 23: The FDA approved the first inhaled antibiotic, made by PathoGenesis, to help lung function in patients with cystic fibrosis. 1997: The Rezulin pill for diabetes, made by Warner-Lambert, was first found to cause fatalities due to liver failure in some patients. 1997: Aspen Pharmacare, a generic drug maker, was founded in Durban, South Africa. By 2005 it was the countrys leading drug-maker with an annual revenue of $467 million. 1997: Chinas vitamin makers got a big break following a US Justice Dept. investigation of European and Japanese companies for price fixing dozens of vitamins. On May 20, 1999, the antitrust case resulted in $750 million in government fines and several jail terms for executives. 1998 Mar 27: The US Food and Drug Administration approved the drug Viagra, made by Pfizer, saying it helped about two-thirds of impotent men improve their sexual function. Viagras effects were shown to last 8-12 hours. Pfizer had originally tested the compound UK 92,480 as a drug for angina and found that male volunteers were getting frequent erections. They renamed it Viagra and sought sales approval. 1998 Apr 6: It was announced that the drug tamoxifen cut the risk of breast cancer by half, but that it had potentially serious side effects. 1998 Apr 10: The anti-impotence drug Viagra appeared on the market and became one of the best-selling new medications of all time. 1998 Apr 20: A report was published that suggested that the drug raloxifene, sold by Eli Lilly as Evista, can prevent breast cancer in addition to tamoxifen. Both synthetic drugs block the action of estrogen. 1998 Apr 30: A study reported in the New England Journal of medicine that RU-486, an abortion pill, was 92% effective in causing abortions with 15 days without surgery. 1998 May 4: The FDA approved the first commercial surgical glue, Tisseel, made by Baxter Labs. 1998 Jun 3: The US FDA approved Rebetron, a combination of two anti-viral drugs (interferon and ribavirin), to treat Chronic Hepatitis C. 1998 Jun 23: The US FDA announced the approval of rifapentine, a drug to treat pulmonary TB. 1998 Jul 16: The US FDA approved the use of thalidomide as a treatment for leprosy. 1998 Jul 25: It was reported that 5-7% of the drugs in Brazil were faked medicines mostly from India, China and Pakistan. 1998 Sep 2: It was reported that US officials acknowledged that they were not aware that Sudans Shifa factory produced human and veterinary medicines. The admitted that their only knowledge about what the plant produced came from its Web site. 1998 Oct 1: CollaGenex Pharmaceuticals announced FDA approval of Periostat, a pill to help fight gum disease. The drug suppresses the enzyme responsible for gum and tooth breakdown during inflammation. 1998 Oct 29: The US government cleared the powerful drug tamoxifen as a way for healthy women at very high risk of breast cancer to cut their odds of getting a tumor. 1998 Nov 11: It was reported that Pfizer and the Edna McConnell Clark Foundation initiated a $66 million effort to attack trachoma, a disease of the eye caused by chlamydia. A one-gram dose penam2@rpi.edu Page 116
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of zithromax given once a year would treat the disease. Focus was to be on Ghana, Mali, Morocco, Tanzania and Vietnam. 1998 Dec 27: A vaccine for AIDS by VaxGen Inc. of South San Francisco was reported to be in Phase III clinical trials. It was derived from g-120, a genetically engineered protein copied from a protein found in the HIV virus. Other vaccines were also under development. 1998: Hearst Corp. acquired Medi-Span Inc., an Indianapolis-based supplier of drug product information for the health care industry. It was consolidated into First DataBank. 1999 Jan 27: In Japan the Health Ministry approved Viagra in 6 months but still held back approval for the birth control pill, which has been waiting 9 years. 1999 Feb 7: Serbian police seized ICN Pharmaceuticals in Belgrade. 1999 Apr 26: The FDA approved an obesity drug, Xenical from Roche Holdings, that works by absorbing body fat. 1999 May 6: Bristol-Myers announced a plan to spend $100 million over the next 5 years in 5 southern African nations, that included Botswana, to fund AIDS research trials. 1999 May 7: It was reported that researchers at Merck had found a druglike chemical that mimics the molecular effects of insulin. 1999 May 20: The US FDA approved the painkiller Vioxx made by Merck. The clinical trial of Vioxx included more than 5000 patients and approved for diminishing pain in patients with acute and chronic osteoarthritis, adult pain relief and primary dysmenorrheal. 1999 May 20: The US Justice Dept. settled charges against Roche Holding AG and BASF AG, two of the largest vitamin makers, for price fixing. Roche agreed to pay $500 million with a guilty plea, and BASF agreed to pay $225 million with a guilty plea. 1999 Jun 2: In Japan the government agreed to make the birth control pill available by prescription. 1999 Jun 29: Urging the biggest expansion in Medicares history, President Clinton proposed that the government help older Americans pay for prescription drugs. 1999 Jul 25: Lance Armstrong won the Tour de France cycling race for his 1st time. In 2005 a French sports newspaper reported that frozen urine specimens indicated that Armstrong had used EPO (erythropoietin), a hormone drug that boosts production of red cells. 1999 Aug 6: In Canton, Texas, a jury awarded Debbie Lovett (36) $23 million for heart-valve problems that she blamed on the diet drug combination fen-phen in the first such lawsuit to reach a jury. The case was settled for less than a tenth of that amount during an appeal. 1999 Sep 6: Six large int'l. vitamin companies agreed to settle a price-fixing lawsuit for an estimated $1.1 billion. 1999 Sep 21: The FDA approved Synercid, a new antibiotic from Rhone-Poulenc. Hoechst merged with Rhone-Poulenc in 1999 to form Aventis. 1999 Oct 4: It was reported that Edmund T. Pratt, an ex-Pfizer executive, planned to donate $35 million to endow the Duke Univ. School of Engineering. 1999 Oct 7: American Home Products agreed to pay up to $4.83 billion to settle claims that its fen-phen drug combination caused heart valve problems. 1999 Oct 19: A 2-year Rand analysis concluded that the drug pyridostigmine bromide could not be excluded as a contributor to Gulf War syndrome. The drug was an experimental nerve gas antidote given to as many as 300,000 US troops during the Persian gulf war. 1999 Dec 1: It was reported that the French government had decided to make morning-after contraception pills available to teenage girls through school nurses. 10,000 girls under 18 were becoming pregnant each year and 6,000 were having abortions. penam2@rpi.edu Page 117
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2000 Jan 17: British pharmaceutical firms Glaxo Wellcome PLC and SmithKline Beecham PLC announced a merger to form the worlds largest drug maker valued at $186 billion. 2000 Mar 2: Merck pledged a $100 million donation of Hepatitis B vaccine to inoculate children in poor nations. 2000 Mar 10: It was reported that a new meningitis vaccine was designed by scientists at Chiron Corp. 2000 Mar: The FDA forced the withdrawal of Rezulin, a diabetes pill made by Warner-Lambert. In 2002 documents showed that early indications of the drugs danger to the liver were masked. 2000 Apr 18: The US FDA approved the antibiotic Zyvox, made by Pharmacia, for use in hospitals and other medical settings to treat drug-resistant infections. 2000 May 11: Gov. Angus King signed a bill that made Maine the 1st state to threaten the pharmaceutical industry with price controls. 2000 Jul 7: German drug maker Boehringer Ingelheim said it would donate nevirapine, a drug to help prevent the transmission of AIDS from mothers to infants, to every nation in the developing world that asks for it. 2000 Sep 28: Capping a 12-year battle, the US FDA approved the French abortion pill, RU-486 (mifepristone). It will be sold as Mifeprex by Danco Laboratories. 2000 Oct 19: A panel of US scientists recommended that the FDA ban the drug ingredient phenylpropanolamine (PPA), a common ingredient in decongestants and appetite suppressants due to the risk of hemorrhagic stroke in young women. The FDA issued a warning on PPA on Nov 6. 2000 Oct 23: Senegal struck the 1st cut-rate deal for AIDS drugs with discounts as much as 90% from US retail prices. 2000 Nov 9: It was reported that Cancer drug tests showed that endostatin cut blood to tumors. It was also reported that statin cholesterol drugs might cut the risk of dementia as in Alzheimers disease. 2000 Dec 1: In South Africa the government agreed to accept a $50 million donation of the drug fluconazole from Pfizer to treat a brain inflammation associated with AIDS. Recent approval was also given for nevirapine, a drug to reduce transmission of the AIDS virus to a fetus. 2000 Dec 4: Scientists reported that the Novartis leukemia drug STI-571 brought cancer into remission in most patients in clinical trials. 2000 Dec 26: Donna Shalala, US Sec. of Health and Human Services, blocked a GOP sponsored drug reimportation plan intended to reduce drug prices. 2000: Victoria Hale founded the Institute for OneWorldHealth, a non-profit pharmaceutical, to develop drugs for diseases endemic in developing countries. 2000: Abbott Labs introduced Kaletra, an AIDS drug that included Norvir, a protease inhibitor. In 2003 Abbott quintupled the price for Norvir. Abbott pricing went under investigation in 2004. 2001 Feb 6: Genset released early test results that showed weight loss in mice injected with famoxin. 2001 Feb: A major statistical analysis published on the British Medical Journal website concluded that the soaring rate of autism in recent years is almost certainly not due to the MMR injection. The study found that the number of cases of autism has continued to rise even though MMR coverage has remained roughly the same. If MMR was the cause of illness, said the experts, the number of autism diagnoses would also have leveled off by now. 2001 Mar 8: A new AIDS vaccine was reported to be successful in monkeys. penam2@rpi.edu Page 118
