Preview

Merck vs Pfizer

Powerful Essays
Open Document
Open Document
7395 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Merck vs Pfizer
Evaluating
Merck & Co., Inc vs. Pfizer, Inc.

Amy Lan Lan Liu
Connor Buestad
Raghul Subramanian
Natalia Cosa

ACCT 831

March 16, 2011

Table of Contents:

Part 1: History, Background and Core Business …...................................................................2 a. Merck & Co., Inc. ….............................................................................................................. 2 b. Pfizer, Inc. …........................................................................................................................... 2 c. Core Business …...................................................................................................................... 3 Value Chain …................................................................................................................... 4 Porter’s Five Forces …....................................................................................................... 6 SWOT Analysis …................................................................................................ …….... 8

Part 2: Financial Analysis …..................................................................................................... 15 a. Profitability Analysis …........................................................................................................ 15 b. Liquidity Analysis …............................................................................................................. 18 c. Solvency Analysis …..............................................................................................................19

Part 3: Valuation Analysis ….................................................................................................. ..20 a. Residual Income …................................................................................................................20 b.


References: Allasraki, M. (2011, February 27). The 10 biggest-selling drugs that are about to lose their patent. Retrieved from http: http://www.dailyfinance.com/2011/02/27/top-selling-drugs-are-about-to-lose-patent-protection-ready/ Datamonitor Hoover 's Company Records. Merck and Co.,Inc. (2012). Retrieved from http://www.hoovers.com/company/Merck__Co_Inc/rrytji-1-1njhw5.html Hoover 's Company Records CNN.com. (2011). Fortune 500 2011: Industry: Pharmaceuticals. Retrieved from http://money.cnn.com/magazines/fortune/fortune500/2011/industries/21/index.html Merck.com NYSE (2012).  Retrieved from: http://www.advfn.com/p.php?pid=financials&symbol=NYSE%3AMRK Pfizer.com US Department of Treasury. (2012). Retrieved from: http://www.treasury.gov/resource-center/data-chart-center/interest-rates/Pages/TextView.aspx?data=yield Yahoo Finance
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Powerful Essays

    Financial analysis: Pfizer vs. Johnson&Johnson
    • 1780 Words
    • 8 Pages

    Financial analysis: Pfizer vs. Johnson&Johnson

    Today, Johnson and Johnson is listed on the New York Stock Exchange. It is generating 65 Billion Dollars of revenue with a 10 Billion Dollars net income, and is becoming one of the most important Holding Companies. Its opening share Price is 77.92 dollars with a volume of 4.364.877 and its market capital is 213,59 Billion dollars.…

    • 1780 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Questions for Merck Case
    • 423 Words
    • 2 Pages

    Questions for Merck Case

    Create a decision tree for Merck. The 2 leftmost branches would identify the alternatives related to licensing Davarink (specifically license versus not to license). Next, if Merck decides to pursue license, they go into phase I which results in a success, or failure. Phase I success is followed by phase II where Merck has the opportunity to develop the drug to treat depression alone, weight loss alone, or both, or contemplate phase II failure. Finally phase II success for different options leads to phase III, and there are success or failure related outcomes for each of the alternatives in phase II (i.e. developing the drug to treat depression, weight loss, or both).…

    • 423 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Walgreens Company Analysis and Integration Strategy
    • 10870 Words
    • 44 Pages

    Walgreens Company Analysis and Integration Strategy

    Fein, A. (2010, August 4). New Data on Pharmacy Industry Market Share. Retrieved September 30, 2011, from Drug Channels: http://www.drugchannels.net/2010/08/new-data-on-pharmacy-industry-market.html…

    • 10870 Words
    • 44 Pages
    Powerful Essays
    Read More
  • Good Essays

    Merck’s Risky Bet on Research
    • 519 Words
    • 3 Pages

    Merck’s Risky Bet on Research

    While Kenneth Frazier worked liability suits for Merck, he caught the company’s attention and they hired him in 1992. By 1999 Frazier was appointed Merck’s general counsel. Merck saw that Frazier had several good personality traits and values that would benefit their organization.…

    • 519 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Case Memo: Merck Global Health and Access to Medicines
    • 603 Words
    • 3 Pages

    Case Memo: Merck Global Health and Access to Medicines

    The topic, human rights responsibilities of the drug companies, which is always controversial, however, is almost sharply defined in a report by the UN Special Rapporteur on the right to health, submitted to the United Nations General Assembly in August 2008. 1…

    • 603 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Drug Companies Case
    • 602 Words
    • 3 Pages

    Drug Companies Case

    Currently in the United States, 44 million adults live in poverty. Poverty is defined for a single person as an income level below $10,830 or less than $22,050 for a family. The vast majority of the homeless are jobless individuals and families that cannot afford shelter. An astounding 700,000 to 800,000 Americans are homeless on a given night and 2.5 million to 3.5 million are homeless at some point during the year. 28 million employed Americans are considered to be at poverty level. About two-thirds of the poor are whites but blacks and Hispanics represent a greater ratio in regards to the likelihood of being poor.…

    • 602 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Merck's Case Ethical
    • 1756 Words
    • 8 Pages

