Major Pharmaceuticals

The global industry is effectively dominated by 4 major pharmaceuticals firms.  These are:

• Pfizer
• GlaxoSmithKline
• Aventis
• Merck & Co

Pfizer

Pfizer is the world's leading major pharmaceuticals company with a presence in over 150 countries. Its portfolio includes five of the twenty top-selling drugs in the world. Pfizer has three business units: pharmaceutical, consumer healthcare and animal health.

Pfizer's pharmaceutical segment includes treatments for cardiovascular and metabolic diseases, central nervous system disorders, arthritis and pain, infectious and respiratory diseases, urogenital conditions, cancer, eye disease, endocrine disorders and allergies.  In 2003, its pharmaceutical segment contributed US$39.63 billion, which accounts for 88 per cent of its total revenues. Pfizer's 'Lipitor', an anti-cholesterol drug, is the world's leading drug, accounting for US$9.2 billion of sales in the cholesterol and triglyceride reducer category.

Pfizer's pharmaceutical segment grew by 55 per cent in 2003. This growth was basically driven by the strong performances across the portfolio of the company's products and the inclusion of post-acquisition results of  Pharmacia products including 'Celebrex' and 'Bextra'. At the end of 2003, fourteen pharmaceutical products remained number one in their respective therapeutic classes.

Pfizer's consumer healthcare segment includes self-medications for oral care, upper respiratory health, tobacco dependence, gastrointestinal health, skin care, eye care and hair growth. In 2003, the consumer healthcare segment contributed over US$3 billion and accounted for 6.7 per cent of its total revenues. Its consumer healthcare segment has grown by 20 per cent in 2003. This growth was basically driven by the 12 per cent increase in sales of 'Listerine' mouthwash in 2003, which benefited from the launch of the natural citrus flavor in the USA.

Pfizer's animal health segment includes treatments for diseases in livestock and companion animals. Among the products Pfizer markets in this segment are parasitic, anti-inflammatory, vaccines, antibiotics and related medicines. In 2003, this segment contributed over US$1.5 billion, which accounted for 3.5 per cent of the total revenues. Pfizer's animal health segment grew by over 42 per cent in 2003.

GlaxoSmithKline

GlaxoSmithKline is a global healthcare group formed in January 2001 as the result of a merger between GlaxoWellcome and SmithKlineBeecham. GlaxoSmithKline discovers, develops, manufactures and markets pharmaceuticals, vaccines, over-the-counter medicines and health-related consumer products. In fiscal year 2003 the company’s sales totalled US$38.23 billion.

GlaxoSmithKline along with its subsidiaries and associated undertakings operates in over 117 countries across the world with its products sold in over 130 countries.  GlaxoSmithKline mainly deals in three business segments: prescription pharmaceuticals, vaccines and consumer healthcare.

GlaxoSmithKline’s prescription pharmaceutical product line includes antibiotic, antidepressant, gastrointestinal, dermatological, respiratory, cancer and cardiovascular medications. GlaxoSmithKline has one of the more balanced portfolios of the larger pharmaceutical manufacturers with central nervous system disorders, respiratory and anti-infectives (including HIV treatments) and including anti-virals and anti-bacterials, with each contributing approximately one fifth of drug sales. Central nervous system disorders is the company’s largest therapeutic area, led by the depression medicine ‘Seroxat/Paxil’.

The company’s second largest therapeutic area is respiratory conditions. This is led by ‘Seretide/Advair’, which is one of the world’s leading asthma medicines. The anti-bacterials area is the company’s third best-selling product group. GlaxoSmithKline’s flagship product in this area is the antibiotic, ‘Augmentin’, with sales of around US$1.4 billion in 2003. A new formulation of this drug was launched in October 2001, called ‘Augmentin ES-600’. This is indicated for the treatment of recurrent otitis media in children. Following loss of patent protection, generic versions of ‘Augmentin’ were launched in 2002. GlaxoSmithKline therefore has, and will further see sales, of the drug erode over the coming years.