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2001 Mar 14: Bristol-Myers proposed a $1 a day price per patient for its 2 AIDS medicines to sub-Saharan African countries. 2001 Apr 12: It was reported that anti-seizure drugs caused higher than normal birth defects among children born to epileptic mothers. 2001 Apr 19: Pharmaceutical giants dropped a lawsuit against a South African law that could provide cheaper, generic AIDS drugs to millions of Africans, ending an international battle over patent rights and profit. 2001 May 10: The US FDA cleared Gleevec, a cancer drug made by Novartis. The drug disrupted enzymes that make white blood cells proliferate. 2001 May 11: An FDA advisory panel ruled that the allergy medications, Claritin, Allegra and Zyrtec, are safe enough for sale without prescriptions. 2001 Jun 6: Pfizer announced that it would distribute Diflucan, a treatment for cryptococcal meningitis, for free to AIDS patients in 50 of the worlds least developed countries. 2001 Oct 24: The US government arranged to buy 100 million Cipro tablets from Bayer for 95 cents each. The tablets were for anthrax. US Postmaster General John Potter told Americans There are no guaranties that mail is safe. He warned people to wash their hands after handling mail. 2001 Nov: Chinas 4 largest producers of Vitamin C formed the Vitamin C Chapter of the China Chamber of Commerce of Medicines and Health Products. 2001 Dec 21: Pfizer agreed to settle a suit over the diabetes drug Rezulin after a jury awarded $43 million to a Texas woman who said it destroyed her liver. 2001 Dec 28: The FDA informed ImClone Corp. that its application for the cancer drug Erbitux would not be accepted. The stock had fallen 8.4% the previous day and sellers included Martha Stewart (3,928 shares), and ImClone insiders including Sam Waksal and family members. 2002 Jan 18: Bayer AG disclosed that as many as 100 deaths might be linked to Baycol, a promising cholesterol drug that was withdrawn in Aug 2001. 2002 Feb: Dr Wakefield and Professor O'Leary published a paper in the journal Molecular Pathology which suggested a possible link between the measles virus and bowel disease in children with developmental disorders. The study set out to investigate whether children with developmental disorders such as autism and a bowel disorder also had the measles virus in their gut. It found traces of the virus in the guts of 75 children out of 91 with bowel disease, but in only five out of 70 healthy children. The researchers theorized that the virus may act as a trigger, leading to problems with the immune system. Dr Wakefield said most of the children in the study had had MMR, though a few had had the single vaccine. He and his colleague emphasized that it would be wrong to jump to any hasty conclusions about MMR causing either bowel disease or developmental disorders such as autism. In 2010 Dr. Wakefield was banned from practicing medicine in Britain. 2002 Feb: A team from the Royal Free Hospital - where Dr Wakefield carried out his initial research - published a study on the British Medical Journal website saying there is no link between MMR and autism. The team looked at almost 500 children with autism born between 1979 and 1998. It found the proportion of children with developmental regression (autism) or bowel disorders did not change significantly over that time. 2002 Mar 29: It was reported that Thailand planned to market a drug combination of 3 AIDS drugs in one cheap pill. 2002 May 28: California state officials levied $88.7 million in fines to 2 LA pharmacists for filing over 3,500 illegal prescriptions over the Internet. penam2@rpi.edu Page 119
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2002 Jun 17: The 1st oral "black fever" drug was announced. Visceral leishmaniasis reportedly killed 60,000 annually, mostly in Brazil, India and Bangladesh. 2002 Jul 9: The Women's Health Initiative announced that estrogen-progestin pills, taken by millions of women as a hormone replacement therapy, do more harm than good. 2002 Jul 15: Pfizer Corp. agreed to buy Pharmacia Corp. for stock valued at $60 billion. 2002 Jul 17: The National Cancer Institute published a report that linked estrogen used for hormone replacement to ovarian cancer. 2002 Jul 31: The US Senate rejected a Medicare drug-benefit bill but passed a bill to speed generic drugs to market. 2002 Jul: Customs inspectors in Belgium noted irregularities in medical shipments from Senegal. It was determined that some 3 million doses of Glaxo HIV drugs worth $18 million had been diverted from Africa back to Europe for sale. 2002 Aug 7: Former ImClone Systems chief executive Samuel Waksal was indicted in New York on charges of obstruction of justice and bank fraud in addition to previous securities fraud and perjury charges. Waksal later pleaded guilty to securities fraud and was sentenced to more than seven years in prison. 2002 Aug 10: China's Science and Technology Daily reported approval of a home-grown AIDS drug for the first time that will end the dependence of Chinese with the disease on imported medicine. Jiduo Fuding was developed by the Northeast General Pharmaceutical Factory. 2002 Sep 14: In France Tim Montgomery, American sprinter, set a 9.78 second record in the 100meter dash at the IAAF Grand Prix in Paris. In 2004 he admitted to using steroids and a growth hormone. 2002 Sep 19: Scientists urged stronger warning labels for acetaminophen, a painkiller used in numerous products including Tylenol. Overdose caused liver damage and annual deaths numbered some 100. 2002 Sep 20: Scientists urged stronger warning labels for aspirin, ibuprofen and similar painkillers due to the risk of ulcers. 2002 Oct 8: A nasal spray named PT-141, made by Palatin Tech., was reported to raise sexual desire. 2002 Nov 19: It was reported that Ruth Lilly (87), great-grandchild of pharmaceutical magnate Eli Lilly, had given Poetry Magazine, founded in Chicago in 1912, a $100 million endowment. 2002 Nov 21: Merck published a study of vaccine that prevents cervical cancers caused by human papilloma virus (HPV) that could be available by 2006. 2002 Dec 5: In Kansas City, Mo. a pharmacist who had diluted chemotherapy drugs given to thousands of cancer patients was sentenced to 30 years in prison. 2002 Dec 13: President Bush announced he would take the smallpox vaccine along with U.S. military forces, but was not recommending the potentially risky inoculation for most Americans. 2003 Jan 20: Energizer agreed to buy the Shick-Wilkinson Sword razor business for $930 million from Pfizer as it aimed to expand beyond batteries. 2003 Jan 28: A Chinese company began distributing generic drugs for an anti-AIDS cocktail. 2003 Jan 29: In Kinston, NC, 6 people were killed and dozens injured in an explosion at West Pharmaceuticals. 2003 Mar 17: In the Netherlands a law went into effect that allowed pharmacies to fill prescriptions for marijuana.
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2003 Mar 18: A jury in Corpus Christi, Texas, cleared Bayer Corp. of liability in a $560 million lawsuit that accused the pharmaceutical giant of ignoring research linking the cholesterollowering drug Baycol to dozens of deaths. 2003 May 19: The US Supreme Court dealt a defeat to the drug industry, ruling 6-3 that a state may try to force companies to lower prices on prescription medications for the poor and uninsured. 2003 Jun 1: Genentech reported that its drug Avastin lengthened survival time for colon cancer patients. In 2004 the FDA approved it as a colorectal cancer treatment. In 2007 researches said it could improve the treatment of kidney tumors. 2003 Jun 1: UC Berkeley researchers revealed a new laboratory method for manufacturing the anti-malarial drug, artemisinin. 2003 Jun 16: A divided US Supreme Court said the government can force medication on mentally ill criminal defendants only in the rarest of circumstances. 2003 Jun 23: Idec Pharmaceuticals Corp. said it agreed to acquire Biogen Inc. in a $6.79 billion stock-for-stock transaction. The deal would create the world's 3rd largest biotech company. 2003 Sep 1: Marijuana went on sale Monday at Dutch pharmacies to help bring relief to thousands of patients suffering from cancer, AIDS or multiple sclerosis. 2003 Sep 14: Illinois Gov. Rod Blagojevich directed the state Special Advocate to draft a plan for busing inexpensive medications from Canada for state employees and retirees. 2003 Oct 23: Bill Clinton announced that his AIDS foundation clinched a deal to cut drug prices and improve care in poor nations. 2003 Nov 3: The FDA issued draft guidelines outlining when drug companies must submit information on how medicines affect people differently depending on their genetic makeup. 2003 Nov 12: Research showed that Pfizer's drug Lipitor lowered LDL cholesterol levels. 2003 Nov 25: The US Senate gave final congressional approval to historic Medicare legislation combining a new prescription drug benefit with measures to control costs before the baby boom generation reaches retirement age. 2003 Dec 5: The two makers of flu shots in the United States, Chiron and Aventis Pasteur, announced they had run out of vaccine and would not be able to meet a surge in demand. 2003 Dec 8: Pres. Bush signed into law the Medicare Prescription Drug, Improvement, and Modernization Act (also called the Medicare Modernization Act or MMA). It was the biggest expansion of Medicare since its creation in 1965. The $400 billion Medicare overhaul bill included a provision to put away pre-tax money into interest bearing accounts to save for medical expenses. 2004 Mar 26: The FDA approved the 1st HIV test that uses saliva rather than blood. The 20 minute test, made by OraSure, is able to detect HIV antibodies about 6 weeks after infection. 2004 May 19: Jack Eckerd (91), founder of the Eckerd drug store chain, died in Florida. 2004 May 26: It was reported that a new study showed that aspirin might help reduce womens chances of developing the most common form of breast cancer. 2004 Aug 8: Traces of the anti-depressant Prozac have been found in Britain's drinking water supply, setting off alarm bells with environmentalists concerned about potentially toxic effects. In the decade up to 2001, overall prescriptions of antidepressants in Britain rose from 9 million to 24 million a year. 2004 Sep 17: Backed by 4,000 police officers, the Colombian government seized control of the nation's largest pharmacy chain, saying its creation and expansion had been funded by cocaine trafficking. penam2@rpi.edu Page 121
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2004 Sep 30: Merck & Co. said the arthritis drug Vioxx, used by 2 million people around the world, was being pulled off the market after a study confirmed longstanding concerns that it raises the risk of heart attack and stroke. Global Vioxx sales in 2003 had reached $2.5 billion. In 2007 Merck agreed to a $4.85 million settlement. 2004 Oct 15: The Food and Drug Administration ordered that all antidepressants carry strong warnings that they "increase the risk of suicidal thinking and behavior" in children who take them. 2004 Nov 4: VaxGen received an $878 million US contract for anthrax vaccine under a $5.6 billion federal Project Bioshield program. 2004 Nov 12: Scientists said that a new Glaxo vaccine could prevent most cases of cervical cancer. 2004 Nov 18: FDA officer David Graham identified 5 drugs with dangerous side effects: Crestor to lower cholesterol, Meridia for weight loss, Bextra for pain, Accutane for acne, and Serevent for asthma. 2004 Nov 18: Genentech and its partners announced FDA approval of the experimental lung cancer drug, Tarceva. 2004 Dec 10: Sprinter Michelle Collins was suspended for eight years for a doping violation linked to the BALCO scandal. The suspension was later reduced to four years. 2004 Dec 17: Pfizer, maker of a popular pain reliever, admitted Celebrex appears to increase the risk of heart attack in users, but has no plans to remove it from the market. 2004 Dec 21: Federal officials announced that naproxen, a painkiller sold by prescription and also over the counter as Aleve, might increase people's risk of having a heart attack or stroke. 2004 Dec 28: The US FDA approved a new drug for severe pain to be marketed by Elan as Prialt. It was part of a new class known as N-type calcium channel blockers. 2004: Gilead Sciences of California launched Truvada, a once-a-day, one-pill combination of two drugs to treat AIDS. 2005 Jan 10: GlaxoSmithKline PLC said that Bayer Healthcare AG has paid more than 200 million euros ($260 million) for sole marketing rights outside the United States for the erectile dysfunction drug Levitra. 2005 Jan 31: Kamal Nath, Indias Commerce and Industry Minister, said the Indian parliament will shortly ratify new legislation protecting drug patents, paving the way for the country to become a major pharmaceutical research centre. 2005 Feb 8: It was reported that a 1991 memo from Merck showed that senior executives were concerned that the vaccines of an expanded immunization program contained an elevated dose of mercury by as much as 87 times the maximum guidelines for daily consumption of mercury from fish. Thimersol, an anti-bacterial compound in the vaccine, was nearly 50% ethyl mercury, a neurotoxin. The vaccine program was later tied to elevated cases of autism. 2005 Feb 18: An advisory panel said Merck & Co. Inc.'s withdrawn arthritis drug Vioxx is safe enough to rejoin Pfizer's rival pain relievers Celebrex and Bextra on the U.S. market, after concluding that all three medicines posed some level of heart risk. 2005 Mar 14: Health Day News reported that an experimental drug that stops cancer cell division and triggers tumor death has been developed by researchers at Temple University. The drug, called ON01910, interferes with the activity of a gene called Plk1. 2005 Mar 22: Iowa enacted a law requiring an ID check and signature before the sale of cold remedies containing an ingredient for methamphetamine. 2005 Mar 24: The US FDA approved Boniva, a monthly pill to help women fight osteoporosis. penam2@rpi.edu Page 122
