Pfizer Inc

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Pfizer Inc is a global, multinational pharmaceutical company founded in 1851. It is the world's largest research based pharmaceuticals corporation. Brand names include erectile dysfunction therapy Viagra, pain management drug Celebrex, high-blood-pressure therapy Norvasc, and cholesterol-lowering Lipitor. The company also manufactures animal care products such as Revolution, an anti-parasitic. Pfizer markets its pharmaceuticals directly to health care providers and patients. The majority of its' sales are conducted through the whole sale companies McKesson and Cardinal Health. See also complete listing of the company's prescription drugs.

In the fiscal year ending in December of 2008, the company reported sales of 48.3 billion dollars and had 81,800 employees. In 2009, Pfizer acquired its rival Wyeth for 68 billion dollars.

Company history

Pfizer began with a loan from Charles Pfizer to his son in 1849 in Brooklyn, NY. Originally the company was a chemical manufacturer focused on making iodine preparations and tartaric acid. They incorporated in 1900 as Charles Pfizer and Co. and continued to function primarily as a *chemical company. In 1923 they had their first breakthrough, when they discovered how to produce cirtric acid by fermenting sugar. This proved fortuitous later, in 1942, when the Office of Scientific Research and Development contacted Pfizer to see if their expertise in deep-vat fermentation would allow them to help produce penicillin for the war effort. During this period, Pfizer’s sales exploded from $27 million in 1945 to $43 million in 1946. In 1950 they introduced their first major drug product developed in-house: Terramycin. Pfizer used, then unconventional, promotional tactics to convince doctors to prescribe Terramycin and the success of these methods(which included giving doctors gifts along with free samples) were rapidly copied throughout the industry. . During the 1960’s, with the threat of price-conrols looming, they moved in lock-stop with other pharmaceutical companies to diversify, purchasing: Visine, Ben-Gay, Barbasol Shaving Cream, Coty Cosmetics and others. But by the late 1970s and early 1980s this diversification had proven unsuccessful and Pfizer redirected its efforts back to health care.

Recently, Pfizer has pursued a series of high-profile mergers with companies like Warner-Lambert and Pharmacia that have helped propel it into its current position as the largest pharmaceutical company in the world. At the end of 2006, Pfizer sold its Consumer Healthcare business for $16.6 billion to Johnson & Johnson. This helped bolster their overall profit for the year by $7.9 billion and explains the dramatic rise in their profits for the year. While some analysts criticized the sale, it appeared consistent with their desire to focus exclusively on prescription products.

Animal testing

Pfizer does animal testing.

Animals by species, numbers & locations (United States)

• Global Research & Development, New York, NY

Numbers of primates being used & held (United States)

• Pfizer, New York, New York

Facility information, progress & USDA-APHIS reports

This facility performed animal experiments involving pain or distress but no analgesics, anesthetics or pain relievers were administered. For copies of this facility's U.S. Department of Agriculture-Animal Plant Health Inspection (APHIS) reports, other information and links, see also Facility Reports & Information: Pfizer, Inc., New York, NY.

This facility performed animal experiments involving pain or distress but no analgesics, anesthetics or pain relievers were administered. For copies of this facility's USDA-APHIS reports, other information and links, see also Facility Reports & Information, Pfizer, Inc., White Hall, IL.

Contract testing

Pfizer contract tests out to Huntingdon Life Sciences (HLS). Hungtindon Life Sciences is the 3rd largest contract research organization (CRO) in the world and the largest animal testing facility in all of Europe. Firms hire HLS to conduct animal toxicity tests for agrochemicals, petrochemicals, household products, pharmaceutical drugs and toxins.HLS has a long history of gross animal welfare violations. See also Huntingdon Life Sciences.

Pfizer also contract tests out to SNBL, an international contract research organization (CRO). SNBL has a history of gross animal welfare violations. See also SNBL.

New CEO, new PR strategy

"In the wake of a CEO change, Pfizer is renaming its corporate affairs practice as public affairs to better reflect the increasing importance of influencing public policy and opinion to the company's success," reported PR Week in August 2006. The change was described as a "larger reorganization of Pfizer's management structure" that included Jeff Kindler's promotion from head of corporate affairs to CEO.

"Rich Bagger will head Pfizer's new worldwide public affairs and policy division, which previously had been called the corporate affairs division," reported PR Week. In that role, Bagger will oversee "public policy development, government relations, communications, media, philanthropy, and stakeholder advocacy."

A memo from new CEO Kindler to employees said the changes would help Pfizer make decisions more quickly, an important goal because "patients and their families are using newly available information to take more control over their healthcare decisions."

