Research Report On Pfizer LTD.: Sector: Pharmaceuticals Segment: Mid Cap

Research Report on Pfizer Ltd.
Sector: Pharmaceuticals
Segment: Mid Cap
Research Analyst: Ashtad Choksy

General Overview:
Pfizer Ltd. or Pfizer Inc. is an American multinational pharmaceutical

corporation. It is one of the world's largest pharmaceutical companies
and is headquartered in New York City. The Pharmaceutical Company
has also been at the forefront of the development and manufacture
of new and Drugs as well as Vaccines for a wide range of medical
disciplines such as immunology, oncology, cardiology, endocrinology,
and neurology. Its products include drugs like Lipitor (Atorvastatin)
used to reduce LDL Blood Cholesterol, Lyrica (Pregabalin) used for
easing Neuropathic Pain and Fibromyalgia, Diflucan (Fluconazole)
which is an Oral Anti-Fungal Medication, Zithromax (Azithromycin)
which is an Antibiotic, Viagra (Sildenafil) for Erectile Dysfunction and
Celebrex (also Celebra, Celecoxib) which is an Anti-Inflammatory
Drug.
It is listed on all of the major Stock Exchanges around the world

including BSE Sensex and the New York Stock Exchange. Its shares are
a component of the S&P BSE 200 Index and the Dow Jones Industrial
Average. In December, 2018 Pfizer announced a joint merger of their
consumer healthcare division with UK pharma giant GlaxoSmithKline;
with the British company maintaining a controlling share (listed at
68%).
In 2016, Pfizer Inc. was expected to merge with Allergan to create the
Ireland-based ‘Pfizer PLC’ in a deal that would have been worth $160
billion. But the merger was called off in April of that year, because of
new rules from the United States Treasury against tax inversions, a
method of avoiding taxes by merging with a foreign company. The
company was forced to make the second-largest pharmaceutical
settlement ever, with the United States Department of Justice.
But overall, Pfizer appears to be poised for long-term Growth and
Profitability.
Management of the Company:
Founder: Charles F. Erhart & Charles Pfizer
Board of Directors:
1. Albert Bourla, DVM, Ph.D. (Chairman & C.E.O.)
2. Ronald E. Blaylock
3. W. Don. Cornwell
4. Susan Desmond-Hellmann, M.D., M.P.H.
5. Joseph Echevarria
6. Scott Gottlieb, M.D.
7. Helen Hobbs, M.D.
8. Susan Hockfield, Ph.D.
9. James Kilts
10. Dan Littman, M.D., Ph.D.
11. Shantanu Narayen

12. Suzanne Nora Johnson
13. James Quincey
14. James Smith
Shareholding Pattern of Pfizer Ltd.:
Shareholding Pattern of Pfizer Ltd.:
Public Holding
60,69,077
Non-Institutional 13%
Holding
29,57,828
7%
Institutional Holding
74,77,785
16% Promoter & Promoter
Group
2,92,43,042
64%
Promoter & Promoter Group Institutional Holding Non-Institutional Holding Public Holding
Pfizer was founded in New York City by German-American Charles
Pfizer and his cousin Charles F. Erhart from Ludwigsburg, Germany. It
started its journey as a manufacturer of fine chemicals.
However, currently the company is run entirely by a highly

professional and technically qualified Management and Staff.
The Executive and Independent Directors are generally appointed for

a tenure of 5 years, which is renewed based on their performance
evaluation and upon the recommendation of the Nomination and
Remuneration Committee.
SWOT Analysis:
Strength Weakness
1)Size. 1) Research & Development.
2) Market Leadership. 2) Negative Brand Image.
3) Strong Knowledge Base. 3) Profitability Ratio and Net
4) Global Presence. Contribution % of Pfizer are
5) Established Reputation. below the Industry Average.
Opportunities Threats
1) Global Pharma race for development
of Vaccine for COVID-19. 1) Negative Publicity.
2) More Mergers, Acquisitions and 2) Competition.
Collaborations. 3) Government Regulations.
3) Portfolio Diversification.
Strengths:
1. Size and — Pfizer is the largest pharmaceutical company in the
US pharmaceutical industry.
2. Market Leadership— Pfizer is considered one of the Global
Market Leaders operating in the Pharma Industry. This is
because it manufactures an extremely wide variety of drugs for
multiple diseases and illnesses. It makes revenue worth billions
each year.
3. Strong Knowledge Base— The company has an extremely strong
knowledge base with regards to its products and/ or markets.
4. Global Presence— Pfizer has a very strong global presence
operates in 180 countries. By this, it.
5. Established Reputation— Pfizer was ranked by the Reputation
Institute to be the second-most familiar drug company among
14 others. The business generating capacity of drug companies
is also related to their reputation, established over a period of
time.
Weakness:
1. Research & Development— Reduction in Budget allocated for
the purpose of Research & Development is a major weakness for
Pfizer Ltd.
2. Negative Brand Image due to involvement in largest healthcare
fraud of marketing its drug illegally.
3. Profitability Ratio and Net Contribution % of Pfizer are below the
Industry Average.
Opportunities:
1. Pfizer is a member of the global race for development of a fully
functional COVID-19 Vaccine. The company has already carried
out Anti-Viral Compounds Screening and Pre-Clinical Trials.
Pfizer is carrying out extensive research on possible treatments
for COVID-19 - related Pneumonia.
2. Mergers, Acquisitions and Collaborations— Pfizer has
announced a collaboration with BioNTech SE to develop a
COVID-19 Vaccine.
3. Portfolio Diversification— Portfolio Diversification by Pfizer Ltd.
may increase the stabilization in the profit or may grow it
further.
Threats:
1. Negative Publicity due to involvement in largest healthcare fraud
of illegally marketing its Arthritis drug Bextra for uses
unapproved by the U.S. Food and Drug Administration (FDA).
2. Competition— Pfizer faces tough competition from major Global
Pharma Brands.
3. Complex Government Regulations in different countries around
the world is a major cause of concern for a multi-national
corporation like Pfizer Ltd.
Competitive Analysis:
Key Ratios:
PE Ratio: 44.09 Return on Capital Employed: 21.93% Gross Profit Margin: 23.72%
Current Ratio: 3.28 Return on Equity: 16.34% Net Profit Margin: 20.61%
The top 4 competitors of Pfizer Ltd. in the Indian Market are: —