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2005 Apr 7: Pfizer Inc. agreed to suspend sales and marketing of its arthritis drug Bextra at the request of US and EU drug regulators, who said the risks outweigh the drug's benefits. 2005 Apr 14: A US Federal Court ruled in favor of Neutraceutical Corp. and struck down the 2004 ban on supplements containing ephedra, a once-popular weight-loss aid. 2005 Apr 19: Britain's GW Pharmaceuticals announced its multiple sclerosis (MS) pain relief drug Sativex, the world's first containing cannabis, has been approved for use in Canada. 2005 May 5: Merck & Co. said that Raymond V. Gilmartin is stepping down effective immediately from the top jobs at the drugmaker, which has been slammed by mounting lawsuits and falling revenues since recalling its blockbuster painkiller Vioxx last fall. He was succeeded by Richard Clark, who steered Merck through the Vioxx affair. 2005 May 27: Pfizer Inc. acknowledged rare cases of blindness in men taking its impotence drug Viagra and said it is in talks with US regulators to change the drug's label. 2005 Jun 15: The EU commission slapped a 40 million pound fine on pharmaceutical giant AstraZeneca for illegally pushing rivals of a stomach ulcer medicine out of the market. 2005 Jun 23: The US FDA approved the heart failure drug BiDil for use by blacks. It will be the 1st medication targeted for a specific racial group. 2005 Jul 4: In China protests began at the Jinxing Pharmaceutical plant in Xinchang, a town about 125 miles south of Shanghai, by local farmers angry over pollution. 2005 Jul 28: A new clinical study reported that the herbal remedy echinacea does not ward off cold symptoms and does not help speed recovery from colds. 2005 Aug 1: The Oregon state legislature passed the nations strictest anti-methamphetamine measure requiring prescriptions for many over-the-counter cold medications. Gov. Ted Kulongoski was expected to sign it within 5-10 days. It posed a challenge to the FDA in regulating medicines. 2005 Sep 2: An American man and 11 Chinese citizens were arrested in a counterfeit medicine scheme that spanned 11 countries and involved millions of dollars worth of fake drugs. 2005 Aug 19: A Texas jury awarded Carol Ernst, widow of Robert Ernst, $253 million charging Merck Corp. liable for the heart-related death of Robert Ernst. $229 million was in punitive damages. Texas caps on punitive damages reduced that figure to about $26 million; Merck planned to appeal. 2005 Aug 25: California sued 39 pharmaceutical companies for allegedly inflating prices. 2005 Sep 1: The Swiss firm Novartis AG said it is offering $4.5 billion in cash for the remaining stake in Chiron Corp. to complete its takeover of the US-based biotech company. 2005 Sep 8: Wyeth Co. officially opened a $2 billion Irish production facility, a move that will make the US company the biggest pharmaceutical employer in Ireland. 2005 Sep 15: The US government agreed to stockpile $100 million worth of inoculations against bird flu under a contract with French vaccine maker Sanofi-Pasteur. 2005 Sep 19: India said it would increase vaccine production to protect against future outbreaks of Japanese encephalitis as the death toll from the disease rose to 765 in the northern state of Uttar Pradesh. The encephalitis is transmitted from pigs to humans by mosquitoes. Japanese encephalitis first surfaced in Uttar Pradesh in 1978. Over 4,000 people have died in the state since the disease first hit. A quarter of survivors are left disabled. 2005 Sep 26: Leo Sternbach (97), Austrian-born chemist and inventor of valium, died in North Carolina. He had created an entirely new class of tranquilizers named benzodiazepines, which were safer and more effective than previous treatments such as barbiturates, opiates, alcohol and penam2@rpi.edu Page 123
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herbs. His other breakthroughs included the sleeping pills Dalmane and Mogadon, Klonopin for epileptic seizures and Arfonad, for limiting bleeding during brain surgery. 2005 Sep 29: US federal agents raided an Illinois laboratory where the steroid that ignited the BALCO scandal is suspected to have been created. Chemist Patrick Arnold was believed to be the man who resurrected the 1960s steroid norbolethone as the clear, later known as tetrahydrogestrinone (THG). 2005 Oct 3: The boards of pharmaceutical distributor Alliance UniChem PLC and drugstore chain Boots Group PLC said Monday they had agreed to merge. 2005 Oct 6: Merck & Co. Inc. said a vaccine that targets a human wart virus completely prevented early-stage cervical cancer and precancerous lesions in women caused by the two most common forms of the virus. 2005 Oct 14: A researcher said bird flu virus found in a Vietnamese girl was resistant to the main drug that's being stockpiled in case of a pandemic, a sign that it's important to keep a second drug on hand as well. 2005 Oct 17: Serono Laboratories, a Swiss drug-maker, pleaded guilty to US federal conspiracy charges and agreed to pay $740 million for kickbacks to doctors for the AIDS drug Serostim and for manipulating a test for AIDS patients. 2005 Oct 18: A US District Court in SF sentenced Victor Conte (55), founder of Burlingames BALCO lab, to 4 months in federal prison and 4 months of house arrest for conspiracy to distribute undetectable steroids to top athletes. 2005 Oct 31: It was reported that US Sec. of Defense Donald Rumsfeld held a stake in Gilead Sciences valued at between $5 million and $25 million, according to federal financial disclosures filed by Rumsfeld. Tamiflu is manufactured and marketed by Swiss pharma giant Roche. Gilead receives a royalty from Roche equaling about 10% of sales. Former Secretary of State George Shultz, who is on Gilead's board, has sold more than $7 million worth of Gilead since the beginning of 2005.Rumsfeld recused himself from any decisions involving Gilead when he left Gilead and became Secretary of Defense. 2005 Nov 3: A state-court in Atlantic City, New Jersey, found Merck not liable for injuries to an Idaho man taking Vioxx who had a heart attack. Merck faced some 2,750 more suits in New Jersey, where the company is based. 2005 Nov 8: Vietnam, the country hit hardest by bird flu, reported its 42nd death, which occurred Oct 29, raising the toll in Asia to at least 63. The Swiss maker of Tamiflu said it had stopped selling the antiviral drug in China and was turning over supplies to the government. 2005 Nov 28: Drugmaker Merck & Co. said it will cut 7,000 jobs, 11% of its work force, and close or sell five manufacturing plants in the first phase of a reorganization meant to save up to $4 billion by the end of the decade. 2005: Greg Critser authored Generation Rx: How Prescription Drugs Are Altering American Lives, Minds and Bodies. 2005: India began to recognize drug patents. 2006 Jan 1: Ketamine, an anesthetic and niche club drug, was labeled a Class C drug in the United Kingdom. It was developed by Parke-Davis in 1962 as part of an effort to find a safer anesthetic alternative to phencyclidine (PCP), which was likely to cause hallucinations, neurotoxicity and seizures. By the end of 2011 its usage had doubled. 2006 Jan 27: The first inhalable version of insulin, "Exubera," won federal approval. 2006 Feb 14: Pharmaceutical maker AstraZeneca PLC said that it has decided to withdraw its controversial anticoagulant Exanta from the market and terminate its development because of links to liver injury. Mike S Pena penam2@rpi.edu Page 124
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2006 Feb 17: A federal jury in New Orleans cleared Merck and Co. in the death of a 53-year-old Florida man who had taken the painkiller Vioxx. 2006 Feb 28: The US FDA approved a selegeline skin patch to treat depression. Somerset Pharmaceuticals said the drug will be marketed as Emsam. Selegiline as approved in pill form in 1989 to help treat Parkinsons disease. 2006 Mar 6: German drugmaker Bayer AG said its fourth-quarter profit fell 33% after it set aside 275 million euros ($330.5 million) to settle claims that it colluded on prices of rubber and plastic in the US. 2006 Mar 13: Merck KGaA, a maker of pharmaceuticals and specialty chemicals, launched a 15billion-euro (18-billion-dollar) hostile takeover bid for Berlin-based rival Schering, opening the way for a bitter bidding battle. 2006 Mar 13: Heart researchers said clogging of arteries by plaque was reversed through aggressive use of an anticholesterol statin. 2006 Mar 13: In London 6 men participated in a drug trial and soon became seriously ill. The men had been given does of TGN1412, a monoclonal antibody developed by TeGenero AG of Wuerzburg, Germany, for treatment of autoimmune and inflammatory diseases and leukemia. 2006 Mar 17: US Federal regulators reported the deaths of two more women who had taken the abortion pill RU-486; Planned Parenthood, which had provided the pills to the women, said it would immediately stop disregarding the approved instructions for the drug's use. 2006 Mar 24: Bayer AG's 16.3 billion euro ($19.6 billion) offer for drugmaker Schering AG was embraced by its target as German rival Merck abandoned its own takeover offer. 2006 Apr 5: Britains Serious Fraud Office began criminal proceedings against nine individuals and five companies it alleges fixed the price of two widely prescribed generic drugs sold to the country's free National Health Service (NHS). 2006 Apr 11: In New Jersey a jury awarded $9 million in punitive damages to a man who blamed his heart attack on Vioxx, finding that manufacturer Merck & Co. failed to warn about the risks of its arthritis drug and misrepresented the risks to physicians. 2006 Apr 13: Bayer AG made its official takeover bid for fellow German drugmaker Schering AG, offering 16.5 billion euros ($20.01 billion), slightly more than its previous 16.3 billion euro ($19.76 billion) offer that Schering's board had recommended be accepted. 2006 May 11: The US FDA approved the drug Chantix. It was developed by Pfizer to help smokers kick their habit. By mid-2009 the FDA had received reports of almost 100 suicides related to its use. Clinical trials had failed to test the product on people with mental illness. 2006 May 15: Valeant Pharmaceuticals received FDA approval to resume sales of Cesamet (also called nabilone) a synthetic version of tetrahydrocannabinol (THC), the active ingredient of marijuana, which it bought from Lilly in 2004. Lilly received FDA approval in 1985, but withdrew it from the market in 1989 for commercial reasons. 2006 May 17: The US Food and Drug Administration said it approved Azilect, also called rasagiline, for use as an initial single-drug therapy for early Parkinson's disease. The FDA said Azilect, made by Teva Pharmaceutical Industries of Israel, also has the potential to cause involuntary movements, hallucinations and lowered blood pressure. 2006 Jun 3: Doctors reported that a new experimental drug, lapatinib, from British-based GlaxoSmithKline PLC, delayed the growth of advanced breast cancer in women who had stopped responding to the drug Herceptin and were out of treatment options. The company planned to sell the drug under the name Tykerb.
