Pfizer Inc.: a SWOT analysis of pharmaceutical strengths and threats

Pfizer SWOT

Pfizer -- a SWOT Analysis

Strengths

Pfizer is one of the world's leading research pharmaceutical companies and also one of the world's most profitable companies. It has a well-respected name known all over the world and commands some of the top research, advertising, financial, and marketing talent. It produces two of the most well-known name-brand drugs, Viagra and Lipitor in America today. Even the American Heart Association recommends the use of drugs such as Lipitor to reduce cholesterol when diet and exercise fail to reduce this common health problem. High cholesterol as a common health problem is only likely to increase with the rapidly aging population -- and the rise in obesity levels (Berenson, 2007).

Weaknesses

Unfortunately, "while the company remains highly profitable, its financial health is increasingly tied to Lipitor" which is dangerous for the company in the future as Lipitor's patent will expire in several years, which means it will face competition from cheaper, generic drugs (Berenson, 2007). Pfizer's reputation has also been tainted by its association with Celebrex, a pain medication that has been tied to increased risk of heart problems, in comparison to over-the-counter painkillers. The prominence of the Pfizer advertising campaign for this drug, followed by its rapid fall from grace undoubtedly damaged the company's trusted name.

Pfizer also manufactures Zoloft, an antidepressant that was widely criticized for its over-prescription to teenager, and possibly causing increased suicidal thoughts in this population. The company website now states that the drug is not advised for people under the age of 17. Antidepressants and 'lifestyle' drugs like Viagra have come under increased media scrutiny and used as examples of the over-prescription of medication in the American healthcare system in general. Healthcare in America is growing more and more expensive, and insurance companies are being pressured to cut costs, including scaling back how much they pay for drugs.

Now, Exubera, "the first and so far only commercially available inhaled-insulin diabetes treatment," is on the verge of turning into an "expensive failure" as Pfizer "has been dogged by questions about its safety, cost and convenience" (Berenson, 2007).

Threats

Both Merck and Schering-Plough, two of Pfizer's greatest rivals, plan to combine forces and develop a medicine to rival Lipitor. "The planned drug, meant to reduce levels of the harmful type of cholesterol in two ways, could hit the market when Lipitor's patent expires in a few years" ("Merck and Schering-Plough Plan Another Cholesterol Drug," 2007, AP Wire) Merck also plans to develop an AIDS-fighting drug called Raltegravir, similar to Pfizer's new AIDS drug.(Altman & Pollock, 2007)