Pfizer has saved millions of lives during covid-19 and placed itself as one of the crucial players in the industry. From developing many successful and effective products, the company has a long history in the market with many strengths, weaknesses, opportunities, and threats, which we will get to know in this Pfizer swot analysis.
Pfizer: Company Overview
| Company | Pfizer Inc. |
| Industry | Pharmaceutical, Biotechnology |
| Founded | 1849 |
| Founders | Charles Pfizer, Charles F. Erhart |
| CEO | Albert Bourla |
| Headquarter | The Spiral, New York City, U.S. |
| No. of Employees | 83,000+ |
| Annual Revenue | $100.3 billion (FY 2022) |
| Website | pfizer.com |
The company’s history goes back almost 175 years when Charles Pfizer and his cousin, Charles Erhart, started the company together in 1849, and the company’s name, “Pfizer,” comes from the company’s founder.
Today, Pfizer operates in over 181 countries worldwide and employs over 83,000 people. Besides, the company reported total revenue of $100.33B, with a net income of $31.4B in 2022, and covers a wide range of therapeutic areas, including oncology, cardiology, neurology, and vaccines.
Product & Services of Pfizer
Medicines | Vaccines | Consumer Health Care Products
Pfizer Competitors
Johnson & Johnson | AbbVie Inc. | Merck & Co. | Amgen | Bristol-Myers Squibb | Eli Lilly & Company | Roche | GlaxoSmithKline(GSK) | Bayer | Novartis AG | Takeda Pharmaceutical | Cipla | Bottom Line
Did You Know?
The Pfizer logo, which features a blue oval with a white cross in the center, was designed in 1956 and has remained unchanged.
Strengths – Pfizer SWOT Analysis
High Brand Recognition: Due to Pfizer’s long history of developing innovative drugs and vaccines, it has established high brand recognition in the pharmaceutical industry. The company’s brand value is estimated to be $13.4B in 2022, with a brand rating of AAA, maintaining a leading position in the industry.
Innovative R&D: There is no way but to invest heavily in discovering and developing new medicines and vaccines for a pharma company to stay ahead of the competition. And Pfizer has invested $11.4B in R&D in 2022 alone, not to mention its heavy investment for the COVID-19 vaccine in partnership with BioNTech, as well as the recent FDA approval of a first-of-its-kind oral medication for the treatment of COVID-19.
Efficient SCM: With operations in more than 181 countries, Pfizer has an efficient supply chain management system, and all the investment came back during the pandemic because of it. In the USA, the company has a state-of-the-art distribution center in Memphis, Tennessee, which serves as a hub for shipping pharmaceuticals to customers.
Steady Cashflow: A strong cash flow position has allowed Pfizer to maintain financial stability and grow its business over the long term through research and development and to pursue strategic acquisitions and partnerships. As a result, the company’s revenue grew by a massive margin in 2022, which was $100B, a record high.
Weaknesses – Pfizer SWOT Analysis
Rising Operating Cost: After Covid-19, the cost in every sector of the pharma industry is on the rise, and as a leading company, Pfizer is facing it too. Pfizer’s selling, informational, and administrative expenses were $13.7B in 2022, up from $12.703B in 2021, reducing profitability and limiting the company’s ability to invest in r&d.
Uneven Revenue Market: Most of Pfizer’s revenue is generated from the US market, almost 45%. As a result, the revenue market relies heavily on and depends on the market. It exposes Pfizer to the risk of revenue decline if any of these critical products or markets face increased competition or regulatory challenges.
Limited Successful Products: Every company should have a diversified product range and cash cows that can keep the company’s finances healthy. In the case of Pfizer, there are limited numbers of successful products, and they sum up most of the revenue, such as Ibrance, Eliquis, and Prevnar 13, which accounted for 10.5%, 9.3%, and 9.9% of the company’s total revenue.
Opportunities – Pfizer SWOT Analysis
Market Expansion: Pfizer’s revenue from international markets accounted for almost 56%, which shows plenty of opportunities for the company to expand. As there is an economic boom, the company can invest in these markets, such as China, India, and Brazil, as these countries show significant growth potential for the pharmaceutical industry.
Diversified Categories: Diversification of products could help Pfizer capture new market opportunities and reduce its reliance on a few cash cow products. As a part of the process, it expanded its portfolio to include products such as oncology, cardiovascular disease and invested in gene therapies, biosimilars, and rare diseases.
