Organizational Structure Changes in Pfizer

Subject: Pharmacology
Pages: 10
Words: 2719
Reading time:
10 min
Study level: PhD

The rapid development of science and technology and the organizational changes are some of the factors the challenge the survival and success of the pharmaceutical industries. The dynamics of this industry have been redefined through the combined forces of social, economic, political, and technological factors. Over the past many years, the worldwide increase in research and development costs has been faster while the worldwide growth of the pharmaceutical industry has been slower, and this has led to differential cost earnings that are unable to sustain indefinitely. There are two major factors that have made it increasingly difficult for firms to sustain historical levels of growth. To begin with, is that the pricing constraint due to government policies and generic competition have increasing squeezed the earnings of the pharmaceutical industries. Secondly, it is the rising cost of research and development as a result of increased legislative requirements and the sophistication in the technology (Berenson par.8). Numerous cost containment measures have been adopted as a result of pressure from the increased earnings in conjunction with the rising costs of research and development. These measures also aim to supplement the ones pertaining to the safety and efficacy of drugs.

The industry has had several consolidated deals since 1989 in which SmithKline merged with Beecham Corp and Bristol Myers with Squibb. As a result, there has been a rising appetite for merges in the pharmaceutical industry. The major consolidations that are hitting the headlines involve the Merck (MRK) – Schering Plough (SGP), the Pfizer (PFE) – Wyeth (WYE), and Roche (RHHBY.PK) – Genentech (DNA) consolidations. However, Pfizer (PFE) is the major example of the biggest consolidation Campers, which spent about $200 billion in the past number of years so as to acquire Warner-Lambert and Pharmacia together with some other small acquisitions. The very recent consolidation efforts were when the Sanofi-Synthelabo announced its bid to the Aventis so as to become the largest drug company all over the world. Pfizer remains the largest pharmaceutical industry all over the world, and it develops, discovers, manufacture, and markets medicine for humans and animals. The two research organizations which were formed by Pfizer were aimed to ensure opportunities are maximized, especially in biopharmaceutical research (Harris par.15). The objective of these two organizations is to exploit the areas with high therapeutic opportunities and also to advance in fields such as neuroscience, vaccines, and other areas. Pfizer is also working hand in hand with the London – GlaxoSmithKline, whose main objective is to outdo Gilead in the pole position in the HIV drug market. Pfizer and London – GlaxoSmithKline are actually working together into pooling their HIV business to the new company, though Pfizer is a smaller player in HIV with a younger portfolio which includes the novel drug Selzentry.

However, after the consolidation, Pfizer had its stock market cap for the consolidated company fall to below $100 billion irrespective of the restructuring, synergy, and re-engineering targets. Pfizer encourages its colleagues to utilize the reliable and consistent search experience and the numerous collaboration tools. It also enables the deletion of unnecessary documents. Pfizer aims at enhancing the migration of content to SharePoint, which enables self migration to the SharePoint and DLTS from LiveLink and eRoom. Pfizer performs the business analysis for the business groups so as to prepare them for migration. The major issues that are facing Pfizer are pilot migration, implementation, and adoption of the SharePoint (Rate and scale of adoption, Projecting level of adoption, e.g., infrastructure, Resource and Support considerations, and SharePoint staffing constraints), incredibly broad customers base, size and evolution of the project and resource technology expertise. Irrespective of the high R and D intensity, the pharmaceutical industries still face a dire situation in that 1 out of 10000 products becomes marketable products. R and D productivity refers to the ratio of the inputs in R&D to the respective output. The innovative attempts in Pfizer include new screening research technologies, drug development pipelines, and worldwide cooperation in clinical testing (Jackson 895). The consolidation between Pfizer and Wyeth is aimed at building a premier biopharmaceutical R&D organization in the whole world. There were three main objectives for the above-mentioned collaboration. First, they aimed at delivering substantial innovation; secondly, they aimed to expand their research on both internal and external science; and lastly, they were striving to take the lead in productivity worldwide. Pfizer has employed new approaches together with their combined strength with Wyeth so as to increase the chances of the innovative, newest, and valuable medical solutions. Pfizer and Wyeth brought together their assets and capabilities within their respective health care and formed a widely recognized biopharmaceutical R&D organization.

