Pfizer In The Animal Health Industry Essay

, Research Paper

Pfizer entered the animal health industry in the early 1950 s. Today, Pfizer Animal Health products are sold to veterinarians, livestock producers, and horse and pet owners in more than 140 countries around the world and used in more than 30 species. Pfizer Animal Health is committed to providing high-quality, research-based health products for livestock and companion animals. The company continues to invest more in research and development than any other animal health company. This offers opportunities for substantial growth and internal synergy. Pfizer has more new animal health products in its research pipeline today than at any other time in its history. Their products include anti-inflammatory, anti-infectious, and anti-parasitic pharmaceutical medicines, vaccines and feed additives. These products are used by cattle, swine, and poultry industries, as well as, veterinarians serving both the livestock and pet markets. The animal health segment of Pfizer accounts for approximately 10% of their total revenues. (Note Appendix: ) Pfizer Animal Health revenues were $1,314 million in 1998. Some of Pfizer s top selling animal health products are Rimadyl, Anipryl, Dectomax, and RespiSure.( Appendix: Pg 26 AR)

The animal health segment is served in manufacturing by the 35 production plants around the world. Their products are sold through veterinarians, drug wholesalers, retail outlets, distributors, and directly to users. Animal Health gross revenues declined 1% to 1.3 billion in 1998. (Note Appendix:) This decrease is due to continuing weaknesses in the U.S. livestock market, the poor Asian economy, and the unfavorable effects of foreign exchange. This decline was offset by growth of Pfizer products; the cattle endectocide Dectomax, the canine anti-arthritic Rimadyl, and the swine vaccine RepiSure.

Pfizer is among the leading suppliers of companion animal vaccines, a $500 million market worldwide. They have over 43 animal health product candidates in clinical development. Pfizer s Animal Health markets several feed supplements for large animals. Feed supplement product sales slowed in 1998, due in part to regulatory issues, market conditions, and competitive pressures.

Pfizer s goal for both its business units is to meet the needs and exceed the expectations of all their customers. They achieve this with ongoing innovation through state-of-the-art research and development, an extensive line of high quality products, world-class manufacturing capabilities, unsurpassed customer service and educational and industry support programs. Pfizer is dedicated to remaining a research based animal health organization. They have progressively increased their investment in animal health research setting a new industry standard for commitment to product development. Continuing to make new product development a priority will ensure that new drug discovery programs will be in place to fill the pipeline with products for a broad range of disease categories. Scientists are deployed in Pfizer s research centers worldwide, working side by side with researchers in human health, sharing the latest equipment, insights and breakthroughs. Customers are consulted throughout the development process to ensure that their needs are met.

As mentioned earlier, the Pfizer sales force leads the industry not just in size, but in providing personalized support and superior service. The Pfizer quality pledge includes not only products, but also all of their services and interactions with the customer. All of Pfizer s representatives are trained in immunology, pharmacology, microbiology, and the science behind each product. They are also trained and equipped to understand and add value to each customers individual business. This personalized and dependable service sets Pfizer apart from the competition.

Pfizer technical service veterinarians and nutritionists are committed to help provide solutions to animal health problems and assure effective use of Pfizer products. Each veterinarian on staff has had in-depth practical experience in small animal, equine, or food animal medicine; many have advanced training and or specialty certification. The technical service staff at Pfizer conducts educational seminars on current topics in animal health and veterinary medicine. As an added benefit, they provide emergency service should you need it.

A key factor in the success of Pfizer is their supplier s ability to deliver solutions. This means state-of-the-art manufacturing capabilities that are efficient, quality-driven and customer sensitive. Pfizer s expanded manufacturing capacity ensures their products are available where and when they are needed. A network of communication systems and regional distribution centers, with high-tech order processing systems, ensure that product orders are processed accurately and on time. Pfizer believes that it is their responsibility to invest in the future of their customers. They provide resources for research and education at every veterinary college in North America to further the health and productivity of livestock and companion animals.

In addition to their marketing efforts, Pfizer supports many programs in the Animal Health industry. Cattlemen s College is an educational program developed and sponsored in conjunction with the NCBA and state cattle associations. This program consists of courses in beef production, disease and health management, environmental issues, financial planning, and the creation of strategic alliances.

Handle with Care is the industry s first and most comprehensive beef quality assurance program. This program was produced in cooperation with the National Cattlemen s Beef Association and the Academy of Veterinary Consultants. Select Supplier program supports the production of quality beef by encouraging communication and quality-based relationships between producers and their customers. Star Supplier is an educational program designed to improve the quality of inputs and outputs for the dairy industry. These are only a few of the programs that Pfizer supports.

Pfizer Animal Health also participates in a variety of local, state, and national meetings and activities that support both the beef and dairy industries. Throughout the year, Pfizer sales representatives work in cooperation with veterinarians, animal health product suppliers and producer organizations to present educational programs for beef and dairy producers.

Pfizer s Animal Health business has a new world headquarters in leased offices located one block away from the Company s corporate headquarters in New York City. Animal Health owns its North American headquarters in Exton, Pennsylvania and leases some additional space in a nearby office building. It also owns office space in Belgium for support of its international operations. Most of Animal Health s research and manufacturing facilities are shared with their pharmaceutical business. Major manufacturing facilities producing animal health products are located in Nebraska, Missouri, and Belgium. The Animal Heath group operates its own distribution facilities.

Pfizer has recently developed an improved shipping system for vaccines. It is called PfizerPak insulated shipper. This unique system contains gel ice packs and paper packing material. These new coolers have many advantages over insulated packaging that are used by the competition. The PfizerPak is thicker and denser and has been clinically tested in testing chambers under hot and freezing conditions. By using this packaging the amount and temperature of refrigerant can be precisely determined. The science involved is based on duration of transit as well as outside temperatures, to ensure that vaccines remain within a specified temperature range during shipment. Pfizer s packaging also prevents products from being exposed to moisture. PfizerPak coolers are recyclable and can be returned to Pfizer Distribution Centers or used by veterinarians in a variety of ways. The company uses small, medium, large, and extra large coolers to accommodate shipments ranging in size.

Government regulations are a large threat to our company. In December 1998, the Council of European Agricultural Ministers voted to ban the use of Pfizer s antibiotic feed additive, STAFAC, throughout the European Union. It is regulations like these that can stunt our sales growth in both of our business segments. FDA requirements and reviews have increased the amount of time and money necessary to develop new products and bring them to market. Our international businesses are subject to a number of risks that are inherent in carrying on business in other countries. Some government-imposed restraints may include laws on pricing or reimbursements for use of products.

Another threat to Pfizer s Animal Health segment is competition.

Principal methods of competition in this marketplace vary depending on the particular product, but are mainly: product innovation, service, price, quality, and effective promotion to veterinary professionals and consumers. Pfizer is the leader in the animal health industry today. Some of their main competitors are Merck, Alpharma Inc, and Wingo Inc.