PFIZER : Entering the French market
Interview with Bernard Peyrical
Director, Corporate Communications Pfizer France
Robin Kotisa
Rachelle Sammut
Susie Dantas
Emelyne Petit-Nivard
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Executive Overview of Pfizer Inc.
• Founded in 1849 in New York by German cousins
Charles Pfizer and Charles Erhart.
• WWII: beginning of Pfizer’s direct activities into Europe.
• Continued its research into antibiotics.
• June 2000: acquisition of the Warner-Lambert
Company
• April 2003: acquisition of Pharmacia Corporation.
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Pfizer today: the biggest
pharmaceutical company in the world
Pfizer World:
•
$52,5 billion dollar business
•
Innovation, research based company
– largest R&D budget in the world: $7.7 billion in 2004
– 12000 out of the 122000 employees in R&D
Pfizer France:
•
Established in France in 1954.
•
Current French facilities include :
– 2 research and development centers: Paris, Amboise
– 6 production sites: Val-de-Reuil, Ploermel, Angers, Amboise, Orleans, Colmar
Source: annual report 2004; interview with Bernard Peyrical: Director, Corporate Communications
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Company products: Worldwide
–
–
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Prescription medications (Pfizer Global Pharmaceuticals)
•
Aricept: alzheimer
•
Celebrex: anti-inflammatory arthritis
•
Lipitor: cholesterol
•
Norvasc: high blood pressure
•
Viagra: sexual health
•
Xalatan : ophthalmic solution
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Zoloft: depression
Non-prescription products (Pfizer Consumer Healthcare)
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Benadryl: alergy / colds
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Cortizone
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Listerine: oral care strips
•
Lubriderm: sensitive skin therapy
Medications and vaccines for livestock and companion animals (Pfizer Animal Health)
•
Clavamox
•
Synulox
•
quimax
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Company Products: Produced in France
• Products from all of the 3 operating groups are produced in France
• Some products are produced in greater quantity in France than in
other countries
– 85% of Viagra produced in France production sites
• Global R&D (PGRD)
• No special technological advantages exist for Pfizer’s production
capabilities in France
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Pfizer’s Clients
PRESCRIPTORS
General practicians
PRESCRIPTION
DRUGS
Specialists
$5,4 billion in
2004
Veterinarian
NON - PRESCRIPTION
DRUGS
$46,1 billion in 2004
Source: Pfizer Annual Repport 2004
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
FINAL
CONSUMMERS
Why Pfizer Came to France
1. Market potential:
– France is the 4th largest market for pharmaceutical products in the world
• US
• Japan
• Germany
• France
– Reason why the market is so strong:
• Good social security coverage
• People are used to be treated with drugs
• One of the best health systems in the world
• Doctors write more prescriptions than other countries
2. Strong R&D reputation:
– France has a strong reputation for having very qualified physicians, good clinical
research, and valuable investigators
Source: Epsicom repport, October 2004
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Company Values
Pfizer’s mission is to discover and develop innovative medicines and
other products which improve the quality of life of people and
animals around the world
CORE VALUES
Integrity, Respect for people, Customer focus, Innovation,
Teamwork, Performance, Leadership and Quality
• Their values are not compromised in any of their operations and are
used to maintain a global company
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Constraints in France
1. Strict restrictions:
–
–
–
Decisions cannot be made without formal consultations
Representation du Personelle (HR people who enforce the rules)
Code de la Santé Public: restrictive DMOS (law)
2. Much slower access to new drugs:
The following steps are required to launch a new drug
a)
b)
c)
Obtain a market license : AMM (Autorisation de mise sur le marché); testing the
efficacy and safety of the drug are being tested.
Commission de transparence (Asses the interest of the drug is it providing a
valuable medical service?)
CEPS (deciding on a price for the drug)
3. Price of drugs
–
–
Drugs are sold at the lowest prices in France out of all of Europe
Controled by the CEPS (communauté économique des produits santé)
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Other adaptation necessary for France
Marketing adaptations:
Europe vs US
•
Strict regulations limit the level of advertising permitted in France.
–
Only allowed to advertising in the medical press, and no other written material
–
Need to get approval for any type of conference etc from the Conseil d’Ordre du medicine.
–
Can only give things of minimal value that are linked to professional exercises, as incentives
to medical professionals
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Key Benefit Numbers
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International operations significantly contributed to Pfizer’s $52,5 billion sales in 2004
•
In 2004 quarterly Revenues Increase 7% to $14.924 Billion
•
Lipitor Becomes Pharmaceutical Industry’s First Ten-Billion-Dollar Product
•
Pfizer Remains On Track to Submit an Industry-Record 20 Major U.S. Regulatory
Filings in 2001-2006
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
Essential Advice
For continuing in the industry
• Predictions show that most things will become streamlined in
Europe in the near future
• Once things have become standardized it will be easier to move
process that take too long in France elsewhere
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005
BIBLIOGRAPHY
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http://www.pfizer.com/are/investors_releases/2005pr/mn_2005_0119.cfm
http://www.pfizer.fr/DesktopDefault.aspx?tabindex=1&tabid=141
BEST IN FRANCE case Study – Pfizer FRANCE. April 2005