... Merck’s Business Environment There are many factors a business, such as Merck, must have in order to be successful, for example strong financial statements, leading technology, and globalization. With the help of income statements, balance sheets, and cash flow statements, a financial analysis can be applied in a wide variety of situations to give business managers the information they need to make critical decisions (Financial Analysis, 2010). They also provide information in regards to the financial health of a company. Pharmaceutical companies are using technology to conduct clinical trials, which has proven to be beneficial to research, development, and the introduction of new products. Globalization is also important for Merck when it comes to product distribution. Outsourcing was been adopted by Merck in order to produce equal quality vaccines and medications at a cheaper cost. Review of Finances Analyzing a company’s income statement, balance sheet, and cash flow is a prime way in determining their success. A comparison can be made between the competition in the industry and a leader can be established. An analysis can also show which company is spending more on research and development and in turn, producing better products. After review of the income statements, Merck’s worldwide sales were $12 billion for the third quarter this year, an increase of 8 percent compared with the third quarter of 2010 (Newsroom, 2010). This...
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...Pfizer Executive Summary Company Overview World’s largest global research-based biomedical and pharmaceutical company that discovers, develops, manufactures and markets safe and effective medicines. Mission To be the world’s most valued company to patients, customers, colleagues, investors, business partners and the communities where we work and live. Pharmaceutical Products Aricept Genotropin Spiriva Aromasin Geodon/Zeldox Sutent Caduet Lipitor Vfend Camptosar Lyrica Viagra Celebrex Norvasc Xalatan/Xalacom Chantix Rebif Zmax Detrol/Detrol LA Relpax Zoloft Eraxis Revatio Zyvox Animal Health Products BoviShield Draxxin RespiSure/Stellamune Cerenia Excede Revolution/Stronghold Clavamox/Synulox Improvac Rimadyl Convenia Lutalyse Silentrol Dectomax Naxcel/Excenel Financials Stock Symbol: PFE Price Range: $11-$18 Sales (2008): $48,296,000,000 Net Income: $8,104,000,000 Net Assets: $109,892,000,000 Key Executives CEO: Jeff Kindler CFO: Frank D'Amelio CMO (Chief Medical Officer): Freda C. Lewis-Hall Key Competitors GlaxoSmithKline Johnson & Johnson Novartis AG Roche Holding-AG Sanofi-Aventis Mergers and Acquisitions (2008-2009) Wyeth: announcement of merger 1/26/09, biopharmaceutical Auxilium Pharmaceuticals: 12/08, develops Xiaflex-first in class biologic for treatment of Dupuytren’s contracture and Peyronie’s Disease Schering-Plough...
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...Executive Summary University of Memphis, Steward A Perry, MS Equity Research Report Company: Pfizer, Inc. Ticker: PFE Price:$29.00 on 10/04/13 Recommendations: Price Target One Year: Trailing P/E Ratios = | Forward P/E Ratio = | PEG Ratio = .046 | Expected return for a Security = | Expected Risk for a security = | Beta β = | Sharpe Ratio = | Treynor’s Reward to Volatility Ratio = | Financial Summary * Expected Returns * Trailing P/E Ration * Forwarding P/E Ratio * Dividends Per Share * PEG Ratio * Market Capitalization * Growth in Revenues for the Last 12 Months Risk Measurements * Beta β * Standard Deviation * Sharpe Ratio * Treynor’s Reward to Volatility Ratio Highlights Qualitative Analysis Company Profile Industry Overview SWOT Analysis * Strengths * Weaknesses * Opportunities * Threats Porter’s 5 Competitive Forces I. The threat of substitute products II. The threat of new competitors III. The intensity of competitive rivalry IV. The bargaining power of customers V. The bargaining power of suppliers Management Financial Statement Analysis Financial Ratio Analysis The financial ratios in this report has been computed by using the income statements of Pfizer (PFE) during the fiscal year 2012. The income statements were obtained from the annual report submitted to the Security and Exchange Commission (SEC)...
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...requires a strategic manager who can effectively and successfully drive strategic objectives, then report its performance to the leadership team (Thompson & Strickland, 2013). This paper will examine how Pfizer utilized growth, innovation and execution strategies as well as acquisitions and mergers to become the number one global pharmaceutical company. The organization’s SWOT analysis (Thompson & Strickland, 2013) showed its strength in being innovative, opportunities to create more products, weakness in its dependence on successful products, and threats in generic competition and regulatory laws. The company’s corporate culture, strategic innovative through the top-down leadership approach, a unified tagline “OWN IT!” (Pfizer, 2013), and a strategy map demonstrates that all employees are ultimately responsible for their individual roles to drive success throughout the organization. Additionally, this paper will present a student created strategy map identifying areas the organization reports on annually. Theory Definitions Thompson and Strickland (2013) define that growth strategies arise when an organization utilizes its strength, weakness, opportunities, and threat (SWOT) to create a competitive advantage with customers, products and location. Pfizer’s SWOT analysis shows strong...