Innovation entails the development and implementation of new products with the main target of improving efficiency and effectiveness. The collaboration between Pfizer (PFE) and Wyeth (WYE) had three main objectives. First, they were to deliver great and quality innovation from the medical research. Secondly, they were to explore internal and external science. Lastly, from the inventions in internal and external science, they aimed at being the lead in their products worldwide. The pharmaceutical industry is in the position of developing a new model of the drug so as to make the targeted medicine, although it faces the challenge of the safety and efficacy of the drug used. The innovative attempts in Pfizer include new screening research technologies, a drug development pipeline, and worldwide cooperation in clinical testing. The creation of the two distinct but complementary research organizations has provided clear accountability in drug discovery, less bureaucracy, and sharp focus. The decision-making process is also improved as the main deals with the leaders of the two groups and not the individual members of the groups. Pfizer announced the possibility of a merge with Wyeth early this year. However, this is still subject to the stakeholders of Wyeth. The consolidation between Pfizer and Wyeth is aimed at building a premier biopharmaceutical R&D organization in the whole world. Pfizer is committed to better health and access to health services for all the people and their livestock. Many scientists and researchers have dedicated their time to discover other ways of treating, and if possible, preventing, diseases that have proved a real threat to the general welfare of the people so as to improve the general quality of life to all. Pfizer is dedicated to delivering great innovation that will ensure leading, high, and quality productivity in the areas of diverse cultures. Pfizer has gained knowledge in a broader and deeper sense, especially in the research unit. Their technology and modality capabilities have also increased in the Biotechnology Units.

Pfizer is committing huge amounts of money to the CDRD (Centre for Drug Research and Development) for the commercialization of opportunities. The headquarter for the CDRD (Centre for Drug Research and Development) is located in London, while the headquarters for research in animal health is in Michigan.

The center is expected to conduct research projects into new and high valued medicine, which will form a base for licensing opportunities. The grants that come from research work are used to fund scientific opportunities which are mainly concerned with areas such as cancer research, nanomedicines, cardiovascular and metabolic diseases, inflammation and pain, and other areas such as imaging, central nervous system-related diseases, therapeutic peptides, and biomarkers). Pfizer is also working hand in hand with the London – GlaxoSmithKline, whose main objective is to outdo Gilead in the pole position in the HIV drug market. Pfizer and London – GlaxoSmithKline are actually working together into pooling their HIV business to the new company, though Pfizer is a smaller player in HIV with a younger portfolio which includes the novel drug Selzentry.

The two companies (Pfizer and London – GlaxoSmithKline) believe that Selzentry will actually be the driving force to level their growth, thus allowing them to maintain their stability and competitiveness over the market above Gilead. Their major driving force was based on the development of drugs that were meant to address the needs of the HIV patients better, especially by the principle of closing the gap. The two companies are able to improve in research, increase their sales of reach, and cut off their costs which would not have been possible without collaboration. Through continuous drug discovery, the two companies are able to deliver high-impact medicines for the patients. Apart from excelling in both internal and external science, the consolidations were also meant to ensure that helpful innovation is achieved so as to increase the productivity of the industry in areas of diverse cultural practices.

The investment in the research made by Pfizer boosts up the common vision of the government, academia, and the industry and thus validates the CDRD model by facilitating and gearing drug development projects and commercializing technology either through licensing of the already existing company or by creating a new company. The new leadership comes along with new changes and matrix form. Pfizer is based on cooperating responsibility governance in which they are to realize their mission of working together for a better world. Ethics are high held as the needs of the patients are the top priority in all their operations. Pfizer has formed other collaborations with other companies with the main aim of maximizing the emerging opportunities in biopharmaceutical research. The objective of these two organizations is to exploit the areas with high therapeutic opportunities and also to advance in fields such as neuroscience, vaccines, and other areas. The cooperate responsibility programs in Pfizer’s business are to engage all the stakeholders without any among them being short-changed so as to align their businesses with the needs of the entire society. As a result, they are able to quickly respond to the continually changing needs of society. It is very evident that advances in the area of medical care enable many more people to live longer lives because new medicine is invented every day that helps to keep people healthy and grow strong each day. Through research and development, Pfizer is able to gain competent skills and scientific both in PharmaTherapeutics R&D and BioTherapeutics R&D. in the environmental record; Pfizer falls among the top ten companies in America which have a high level of emission.

The directors of Pfizer are obliged to maintain an informed status on cooperate social responsibility of the company and its participation and visibility as a global corporate citizen and keep vigilance on any issues that threaten the reputation of the company. One through which organizations such as Pfizer can realize an integral cooperate responsibility is by ensuring proper partnership and communication with its stakeholders. This implies that resources and adequately and appropriately allocated such that none among the stakeholders feel or is short-changed. However, given the scope, scale, and geographical diversity of Pfizer, this has become a challenge, thus led to the creation of the Global Corporate Responsibility Colleague Network, whose main responsibility was to connect all Pfizer partners with similar or related roles. Pfizer encourages its colleagues to utilize the reliable and consistent search experience and the numerous collaboration tools. It also enables the deletion of unnecessary documents.

Most of the cooperate responsibility issues in Pfizer are managed within the business units and ensures proper integration of the cooperate responsibility in all the work of the company.

