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Pfizer Inc. Business Analysis and Strategic Implications

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Pfizer Inc. Business Analysis and Strategic Implications
PFIZER INC.
BUSINESS ANALYSIS
AND
STRATEGIC IMPLICATIONS

OVERVIEW OF THE COMPANY
Pfizer Inc. is a global pharmaceutical company that creates and manufactures products for both humans and animals. Pfizer is headquartered in New York City and employs about 115,000 people.
PRINCIPAL PRODUCTS AND SERVICES Pfizer currently has ten different divisions and promotes thirty-one different major products. The divisions and largest major products within each group are: Cardiovascular and Metabolic Diseases (Lipitor, Caduet, Norvasc), Central Nervous System Disorders (Aricept, Geodon, Lyrica, Zoloft), Diabetes (Exubera), Arthritis and Pain (Celebrex), Infectious and Respiratory Diseases (Diflucan, Zithromax), Urology (Detrol, Viagra), Oncology (Sutent), Opthalmology (Macugen), Endocrine Disorders (Genotropin), All Other (Chantix, Zyrtec). In addition, Pfizer has six products that are in the late stage of the R&D pipeline: UK-427,857 for HIV treatment, Parecoxib for acute pain, Edotecarin for colorectal cancer, Torcetrapib/Lipitor for heart disease, Asenapine for bipolar disorder, and Zithromax-chloroquine for malaria.
PRESENT FINANCIAL CONDITION Pfizer's overall present financial condition is not secure, but is trending positively for 2006 compared to the previous year. The positive trends are related to the major products the company has in its pipeline. "Pfizer is poised to introduce six new medicines in 2006, including three (Chantix (smoking cessation), Stutent (cancer), and Exubera (diabetes)) that have billion dollar-plus potential." An analysis of Pfizer's finances will include: revenues and growth, stock price, net income, budget for R&D, cash flow, and EPS.
First, Pfizer has seen a major decline in revenue growth over the past few years. Pfizer recorded revenues of $51,298 million during 2005, which was a decrease of 2.4% over 2004. The second quarter for 2006 showed more promising results than 2005. The revenues for the second quarter of 2006

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