Pfizer and Novartis
Over the recent years, research shows that the pharmaceuticals industry is undergoing such a rapid phase. Changes are continually being made, and more and more pharmaceutical companies are in competition with one another to stay on top of the market. Some of the major patent expirations may have troubled some of the pharmaceutical companies. The pharmaceutical companies are currently facing unprecedented changes. Mergers and acquisitions in the pharmaceutical industry have reduced the number of major companies over the past 15 years (nature.com). From a business perspective, mergers and acquisitions are often considered to be attractive as they remove duplication, reduce costs and produce synergies (www.nature.com). In major mergers today, not only are R&D cuts made, but entire research sites are eliminated. Nowhere is this more evident than with Pfizer. Before 1999, Pfizer had never made a major acquisition. Over the next decade, it acquired three large companies — Warner-Lambert (in 2000), Pharmacia (in 2003) and Wyeth (in 2009) — and multiple smaller companies, such as Vicuron, Rinat and Esperion. Over this time frame, to meet its business objectives (a euphemism for raising its stock price) Pfizer closed numerous research sites in the United States, including those at Kalamazoo, Michigan (formerly a site for Upjohn), Ann Arbor, Michigan (formerly a site for Warner-Lambert) and Skokie, Illinois (formerly a site for Searle). It has also recently announced the closure of the Sandwich site in the UK. These sites housed thousands of scientists and many major drugs — such as atorvastatin (Lipitor), amlodipine (Norvasc) and sildenafil (Viagra) — were discovered there. The same pattern has been observed after most of the mergers and acquisitions by other major pharmaceutical companies during the past decade (www.nature.com).
This paper will discuss two pharmaceutical companies Pfizer Inc. and Novartis. They are both in...