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...Patrick James Corporate Finance April 2, 2014 Financial Ratio Analysis: Pfizer *All numbers in 1,000’s Changes in income statement and balance sheet (Pfizer) When we take a look at Pfizer’s income statement over the last decade, we see much fluctuation in total revenues. In 2009, Pfizer bottomed out at $50,000, but peaked 2 years later at $67,425. A similar pattern is seen when we look at the firm’s gross profit. It appears as though Pfizer maximizes their revenue and income when operating income is low, and in years where more money is spent on fixed assets and research and development. In essence, the key to Pfizer’s income statement walls in their promotion mix, and if we were to get a glimpse of that we would be able to explain all of these numbers more accurately. Analysis of ratios When we first look at the liquidity ratio for Pfizer, we see that the firm has increased the percentage of both the quick ratio and current ratio over the 10-year period by roughly 66%, indicating an increase in assets and a decrease in liabilities. The leverage ratios of the firm tell us that Pfizer has accumulated more debt over the last decade however that debt was highest during year 2007, and has decreased by 25% in the last 5 years. The profitability ratio provides us with information that we can use to see that the cost of Pfizer’s goods has increased steadily over the last decade, while the amount of revenue has stayed relatively even. Finally, the activity ratio...
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...Pfizer’s current ratio in 2011 (up to September 31, 2011) was 2.25. This means that the company has $2.25 in its current assets to pay $1 of it current liabilities. In general, Pfizer is increasing this ratio over the last 4 year from 1.59 in 2008 to 2.25 in 2011. It is also in line with the industry performance. The main reason for this gradual increase is the fact that Pfizer is accumulating current assets of acquired companies. For example, in 2009-2010 Pfizer acquired Wyeth together with Wyeth’s taxes and other Wyeth's current assets totaling to $1.2 billion (Pfizer, 2010). Cash and cash equivalents also increased in 2011 due to the fact that Pfizer needs cash on hands to settle ongoing acquisition of King (Pfizer, 2010). At the same, the time growth in accounts receivables from $14.4 billion to $15.7 was caused by higher sales in 2011 for the same nine month period ($50.6 billion in 2011 vs. $49.7 billion in 2010) Quick ratio In 2011 for nine month period Pfizer had 1.9 quick ratio. This means that for each dollar Pfizer owes, the company has $1.9 in its cash, cash equivalents, marketable securities, and accounts receivables to pay back. Inventory amount is excluded from calculation. In case the company is about to be liquidated or default, inventory cannot be quickly sold to get cash for it. Pfizer is doing very well with respect to the quick ratio. The company is improving it over the period of last four years. The main reason for it is the fact that the company is accumulating...
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...sources when necessary. Fortune 500 Company name |Pfizer | The company’s internal and external stakeholder’s |Internal stakeholder’s |External stakeholder’s | |Employees |Shareholders | |Departments (Marketing, R&D, Clinical, Medical education, PR) |Patients | |Managers |Doctors | |CEO/Owner |Industry trade associations | |Labor groups |Investors | | |Suppliers/Partners | Company’s mission and vision Company’s mission |According to "Company Statements & Slogans," (2012) Pfizer’s mission statement is as follows: “We will become the world’s most valued | |company...
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...| Pfizer Stock Report | | Fall 2013 Research Project | | Pfizer Stock Report | | Fall 2013 Research Project | Saint Joseph’s University Contents II. Introduction 2 III. Macroeconomic Review 3 IV. Stock Market Analysis 6 V. Industry Analysis 8 VI. Company Strategic Analysis 10 VII. Company Financial Analysis 12 VIII. Application of Valuation Methodologies 13 IX. Conclusion and Recommendations 15 X. Exhibits 16 A. Exhibit A 17 B. Exhibit A 17 XI. References 18 Introduction Pfizer, headquartered in New York, NY, is committed to applying science and global resources to improve the health and well-being of individuals of all stages of life. Ian Read, CEO, leads the company through innovation and solid long term performances on the NYSE. Pfizer is also on the London, Euronext and Swiss exchanges. They make every effort to provide everybody with access to affordable, top of the line, safe remedies and health related services to those in need. Some of Pfizer’s most famous products include, Lipitor, Lyrica, Diflucan, Zithromax, Viagra, and Celebrex. Pfizer is committed to providing sustainable solutions to the biggest health issues in the world by continuously reviewing and updating their products and services to reduce their environmental footprints. The company maintains the highest ethical standards in all that they do such as sales and marketing to research and development. Pfizer, along with all industry...