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2006 Jun 8: The US FDA approved the vaccine Gardasil, developed by Merck to prevent most cases of cervical cancer. 2006 Jun 14: German drugmaker Merck KGaA agreed to sell its 21.8% stake in Schering AG to Bayer AG, clearing the way for Bayer to take over Schering and end a merger drama that saw Merck in a position to block the takeover. In the process Merck gained a windfall of some 400 million. 2006 Jun 23: The US FDA approved Prezista, a new protease inhibitor drug for HIV, made by Johnson & Johnson. 2006 Jun 29: The US FDA approved the sale of Celgenes Revlimid for use in combination with dexamethasone in patients with multiple myeloma. Celgene said it would sell the drug for $6,195 a month. 2006 Jun 30: The US FDA gave Genentech approval to market Lucentis, a drug to restore sight to people suffering from the wet form of age-related macular degeneration. 2006 Jul 2: US researchers reported that astemizol, an allergy drug pulled off the market in 1999, could work to treat malaria. It was marketed under the brand name Hismanal by Janssen Pharmaceutica, a unit of Johnson & Johnson, and can kill the Plasmodium falciparum parasite that causes malaria. 2006 Jul 12: The US FDA approved Atripla, a single pill, 3-drug combination, to fight AIDS. 2 of the drugs were made by Gilead Sciences and the 3rd by Myers Squibb. 2006 Jul 28: The Pfizer Board of Directors named Jeffrey B. Kindler Pfizer's chief executive officer. He succeeds Hank McKinnell, who will remain Pfizer's chairman of the board until his retirement in February, 2007. McKinnell vacated Pfizers CEO spot 19 months before he was scheduled to step down, under pressure from investors angered about his retirement package and a drop of as much as 40% in the company's stock price during his five years in charge. The company later disclosed in a filing with the SEC that the package totaled more than $180 million. It includes an estimated $82.3 million in pension benefits, $77.9 million in deferred compensation, and cash and stock totaling more than $20.7 million. 2006 Aug 17: In New Orleans Merck & Co. lost a second federal trial over its withdrawn painkiller Vioxx and must pay $51 million to a retired FBI agent who had a heart attack after taking the drug for more than two years. 2006 Sep 11: GlaxoSmithKline agreed to pay $3.4 billion to settle a US tax dispute covering the period 1989-2005. 2006 Sep 15: A large diabetes-prevention study found that the drug Rosiglitazone (Avandia), made by GlaxoSmithKline, can help keep pre-diabetics from developing Type 2 diabetes. The drug was already being used to treat the disease, which afflicted over 200 million worldwide. 2006 Sep 25: UCB, a Belgian drug firm, announced a takeover of Germanys Schwarz Pharma for 4.4 billion. 2006 Sep 27: The US FDA approved Vectibix (panitimumab), a new colon cancer drug developed by Amgen and Abgenix. 2006 Sep 28: Novartis Pharmaceuticals Corp., the US unit of Swiss drugmaker Novartis AG, said that at least three out of four patients given an experimental multiple sclerosis treatment were free of relapses for more than two years. 2006 Sep 28: It was reported that Merck saved some $1.5 billion in US taxes by transferring patents and income to an offshore holding in Bermuda called Project Ryland from 1993-2003. In 2006 the IRS challenged the transactions.
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2006 Oct 4: A Philadelphia jury awarded a woman $1 million and her husband $500,000 in compensatory damages after finding that Wyeth's hormone replacement drug Prempro was a cause of her breast cancer. In the first federal Prempro trial, a jury last month in Little Rock, Arkansas found Wyeth was not negligent and had adequately warned patients and doctors of the cancer risk associated with the drug. Wyeth faced some 5,000 lawsuits involving its hormone replacement drugs. 2006 Oct 6: The US FDA approved Zolinza, generic name Vorinostat, a drug that switches off genes associated with cancer. 2006 Oct 9: The US Customs and Border Protection officials, effective today, scrapped their 11month-old policy of seizing prescription drugs imported through the mail from Canada. 2006 Oct 9: Pharmaceutical group GlaxoSmithKline (GSK) has announced a deal to buy US consumer healthcare group CNS for $566 million (449 million euros). 2006 Oct 9: Panamanian authorities said they suspect a medicine taken to treat high blood pressure may be among the factors leading to the deaths of 21 people since July who have succumbed to a mysterious illness that triggers kidney failure. Panama's health minister stopped sales of the medication, Lisinopril Normon, on Oct 6 and began removing it from pharmacy shelves. About 9,000 Panamanians were taking the medicine. Total deaths eventually reached at least 116 from contaminated medications [see Oct 18]. 2006 Oct 11: The US FDA approved Avastin, made by Genentech, to help fight lung cancer. 2006 Oct 18: Panamanian authorities said that 26 people had died after drinking tainted cough medicine, and five people had been detained on suspicion of selling contaminated material to a factory that produced the medication. Panama set up 34 round-the-clock clinics across the nation to identify the sick and perform blood tests for kidney damage. The contaminated medicines contained a chemical cousin of antifreeze, diethylene glycol, which is used to keep glue and cosmetics moist. Officials believe it turned up in 100,000 bottles of cough syrup, 20,000 of which have not been recovered. In 2007 it was reported that a Chinese factory was the source of a counterfeit chemical that killed dozens of people in Panama after it was used in human medications. Total deaths reached 116 from contaminated medications. 2006 Oct 25: The US FDA approved Tyzeka, generically known as telbivudine, to help treat adults with chronic hepatitis B. It was developed by Idenix and Novartis. 2006 Nov 1: CVS announced that it would acquire Caremark Rx, a big pharmacy benefits manager, for about $21 billion in stock. This was Americas largest health-services takeover. 2006 Nov 9: Perrigo Co., a major manufacturer of acetaminophen sold by Wal-Mart, CVS, Safeway and more than 100 other retailers, recalled 11 million bottles of the widely used painrelieving pills after discovering some were contaminated with metal fragments. 2006 Nov: Swiss-based Novartis, the worlds 4th largest pharmaceutical company, announced plans to invest $100 million in a new research facility in Shanghai. 2006 Dec 4: Shares of Pfizer Inc. fell 15.6% in opening trade, wiping out nearly $30 billion of market value, after the world's biggest drugmaker scrapped development of its most important experimental medicine. Pfizer halted work on torcetrapib, which was designed to raise levels of "good" HDL cholesterol, because of increased deaths and heart problems among patients given the product in a late-stage trial. 2006 Dec 26: It was reported that a large study in Britain had found that taking such popular heartburn drugs as Nexium, Prevacid or Prilosec for a year or more can raise the risk of a broken hip markedly in people over 50. 2006: Ranbaxy and Dr. Reddy, Indian generic drug makers, expanded their efforts to create proprietary drugs. Dr. Reddy hoped to market a diabetes medicine by 2010. Mike S Pena penam2@rpi.edu Page 127
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2006: Gary P. Pisano authored Science Business: The Promise, the Reality, and the Future of Biotech. The book included a history of pharmaceuticals and biotechnology. 2006: Gilead Sciences of California launched Atripla, a once-a-day, one-pill combination of Truvada and another drug to treat AIDS. 2006: British pharmacy Boots UK merged with Alliance UniChem, a European drugs wholesaler and distributor. In 2007 CEO Stefano Pessina and KKR took the company private in a leverage buyout worth $22.2 billion, Europes biggest buyout to date. 2007 Jan 29: Bayer said the US Food and Drug Administration has approved a new use of Bayer Schering Pharma AG's drug YAZ to allow it to be used to treat moderate acne in women who also want to use an oral contraceptive for birth control. 2007 Feb 7: The US Food and Drug Administration (FDA) announced its approval of sales of Alli, a reduced-strength version of the prescription diet drug Xenical. The first diet pill for over the counter sale hit stores June 15. 2007 Feb 9: Chinas state Food and Drug Administration vowed to probe up to 170,000 medicines produced by manufacturers, which allegedly bribed its sacked head Zheng Xiaoyu for production licenses. The top drug safety official was being investigated for bribery after a number of deaths and scandals were linked to shoddy medicines. 2007 Mar 12: A New Jersey a jury reversed an earlier verdict and hit Merck with a total of $47.5 million in damages in a Vioxx case of an Idaho postal worker. To date Merck had won 9 cases lost 5 over its former arthritis pill. 2007 Apr 24: A consortium led by US private equity group KKR was left unchallenged in its quest to take over Alliance Boots, after a rival British bidder withdrew its bid for Europe's biggest pharmacy chain. 2007 Apr 24: US FDA advisers endorsed a Pfizer AIDS drug that fights HIV by blocking one of two cell receptors that are infection routes. 2007 May 4: Brazils Pres. Lula da Silva issued a license allowing Brazil to buy or produce a cheap generic version of AIDS drug efavirenz, bypassing Mercks patent. The compulsory licensing for efavirenz will allow Brazil to import unbranded copies at a quarter of current prices while paying Merck a nominal royalty. 2007 May 7: Scientists testing the beds of streams around Portland, Oregon, found the residue of the region's medicine cabinets and coffee shops. The list of compounds includes many known by such names as Prozac, Tagamet, Benadryl, Micatin, and caffeine. 2007 May 8: It was reported that groups of elderly Australians are setting up backyard laboratories to manufacture an illegal euthanasia drug so they can kill themselves when they have had enough of life. 2007 May 9: The NY Times reported on its Web site that Amgen Inc. and Johnson & Johnson are paying doctors hundreds of millions of dollars every year in return for prescribing anemia drugs which regulators now say may be unsafe at commonly used doses. 2007 May 10: In Virginia the maker of the powerful painkiller OxyContin and three of its current and former executives pleaded guilty to misleading the public about the drug's risk of addiction. Purdue Pharma L.P., its president, top lawyer and former chief medical officer will pay $634.5 million in fines for claiming the drug was less addictive and less subject to abuse than other pain medications. 2007 May 13: German pharmaceutical giant Merck KGaA announced that it had signed an agreement to sell its generic drugs division to the US group Mylan Laboratories for 4.9 billion euros (6.6 billion dollars). penam2@rpi.edu Page 128