Strategic Partnerships & Acquisitions: With the market becoming more competitive, partnerships and acquisitions can provide the company with opportunities to leverage its capabilities. Pfizer acquired Array Biopharma for $11.4B to strengthen its oncology portfolio in 2020. The company partnered with BioNTech to develop new vaccines and treatments and recently acquired Arena Pharmaceuticals for $6.7B.
Effective Products: Developing more effective products could help Pfizer maintain a competitive edge and drive growth in the future. That’s why they are working on it, and Pfizer’s Ibrance and Xeljanz have shown promising results in clinical trials and could become significant revenue drivers for the company.
Threats – Pfizer SWOT Analysis
Competitive Market: The pharmaceutical industry is very competitive because of established companies and new entrants vying for market share. After its patent for Lipitor expired, once the world’s best-selling drug, Pfizer faced billions of losses and faced competition from generic versions. Besides, the Covid-19 vaccine faces competition from other vaccines developed by companies such as Moderna and Johnson & Johnson.
Several Lawsuits: Pfizer has faced several lawsuits in recent years, including a case related to the marketing of its painkiller, Bextra, where they had to pay $2.3B. Recently, another Covid-19 vaccine company, Moderna, sued both Pfizer and BioNTech over infringement in the vaccine patent.
Cyber Security Issue: Like many large corporations, Pfizer continuously faces the threat of cyber attacks. Pfizer was among several pharmaceutical companies targeted by hackers attempting to steal intellectual property related to COVID-19 vaccines. Hackers successfully leaked sensitive information regarding Pfizer’s COVID-19 vaccine data in one attempt.
Regulatory Complexity: In the pharma industry, Regulatory challenges can impact the company’s, including Pfizer’s, ability to protect its intellectual property. Due to different regulatory changes, it faces various issues in many countries, such as Australia and recently in the UK.
[Bonus Infographic] SWOT Analysis of Pfizer
Recommendations for Pfizer
In a competitive market like pharma, there are always changes in regulations, effectiveness, new products, etc., and companies need to come up with new things to stay in the market, which goes for Pfizer too. Here are some recommendations for them.
- The company should focus on diversifying its product portfolio to reduce dependence on a few successful key products.
- Expanding its presence in emerging markets to capture new growth opportunities and diversify its revenue streams.
- Another way to maintain a competitive edge and drive future growth is to continue investing in innovative products.
- Strategic acquisitions and partnerships can help the company expand to new markets and categories.
Frequently Asked Questions (FAQs)
Is Pfizer a US Company?
Yes, Pfizer is a US company.
What is Pfizer Known For?
Pfizer is known for its medicines, vaccines, and consumer health care products.
Final Words on Pfizer SWOT Analysis
Pfizer is a leading pharmaceutical company with an intense research and development team, successful products, and a steady cash flow. However, it faces challenges from regulatory complexity, rising operating costs, lawsuits, and dependence on a few ke
y products. By diversifying its portfolio and capitalizing on opportunities, Pfizer can maintain its competitive edge and drive growth.
References
- Wikipedia contributors. (n.d.). Pfizer. Wikipedia.
- Krouse, S., Hopkins, J. S., & Mathews, A. W. (2020, December 13). The Mass Distribution of Covid-19 Vaccines Is Under Way. ‘Everything Has to Come Together.’ The Wall Street Journal.
- Pfizer gets U.S. approval for $225,000 a year heart drug. (2019, May 6). Reuters.
- Pfizer Signals Waning Interest In Biosimilars. (2021, July 28). Scrip.
- Pfizer bolsters its cancer portfolio with a $10.64 billion deal for Array. (2019, June 17). CNBC.
- Pfizer finalizes $6.7 billion acquisition of Arena Pharmaceuticals, gaining key cardiovascular treatments. (2022, March 14). Cardiovascular Business.
- Harris, G. (2009, September 2). Pfizer Pays $2.3 Billion to Settle Marketing Case. The New York Times.
- Reporter, G. S. (2022, August 26). Moderna sues Pfizer and BioNTech over coronavirus vaccine. The Guardian.
- Sabbagh, D. (2020, November 22). Hackers “try to steal Covid vaccine secrets in intellectual property war.” The Guardian.
- Porter, S. (2021, January 14). Pfizer COVID-19 vaccine data leaked by hackers. Healthcare IT News.
