If Pfizer's acquisition of Wyeth is more than a merely stop-gap attempt to bridge the genericization of Lipitor -- and plenty of observers believe it is -- then it is in addition a tacit admission that its future will be patterned more on the value-based strategies of McDonalds and GE than the research-based Big Pharma model. The deal is the first step in creating a commercial organization which can cheaply add and sell a wide range of new products, with a range of margins. The moderate revenue growth provided by new products and new markets, thanks to dramatically slower growth in operating costs, will deliver what could be double-digit bottom line growth -- and do so with the kind of predictability of a large industrial business. Critical to the strategy: bolt-on acquisitions and licensing deals, allowing Pfizer to layer new products into existing infrastructure, keeping the growth of cost-of-goods and SG&A expenses as flat as possible. Gone will be the big growth spikes from major new products. But absent too will be the sharp drops that follow patent expirations. Pfizer, in short, is readying itself for industrial health care.
By Roger Longman
To accomplish this, Pfizer will attempt to exploit its infrastructure to globally commercialize, through bolt-on acquisitions and licensing deals, large...
Read the full article – start your free trial today!
Join thousands of industry professionals who rely on In Vivo for daily insights
A look at Novo Nordisk, Eli Lilly and other companies' late-stage clinical studies of GLP-1 drugs in indications ranging from neurodegeneration to oncology, and alcoholic liver disease to autoimmune conditions.
Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.
Advanced AI is revolutionizing sales enablement by addressing training gaps and performance challenges. Used correctly, it can help to bridge the sales-marketing divide, accelerate ramp-up times and provide managers with data-driven insights.
Annual survey of patients and professionals shows how attitudes to health system transformation are evolving and what stakeholders are demanding as acceptance of AI tools accelerates.
BioWales in London 2025 showcased the efforts healthtech innovators are making to meet investors on their own turf, illustrating changing attitudes and evolving needs.
Metsera CEO Whit Bernard applies an unconventional leadership philosophy to develop next-generation obesity therapeutics, including monthly GLP-1 injections and oral peptides.