‘Avandia’, an oral medicine for the treatment of type 2 diabetes, leads the gastrointestinal/metabolic therapy area. GlaxoSmithKline has a wide variety of vaccine products, including hepatitis A and B, diphtheria, tetanus and whooping cough and influenza. The company’s antivirals area specializes in the treatment of HIV and herpes. GlaxoSmithKline has a 40 per cent share of the global HIV market, with its top-selling drug being ‘Combivir’. ‘Zofran’, a treatment for the nausea and vomiting associated with chemotherapy, leads the oncology therapy area. Another drug in this area is ‘Hycamtin’, indicated for the treatment of ovarian cancer.

Alongside its pharmaceutical business, GlaxoSmithKline also operates a consumer healthcare division, bringing oral healthcare, over-the-counter medicines and nutritional healthcare products to million of people. GlaxoSmithKline also has a wide variety of vaccine products, including hepatitis A and B, diphtheria, tetanus and whooping cough and influenza.

Aventis

Formed in late 1999 from the merger of two of the world’s largest international chemical companies, Rhone-Poulenc (France) and Hoechst Aktiengesellschaft (Germany), Aventis is a global pharmaceutical group that discovers, develops, manufactures and markets branded prescription drugs and human vaccines to protect and improve the health of patients around the world. For the fiscal year ended December 2003, Aventis posted revenues over US$22 billion, see Table 19 overleaf.

Aventis is a diversified pharmaceutical company that focuses primarily on pharmaceutical production. It offers a range of branded products in prescription drugs, human vaccines and therapeutic segments. Its pharmaceutical operations are divided into two subsidiaries; Aventis Pharma and Aventis Pasteur.

Aventis Pharma provides research and development for prescription medicines and focuses on seven therapeutic areas. These are: anti-infectives for the treatment of bacterial and fungal infections; arthritis and osteoporosis, coronary heart disease and other cardiovascular disorders; degenerative diseases of the brain and spinal cord; diabetes and other metabolic diseases; and oncology and respiratory diseases. Among the currently marketed brands, Aventis Pharma has five major growth drivers: ‘Allegra’, a non-sedating antihistamine for allergies; ‘Amaryl’, an oral treatment for diabetes patients; ‘Arava’, used for the treatment of rheumatoid arthritis; ‘Clexane Lovenox’, a low-molecular-weight heparin used against deep vein thrombosis, unstable angina and some myocardial infarctions; and ‘Taxotere’, used in the area of oncology for treatment of breast and lung cancer.

The prescription drugs segment of Aventis includes a range of branded pharmaceuticals on which the company’s marketing efforts are focused. The company is a world leader in human vaccines, offering the broadest range of products in the segment.  The prescription drugs segment accounted for over 65 per cent of total revenues of the company in 2003. Aventis Pharma accounts for around 80 per cent of total company’s sales.

Aventis Pasteur is devoted exclusively to the research, production and worldwide distribution of vaccines. Aventis Pasteur produces vaccines to prevent or treat a number of diseases. The company is also developing anticancer vaccines.

Merck & Co

Merck & Co is a global research-driven pharmaceutical products company that discovers, develops, manufactures and markets a range of products to improve human and animal health, directly and through its joint ventures. For the fiscal year 2003, the company generated revenues of US$22.5 billion on continuing operations, representing a 5 per cent increase on 2002, see Table 24 overleaf.
Merck & Co. operates both directly and through joint ventures, selling its products primarily by prescription. Its main products include drugs for the treatment of hypertension, heart failure and high cholesterol.

Merck & Co.’s pharmaceuticals arm, Merck Pharmaceutical, manufactures human health products such as therapeutic agents sold by prescription for the treatment of human disorders, as well as preventive agents. The segment also provides animal health products such as medicines used to control and alleviate diseases in livestock, small animals and poultry. In addition, its crop protection products include ones that control crop pests and fungal disease.

Merck & Co boasts one of the most successful pharmaceutical product portfolios in the world.  Its top-selling drugs of 2003 were leaders in their respective therapeutic classes. In particular, the company’s cardiovascular franchise is unrivalled and holds the number one position within the pharmaceutical industry. The cholesterol-modifying medicine ‘Zocor’ (simvastatin) was the primary growth driver for this success.

Formed in 1997, Merial is Merck’s animal health business, which is a 50-50 joint venture with French-based firm, Aventis. Merial is the world’s largest animal health and poultry genetics company.

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