Pfizer Limited: history, ownership, mission, how it works & makes money

A Brief History of Pfizer Limited

Pfizer Limited, a subsidiary of Pfizer Inc., has a rich history that dates back to its founding in 1849. Originally established as a fine chemical business in Brooklyn, New York, by Charles Pfizer and his cousin Charles Erhart, the company sought to create quality chemicals and pharmaceuticals, beginning with the production of an antiparasitic called santonin.

By the late 19th century, Pfizer had become known for penicillin, which was a significant turning point in the company's trajectory. During World War II, Pfizer played a crucial role in the mass production of this antibiotic, which saved countless lives. In the years following the war, Pfizer expanded substantially, diversifying into various pharmaceutical areas.

In 1950, Pfizer introduced its first commercial antibiotic, Terramycin, which laid the foundation for its future in pharmaceuticals. The company continued to grow through strategic acquisitions and research, including the acquisition of the Warner-Lambert Company in 2000, which brought the popular Lipitor, a cholesterol-lowering medication, under its umbrella.

As of 2020, Pfizer gained worldwide recognition for developing one of the first COVID-19 vaccines in collaboration with BioNTech. The vaccine, based on mRNA technology, proved to be **95%** effective in preventing symptomatic COVID-19 after two doses, an achievement that significantly boosted Pfizer’s market capitalization.

In terms of financial performance, Pfizer's revenue reached approximately **$81.29 billion** in 2021, a substantial increase attributed primarily to the sales of the COVID-19 vaccine, which alone generated about **$36.78 billion** in revenue.

The company has continued its focus on innovation, spending approximately **$12.58 billion** on research and development in 2021, underscoring its commitment to bringing new treatments to market. Pfizer's R&D spending as a percentage of total revenue was about **15.5%**, consistent with industry standards.

Pfizer is a leader in various therapeutic areas, including oncology, vaccine, cardiology, endocrinology, and immunology. The company's pipeline includes over **100** potential new medicines and vaccines, supporting its long-term growth strategy. Pfizer's performance on the stock market has seen significant fluctuations, especially with the news related to their COVID-19 vaccine and treatments, significantly impacting its stock price, which was around **$57.89** per share at the end of 2021.

In 2023, Pfizer announced plans to invest **$5 billion** in expanding its manufacturing facilities to meet the rising demand for its products, particularly in the realm of vaccines and biologics. The company continues to pivot towards sustainability and healthcare innovation, focusing on tailored medicines and innovative solutions to global health challenges.

A Who Owns Pfizer Limited

Pfizer Inc. is a publicly traded company listed on the New York Stock Exchange under the ticker symbol PFE. As of the end of Q3 2023, the company had a market capitalization of approximately $233 billion.

The ownership structure of Pfizer is diverse, comprising institutional investors, individual shareholders, and company insiders. The following table details the ownership breakdown as of September 2023:

Some of the largest institutional shareholders of Pfizer include:

• Vanguard Group: owns approximately 8.2% of shares
• BlackRock: holds around 7.5% of shares
• State Street Corporation: owns about 4.1% of shares
• Wellington Management: possesses around 3.2% of shares
• Other Institutions: collectively hold the remaining percentage

According to the latest proxy statement filed in April 2023, the following individuals serve as the key executives and directors of Pfizer:

As of September 2023, Pfizer's stock performance has shown resilience with year-to-date gains of approximately 15%. The company reported Q2 2023 revenue of $12.7 billion, down from $18.9 billion in Q2 2022, primarily due to declining COVID-19 vaccine sales.

The company's dividend payout stands at $1.64 per share annually, representing a yield of around 4.5% based on the current stock price, making it an attractive investment for income-focused shareholders.

Pfizer Limited Mission Statement

Pfizer Limited is committed to discovering and developing innovative medicines and vaccines that significantly improve the health and well-being of patients. The company's mission emphasizes its dedication to scientific excellence, patient-centric approaches, and global health advancements.

Core Values

Pfizer's mission is underpinned by several core values, including:

• Integrity - Upholding ethical principles in all operations.
• Excellence - Striving for the highest quality in research and product development.
• Collaboration - Working with partners and stakeholders to enhance health outcomes.
• Respect for People - Valuing diversity and fostering an inclusive workplace.

Current Financial Performance

As of Q3 2023, Pfizer reported a total revenue of $53.2 billion, representing a decrease of 38% compared to the previous year, largely due to the decline in COVID-19 vaccine sales.

The company noted that its adjusted diluted earnings per share (EPS) for Q3 2023 was $1.28, a significant drop from $1.76 in Q3 2022.

Research and Development Investment

Pfizer's commitment to R&D is evident in its investment figures. In 2022, the company allocated approximately $13.8 billion towards research and development, which constituted about 25.9% of its total revenues for that year.

Global Presence

Pfizer operates globally, with significant market shares in various regions:

Recent Initiatives

In line with its mission, Pfizer has launched several initiatives aimed at enhancing global health:

• The Pfizer-BioNTech COVID-19 Vaccine, with over 3 billion doses distributed worldwide as of late 2023.
• The commitment to invest $1 billion over the next five years in infrastructure to increase vaccine production capabilities.