Pfizer has several career opportunities which are aimed at touching millions of lives all over the world. The innovative attempts in Pfizer include new screening research technologies, a drug development pipeline, and worldwide cooperation in clinical testing. The consolidation between Pfizer and Wyeth is aimed at building a premier biopharmaceutical R&D organization in the whole world (Harris par.5). Pfizer has numerous career opportunities, which include research and development, sales and marketing, finance and technology, and manufacturing, among many others. This is geared towards meeting the medical needs and the entire welfare of all people without neglect of the generations which are yet to come. The main objective for several career fields is to create an environment for innovative minds to deliver great innovation, both internal and external science. Pfizer is committed to transparency and thus has created an online resource that keeps the public informed of the research findings.

The two research organizations give the new scientists and researchers an opportunity to explore several medical areas and specifically the field of biopharmaceuticals. After the formation of the research organizations, Pfizer targeted the high potential therapeutic areas so as to make significant advances in vaccines and neuroscience and other areas which have unmet medical needs. The new leadership in Pfizer will consist of nine globally known health care businesses, with each leader required to have clear accountability from the initial development of the product to its access to the patients up to the end of the cycle of the product (Berenson, par.14). The pharmaceutical industry is in the position of developing a new model of the drug so as to make the targeted medicine, although it faces the challenge of the safety and efficacy of the drug used. Pfizer has formed other collaborations with other companies with the main aim of maximizing the emerging opportunities in biopharmaceutical research. The objective of these collaborations is to exploit the areas with high therapeutic opportunities and also to advance in fields such as neuroscience, vaccines, and other areas. Most of the cooperate responsibility issues in Pfizer are managed within the business units and ensures proper integration of the cooperate responsibility in all the work of the company. Pfizer has several career opportunities which are aimed at touching millions of lives all over the world. This is geared towards improving health and the quality of life across a wide range of therapeutic areas (Jackson 49).

The innovative attempts in Pfizer include new screening research technologies, a drug development pipeline, and worldwide cooperation in clinical testing. Research organizations have also helped by providing clear accountability in drug discovery which has greatly reduced bureaucracy and thus sharpening the focus of researchers. The decision-making process is also improved as the main deals with the leaders of the two groups and not the individual members of the groups. Pfizer announced the possibility of a merge with Wyeth early this year. However, this is still subject to the stakeholders of Wyeth. The consolidation between Pfizer and Wyeth is aimed at building a premier biopharmaceutical R&D organization in the whole world (Edwards Par.7). Pfizer is committed to better health and access to health services for all the people and their livestock. Pfizer has formed other collaborations with other companies with the main aim of maximizing the emerging opportunities in biopharmaceutical research. With these two organizations, Pfizer targets the high potential therapeutic areas so as to make significant advances in vaccines and neuroscience and other areas which have unmet medical needs (Schlessinger 17). This combination has ensured effectiveness in addressing health problems due to its nature which involves agility and diversity; thus, the wellness and the unmet medical needs of people all over the world are adequately catered for. The consolidation between Pfizer and Wyeth is aimed at building a premier biopharmaceutical R&D organization in the whole world. Pfizer has employed new approaches together with their combined strength with Wyeth so as to increase the chances of the innovative, newest, and valuable medical solutions. Most of the cooperate responsibility issues in Pfizer are managed within the business units and ensures proper integration of the cooperate responsibility in all the work of the company. Pfizer has several career opportunities which are aimed at touching millions of lives all over the world (Schlessinger 21). Pfizer and Wyeth brought together their assets and capabilities within their respective health care and formed a widely recognized biopharmaceutical R&D organization.

Another new agreement between Pfizer and Aurobindo of India in which Pfizer shall be mandated to sell generic drugs in both emerging and developed, and as a result, Pfizer has planned to sell generic drugs. Other new changes that have taken place in Pfizer involve drug development and discovery. Drug discovery is the process by which potential drugs are designed from the active ingredients or the serendipitous discovery. Drug development can be defined as the process of bringing the newly discovered drugs into the market so as to investigate if it’s suitable for medication. Pfizer has gained the privilege of producing the cholesterol pill Lipitor, which has become the best-selling drug for five years now.

References

Berenson, Alex. “Pfizer Ends Studies on Drug for Heart Disease.New York Times. New York Times, 2006. Web.

Edwards, Jim. The Pfizer-Wyeth Deal Worst-Case Scenario. BNET. 2009. Web.

Harris, Gardiner. “Pfizer Pays $2.3 Billion to Settle Marketing Case.” New York Times. New York Times, 2009. Web.

Jackson, Kenneth. The Encyclopaedia of New York City: The New York Historical Society; Yale University Press, 1995.

Schlessinger, Joseph. “SU11248: Genesis of a New Cancer Drug.” The Scientist 19.7 (2005): 17-24. Print.