PFIZER INC.

AND SUBSIDIARY
COMPANIES
Financial Accounting – Group 2
A Brief Overview

Pfizer Inc. is one of the world's largest research-based pharmaceuticals firm, producing medicines for cardiovascular health, metabolism, oncology,
inflammation and immunology, and other areas, with about 10 products that fetch approximately $1 billion or more in annual revenue. Its top
prescription products include cholesterol-lowering Lipitor, pain management drugs Celebrex and Lyrica, pneumonia vaccine Prevnar, and erectile
dysfunction treatment Viagra, as well as arthritis drug Enbrel, antibiotic Zyvox, and blood-thinner Eliquis. The company also makes and sells generic
drugs and consumer health products. Pfizer operates around the world and gets about 55% of its revenue from international customers.

The US is Pfizer's single largest market, accounting for nearly 45% of revenue. Its other segments are emerging markets (includes China, Latin
America, and Africa), about 25% of revenue, developed Europe, nearly 20% of revenue, and developed Rest of the World (Japan, Canada, South
Korea, Australia, and New Zealand), more than 10% of revenue. In all, the company sells products in more than 125 countries. Pfizer has major
manufacturing facilities in Belgium, China, Germany, India, Ireland, Italy, Japan, Singapore, and the US. In all, it operates nearly 50 plants around
the world. Pfizer corporate headquarters is located in New York.

Pfizer markets its pharmaceuticals directly to doctors, hospitals, nurses, pharmacists, retailers, clinics, benefit management firms, managed
care organizations, employer groups, government agencies, and to patients themselves. Most of its sales are conducted through wholesale
distributors including McKesson, Cardinal Health, and AmerisourceBergen, which combined account for more than 35% of revenue. The
company also markets directly to consumers in the US through direct advertising. In addition, the company sponsors general advertising to
educate the public on disease awareness, prevention and wellness, important public health issues, and patient assistance programs. It sells its
consumer health care products through distributors, pharmacies, retail chains, grocery stores, convenience stores, and other channels.
Pfizer's advertising expenses totaled approximately $2.6 billion, $3.1 billion, and $3.1 billion in years 2019, 2018, and 2017, respectively.
A Brief Overview
PFIZER – Business & Revenue Segmentation

Pfizer Biopharmaceuticals Group

Upjohn Consumer HealthCare
(Biopharma)

Contributes close to 20% of revenue

Upjohn is a global, primarily off-patent
Contributes close to 75% of revenue -
branded and generic medicines
Oncology, Inflammation &
business, which includes a portfolio of Pfizer merged its consumer health
Immunology, Rare Disease, Hospital,
20 globally recognized solid oral dose operations, include such leading
Vaccines and Internal Medicine. The
brands, as well as a US-based brands as Advil, Centrum, and
Hospital unit commercializes the
generics platform, Greenstone. Upjohn Robitussin, with those of
global portfolio of sterile injectable
products are used to treat non- GlaxoSmithKline in 2019. Pfizer
and anti-infective medicines and
communicable diseases and retains more than 30% stake in the
includes Pfizer's contract
therapeutic areas including joint venture.
manufacturing operation, Pfizer
cardiovascular, pain and neurology,
CentreOne.
psychiatry, urology, and
ophthalmology.
 Interesting Facts

It all started with Citric Acid :

Pfizer began manufacturing citric acid using concentrates of lime and lemon in 1880. As soft drinks, such as those produced by The Coca-Cola Company ( KO), Keurig Dr.
Pepper Inc. (KDP), and PepsiCo Incorporated (PEP), used citric acid in their formulas, the demand for the biochemical grew. Thereafter, Pfizer's main product and growth
stemmed from citric acid.

Change from Partnership to Sole Proprietorship:

Erhart died on Dec. 27, 1891, and he left his partnership, worth $250,000, to his son William Erhart. However, the agreement stated that Pfizer had the option to purchase
William Erhart's stake at 50% of the inventory. Pfizer exercised his option and became the sole owner of the company. 9 Nine years later, Pfizer filed a certificate of
incorporation in New Jersey with 20,000 shares issued at par value, or $100 per share. However, Charles Pfizer & Company remained a privately held company until 1942,
when it issued 240,000 shares of common stock to the general public.

Pfizer Stealing Drug Secrets

Nonprofit Ischemia Research and Education Foundation filed a lawsuit against Pfizer in 2004, which alleged that Pfizer arranged a deal with lead statistician Ping Hsu at
the Ischemia Research and Education Foundation to provide data. Additionally, the research foundation alleged that Pfizer stole trade secrets to develop Bextra, a pain
medication. Pfizer and Hsu destroyed evidence that could have proven they stole trade secrets and used data without approval when the foundation confronted the two.
On Dec. 24, 2008, a Santa Clara County jury ordered Pfizer to pay $38 million to the Ischemia Research and Education Foundation for stealing drug secrets.

Pfizer's Lobbying Expenses

Pfizer is one of the top pharmaceutical lobbying spenders and spends money lobbying for corporate tax cuts, among other political topics. According to a study in JAMA
Internal Medicine, Pfizer spent $219 million in lobbying expenses and $23 million in campaign contributions between 1999 and 2018. 12 Though Pfizer's lobby expenses
are primarily spent on health and tax issues, in 2015 and 2016, its primary focus was on tax issues as the company promoted the U.S. tax reform.
 The Global Pandemic

It all started with Citric Acid :

Pfizer began manufacturing citric acid using concentrates of lime and lemon in 1880. As soft drinks, such as those produced by The Coca-Cola Company ( KO), Keurig Dr.
Pepper Inc. (KDP), and PepsiCo Incorporated (PEP), used citric acid in their formulas, the demand for the biochemical grew. Thereafter, Pfizer's main product and growth
stemmed from citric acid.

Change from Partnership to Sole Proprietorship:

Erhart died on Dec. 27, 1891, and he left his partnership, worth $250,000, to his son William Erhart. However, the agreement stated that Pfizer had the option to purchase
William Erhart's stake at 50% of the inventory. Pfizer exercised his option and became the sole owner of the company. 9 Nine years later, Pfizer filed a certificate of
incorporation in New Jersey with 20,000 shares issued at par value, or $100 per share. However, Charles Pfizer & Company remained a privately held company until 1942,
when it issued 240,000 shares of common stock to the general public.

Pfizer Stealing Drug Secrets

Nonprofit Ischemia Research and Education Foundation filed a lawsuit against Pfizer in 2004, which alleged that Pfizer arranged a deal with lead statistician Ping Hsu at
the Ischemia Research and Education Foundation to provide data. Additionally, the research foundation alleged that Pfizer stole trade secrets to develop Bextra, a pain
medication. Pfizer and Hsu destroyed evidence that could have proven they stole trade secrets and used data without approval when the foundation confronted the two.
On Dec. 24, 2008, a Santa Clara County jury ordered Pfizer to pay $38 million to the Ischemia Research and Education Foundation for stealing drug secrets.

Pfizer's Lobbying Expenses

Pfizer is one of the top pharmaceutical lobbying spenders and spends money lobbying for corporate tax cuts, among other political topics. According to a study in JAMA
Internal Medicine, Pfizer spent $219 million in lobbying expenses and $23 million in campaign contributions between 1999 and 2018. 12 Though Pfizer's lobby expenses
are primarily spent on health and tax issues, in 2015 and 2016, its primary focus was on tax issues as the company promoted the U.S. tax reform.