Pfizer declares a ceasefire

In January 2006, PR Week reported that "Pfizer, through its public affairs agency Spectrum Science, hopes to open dialogue about, and ultimately reform, the nation's healthcare system." Spectrum started organizing "Ceasefire on Healthcare" town meetings for Pfizer in June 2005. The idea, according to PR Week, was originally from former U.S. Senator John Breaux.

"The thrust of the campaign ... is to make incremental changes," said Claire Barnard, Spectrum Science Communications' director of public affairs. "I think the public is really yearning for this. I think people are tired of turning on the TV and seeing all the name calling." The "Ceasefire on Healthcare" town meetings are funded by Pfizer and American University, and have featured Senator Hillary Clinton and former Congressman Newt Gingrich.

C-Span has covered the events, which have been held at the Brookings Institution, Heritage Foundation and National Press Club.

Drug issues

Lipitor ads

In September 2008, Pfizer resumed advertising for its cholesterol drug Lipitor. In February 2008, the drugmaker pulled its Lipitor ads, over charges they were misleading. The old ads featured artificial heart inventor Robert Jarvik, who appeared to be giving medical advice though he isn't a practicing physician. The new ads feature "John E.," a baby boomer and heart-attack survivor who "didn't take a cholesterol-fighting drug before his heart attack ... despite a history of high cholesterol." A Pfizer marketing executive said, "When we did testing with consumers ... John really resonated with them." Pfizer is eager to maximize sales before its patent on Lipitor ends in 2011.

Celebrex

In November 2004 Ogilvy Public Relations Worldwide, part of the WPP Group; took over accounts for Pfizer's Celebrex and Bextra pain medications. In December of 2004, a report linked high doses of Celebrex (a member of the class of drugs referred to as Cox-2 inhibitors) to increased risk of heart attacks. The co-managing director of the WPP Group's health and medical practice, Sherry Pudloski, told O'Dwyer's PR Daily that they still held the account, but would not elaborate on what they did for the company.

Off-label promotional practices (Neurontin®)

Access to pharmaceutical industry documents in 2006 revealed marketing strategies used to promote Neurontin® for off-label use. In 1993, the US Food and Drug Administration (FDA) approved gabapentin (Neurontin®, Pfizer) only for treatment of seizures.

Warner-Lambert, which merged with Pfizer in 2000, used activities not usually associated with sales promotion, including continuing medical education and research, sponsored articles about the drug for medical literature and alleged suppression of unfavorable study results, to promote gabapentin. Within 5 years the drug was being widely used for the off-label treatment of pain and psychiatric conditions. In 2004, Warner-Lambert admitted to charges that it violated FDA regulations by promoting the drug for pain, psychiatric conditions, migraine and other unapproved uses. The company paid $430 million to resolve criminal and civil health care liability charges.,

Diflucan (fluconazole)

Pfizer has been involved in controversies over the medicine Diflucan (generic name fluconazole). In 1998, a campaign by Thai public health groups led to the elimination of the Pfizer monopoly on selling fluconazole in Thailand, and the price of the antifungal drug decreased from 200 baht to 6.5 baht in nine months, vastly expanding access to the medicine for AIDS patients. Faced with pressure for compulsory licenses to the Pfizer patent on this drug, Pfizer later established a program for limited access to the medicine in Africa.

"In the United States, 46 percent of all new HIV/AIDS cases occur in the South. From 2003–2006 the Pfizer Foundation has funded 23 innovative HIV/AIDS prevention programs and strengthened the capacity of community-based organizations to reach and serve their communities." Since 2003, Pfizer has committed a $3 Million grant toward supporting the Southern HIV/AIDS Prevention Initiative. However, there are criticisms of the way Pfizer is testing its AIDS drug. "The European AIDS Treatment Group (EATG), collection of activists from 31 European Countries, said the design of the trial for Pfizer's CCR5 inhibitor Maraviroc (previously known as UK-427,857) is putting people with HIV infection at unnecessary risk of developing AIDS."

On June 20, 2007 Maraviroc received an approvable letter from the FDA advisory board. The letter was a product of expedited review of the novel HIV compound.

Antivirals (Viracept & Maraviroc)

Drugs used to treat HIV and AIDS are various classes of toxic chemotherapies known as "antivirals" or "antiretrovirals". AIDS drugs manufactured by Pfizer include Viracept (protease inhibitor), Maraviroc and Maraviroc Rescriptor (entry inhibitors). See also AIDS industry.

Clinical trials

Nigeria

In May 2006, the Washington Post published a Nigerian government report that had remained unreleased for five years. In this report, a panel of Nigerian medical experts found that Pfizer violated international law. This stems from the company's alleged testing of an unapproved drug, an oral form of Trovafloxacin, on children with meningitis in Nigeria.