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...INTRODUCTION: Objectives of the Report: 1. To know the current financial performance of the two companies. 2. To know the future prospect of the companies. 3. To compare the financial position of the two companies. Scope of the report: 1. Studying the pros and cons of the financial statements of a company, it is possible to predict the probable future growth of a company Methodology: Data were collected from Annual Reports of Square Pharmaceuticals Ltd. and Renata Pharmaceuticals Ltd. from the year 2003 to 2008. Three types of financial tools were used to analyze the data which are: 1. Horizontal Analysis 2. Vertical Analysis and 3. Ratio Analysis. LITERATURE REVIEW: Financial Analysis: The art of transforming data from financial statements into information that is useful for informed decision making is financial analysis. Financial analysis involves the use of various financial statements. These statements do several things. First the balance sheet summarizes the assets, liabilities and owners’ equity of a business at a moment in time usually the end of a year or a quarter. Next the income statement summarizes the revenue and expenses of the firm over a particular period of time, again usually a year or a quarter. Need for Comparative Analysis: Every item reported in a financial statement has significance. We know a company had a certain amount of cash on the balance sheet but we do not know whether the amount represents an increase over prior year...
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...1. (TCO A) Which one of the following is an advantage of corporations relative to partnerships and sole proprietorships? (Points : 5) Reduced legal liability for investors Harder to transfer ownership Lower taxes Most common form of organization 2. (TCO A) When a corporation distributes a dividend, _____. (Points : 5) the most common form of distribution is a cash dividend the Dividends account will be increased with a credit the Retained Earnings account will be directly increased with a debit the Dividends account will be decreased with a debit 3. (TCOs A, B) Below is a partial list of account balances for Cerner Company: Cash $5,000 Prepaid insurance 500 Accounts receivable 2,500 Accounts payable 2,000 Notes payable 3,000 Common stock 1,000 Dividends 500 Revenues 15,000 Expenses 12,500 What did Cerner Company show as total credits? (Points : 5) $21,500 $21,000 $20,500 $22,000 4. (TCOs B, E) Using accrual accounting, expenses are recorded and reported only _____. (Points : 5) when they are incurred, whether or not cash is paid when they are incurred and paid at the same time if they are paid before they are incurred if they are paid after they are incurred 5. (TCO D) Three companies report the same cost of goods available for sale, but each employs a different inventory costing method. If the price of goods has increased during the period, then the company using _____. (Points : 5) LIFO will have the highest ending inventory FIFO will...
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...Trang Tran, Yinjia Hua, Xiaoyi Zhou, Wei Luo - Group 3 Professor Nina Dorata Business Combinations – ACC 638 (T, 6:55pm-9:20pm) 11 May 2011 Pfizer & Wyeth When Pfizer announced an agreement to buy Wyeth in January 2009, it was expected to not only create a pharmaceutical behemoth which would be the biggest merger since AT&T and BellSouth in March 2006 (according to the research firm Capital IQ but also would be an extraordinary event in such a financial crisis for the period 2008-2009 because this was not a desperate merger of two financial institutions orchestrated by the government. Moreover, since after 12/15/2008, a new accounting standard that requires acquisition method for business combinations has been taken into effect. Therefore, the acquisition of Pfizer and Wyeth has been one of the most interesting deals recently. Although credit was tight that time because of the financial turmoil, Pfizer borrowed about $22.5 billion from five banks to cover the Wyeth purchase; the remainder was financed through a combination of cash and stock. The deal closed in October 15, 2009. At that time, the whole Wyeth outstanding common stock was about 1,339.6 million; the closing price of Pfizer stock was $17.66; Wyeth stock option canceled was about $405 million and Wyeth restricted stock canceled was about $320 million. Accordingly, the total purchase is $68,236 (Appendix A). Other related accounting and consulting costs was recorded as expense at the acquisition date. Because...
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...Executive Summary: Pfizer-Wyeth Merger Deal Overview: On January 25, 2009, Pfizer and Wyeth entered into the merger agreement, pursuant to which, subject to the terms and conditions set forth in the merger agreement, Wyeth will become a wholly-owned subsidiary of Pfizer. Upon completion of the merger, each share of Wyeth common stock issued and outstanding will be converted into the right to receive, subject to adjustment under limited circumstances, a combination of $33.00 in cash, without interest, and 0.985 of a share of Pfizer common stock in a taxable transaction. Pfizer will not issue more than 19.9% of its outstanding common stock at the acquisition date in connection with the merger. The exchange ratio of 0.985 of a share of Pfizer common stock will be adjusted if the exchange ratio would result in Pfizer issuing in excess of 19.9% of its outstanding common stock as a result of the merger Deal Terms Breakdown: Transaction Value Transaction Consideration Purchase price per WYE share $50.19 Existing Cash Used $22,213 32.7% Cash per WYE share $33.00 New Debt $22,500 33.1% PFE stock value per WYE share $17.19 Total Cash $44,713 65.8% PFE shares per WYE share 0.985 Stock Consideration $23,289 34.2% Premium to 1/23/09 WYE price 29.3% Total Consideration $67,303 100.0% Total WYE shares (MM,diluted) 1,341 Total Equity...
