Pfizer

1
Pfizer

• Maliza Giannetto
• PFE
• November 30, 2004

2
Profile

• Pfizer is a global pharmaceutical and consumer
  products company that discovers, develops,
  manufactures and markets medicines for humans and
  animals.
• In the fiscal year ended December 2003, the
  company generated sales of 45.2 billion, a 40
  increase on the previous year.
• The company has four subsidiaries involved in
  pharmaceuticals, consumer health care and animal
  health care. Three subsidiaries conduct their
  business under the Pfizer company name, the
  fourth as Agouron Pharmaceuticals.
• The company is headquartered in New York City.

3
History

• 1849 Charles Pfizer Company opens as a
  fine-chemicals business
• 1862 The first domestic production of tartaric
  acid and cream of tartar, launched by Pfizer
• 1900 Pfizer files for incorporation in New
  Jersey
• 1951 Pfizer operations are established
  worldwide
• 2000 Pfizer and Warner-Lambert merge to form
  the new Pfizer
• 2001 Henry A. McKinnell, Ph.D. succeeds
  William C. Steere, Jr. as Chairman and Chief
  Executive Officer

4
Products

• PrescriptionAricept
• Bextra CelebrexDiflucan
• LipitorRelpaxViagra ViraceptZoloftZyrtec
• Their products are available in more than 150
  countries.

Over-the-CounterBenadryl CortizoneDesitine.p.t
ListerineLubridermNeosporinRolaidsSudafedVisi
ne
5
Recent News

• November 18, 2004
• Pfizer Statement Regarding Additional Prescribing
  Information for Depo-Provera
• November 17, 2004
• Pfizer Invites Public to Listen to Webcast of
  November 30 Meeting with Analysts
• November 17, 2004
• Pfizer Announces Study Results Showing That
  Zyrtec Provides Greater Symptom Relief Than
  Allegra for Allergy Sufferers Exposed to Ragweed
  Pollen in an Environmental Exposure Unit
• November 15, 2004
• Pfizer Plans to Incorporate RFID Technology into
  Viagra Packaging in U.S.
• November 12, 2004
• Pfizer Completes Acquisition of Drug Delivery
  Technology Venture from PA Consulting Firm
• November 10, 2004
• Pfizer Statement on Bextra (valdecoxib)

6
Competitors

• GlaxoSmithKline plc (ADR)
• Alcon, Inc. (ACL)
• Merck Co., Inc. (MRK)
• Johnson Johnson (JNJ)
• Bristol-Myers Squibb Co. (BMY)
• Bayer AG (ADR) (BAY)
• Aventis (ADR) (AVE)

7
S.W.O.T. Analysis

• Strengths
• Strong sales and marketing capabilities
• Large RD spend
• Weaknesses
• Large size restricts growth
• Over-dependence on a few drugs and therapy areas
• Opportunities
• International expansion driven by Pharmacia
  merger
• Further divestments of non-core businesses
• Threats
• Further delays to approval of pregabalin
• Slowdown of core franchises due to new
  competitive entries

8
Statistics

• Purchase Price 31.11
• Current Price 27.33
• Initial Cost 622.20
• Current Market Value 546.60
• Money Lost 75.60
• Shares Owned 20

9
Valuation

• Intrinsic value 52.54
• 11 growth estimate
• Yahoo growth rate 11
• Value Line growth rate13.5
• 52wk Range 26.65 - 38.89
• SP Fair Value 46.80
• SP 12 Mo Target Price 43.00
• Yahoo 12 Mo Target Price 38.70
• Current Price 27.33

10
Recommendation