Pfizer replied to the report saying they conducted the trial with full knowledge of the Nigerian government. These allegations have been the subject of litigation in both America and Nigeria. On June 5, 2007 the Nigerian government filed a civil lawsuit for $7 billion in damages against Pfizer, related to a study of an experimental meningitis treatment given to children. . Two hundred children received Trovan in Kano, Nigeria, in 1996, the company said. The Nigerian government and Kano state government allege Pfizer gave the antibiotic to children without proper parental consent and that it disabled or killed some children.

In July 2007, the Nigerian government filed criminal charges against Pfizer over the trials. Pfizer hired investigators to unearth embarrassing information about Nigeria's attorney general Michael Aondoakaa, hoping to use the information to pressure him into dropping the suit.

Philippines

In March 2006 Pfizer sued the Philippines government as well as two government health officials personally, to prevent Philippines drug regulators from allowing the importation of less expensive versions of a Pfizer heart disease drug.

Brazil

In 2001, Pfizer asked the U.S. government to pressure the Brazilian government against issuing compulsory licenses for the patents on the AIDS drug nelfinavir.

Thailand

In 1998, the Thai government acquiesced to requests by public health groups and eliminated Pfizer’s monopoly on fluconazole, a leading AIDS drug, reducing the price of the drug from 200 baht to 6.5 baht within a year.

Toxic drug trials on foster children

See also foster child drug trials.

Corporate Accountability

Stakeholder Engagement

Pfizer has two stakeholder specific engagement policies: Pfizer’s Global Policy on Interactions with Healthcare Professionals and Pfizer Principles for Working in Partnership with Patient Advocacy Groups. Both identify key principles that should underpin engagement with health care professionals and Patient advocacy groups, respectively.

However, neither policy is of a high quality. While both make a commitment to being open about how shareholders affect decisions, they do not identify when shareholders may participate in company decisions. Furthermore, there is no assurance that Pfizer will change policy as a result of stakeholder wishes (or even provide explanations). The two policies are overseen by a number of senior executives. The Global Policy on Interaction with Healthcare Professionals is overseen by multiple senior executives. It covers global marketing, research and development; and global business conduct. The Vice President of Global Alliance Development and the Senior VP of Philanthropy and Stakeholder Advocacy, oversee Pfizer’s Principles of Working in Partnerships with Patient Advocacy Groups. Each policy is disseminated through multiple mediums and translated into at least 20 languages. Pfizer does not, however, provide training for staff on stakeholder engagement issues. Also, Pfizer has not institutionalized external stakeholder engagement in corporate decision-making. The company created a Worldwide Public Affairs and Policy department dedicated to philanthropy and shareholder advocacy, which solicits feedback from stakeholders. However, shareholders do not participate directly in any committee or group.

Member Control

Pfizer’s member control is average. Shareholders can attend and vote in the Annual Meeting of Shareholders as well as add items to the meeting’s agenda. Shareholders can also nominate candidates for Board of Director elections and there are no exceptions to the one share, one vote principle. There is room for improvement in how Pfizer elects and dismisses Directors however; the company should increase the threshold for electing Directors from a plurality to a majority vote. Additionally, company Bylaws should stipulate that shareholders can initiate a process of dismissal of Directors. Pfizer has initiated a series of reforms to improve shareholder control. The company eliminated a ‘poison pill’ defence at the end of 2003. Pfizer now requires shareholder approval for its use or that the Board of Directors seek ratification of its use should they initiate a poison pill defence without approval. Other reforms the company implemented include requiring annual elections for all Directors, and for Directors that receive a majority of ‘withheld’ votes at annual Board elections to offer to step down.

Human rights

Human Rights Watch 2006 Corporate Equality Index Rating: 100

Social responsibility initiatives

In 2001, Pfizer announced that it will provide an unlimited free supply of Diflucan, a drug that combats fungal infections associated with AIDS, to 50 of the world’s poorest countries. Previously, Pfizer had conducted a successful pilot program in South Africa. The patent on Diflucan expired in 2004.

Political contributions

Hank McKinnell, then Chair & CEO of Pfizer, was a Bush Ranger having raised at least $200,000 for Bush in the 2004 presidential election.

Pfizer gave $2,865,575 dollars to federal candidates in the 2008 election cycle through its political action committee (PAC) - 50% to Democrats and 50% to Republicans.

Pfizer was among several companies that gave record amounts in political contributions four years after passage of a law that tried to reduce the impact of corporate money in U.S. politics. Bloomberg said, "The companies are working around the law, which banned unlimited contributions to parties, by giving more money through their political action committees than ever before in the first year of an election cycle, and writing checks to loosely regulated independent groups, financial disclosures show."