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...products in the pipeline Concentration in this industry is low, as the large pharmaceutical manufacturers only account for 15% of the market share. The most important issue faced by large pharmaceutical companies globally is the expiration of their patents, which results in the production of generic drugs by other manufacturers at lower price. The last 4 years companies have faced a series of simultaneous patent expiries, leading to severe sales losses of up to $250 billion from 2012 until today. Lastly, global trade and regulations have an impact on pricing controls, which has led companies to alter their portfolios from primary-care blockbusters to specialties (IBIS). Pfizer Inc. (600 words) Pfizer, Inc. is the largest player in the global pharmaceutical industry, with an estimated market share of 4.2%. Pfizer is a research-based pharmaceutical company, which operates in 3 segments, Global Innovative Pharmaceutical (GIP), Global Established...
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...FINANCIAL ANALYSIS OF WYETH PAKISTAN LIMITED By: OZAIR ARSHAD INDEX 1. Introduction 2. History and Profile 3. Key Activities of Wyeth 4. Wyeth Products Profile 5. Data Collection & Market Assessment 6. Main Competitors 7. Share Price in Last 12 Months 8. Shareholding Pattern 9. The Director’s Report 10.The Auditor’s Report 11.Financial Ratios & Analysis 12. Horizontal Analysis a) Income Statement b)Balance Sheet 13. Vertical Analysis a)Balance Sheet b) Income Statement 14. Financial Analysis & Conclusions i) Gross Profit Margin ii) Net Profit Margin iii) Return on Assets iv) DPS & EPS 15. Annexure 16. References 1. Introduction Wyeth, formerly one of the companies owned by American Home Products Corporation (AHP), is a pharmaceutical company The company was based in Madison, New Jersey, USA. They were known for manufacturing the over-the-counter (OTC) drugs Robitussin and the analgesic Advil (ibuprofen), as well as the prescription drugs Premarin and Effexor, which both boast over US$3 billion in sales annually. Wyeth has multiple subsidiaries in different countries of the world its Pakistan branch is known as Wyeth Pakistan Limited. This is a public limited company incorporated in 1949 in Pakistan. The company is listed on the Karachi and Lahore Stock exchange. The company is engaged in manufacturing and marketing of research based ethical specialties and other pharmaceutical products. 2. History & Profile Late 18th Century In 1860, pharmacists John (1834–1907)...
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...II E. Integration Plan II Part 1 - The Rational of the Acquisition 1 1. Pfizer's Strategy 1 1.1. Pfizer Growth Strategy 2 2. Pfizer's Road Map 4 2.1. Pfizer's Acquisitions Rational 4 3. The strategy behind the acquisition 5 3.1. Acquisition Motives 5 3.2. M&A vs. Alliance 5 4. Target Identification 7 4.1. Protalix - an R&D Acquisition 9 5. Synergy Analysis 10 6. Standalone, Synergy and Premium Valuations 12 6.1. Market Value 12 6.2. Trading and Transaction Multiples Valuations 12 6.3. Discounted Cash Flow (DCF) Valuation 14 6.3.1. DCF Methodology and Assumptions 14 6.3.2. Summary of the Standalone and the Synergy DCF Valuation 15 6.4. Premium 16 6.5. Walk-away Price, Net Value Creation and Financial Feasibility 17 Part 2 - The Integration Plan 18 Bibliography 21 APPENDIXES 22 Appendix 1 - Pfizer's Executive Leadership Team 23 Appendix 2 - Pfizer's Organizational Structure Scheme 24 Appendix 3 - Five Forces Analysis for the Pharmaceutical Industry 25 Appendix 4 - Pfizer's PEST Analysis 27 Appendix 5 - Level of Competition Between the Acquirers & the Uniqueness of the Acquired Company 31 Appendix 6 - Acquisition Motives 33 Appendix 7 - Protalix Management and Board of Directors 35 Appendix 8 - Technology Adoption Lifecycle 36 Appendix 9 - Pfizer's SWOT Analysis 36 Appendix 10 - Protalix's Financials 38 Appendix 11 - About the Valuation Methods 40 Appendix 12 - List of Companies and Their Multiples...
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