Company Data Research Paper Example | Topics and Well Written Essays - 1000 words

Company Data - inquiry Paper Example79). Take Pfizer, one of the top ten largest drug suppliers in the world that belongs to too large drug company. It is considered to be the most profitable as it ranked number one in the worldwide gross sales on drugs designated as prescription (Clinton & Mozeson, 2010, p. 70). The company is also the highest spender in terms of research and study (R&D), and in merger and acquisition activities. However, some surprise facts have been discovered during the Pharm Execs industry size up and Stealth pharmaceutical company audit. The main focus of this paper is to review pharmaceutical company data between the audit of stealth pharma and large(p) pharma such as Pfizer. After the gathering of data, surprising facts will be gathered and developed analyses. Company Data Pharmaceutical companies decided to venture in other parts of the world because of higher opportunity and promised benefits that would surely outweigh the difficulty of globalizatio n. Japan, Western Europe, and spousal relationship America be among the countries in the world that are high in pharmaceutical sales (Campbell, 2008, p. 16). The topical trend of pharmaceutical companies nowadays is merger and acquisition which is not only practiced by big pharma but also to stealth pharma in order for them to expand their sales, merchandise capitalization, and market share. Pfizer is one of the big pharmas that acquired several companies for the past ten years. For the year 2001, it acquired its direct competitor Warner-Lambert for $90 billion, and by 2003 the company decided to merge with Pharmacia for $60 billion in order to reduce its R&D cost (Lawson, Hatch, & Desroches, 2008, p. 157). Recently, the company has acquired Wyeth for $68 billion this is to back up the companys dropping of tax revenue caused by patent expiration and portfolio diversification (Pfizer, 2009). More companies believed that through pharmerging, their market share would increase as c ompetition has been reduced for companies that merged and acquired are direct competitors in the market. On the other hand, it has been manifested that big pharmas expenses on R&D (approximately $304 billion) are much higher compared to the disbursement of stealth pharma which is only $157 million (Trombetta, 2007). From this point of view, it is expected that big pharma would gain higher revenues in comparability to the anticipation of stealth pharma. Usually, large pharmaceutical companies in America are required to spend more on R&D as part of government regulations in exchange with the granting of patent and trademarks that wee-wee the company an exclusive right to manufacture and sell the drugs. For instance, Pfizer spent almost $7.6 billion on R&D for drugs and slightly over $2 billion on plants and equipments and in exchange, the companys drugs are under the U.S. patent protection (Siegel, 2008, p. 109). Three Surprising Facts A professor from Harvard Business School, Gary Pisano said that, The show of big mergers and acquisitions in big pharma has not just been good. Theres just been an ample amount of shareholder wealth destroyed (as cited in Karnitschnig & Rockoff, 2009). It had been a surprised fact that merging among stealth pharma had been successful considering that biotechnology companies have increased in numbers and they have managed to be at the top twenty firms. It had been interesting to discover that