1. Sun Pharma
2. Dr Reddys Labs
3. Divis Labs
4. Cipla
Latest Market Capitalisation Data (as on date 5th May, 2020):
Company Name Last % 52 52 Market Sales Net

Price Change Week Week Cap Qtr. Profit
High Low Qtr.
Pfizer 4970.25 -0.54 5172.95 2797.50 22737.77 2,081.50 429.05
Sun Pharma 456.35 -1.87 504.85 315.20 109493.65 10,303.21 816.60
Dr Reddys Labs 3838.35 -2.53 4095.00 2352.00 63782.66 10,625.50 1,277.30
Divis Labs 2285.15 -0.07 2473.65 1466.95 60663.55 4,879.66 1,332.65
Cipla 597.05 -2.44 632.05 356.75 48136.51 12,374.01 1,888.41
The other International Competitors of Pfizer, operating in the

Indian Market are: —
1. Abbott India Ltd.
2. GSK Pharmaceuticals Ltd.
3. Novartis India Ltd.
Comparative Share Price from 5th April, 2020 to 5th May, 2020:
Stock Prices Line Chart
20000
18000
Share Price Axis
16000
14000
12000
10000
8000
6000
4000
2000
0
Date Axis
Pfizer Ltd. Abbott India Ltd. GSK Pharmaceuticals Ltd. Novartis India Ltd.
Recent Developments which give Pfizer Ltd. Competitive Advantage
or a Competitive Edge over its Corporate Rivals:
1. Pfizer is part of the global race to develop a fully functional
COVID-19 Vaccine.
2. Pfizer is carrying out extensive research on possible treatments
for COVID-19 - related Pneumonia.
3. The company has already carried out Anti-Viral Compounds
Screening and Pre-Clinical Trials.
4. Pfizer has also announced a collaboration with BioNTech SE to
develop a COVID-19 Vaccine.
Conclusion and Closing Remarks:
In the end, looking at the overall health of Pfizer Ltd. or Pfizer Inc., we
can say that the company has both Positives and Negatives. The
Positives help the company grow and become more profitable. On
the other hand, the Negatives drag the company in the opposite
direction.
Positives:
1. Beneficiary of the surge in Pharma Sector due to the COVID-19
crisis.
2. Major player in the race for the development of a COVID-19
Vaccine.
3. Adept at Mergers, Acquisitions and Collaborations which are
strategically well-planned and which are highly beneficial in the
long-run.
Negatives:
1. Inadequate allocation of funds for the purpose of Research &
Development is a major shortcoming.
2. Negative Brand Image, Publicity and Reputation due to the
company’s involvement in a healthcare fraud involving illegal
marketing of one of its unapproved drugs.
Thank You

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Research Report on Pfizer Ltd.

Research Analyst: Ashtad Choksy

Pfizer Ltd. or Pfizer Inc. is an American multinational pharmaceutical

It is listed on all of the major Stock Exchanges around the world

Management of the Company:

Founder: Charles F. Erhart & Charles Pfizer

1. Albert Bourla, DVM, Ph.D. (Chairman & C.E.O.)

6. Scott Gottlieb, M.D.

7. Helen Hobbs, M.D.

8. Susan Hockfield, Ph.D.

10. Dan Littman, M.D., Ph.D.

11. Shantanu Narayen

13. James Quincey

14. James Smith

Shareholding Pattern of Pfizer Ltd.:

Shareholding Pattern of Pfizer Ltd.:

However, currently the company is run entirely by a highly

The Executive and Independent Directors are generally appointed for

The top 4 competitors of Pfizer Ltd. in the Indian Market are: —

Company Name Last % 52 52 Market Sales Net

Pfizer 4970.25 -0.54 5172.95 2797.50 22737.77 2,081.50 429.05

Sun Pharma 456.35 -1.87 504.85 315.20 109493.65 10,303.21 816.60

Dr Reddys Labs 3838.35 -2.53 4095.00 2352.00 63782.66 10,625.50 1,277.30

Divis Labs 2285.15 -0.07 2473.65 1466.95 60663.55 4,879.66 1,332.65

Cipla 597.05 -2.44 632.05 356.75 48136.51 12,374.01 1,888.41

The other International Competitors of Pfizer, operating in the

Conclusion and Closing Remarks:

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