Future Outlook

Pfizer's pipeline is robust, with approximately 100 new assets in development, focusing on therapeutic areas such as oncology, immunology, and rare diseases. The company anticipates that these efforts will drive future growth and align with their mission to deliver transformative therapies to patients globally.

How Pfizer Limited Works

Pfizer Limited operates as a global biopharmaceutical company, focusing on the research, development, manufacturing, and marketing of pharmaceutical products. As of the most recent data, Pfizer reported a total revenue of $81.29 billion for the fiscal year 2022, which represented a decrease from $100.33 billion in 2021, largely due to a decline in COVID-19 vaccine sales.

The company segments its operations primarily into three business units: Innovative Health, Established Health, and External R&D. The Innovative Health segment, which includes vaccines and specialty medicines, generated approximately $56.5 billion in 2022, while Established Health, dealing with off-patent medications, accounted for around $19.1 billion.

Pfizer's research and development (R&D) investment has also been significant, with R&D expenses totaling $13.8 billion in 2022, reflecting a continued commitment to innovation. The company maintains a robust pipeline with over 90 programs currently under development, targeting various medical conditions, including cancer, rare diseases, and inflammatory diseases.

Pfizer utilizes a decentralized operating model with key facilities located globally. The company has approximately 45 manufacturing sites and operates in over 150 countries, ensuring wide distribution of its products. The supply chain management is critical, with established partnerships for logistics and distribution that enhance operational efficiency.

The company’s financial position remains strong, with total assets reported at $166.9 billion and total liabilities of $96.5 billion as of the end of 2022. This results in a debt-to-equity ratio of approximately 0.49, indicating a solid balance between debt and shareholder equity.

Pfizer's stock performance on the New York Stock Exchange (NYSE) has seen fluctuations, with a price of approximately $42.59 per share as of October 2023. The company’s market capitalization stands around $238 billion.

Pfizer has absorbed companies to expand its reach and capabilities. Significant acquisitions include the purchase of Allergan in 2016 and more recently, the acquisition of Biohaven Pharmaceuticals in 2022 for $11.6 billion, enhancing its pain management portfolio.

The impact of government regulations and patent expirations plays a crucial role in Pfizer's business model. The company is facing patent expirations on several key drugs, which are projected to lead to revenue declines in the coming years. Specifically, the patent for its blockbuster drug, Lipitor, expired in 2011, resulting in generic competition.

Pfizer’s strategic initiatives include focusing on innovative therapies, expanding its presence in emerging markets, and advancing digital technologies to improve patient outcomes. The integration of Artificial Intelligence (AI) and machine learning in drug development processes is gaining traction, highlighting Pfizer's commitment to adapting in a competitive landscape.

Overall, Pfizer Limited operates in a dynamic environment, balancing between innovation, market competition, and regulatory challenges while maintaining a robust framework to deliver value to stakeholders.

How Pfizer Limited Makes Money

Pfizer Limited generates revenue primarily through the development, manufacture, and marketing of pharmaceutical products. In 2022, Pfizer reported total revenues of approximately $100.3 billion, a significant increase driven by the sales of its COVID-19 vaccine, Comirnaty, and its antiviral treatment, Paxlovid.

The following key areas contribute to Pfizer's revenue streams:

• COVID-19 Vaccines and Treatments: In 2022, sales of Comirnaty reached $37.8 billion, while Paxlovid sales contributed approximately $18.9 billion.
• Oncology and Rare Diseases: The oncology portfolio, which includes drugs like Ibrance and Xtandi, generated around $5.5 billion in 2022. Rare disease treatments contributed approximately $3.2 billion.
• Other Therapeutics: Pfizer's portfolio also includes drugs for cardiology, immunology, and infectious diseases which together accounted for approximately $35.9 billion.

In terms of geographical distribution, Pfizer's revenue is spread across various regions. The following table illustrates the global revenue breakdown for the fiscal year 2022:

Pfizer's investment in research and development (R&D) is crucial for sustaining its revenue growth. In 2022, Pfizer invested approximately $13.4 billion in R&D, focusing on advancing new therapies across key therapeutic areas, including vaccines, oncology, and internal medicine.

As for profitability, Pfizer's net income for 2022 was approximately $31.4 billion, reflecting a net profit margin of around 31.3%. This high profitability is largely attributed to the remarkable sales performance of its COVID-19 products.

Furthermore, Pfizer's diverse product pipeline is essential for continued revenue generation. As of early 2023, Pfizer had over 90 potential new drugs in various stages of development, which are projected to contribute significantly to future revenues.

Moreover, Pfizer has a strong strategy for mergers and acquisitions, exemplified by its acquisition of Biohaven Pharmaceuticals in mid-2022 for $11.6 billion. This acquisition is expected to bolster Pfizer's neurology portfolio with the development of new migraine treatments that could generate substantial revenue.

Overall, Pfizer's strategic focus on high-demand therapeutics, substantial R&D investment, and a robust pipeline are critical to its revenue generation model, ensuring sustained financial performance.