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2007 May 20: In Germany engineering concern Siemens said Peter Loescher, from US pharmaceutical giant Merck, will take over as chief executive from July 1. 2007 May 20: Officials said Nigeria's largest state has sued US drug firm Pfizer for allegedly using 200 children as "guinea pigs" for a drug test in 1996 that led to multiple deaths and deformities. In 2010 a leaked WikiLeaks cable said Pfizer hired investigators to unearth evidence of corruption against Nigerias former attorney general Michael Aondoakaa to persuade him to drop legal action over the companys experimental antibiotic, Trovan. 2007 May 21: The US Food and Drug Administration issued a safety alert for the diabetes drug Avandia, marketed by GlaxoSmithKline, which disputed a report saying it was linked to a greater risk of heart attack. A doctor in Maryland had linked Avandia to congestive heart failure in 2000, but GlaxoSmithKline rejected her warning and tried to stop her from talking about it with other doctors and hospitals. 2007 May 29: Zheng Xiaoyu, China's former top drug regulator, was sentenced to death in an unusually harsh punishment for taking bribes to approve substandard medicines, including an antibiotic blamed for at least 10 deaths. 2007 Jun 4: Doctors said they have found a pill that improves survival for people with liver cancer, a notoriously hard to treat disease diagnosed in more than half a million people globally each year. Sorafenib, sold under the brand name Nexavar, is approved in the US and dozens of other countries to treat advanced kidney cancer. It is marketed by Bayer Pharmaceuticals Corp. and Onyx Pharmaceuticals Inc., which funded the liver cancer study. 2007 Jun 12: A team of Japanese researchers reported the development of a type of rice that can carry a vaccine for cholera. The vaccine would be delivered in a capsule or pill containing rice powder. 2007 Jun 13: British Home Secretary John Reid said the government is to run a pilot scheme giving convicted pedophiles drugs to suppress their libido, or so-called "chemical castration." 2007 Jun 14: A US panel said an obesity treatment made by French pharmaceutical giant SanofiAventis was unsafe and should not be marketed in the United States. 2007 Jun 26: A seven billion dollar (5.2 billion euro) lawsuit pitting the Nigerian government against the world's biggest pharmaceutical company Pfizer opened with the US giant demanding the court dismiss the charges. 2007 Jun 29: China enacted law meant to improve workers' rights, capping a round of unprecedented legislation by the communist government that included input from foreign companies and the Chinese public. A French-educated scientist was named China's health minister, becoming only the 2nd noncommunist appointed to the Cabinet since the 1970s. Beijing banned ten types of drugs for exaggerated effectiveness amid rising concerns of fake and tainted products in China's food and drug supply chains. 2007 Jul 4: A top Panamanian prosecutor said tests show at least 94 people have died from taking medicine contaminated with diethylene glycol since July 2006 and that 293 more deaths are under investigation. Total deaths reached 116 from contaminated medications. 2007 Jul 9: Northwest Biotherapeutics, a US-based biotech company, said it had won approval for commercial use of the world's first vaccine against brain cancer in Switzerland. 2007 Jul 9: Novartis said the first skin patch to treat the dementia that can plague Alzheimer's patients has gained federal approval. The drug in the patch, called Exelon or rivastigmine, is the same as that now available in capsule form but provides a regular and continuous dose throughout the day.
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2007 Jul 9: Researchers said a pill developed by Pfizer to help people stop-smoking appears to also help curb heavy drinking by targeting a pleasure center in the brain. The drug called varenicline, began selling in the US last August under the brand name Chantix. 2007 Jul 10: China executed Zheng Xiaoyu (63), former head (1997-2006) of its State Food and Drug Administration (SFDA), for approving untested medicine in exchange for cash. Zheng was convicted of taking cash and gifts worth $832,000 when he was in charge of the state administration. 2007 Jul 11: China's food and drug agency announced stricter rules for approving new drugs. The government also ordered small, loosely regulated food producers to clean up their act. 2007 Jul 20: China said it had shut down several firms at the heart of food and drug safety scares, including a chemical plant implicated in the deaths of 94 people in Panama. China also said that it "strongly opposed" decisions by the United States to initiate anti-dumping and countervailing duty investigations on imports of some woven sacks and steel pipes from China. Total deaths in Panama reached 116 from contaminated medications. 2007 Jul 20: Nigeria filed a new lawsuit against US pharmaceutical giant Pfizer claiming some 6.5 billion dollars in damages for deaths allegedly stemming from drug trials. In Sokoto, Nigeria's main Islamic city, mobs burned down houses in Shiite neighborhoods in apparent reprisal for the murder this week of a radical Sunni Muslim cleric. In northern Nigeria at least one person died and about 100 were detained in a series of dawn raids following sectarian clashes sparked by the killing of a popular Sunni cleric In southern Nigeria Gunmen killed a Lebanese businessman in his home. Later in the day attackers tried to ambush a truck carrying several foreign workers in what appeared to be a kidnapping attempt. 2007 Jul 20: Purdue Pharma L.P., the maker of OxyContin, and 3 of its executives were ordered to pay a $634.5 million fine for misleading the public about the painkiller's risk of addiction. 2007 Jul 31: Johnson & Johnson said it would reduce its global work force by up to 4 percent, or up to 4,820 jobs, to cut costs due to slumping sales of heart stents and its No. 2 drug, plus looming patent expirations. 2007 Aug 7: Britain's GW Pharmaceuticals Plc said that Health Canada had approved its cannabis-based medicine Sativex for treatment of cancer patients. 2007 Aug 7: The US FDA approved a new drug to help patients with AIDS. Pfizers Selzentry is the first anti-AIDS drug that blocks the CCR5 receptor, often used by the HIV virus to enter white blood cells. 2007 Aug 9: WuXi PharmaTech, a Chinese pharmaceutical research firm, began trading on the NYSE at $14 per share. By Sep 22 its shares had doubled in value. 2007 Aug 22: The US FDA approved expanded use of J&Js antipsychotic Risperdal in adolescents. 2007 Aug 24: Mozambiques health minister said large amounts of drugs, which have been imported into Mozambique with the aid of the international community, end up being sold on the black market at home and abroad. 2007 Sep 16: State media reported that Chinese authorities had ordered the recall of tainted leukemia drugs blamed for leg pains and other problems, the latest crisis to strike the country's embattled food and drug industries. The Swiss drugmaker Novartis AG said that the European Commission had approved its Exelon skin patch to treat Alzheimer's disease. 2007 Oct 4: Health Canada said that it has stopped the sale of Novartis Pharmaceuticals antiinflammatory drug Prexige and will cancel its market authorization due to the risk for serious liver-related effects including hepatitis. Mike S Pena penam2@rpi.edu Page 130
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2007 Oct 4: Canada became the first country to notify the World Trade Organization that it has agreed to allow a Canadian company to make generic medicines for export to Rwanda. 2007 Oct 11: Cold medicines for babies and toddlers were pulled off shelves amid concerns about unintentional overdoses. 2007 Oct 12: The US FDA approved Isentress, a new drug by Merck to fight AIDS. Raltegravir, its generic name, represented a new class of AIDS drugs known as integrase inhibitors. 2007 Oct 18: Swiss pharmaceutical giant Novartis announced more than 1,200 job losses in the US after its third quarter results weakened on sharper competition from generic drugs. 2007 Nov 17: It was reported that generic Viagra, made in India, was a popular item in Gaza, selling for 75 cents a tablet. 2007 Nov: Bayer AG removed the drug Trasylol at the request of the FDA after an observational study linked the medicine to kidney failure requiring dialysis and increased death of those patients. Dr. Dennis Mangano, the study's researcher, later said that 22,000 lives could have been saved if Trasylol had been taken off the market when he first published his study in January 2006. 2007 Dec 10; Japanese drugmaker Eisai Co. said it will buy US biopharmaceutical company MGI Pharma Inc. for $3.9 billion in cash in a move aimed at boosting its cancer drug business and sustain sales growth. 2007 Dec 11: The United States and China signed two deals to safeguard the quality of food and drugs ranging from pet food to certain types of antibiotics imported into the US from China. 2007 Dec 12: China launched a nationwide recall system that shifts responsibility to companies to recall harmful drugs. In eastern China a fire tore through an apartment building, killing at least 21 people and injuring two others. 2007 Dec 24: A Nigerian court ordered the arrests of three of the defendants in a trial over a drug test conducted by Pfizer in 1996 which Nigerian authorities say killed 11 children and left others disabled. 2008 Feb 22: The US FDA granted accelerated market approval for Genentechs drug Avastin to treat advanced breast cancer. The drug cost was bout $7,700 per month. Avastin was already approved for colorectal and lung cancer. 2008 Mar 10: An Associated Press investigation showed that a vast array of pharmaceuticals, including antibiotics, anti-convulsants, mood stabilizers and sex hormones, have been found in the drinking water supplies of at least 41 million Americans. 2008 Apr 29: Albert Hofmann (102), the father of the mind-altering drug LSD, died. His medical discovery inspired, and arguably corrupted, millions in the 1960s hippie generation. The Swiss chemist discovered lysergic acid diethylamide-25 in 1938 while studying the medicinal uses of a fungus found on wheat and other grains at the Sandoz pharmaceuticals firm in Basel. He became the first human guinea pig of the drug when a tiny amount of the substance seeped onto his finger during a laboratory experiment on April 16, 1943. Hofmann to LSD for the last time when he was 97. 2008 Jun 4: Swiss pharmaceutical Novartis announced it had bought Protez Pharmaceuticals for $100 million (64.8 million euros), thus acquiring the rights to a new antibiotic. 2008 Jun 11: Japanese pharmaceutical firm Daiichi Sankyo said it would buy control of top Indian generics firm Ranbaxy for up to 4.6 billion dollars, entering the fast expanding nonbranded drugs market. 2008 Jul 1: An Alabama jury found Glaxo and Novartis guilty of drug-price fraud and ordered them to pay $114 million. penam2@rpi.edu Page 131
