Pfizer Inc.’S Cost of Capital and Capital structure - Xiaoyue Shi The costs of capital and capital structures for Pfizer Inc. and its two competitors Merck & Co. Inc. and Johnson & Johnson in the pharmaceutical industry are analyzed in this memo. When calculating the cost of common stock for the three companies‚ three different approaches including Capital Asset Pricing Model (CAPM)‚ Discounted Cash Flow (DCF) and the bond yield plus risk premium are applied (Appendix A). For CAPM approach
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you’re working on (School‚ work or both) can get pretty boring monotonous. Wouldn’t I be nice to have a magic button you could push to get someone else to do the boring time consuming stuff for u? At Pfizer such a button is a reality for a large number of employees. As a global pharmaceutical company‚ Pfizer is continually looking for waist to be more efficient and effective. The company senior director of organization effectiveness‚ Jordan Cohen‚ found that the “Harvard MBA staff we hired to develop
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A potential problem for Pfizer Lipitor brand and their R&D activities‚ as well as their business in general‚ is the fact that Lipitor will soon lose its patent protection. The problem is that they do not have any suitable replacements for the revenue that will soon be lost due to the emergence of generic drugs following a branded drugs loss of patent protection. Their main source of revenue‚ Lipitor (sales of $10 billion last year)‚ will lose its patent protection in 2010. 4 Alternative/Suggested
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Based on ”Gone‚” BusinessWeek‚ December 20‚ 2004‚ 76-82. CASE 1 PFIZER‚ INC. OVERVIEW In the 1990’s Pfizer experienced tremendous growth and strong financial performance. The success of its blockbuster drugs and newly released prescription drugs with a vast consumer market‚ allowed Pfizer to increase its customer base and raises its prices. Lately growth has slipped to just 2% a year. Pfizer’s pipeline of drugs has failed to provide a recent blockbuster. If no big drug releases occur
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Marketing Analysis Paper Pfizer Inc. is a large pharmaceutical company that engages in the discovery of new technologies‚ the manufacture of prescription and "over the counter" (OTC) medicines‚ as well as the marketing of such products. It operates in three distinct segments that include Human Health‚ Consumer Healthcare‚ and Animal Health. For fiscal year 2004‚ the company generated approximately $53 billion in revenue that contributed to over $11 billion in net income. (Pfizer‚ 2004) The Cow and
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on their big money products runs out. Gilmartin found it an ideal time to invest in R&D while many of the other companies were investing in mergers which he saw as only a short term gain Pfizer Company Pfizer is a stakeholder in the Merck company simply because Pfizer is their major competitor. Pfizer is
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Msc in Economics and Business Administration Master Thesis MSc in Finance Valuation of Pfizer Inc. and analysis of new drug development project using a real option approach. Author: Valdis Cvetkovs Supervisor: Peter Lochte Jorgensen April 2011 Aarhus Abstract This thesis investigates the world’s largest pharmaceutical company Pfizer Inc. from strategic and financial viewpoint in order to determine companies’ fair market value. The external analysis researches industry and global economic situation
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a change. The more consumers hear about big cases‚ like that of Pfizer‚ the more they can begin to question. The purpose of this paper is to talk about the awareness
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reach required economies of scale. Bigger companies can allow investments in more research and development projects that diversify their future drugs portfolio and make them much more stable. Pfizer: Pfizer is one of the world’s leading research-based biomedical and pharmaceutical companies. Although Pfizer is in the intensive competitive pharmaceutical industry and there
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Finance‚ we reviewed the Cost of Capital video. This video provided information on Pfizer‚ a researched based pharmaceutical company that makes products to help face health care challenges. Our goal is to highlight the cost of capital as described by Amit Singh regarding Pfizer ’s funds in terms of debt and equity along with using the Capital Asset Pricing Model (CAPM). The Weight Average Cost of Capital (WACC) and how Pfizer uses this method will be reviewed. Additionally‚ each phase of developing and
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