    Merck's Case Ethical

    Merck was one of the largest pharmaceutical companies in the world. • Merck was about to lose patent protection of two of its best selling drugs, which had been a significant part of their $2 billion annual sales. • Merck began putting millions of dollars into research (up to $1 billion) and within three years, Merck was able to discover four powerful medications. • Profits weren’t all that Merck cared about; Merck’s founder believed that “medicine is for people. It is not for the profits.” • He also believed that following the “medicine is for people” philosophy would lead to profits and had yet to fail.• River Blindness is caused by parasitic worms, which can be found in the Middle East, Africa and Latin America.• These places are developing, so many citizens are poor. • The worm larvae can enter the body through fly bites, with some people getting thousands a day. • Worms can cause grotesque growths, but the major problem lies in reproduction when millions of progeny are released in the system. •The resulting itching is so intense the infected have committed suicide. • Eventually, the larvae may cause blindness. • Two existing drugs could kill the parasite, but have serious, potentially fatal, side effects. • The only safe combative measure available was insecticides that eventually lose potency with immunity of the flies. • The average drug takes $200 million in research and 12 years time to produce. • In order for companies to stay in business (and ease human pain), they must make complex decisions about which drugs offer the most promise. • Investing time/money into drugs for rare diseases is risky (because the pool of recipients is small). • There are enough people with river blindness that there wouldn’t be a risk of too few people. • Instead, the problem would be that the infected could not afford the medicine. • Merck tested a drug, ivermectin, which effectively killed parasites/worms in…

    • 1756 Words
    • 8 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Merck, Vioxx and the Fda Recall, Case No. 6
    • 318 Words
    • 2 Pages

    Merck, Vioxx and the Fda Recall, Case No. 6

    1. I believe that Merck was completely responsible for everything that came along with releasing Vioxx to the public. The signs that the drug might not be as safe as they had hoped for should have been enough for them to halt on the release. It was unethical thing they did was not do all the research to find out how serious the effects of the drug really were.…

    • 318 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Better Essays

    State Capitalism Model
    • 1295 Words
    • 6 Pages

    State Capitalism Model

    "The Ethics of Drug Patents." COMM 104 - Course Package Readings. N.p., n.d. Web. 31 Jan. 2014.…

    • 1295 Words
    • 6 Pages
    Better Essays
    Read More
  • Powerful Essays

    Rising Perscription Drug Prices
    • 3401 Words
    • 14 Pages

    Rising Perscription Drug Prices

    Drug companies ' excessive profits drive prescription drug costs up. (2004, March 19). Retrieved March 23, 2004, from InfoTrac OneFile database.…

    • 3401 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Merck Ethics
    • 282 Words
    • 2 Pages

    Merck Ethics

    In developing a drug to combat river blindness, pharmaceutical company Merck discovered an opportunity to treat millions of affected peoples around the world that probably would never see commercial use. The drug in development, ivermectin, was unaffordable to the primary victims of river blindness, Third World peoples. Thus, Dr. Vagelos, the head of research at the time, treaded upon a ethical quagmire; he could either choose to scrap the drug and its further research or he could spend millions more on a drug destined for financial failure. In accordance with Merck’s company direction at the time, Dr. Vagelos understood that the purpose of the company was to serve people and that profits result from the fulfillment of this primary purpose. As such, Dr. Vagelos not only pushed for further research on the drug, but decided when he became CEO to offer the drug, now Mectizan, for free to all affected individuals.…

    • 282 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Persuasive Speech Outline
    • 1329 Words
    • 6 Pages

    Persuasive Speech Outline

    Office of Generic Drugs, Center for Drug Evaluation and Research. (2009) Generic Drugs, Are They as Good as Brand Names? MedicineNet. Retrieved from http://www.medicinenet.com/script/main/art.asp?articlekey=46204…

    • 1329 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Good Essays

    Merck Case
    • 587 Words
    • 4 Pages

    Merck Case

    1. How has Merck been able to achieve substantial returns to capital given the large costs and lengthy time to develop drugs?…

    • 587 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Merck Sharpe & Dohme Case Summary
    • 1000 Words
    • 4 Pages

    Merck Sharpe & Dohme Case Summary

    In order to attract prospective future leaders, MSD was running a highly selective internship program for final year college students. The selection process was in its final stage, when Manager of Training and Development had to pick 15 best performing students out of a group of 30.…

    • 1000 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    Pfizer Case Study
    • 1500 Words
    • 6 Pages

    Pfizer Case Study

    Pfizer is the world’s largest research-based pharmaceuticals firm and also a well known Pharmaceutical company. So their most of the work depends on research, developing Strategies and innovate. They were trying to find a new way of system which makes their Work more effective and efficient. Pfizer find out that their worker spends more time on Business research and data analysis to the creation of documents and other routine Support like Goggling and making power points and also spending so much time on Menial tasks rather than knowledge work. The average Pfizer employee was spending 20 Percent to 40 percent of his or her time on supporting work (creating documents, typing Notes, doing research, manipulating data, scheduling meetings) and only 60 percent to 80 Percent on knowledge work (strategy, innovation, networking, collaborating, critical Thinking. That’s why Pfizer starting to find a solution of this problem to increase their Efficiency and effectiveness. Pfizer build a new kind of structure by using Microsoft Outlook where their connecting to a outsourcing company where Pfizer can connect with Different worker by email where they can connect with any worker around world and get Cost specification for their requested work. By using this process the time spent on Analysis of data has been reduce, also have many financial benefits and employees also get rid of their boring work.…

    • 1500 Words
    • 6 Pages
    Powerful Essays
    Read More

Related Topics