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2008 Jul 7: Germanys Fresenius SE said it has agreed to buy US generic drug maker APP Pharmaceuticals for $3.7 billion in cash in a deal that will give the health care company more opportunities in the North American market for drugs administered intravenously. 2008 Jul 21: Swiss pharmaceutical giant Roche offered 43.7 billion dollars to acquire the remaining shares in US subsidiary Genentech, the bio-tech pioneer underpinning its dominance of the cancer treatment market. 2008 Jul 24: The US CDC reported that at least 1,013 people had died between 2005 and 2007 a street version of the painkiller fentanyl. Many deaths were likely unreported. 2008 Oct 6: Eli Lilly & Co. said it would pay $70 per share for New Yorks Imclone. The offer put about $1 billion into the pocket of Bristol-Myers for its stake in Imclone and still allowed it to share in revenue from Erbitux, a cancer medication. 2008 Oct 17: Pfizer Inc. said it has reached agreements to end up to 92% of personal injury lawsuits relating to anti-inflammatory drugs Bextra and Celebrex, linked to elevated risks of heart attacks and stroke, at a cost of $894 million. 2008 Oct 22: British researchers said a drug, known by its lab name of alemtuzumab and licensed for use against leukemia, braked and even reversed the effects of multiple sclerosis among patients with MS. 2009 Jan 15: Swiss pharmaceutical giant Novartis AG said it has secured a $486 million contract to build a new flu vaccine plant in North Carolina. 2009 Jan 20: State Attorney General Jerry Brown said California will get $54 million as its share of a national settlement with drug maker Eli Lilly & Co. for marketing the antipsychotic drug Zyprexa for unapproved uses. Lilly agreed to pay $1.415 billion to US state and the federal government, the largest recovery in a health care fraud case in US history. 2009 Jan 26: Pfizer Inc. said it is buying rival drug maker Wyeth in a $68 billion deal that will increase its revenue by 50%. At the same time Pfizer announced cost cuts that include slashing more than 8,000 jobs as it prepares for an expected revenue crash when its cholesterol drug Lipitor loses patent protection in November 2011. Pfizer also said it has agreed to pay $2.3 billion to settle a federal investigation into its alleged off-label marketing of the now withdrawn painkiller Bextra. 2009 Jan 26: It was reported that recent analysis of vials of treated wastewater taken from a plant in Patancheru, where about 90 Indian drug factories dump their residues, enough of a single, powerful antibiotic was being spewed into one stream each day to treat every person in a city of 90,000. 2009 Feb 6: The US FDA approved the first drug made with materials from genetically altered animals. Atryn, developed by GTX Biotherapeutics, was made from the milk of a genetically altered goat and would be used to treat a rare blood-clotting disorder known as hereditary antithrombin deficiency. 2009 Feb 9: In Montreal, Canada, researchers said that an Indevus Pharmaceuticals gel formulated to protect women from the virus that causes AIDS appeared to protect about a third of them from infection, the first time a so-called microbicide has been shown to work. 2009 Feb 26: In Nigeria a source close to negotiations said US drug giant Pfizer has agreed to settle a multi-billion dollar damages case with 200 alleged victims of a drugs trial in Kano. Pfizer and families of the victims of the drug trial reportedly reached an out-of-court settlement in principle and agreed to meet in Rome in March to put the deal in writing. 2009 Mar 9: Merck & Co. said it is buying Schering-Plough Corp. for $41.1 billion in stock and cash in a deal that gives the companies more firepower to compete in a drug industry facing penam2@rpi.edu Page 132
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slumping sales, tough generic competition and intense pricing pressures. The merger was expected to eliminate some 16,000 jobs. 2009 Mar 23: A US judge ordered the FDA to allow sales of the morning-after pill to women 17 and older without a prescription. 2009 Mar 25: Chinas state media said forestry officials in far western China have resorted to scattering abortion pills near gerbil burrows in a bid to halt a rodent plague threatening the desert region's fragile ecosystem. 2009 Mar 30: Findings were presented for an experimental combo pill, to prevent heart attacks and strokes, indicating it as effective as nearly all of its components taken alone, with no greater side effects. The study tested the Polycap, an experimental combo formulated by Cadila Pharmaceuticals of Ahmedabad, India. 2009 Apr 3: In Nigeria a source close to negotiations said Pfizer has agreed to pay $75 million compensation over a 1996 drug trial that caused the death of 11 children in northern Nigeria. Kano state confirmed the settlement on May 14. 2009 Apr 8: Genentech, a unit of Roche, said it is voluntarily withdrawing its psoriasis drug Raptiva due to a link with a rare but often fatal brain disorder. 2009 Apr 20: In Florida 7 more Venezuelan polo horses sickened just before a tournament died overnight, raising the death toll to 21. Officials said they may have been killed by some type of poison. On April 23 Francks Pharmacy admitted to having prepared a generic version of Biodyl, a vitamin supplement banned in the US, which was administered to all the dead horses. 2009 Apr 20: British pharmaceutical giant GlaxoSmithKline said it has agreed to buy US-based skincare group Stiefel Laboratories in a deal worth up to 2.4 billion pounds ($3.6 billion). 2009 May 2: India's biggest drug maker Ranbaxy announced the recall of an antibiotic, on sale in the US, because of manufacturing problems, marking a new setback for the company. The Japanese-controlled company said it was voluntarily recalling all lots of nitrofurantoin capsules, an antibiotic used in the treatment of urinary tract infections. 2009 May 18: The US Justice Department accused Wyeth, one of the nation's biggest drug makers, of cheating Medicaid programs out of hundreds of millions of dollars by overcharging for a stomach acid drug. 2009 May 27: In Texas authorities indicted 51 defendants on state charges in Fort Bend County, while 22 were indicted on federal charges for distributing anabolic steroids, human growth hormones and other drugs. 2009 Jun 12: Swiss pharmaceuticals company Novartis AG said it has successfully produced a first batch of swine flu vaccine weeks ahead of expectations. 2009 Jun 16: US FDA said consumers should stop using Zicam Cold Remedy nasal gel and related products because they can permanently damage the sense of smell. 2009 Jun 20: The US pharmaceutical industry agreed to spend $80 billion over the next decade improving drug benefits for seniors on Medicare and defraying the cost of President Barack Obama's health care legislation, capping secretive negotiations involving key lawmakers and the White House. 2009 Jun 20; Venezuelas Commerce Minister Eduardo Saman, a close confidant of President Hugo Chavez, announced that the government would annul patents on some medicines under a reform of existing intellectual property laws. Industry leaders soon responded saying the action could cause shortages and scare off foreign investment. 2009 Jul 29: Drug maker Pfizer Inc. confirmed that it has resolved a long-running legal dispute with the Nigerian government over allegations that children there were harmed in a 1996 Pfizer penam2@rpi.edu Page 133
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study of an experimental antibiotic during a meningitis outbreak. The settlement reportedly called for a $75 million payment by Pfizer. 2009 Aug 3: In Switzerland there was an arson attack at Novartis CEO Daniel Vasella's lodge in Bach, Austria. An attack on his mother's grave took place a week earlier. The next day drug maker Novartis said animal rights militants were responsible. 2009 Aug 6: Nigeria's northern Kano state withdrew a landmark criminal and civil suit against US drug group Pfizer over a 1996 drug trial that left 11 children dead and 189 others deformed. The withdrawal of the suit followed a 75-million dollar (52 million euros) out-of-court settlement between the two parties. 2009 Aug 20: Drug developer Warner Chilcott, which focuses on women's healthcare and dermatology, completed its move to Ireland from Bermuda. 2009 Sep 2: US federal prosecutors hit Pfizer Inc. with a record-breaking $2.3 billion in fines for illegal drug promotions surrounding the marketing of 13 drugs. 2009 Sep 3: Japans Dainippon Sumitomo Pharma Co. said it is acquiring US drug maker Sepracor Inc., which makes insomnia drug Lunesta, for about $2.6 billion in an effort to expand in the US market. 2009 Sep 24: In Thailand an experimental combination of two previously unsuccessful vaccines cut the risk of becoming infected with HIV by more than 31%, in the world's largest AIDS vaccine trial of more than 16,000 volunteers. This was the first time an experimental vaccine has prevented infection with the AIDS virus. 2009 Oct 5: Drugmaker Bristol-Myers Squibb Co. said its new diabetes drugs, Onglyza, has been approved for sale in the European Union's 27 countries. 2009 Dec 18: The European Medicines Agency (EMEA) recommended the withdrawal of all medicines containing benfluorex, a diabetes and weight-loss drug, in the European Union. In 2010 French officials said the drug, marketed as mediator, may have been linked to the deaths of 500 people over the 33 years it was on the market. Fenfluramine, a related drug, had been withdrawn from the market in 1997 after reports of heart valve disease, pulmonary hypertension, and development of cardiac fibrosis. 2010 Jan 8: The US FDA approved a drug by Genentech called Actemra. It was the first arthritis treatment to operate by blocking the activity of a protein called interleukin-6, that when overly abundant causes inflammation in the joints associated with arthritis. 2010 Jan 12: Novartis, a Swiss drug company, announced its decision to spend $24 million to secure exclusive licenses and options on drug delivery technologies developed by Proteus Biomedical, a California start-up. 2010 Jan 15: New Jersey-based Johnson & Johnson issued a massive recall of over-the-counter drugs including Tylenol, Motrin and St. Joseph's aspirin because of a moldy smell that has made people sick. 2010 Feb 19: A newly released study by a major US consulting firm found that premiums for Medicare Advantage plans offering medical and prescription drug coverage jumped 14.2 percent on average in 2010, after an increase of only 5.2 percent the previous year. 2010 Feb 20: It was reported that confidential US FDA reports have recommended the removal of Avandia, a drug used to treat Type 2 diabetes, off the market. Also know as rosiglitazone, it was linked to 304 deaths due to heart attacks and heart failures during the 3rd quarter of 2009. GlaxoSmithKline held that Avandia should continue to be an option. 2010 Mar 5: An Australian court ruled that the once-popular painkiller Vioxx doubled the risk of heart attack and was unfit for consumption, awarding a man leading a class action suit against the drug's maker 287,000 Australian dollars ($259,000) in compensation. Mike S Pena penam2@rpi.edu Page 134