Lobbying

Holly Bailey of Open Secrets wrote in 2002:

"Over the last two years, Pfizer has been waging a legal battle to extend its patent on the epilepsy drug, Neurontin, and in its merger with Pharmacia, the company will gain access to dozens of new drugs whose patents expire in coming years. Even before its announced merger, Pfizer was among the most aggressive in the industry when it comes to fending off legislation that would seemingly make patent laws more lax, claiming that such legislation would curb the industry’s research and development into drugs that could cure rare diseases.

To make that argument, Pfizer has retained some of the Washington’s best known lobbyists, including former Reps. Bill Paxon (R-N.Y.) and Norman Lent (R-N.Y.) and former Sen. Dennis DeConcini (R-Ariz.). The company also retains Scott Hatch, son of Sen. Orrin Hatch (R-Utah), who authored the drug patent law that remains in effect today. Since 1997, Pfizer has reported nearly $20 million in lobbying expenditures, according to the Secretary of the Senate. (Pharmacia spent $13.4 million during the same period.)"

The company spent $21,930,000 on lobbying in 2009. $3,035,000 of this amount went to 15 outside firms with the remainder being spent using in-house lobbyists.

Public relations

Americans for Medical Progress's (AMP) board of directors consists of senior executives and other representatives employed by the pharmaceutical and vivisection industries. Board members represent multinational, billion dollar corporations as well as universities and institutions receiving government grants for vivisection. They include: Charles River, Abbott Laboratories, GlaxoSmithKline, Pfizer, AstraZeneca and Wyeth. See also Americans for Medical Progress.

Executives & board

Key executives & 2006 pay

• Jeff Kindler - Chairman & CEO
• Alan G. Levin - Senior VP & CFO, $1,370,000
• John L. Lamattina - Senior VP
• Ian C. Read - Senior VP, $1,480,000
• David L. Shedlarz - Vice Chairman, $2,270,000
• Richard H. Bagger - Senior VP, Worldwide Public Affairs & Policy
• Joseph M. Feczo MD - Chief Medical Officer
• Allen P. Waxman - General Counsel

Selected board members

• Dennis A. Ausiello - Professor of Clinical Medicine at Harvard University Medical School
• Constance J. Horner - Guest Scholar - 1993 - 2005, Brookings Institution
• William R. Howell - Chairman Emeritus, J. C. Penney, Inc.

Executive Compensation

According to Fierce Pharma, Pfizer's CEO, Jeff Kindler, was the tenth top wage earner in 2007 among pharmaceutical CEOs.

• Total Compensation: $12.6M
• 2007 Revenue: $48.6B
• 2006 Revenue: $48.3B
• Change: .6%

"2007 was not Pfizer's best year, seeing that the company started things off with one of the biggest drug development flops in recent history. CEO Jeffrey Kindler's pay is low when compared to rivals, but it was still up significantly from $9.8 million in 2006. Kindler pulled in $1.35 million in base pay, $3.1 million in cash bonuses (down slightly from 2006), $7.5 million in stock and options. His other compensation included $175,000 for aircraft use and over $42,000 for his use of a car."

Former executives

• Hank McKinnell - CEO

Contact

235 E. 42nd St.
New York, NY 10017
Phone: 212-573-2323
Fax: 212-573-7851

Web address: http://www.pfizer.com

Articles & sources

SourceWatch articles

• AIDS industry
• American Cancer Society
• Americans for Medical Progress
• Animal testing
• Consensus Research Group
• Foster child drug trials
• Glover Park Group
• Humane Movement
• Human rights
• Huntingdon Life Sciences
• National Primate Research Center System
• Pfizer Inc/stats, details
• Pharmaceutical industry
• SNBL
• Spectrum Science Communications
• War on Cancer
• Wyeth

External articles

• Marc Kaufman, "FDA Was Told of Viagra-Blindness Link Months Ago: Senator Criticizes Delay in Alerting Consumers After Safety Officer Warned Agency About D rug", Washington Post, July 1, 2005.
• Rick Weiss, "'Serious Misconduct' by NIH Expert Found: Scientist Did Not Report Sending Tissues to Drug Firm and Getting Paid, Report Says," Washington Post, June 14, 2006.
• Alex Berenson, "End of Drug Trial Is a Big Loss For Pfizer and Heart Patients", New York Times, December 6, 2006. (Article explianing corporate impact of end of Torcepapib trials).
• Stephanie Saul, "Celebrex Commercial, Long and Unconventional, Draws Criticism," New York Times, April 10, 2007.
• PETA Names the 10 Worst CEOs for Animals in Laboratories, People for the Ethical Treatment of Animals, accessed December 2009

External resources

• Peter Rost, M.D. The Whistleblower, Confessions of a Healthcare Hitman", Soft Skull Press, September 2006, ISBN 978-1933368399 (Dr. Rost is a former VP of Pfizer).