Pfizer's Business Model
What Need Does It Serve?
Pfizer primarily serves the pharmaceuticals and consumer products markets. The company discovers, develops, and sells pharmaceutical products globally. Its drugs are used for the treatment of various types of diseases, including cancer, heart-related, and infectious, among others.
Pfizer is one of the largest pharmaceuticals companies with a global presence. The firm from 2019 started reporting its revenues under three segments: 1. Biopharma, 2. Upjohn, and 3. Consumer Healthcare.
Pfizer is currently in the process of merging its consumer healthcare products business with that of GlaxoSmithKline in a joint venture. Pfizer will own a 32% stake in the new entity.
Pfizer also announced its plan to merge its established pharmaceuticals business, also known as Upjohn, with that of Mylan, in a reverse Morris trust transaction. Pfizer will hold a 57% stake in the new company, with Mylan holding the rest.
Post completion of these two transactions, Biopharma, the company's innovative medicines business, will be the only segment remaining.
Who Pays To Pfizer?
Chain stores (Walgreens, CVS, Rite-Aid, Walmart), clinics, long-term care facilities, health maintenance organizations, federal facilities, non-federal institutions, mail order pharmacies, and retail stores.
What Buyers Care About?PriceSubsidies available in the form of reimbursementsAvailability Any possible side effects
What Are The Alternatives To Pfizer?
Within pharmaceuticals, other alternatives are Bristol-Myers Squibb, Johnson & Johnson, Roche, Merck, Abbvie, GlaxoSmithKline, and Teva, among others.
Outside of pharmaceuticals, other alternatives are acupuncture, aromatherapy, ayurvedic medicine, chiropractic care, homeopathy, and nutritional counseling, among others.
These Factors Are Impacting Pfizer's Revenues
Legacy Pharma, Consumer Products & Others segment revenues grew from $18.3 billion in 2016 to $20.0 billion in 2018. However, they are expected to decline to under $18 billion by next year, reflecting the separation of the consumer healthcare products business. However, the segment revenues could rebound thereafter, as Pfizer by then would have launched its biosimilars for Herceptin and Humira, among others. Anti-infectious drugs revenue could hover around the $7.5 billion mark, primarily led by stable revenues from Prevnar, which accounts for most of the segment sales (See ~ How Does Pfizer Fare In Pneumonia Vaccines Market? ~ for more details). Oncology drugs will likely continue to see strong growth, led by Ibrance's expansion, as well as from relatively newer drugs, including Bavencio. Neuroscience drugs revenue declined from $7.0 billion in 2016 to $6.0 billion in 2018, and it could decline to $3.6 billion by 2021. This can be attributed to loss of Lyrica's patent and the competition it will face from generic drugs (See ~ Where Does Pfizer's Lyrica Stand In Anti-Epileptic Drugs Market? ~ for more details). Cardiovascular drugs revenue hovered around the $5.8 billion mark in the recent years, but it could decline to $5.2 billion over the next three years, as Chantix will lose its market exclusivity in 2020, and there are no other drugs in the portfolio which could fuel strong growth in the near term. Musculoskeletal drugs revenue have hovered around the $5.5 billion mark in recent years, and it could see slight decline to $5.0 billion mark by 2021, as Enbrel is facing biosimilar competition in the European markets, and its sales could decline over the next few years. Alimentary and Immunology drugs revenue could hover around the $1.2 billion mark, with no major product to boost the sales in the near term. However, the company does have a few drugs in its phase 3 pipeline, but it will take some time for them to enter the market.
Disagree With Our Forecasts? Create Your Own
1. How to save your forecasts for Pfizer:
Click on the blue "Try Trefis" button in the header to create an account, then navigate back to this dashboard. Now, any changes you make to these inputs will be auto-saved as a scenario (see left panel of dashboard).
2. How to monitor your scenario vs. actual results
Once you've saved your forecast, you can "rename" your scenario by clicking on the gear icon next to the scenario (on the left panel). For more info, see this quick, 30-sec video (look at the 9 sec mark)
With your forecast saved and named, you can see how well you forecast the company's performance at the end of each period and compare your forecasts to hundreds of other Trefis users who came up with their own forecasts.
Lastly, you can share with friends and colleagues to show them how you fared and compare your forecasts to theirs.