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2010 Mar 12: The US governments vaccine court ruled in 3 separate cases that the mercurycontaining preservative thimerosol does not cause autism. 2010 Mar 15: In Britain Louis Wainwright (18) and Nicholas Smith (19), both from Scunthorpe, were found dead at different addresses following a night out. They had both taken the drug mephedrone, sold online as plant food and also goes by the names meow meow, mcat and bubble. The deaths come a week after a secondary school in Leicestershire reported that 180 pupils had missed school after taking the drug, which can be bought for less than 10 a gram. 2010 Mar 18: Israeli copycat drugs giant Teva made a major stride into Europe with the fivebillion-dollar purchase of Ratiopharm, formerly owned by a German billionaire who killed himself. 2010 Apr 14: In Los Angeles Dr. Daniel Healy (45) was sentenced to 4 years in federal prison for dispensing over a million hydrocodone tablets for cash. He made nearly $700,000 in 2008 from selling the powerful painkiller. 2010 Apr 20: Indias trade ministry said it will launch a formal dispute against the EU at the World Trade Organization (WTO) over EU seizures of Indian generic drugs. 2010 Apr 20: Gaza's Hamas rulers burned nearly 2 million pills of Tramadol, a painkiller many Gazans take recreationally because they say it relaxes them and provides temporary relief from the territory's hardships. 2010 Apr 26: Massachusetts-based Charles River Laboratories International Inc., a medical research equipment and services company, announced plans to buy WuXi PharmaTech, a Chinese pharmaceutical outsourcing company, for $1.6 billion. 2010 Apr 28: Nigeria's senate ordered a probe into Senator Ahmed Sani Yerima (49) for his alleged marriage to a 13-year-old Egyptian girl, after the national rights watchdog and other 10 groups accused him of shaming the country. Gunmen seized four officers of an agency responsible for combating counterfeit pharmaceuticals in the southern state of Abia. 2010 Sep 30: US federal officials announced that Novartis Pharmaceuticals Corp. will pay $422.5 million in penalties for marketing an epilepsy medicine for unapproved uses and for paying kickbacks to doctors to prescribe it and 5 other drugs. 2010 Nov 1: McKesson corp., the biggest US drug distributor, announced an agreement to buy closely held US Oncology Inc. for $560 million. 2010 Nov 17: Some 48 of 1,730 California doctors, who received money from pharmaceutical companies over the past 21 months, have been the subject of disciplinary action as reported by ProPublica, an investigative news organization. 2010 Nov 29: The British government said it has issued an order to control the export of a sedative used to execute death-row prisoners in the US. Exporters will now be required to prove drugs will be used for legitimate medical reasons, not execution. 2010 Dec 16: The US FDA said it was beginning the process to rescind Avastins accelerated approval in breast tumors. The drug had global sales of $6 billion in 2009. 2010 Dec 21: Netherlands-based Royal DSM NV, the worlds largest maker of vitamins, agreed to buy Martek Biosciences, a US maker of nutritional ingredients for baby food, for $1.09 billion. 2010 Dec 23: It was reported that the first pill designed to curb a persons urge to have more than a few drinks of alcohol was undergoing tests in Europe. The drug (nalmafene) was developed by H. Lundbeck A/S in Valby, Denmark. 2010: David Stipp authored The Youth Pill: Scientists at the Brink of an Anti-Ageing Revolution. penam2@rpi.edu Page 135
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2010: Zhang Jingli, one of four deputy heads of Chinas State Food and Drug Administration (SFDA), was removed from his post at the food and drug safety watchdog. He was under investigation over alleged bribery linked to US pharmaceuticals giant Johnson & Johnson. In early 2011 he was stripped of his party membership. 2011 Jan 17: British drugs firm GlaxoSmithKline said it expects to be hit by a total legal charge of 2.2 billion linked to its former blockbuster diabetes product Avandia, sparking a sharp drop in its shares. 2011 Jan 25: Mexican authorities said they have seized more than 23 tons of a chemical used in the manufacture of synthetic drugs, during an inspection of a shipment from China. The ethyl phenylacetate was declared as a different product on arrival at the Pacific port of Manzanillo. 2011 Apr 14: Denmark's foreign minister said she will urge US states such as Texas and Ohio to stop using a drug produced by a Danish company in lethal injections. Lene Espersen said she cannot take direct action against the company that produces pentobarbital because the drug is not exported from Denmark. It is produced by a plant in Kansas that is owned by Denmark's Lundbeck A/S. Britain announced it was banning the export of three such drugs to the United States. 2011 May 2: Israeli-based Teva Pharmaceutical said it will pay $6.8 billion to acquired Cephalon Inc. 2011 May 3: Japans Nikkei newspaper said Israel's Teva Pharmaceutical Industries has decided to buy Japan's third-largest generic drug company Taiyo Pharmaceutical Industry for about $500 million. 2011 May 19: Takeda Pharmaceutical Co. said it will buy Switzerland's Nycomed for $13.6 billion, giving Japan's biggest drugmaker coveted access to emerging markets. 2011 Jul 1: Danish pharmaceutical company Lundbeck Inc. said it will demand that US distributors sign an agreement stating that they will not make the sedative pentobarbital available for prisons using it for lethal injections. 2011 Jul 8: At Cape Canaveral, Florida, Atlantis and four astronauts rocketed into orbit on NASA's last space shuttle voyage. 30 mice were also onboard to test a bone-loss drug in a project directed by Amgen and collaborator UCB SA in Brussels. 2011 Jul 18: Hong Kong ordered pharmaceutical giant GlaxoSmithKline to recall an antibiotic used to treat infections in children after tests revealed the British firm's Augmentin antibiotic tablet contained several plasticizers, including diisodecyl phthalate (DIDP). 2011 Aug 11: US pharmaceutical giant Pfizer began long-awaited compensation payments to Nigerian families over a 1996 drug trial blamed for the deaths of 11 children and disabilities in dozens of others. Only four families were paid in the initial disbursements, while some 200 children participated in the trial of meningitis drug Trovan. 2011 Aug 26: In Britain the makers of painkiller Nurofen Plus recalled the tablets after antipsychotic and epilepsy drugs were found to have been placed in packets in acts of suspected sabotage. 2011 Sep 23: British police arrested Christopher McGuire (30). He was charged the next day with placing anti-psychotic and epilepsy drugs in packets of the painkiller Nurofen Plus. 2011 Sep 29: British police and medical regulators said Russian gangs and their Chinese associates are making billions of dollars from selling fake and unlicensed medicines over the Internet, putting thousands of people at risk. More than 2.5 million doses of counterfeit, controlled and withdrawn drugs were seized across 79 countries in seven days of raids coordinated by international police organization Interpol under an operation codenamed Pangea that ended on Sep 27. Mike S Pena penam2@rpi.edu Page 136
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2011 Oct 26: UN and industry officials said 8 drug makers have agreed to create a UNadministered pool of patented information and other data to spur new research into 21 tropical diseases and ailments. 2011 Nov 1: Chinas state media reported that police in Henan province have arrested 114 people in a crackdown on a counterfeit drugs ring, seizing $30 million worth of fake medications and more than 65 million medicine bottles. 2011 Nov 3; GlaxoSmithKline Plc said it has agreed in principle to settle several long-standing disputes with the US government over the way it marketed and developed drugs, at a cost of $3 billion (1 billion pound), which is covered by existing provisions. It includes a Department of Justice investigation into the company's controversial diabetes drug Avandia, which has been linked to heart risks. 2011 Nov 22: The US Dept. of Justice said that drugmaker Merck will pay $950 million to resolve investigations into its marketing of the painkiller Vioxx. 2011 Dec 19: Members of an Australian class action lawsuit, who blame a German pharmaceutical company's anti-morning sickness drug, Thalidomide, for causing birth defects, won the right to have their case heard in their own country. The class action against Grunenthal is open to Australians born between Jan. 1, 1958, and Dec. 31, 1970, who were injured after their mothers took thalidomide while pregnant. 2012 Jan 3: Indian activists reacted angrily after 12 doctors were fined less than $100 each for conducting secret drug trials on children and patients with learning disabilities. 2012 Jan 10: Mexican authorities said they have seized 32.6 metric tons of methylamine, a precursor chemical used to make methamphetamines, at the Pacific coast port of Manzanillo. The shipment came from China. 2012 Jan 20: The European Medicines Agency said it is investigating a multiple sclerosis drug made by Novartis after at least 11 patients taking the drug died. The drug, Gilenya, was licensed last year in the EU to treat patients with a severe type of multiple sclerosis. 2012 Jan 26: Pakistani government officials in Punjab said around 100 heart patients have died after taking faulty medicine made locally and dozens more are in a critical condition in hospitals in Lahore. 2012 Jan 30: US federal regulators approved the first drug for people with advanced forms of basal cell carcinoma. It was made by Genentech, a subsidiary of Roche. 2012 Jan: Chiles competition authority found that three chains of pharmacies, which control 90% of the market, had colluded to push up the price of over 200 medicines by around half. 2012 Jan: Kalydeco became the first approved drug to target the mutated gene that causes cystic fibrosis. The Cystic Fibrosis Foundation spent $75 million on early research for the drug, owned by Vertex. 2012 Feb 2: The Anglo-Swedish drugs giant AstraZeneca said that it would axe 7,300 jobs by the end of 2014 in a new cost-cutting drive, despite delivering bumper annual profits. 2012 Mar 23: In India health activists blamed the government for inadequate tuberculosis treatment and the spiraling number of drug-resistant cases. An estimated 99,000 cases of drugresistant TB were being added each year. 2012 Apr 2: Americas Federal Trade commission (FTC) voted 3-1 to let Express Scripts acquire Medco, Americas 2nd-biggest and biggest pharmacy managers. 2012 Apr 4: British officials said a new batch of counterfeit cancer drug Avastin discovered in the United States was bought in Turkey and shipped through Britain by a UK-based business. Avastin, made by Roche, is a complex injectable biotech drug with annual sales of $6 billion. penam2@rpi.edu Page 137
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2012 Apr 20: European regulators recommended approval of a new type 2 diabetes drug from AstraZeneca, Britain's second biggest drugmaker, and Bristol-Myers Squibb, in a decision that contrasts starkly with its failure to win approval in the United States. 2012 Apr 23: Chinese state media said police have arrested nine people and detained 54 others in a crackdown on chromium-tainted gel capsules made from industrial waste. On April 22 Xinhua News said that police have seized 77 million gel capsules and shuttered 80 production lines in Hebei province. 2012 Apr 23: Swiss-based Nestle said it would buy Pfizer Nutrition, the infant nutrition arm of American Drug firm Pfizer, for $11.85 billion. 2012 May 3: US federal authorities said a Miami-based crime ring stat stole at least $80 million worth of prescription drugs has been broken up following a 3-year FBI probe. 22 people were charged in New Jersey, Connecticut and Miami. 2012 May 7: South Korean officials said they have seized thousands of smuggled drug capsules filled with powdered flesh from dead babies. The capsules were made in northeastern China from babies whose bodies were chopped into small pieces and dried on stoves before being turned into powder. 2012 May 9: British drugmaker GlaxoSmithKline said it has gone hostile over its $2.6 billion (2.0 billion-euro) takeover bid for US research partner Human Genome Sciences Inc. 2012 Jun 8: US federal regulators approved pertuzumab (Perjeta), a new, less toxic breast cancer drug made by Genentech. 2012 Jun 19: US-based Walgreens said it was spending $6.7 billion (4.3 billion) to take a 45percent stake in British-based Alliance Boots to create the world's largest retail pharmacy chain. 2012 Jun 27: The US FDA approved Arena Pharmaceuticals anti-obesity pill Belviq, the first weight loss drug approved since 1999. 2012 Jul 2: British drugmaker GlaxoSmithKline was socked with $3 billion in fines by US authorities over charges it marketed drugs for unauthorized uses, held back safety data, and cheated the government's Medicaid program. This became the largest health-fraud settlement in American history. 2012 Jul 16: Antonin Holy (1936), a renowned Czech scientist, died. His research significantly contributed to the development of antiviral drugs. He died the same day the US Food and Drug Administration approved Truvada, a drug Holy helped to create. 2012 Jul 18: An Australian woman born without arms and legs after her pregnant mother took the anti-morning sickness drug Thalidomide reached a multimillion dollar settlement with UK-based Distillers Company (Biochemicals) Ltd. which sold the drug in Australia and Diageo Scotland Ltd., the successor company to Distillers. Grunenthal, the German maker of the drug, refused to settle. 2012 Jul 18: Chinas Ministry of Health issued a new code of conduct banning medical staff from prescribing unnecessary tests and the prescription of expensive tests to boost income. 2012 Jul 21: Mozambique launched a Brazilian funded pharmaceutical plant that will make antiretroviral drugs to battle the HIV/AIDS scourge in the southern African country. The plant will initially package drugs from Brazil but start producing the pills by the end of the year. 2012 Jul 24: In California the Alameda County Board of Supervisors voted 5-0 for the Safe Drug Disposal Ordnance, which requires producers of drugs sold or distributed in the county to pay for safe collection and disposal of unused medications.
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2012 Aug 7: The US Dept. of Justice reached a $60 million settlement with Pfizer for violating the Foreign Corrupt Practices Act (FCPA). This covered similar offences by Wyeth, which was acquired by Pfizer in 2009. 2012 Aug 27: The US FDA said it has approved a request by Gilead Sciences to sell a pill for new HIV patients that combines four of the companys drugs into one. The Stribild therapy contains two new rugs and two previously approved compounds for the Truvada HIV medicine. 2012 Aug 31: In Germany Grunenthal chief executive Harald Stock said in a speech that his company, the maker of thalidomide, was "very sorry" for its silence towards the victims of the drug, which was sold to pregnant women as a cure for morning sickness in the 1950s and early 1960s. An estimated 10,000 children worldwide were born with defects -- including missing limbs. It was pulled from the market in 1961. 2012: Ben Goldacre authored Bad Pharma.
ENDNOTES
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Pharmaceutical Industry Overview - Complete Version. IRS. March 8, 2012. Web. October 26, 2012. <http://www.irs.gov/Businesses/Pharmaceutical-Industry-Overview---Complete-Version> Pharmaceutical industry overview. Ernst & Young. Web. October 26, 2012. <http://www.ey.com/GL/en/Industries/Life-Sciences/Biotech-report-2012---Pharmaceutical-industry-overview> Pharmaceutical Preparation Manufacturing. U.S. Census Bureau. Web. October 26, 2012. < http://www.census.gov/epcd/ec97/def/325412.HTM> Pharmaceutical Industry. World Health Organization. Web. October 26, 2012. < http://www.who.int/trade/glossary/story073/en/index.html> Pharma. Timelines. Web. October 26, 2012. < http://www.timelinesdb.com/listevents.php?subjid=383&dayinhist=0&date1=99999999999&date2=99999999999&words=&title=Pharma&fromrec=420> Industries. CNN Money. Web. October 26, 2012. < http://money.cnn.com/magazines/fortune/fortune500/2012/industries/21/> List of Professional Societies for Pharmaceutical Research. Network Science. Web. October 26, 2012. < http://www.netsci.org/Resources/Web/society_research.html> Global Pharmaceutical Market Forecast to 2012. PRLOG. Web. October 26, 2012. < http://www.prlog.org/10124036-global-pharmaceutical-market-forecast-to-2012.html> Profile of the Pharmaceutical Manufacturing Industry. U.S. Environmental Protection Agency. September, 1997. Web. October 26, 2012. < http://www.epa.gov/compliance/resources/publications/assistance/sectors/notebooks/pharma.pdf> Pharmaceuticals Manufacturing. World Bank Group. July, 1998. Web. October 26, 2012. <http://www.ifc.org/ifcext/enviro.nsf/AttachmentsByTitle/gui_pharmmfg_WB/$FILE/pharma_PPAH.pdf> Quality assurance of pharmaceuticals. World Health Organization. June 16, 2012. Web. October 26, 2012. < http://apps.who.int/medicinedocs/documents/s14136e/s14136e.pdf> Primer: The Pharmaceutical Industry. American Action Forum. June, 2012. Web. October 26, 2012. < http://americanactionforum.org/sites/default/files/OHC_PharmaIndPrimer.pdf> Research and Development in the Pharmaceutical Industry. Congressional Budget Office. October, 2006. Web. October 26, 2012. < http://www.cbo.gov/sites/default/files/cbofiles/ftpdocs/76xx/doc7615/10-02-drugr-d.pdf> Review of Global Competitiveness in the Pharmaceutical Industry. Office of Industries U.S. International Trade Commission. April, 1999. Web. October 26, 2012. < http://www.usitc.gov/publications/332/working_papers/pub3172.pdf> Pharmaceutical Preparation Manufacturing. Business Insights: Essentials. Web. October 26, 2012. < http://bi.galegroup.com.libproxy.rpi.edu/essentials/industry/325412?u=nysl_ca_rpi> The Pharmaceutical Industry. Duke University. 2006. Web. October 26, 2012. < http://people.duke.edu/~md36/soc_final/big_pharma.html> Social and Environmental Factors: The Growing Emergence of Global Standards. Duke University. April 19, 2007. Web. October 26, 2012.
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< http://www.duke.edu/web/soc142/team2/social.html> The Global Pharmaceutical Industry. Duke University. April 19, 2007. Web. October 26, 2012. < http://www.duke.edu/web/soc142/team2/conclusion.html> Top Ten Global Pharma. Global Data. 2011. Web. October 26, 2012. < http://www.worldpharmaceuticals.net/editorials/21/Top%20ten%20global%20pharma.pdf> The Globalization Of The Pharmaceutical Industry. Worcester Polytechnic Institute. April 29, 2009. Web. October 26, 2012. < http://www.wpi.edu/Pubs/E-project/Available/E-project-043009-155538/unrestricted/McAliceMQP.pdf> ii Our Family of Brands. Johnson & Johnson. May 25, 2012. Web. November 2, 2012. < http://www.jnjcanada.com/our-brands.aspx> Our Company. Johnson & Johnson. Web. November 2, 2012. < http://www.jnj.com/connect/about-jnj/management-approach> Careers. What type of mark will you make?. Johnson & Johnson. Web. November 2, 2012. < http://careers.jnj.com/> Johnson & Johnson. Bloomberg Businessweek. Web. November 2, 2012. < http://investing.businessweek.com/research/stocks/snapshot/snapshot.asp?ticker=JNJ> Johnson & Johnson . United States Securities and Exchange Commission. January 1, 2012. Web. November 2, 2012. < http://secfilings.nasdaq.com/edgar_conv_html%2f2012%2f02%2f23%2f0001193125-12075565.html#D281803D10K_HTM_TX281803_3> Johnson & Johnson. Reuters. Web. November 2, 2012. < http://www.reuters.com/finance/stocks/companyProfile?symbol=JNJ.N> Johnson & Johnson Highlights Strategies for Growth Through Differentiated Medicines, Transformational Pipeline and Global Product Launches. Johnson & Johnson. Web. November 2, 2012. < http://www.jnj.com/connect/news/all/johnson-and-johnson-highlights-strategies-for-growth-through-differentiated-medicinestransformational-pipeline-and-global-product-launches> Johnson & Johnson. Economy Watch. July 17, 2010. Web. November 2, 2012. < http://www.economywatch.com/companies/forbes-list/usa/johnson-and-johnson.html> Venture Investments. Pfizer. Web. November 2, 2012. < http://www.pfizer.com/partnering/areas_of_interest/venture_investments.jsp> Vision and Mission Statements. Pfizer. Web. November 2, 2012. < http://www.pfizer.com.pk/InnerPageView.aspx?q=9&m=212> Pfizers Strategy: Expect No Surprises. The Wall Street Journal. March 6, 2008. Web. November 2, 2012. < http://online.wsj.com/article/SB120477033362315575.html> List of Pfizer Locations. HYATT. 2008. Web. November 2, 2012. < http://biopharmguy.com/pfizer.php> Career Types. Every Colleague, Every Country, Every Day. Pfizer. Web. November 2, 2012. < http://pfizercareers.com/en-nz/career-types/our-businesses> Pfizer Inc. Reuters. Web. November 2, 2012. < http://www.reuters.com/finance/stocks/companyProfile?symbol=PFE> Pfizer Pharmaceutical Products. Pfizer. Web. November 2, 2012. < http://www.pfizer.com/products/rx/rx.jsp> Pfizer Inc. Google Finance. November 6, 2012. Web. November 6, 2012. < https://www.google.com/finance?client=ob&q=NYSE:PFE> Johnson & Johnson: An ethical analysis of broken trust. Journal of Academic and Business Ethics. Web. November 2, 2012. < http://www.aabri.com/manuscripts/11921.pdf> Johnson & Johnson. Yahoo Finance. November 6, 2012. Web. November 6, 2012. < http://finance.yahoo.com/q/pr?s=jnj> Johnson & Johnson. Reuters. November 6, 2012. Web. November 6, 2012. < http://in.reuters.com/finance/stocks/companyProfile?symbol=JNJ.N> Research and Markets: Pfizer Inc - SWOT Analysis. October 26, 2011. Web. November 2, 2012. < http://www.reuters.com/article/2011/10/26/idUS252434+26-Oct-2011+BW20111026> Pfizer Inc. Reuters. November 6, 2012. Web. November 6, 2012. < http://www.reuters.com/finance/stocks/companyProfile?symbol=PFE.N> Johnson & Johnson. Mergent Online. Web. November 2, 2012. < http://www.mergentonline.com/companydetail.php?compnumber=4593&pagetype=synopsis> Pfizer Inc. Mergent Online. Web. November 2, 2012. < http://www.mergentonline.com/companydetail.php?compnumber=6610&pagetype=synopsis>
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Industry & Company Profile

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Industry: Pharmaceutical Preparation Manufacturing

Reasoning for Industry Selection:

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Global Sales and Profits (Aggregate Data):

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The following chart shows the revenues by industry:

Industry Company Profile

$28,247,000,000 $24,864,000,000 $23,151,000,000 $19,070,000,000 $21,832,000,000 $19,979,000,000 $31,702,000,000

The following chart shows the revenues by company:

Industry Company Profile

The following chart shows the sales per employee by industry:

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The following chart shows the number of companies by industry:

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The following chart shows the number of employees by industry:

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The following chart shows the number of employees by industry:

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Industry Related Professional and Trade Associations:

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More Pharmaceutical journals:

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My Assessment of the Industry:

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Summary of Industry Analysis

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100% 100% 100% 100% 100% 100%

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Pharmaceutical Cancer and blood diseases: Procrit Velcade