Pfizer’s Failures, Research Paper Example

Pfizer is the largest pharmaceutical company in the world. In 2009 Pfizer announced sales of “$50 billion, being an increase of 4% on the previous year”  (Wikinvest). Pfizer has done extremely well with its product sales (See Fig 1).  The cholestoral drug Lipitor being the single highest source of revenue. It was in 2007 that Pfizer went through major reorganizational restructuring and this included a downsizing exercise reducing the work force by 10% or 10,000 jobs world-wide.  In 2009 Pfizer had to deal with Civil and Crriminal investigations appropriate to the marketing and handling of the painkiller ‘Bextra’. This saw Pfizer having to pay out $2.3 billion in order to settle the legal dispute.

Figure 1 : Source 2008 Annual Report

In 2009 Pfizer acquired ‘Wyeth’ for a reported valuation of $68 billion. It has been put forward that this will see the new group cutting back on Research and Development costs and focusing in on specific product areas ” the combined company suggest it will narrow its focus to cancer, neurological disease, disorders, pain therapy, diabetes, heart and circulatory disease, antibacterial agents and vaccines”  (Firstworld Dossier, 2009)

Unfortunately Pfizer and many of the other large drug companies have a record of breaking the law with the Government Food and Drug Administration (FDA) Agency/ In 2004 the lawyers for Pfizer pleaded guilty on two accounts of felony; marketing a drig for unapproved use. This resulted in ” civil penalties and fines amounting to some $420 million”.  (Evans, 2010).

In 2004 Pfizer was in trouble with the US Health Fraud care unit in Boston “One of Pfizer’s units had been pushing doctors to prescribe an epilepsy drug called Neurontin for uses the Food and Drug Administration had never approved.”  (Evans, 2010). Pfizer eventially settled paying out $430 million and agreed to the courts that it would cease in the promotion of drugs for unauthorised uses.

In 2009 Pfizer was in court again. This time over the drug Bextra a painkiller. The charge was for misrepresenting the public on its applied use. The Company had been telling its sales and marketing people to promote the drig as a general painkiller when in fact it had only been cleared for Arthiritis and Menstrual pains. Pfizer paid the largest settlement in US history with a $1.19 billion settlement ” on the same day it settled a further $1 billion on civil cases involving Bextra in 49 other states”  (Evans, 2010).

The new group Wyeth has devotede a considerable amount of money, resource and effort into government lobbying..” Wyeth reported spending $682,000 on lobbying in the third quarter, mainly on similar issues. It also lobbied on several topics specific to its products or to drugs it has in development, including childhood immunizations, care for patients with Alzheimer’s, dietary supplements and regulation of pseudoephedrine, an ingredient in its Dimetapp cold medicine that can be used to make methamphetamine.”  (Chakraborty, 2009).

In 1996 Pfizer was conducting tests in Nigeria on bacterial melangitis.  The Company tested the drig on over 200 Nigerial children.  The argument was that the drug company conducted the tests on the children without the consentr of their parents and this subsequently resulted in 11 child deaths..” Pfizer and Kano state reached a final settlement in August 2009.  The parties agreed to a settlement figure of $75 million.  The amount of the settlement will be broken down as follows: $35 million to establish a fund for people that participated in the drug trial, $30 million will underwrite health care initiatives in Kano state and $10 million will be allocated to pay the state’s legal costs.”  (Business & Human Rights Resource Centre, 2010)

Sales of Lipitor the top selling anti cholestorol drug have seen a backlash from the patients being prescribed the drug from their doctors.  Consumers have started a class lawsuit against the company on the basis that they were not fully informed on the side effects of the drug” Patients taking Lipitor — the best-selling cholesterol medicine in the world with 22 million users — began suing Pfizer in June, alleging that the negative physical side effects such as muscle pain, nerve damage, nightmares, memory loss and other central nervous system problems were not properly explained when they were prescribed the drug.”  (NaturalNews, 2006).

Pfizer Corporation  has known legal disputes in Australia, Africa, The Philipines etc;  but nothing has been as significant as the Bextra case and the record payment that involved.  Although some aspecxts of this have lingered on .. October 17, 2008 TRENTON, N.J. (AP) — Drug giant Pfizer Inc. has reached an $894 million deal to end most of the lawsuits over its two prescription pain relievers, the popular Celebrex and a similar drug, Bextra, no longer on the market. (Johnson, 2008).

Works Cited

Business & Human Rights Resource Centre. (2010, 4 30). Case profile: Pfizer lawsuit (re Nigeria). Retrieved 5 1, 2010, from Business & Human Rights Resource Centre: http://www.business-humanrights.org/Categories/Lawlawsuits/Lawsuitsregulatoryaction/LawsuitsSelectedcases/PfizerlawsuitreNigeria

Chakraborty, A. (2009, 12 23). Pfizer spent $5.4 million lobbying government in 3rd quarter, nearly double a year ago. Retrieved 5 1, 2010, from Simple Thoughts: http://blog.taragana.com/index.php/archive/pfizer-spent-54-million-lobbying-government-in-3rd-quarter-nearly-double-a-year-ago/

Evans, D. (2009, 11 9). Pfizer Broke the Law by Promoting Drugs for Unapproved Uses . Retrieved 5 1, 2010, from Bloomburg.com: http://www.bloomberg.com/apps/news?pid=20601109&sid=a4yV1nYxCGoA

Evans, D. (2010, 3 28). Pfizer, other drug makers have history of breaking FDA rules. Retrieved 5 1, 2010, from The day.com: http://www.theday.com/article/20100328/BIZ02/303289916/1044

Firstworld Dossier. (2009, 10). The Pfizer Intelligence Dossier. Retrieved 5 1, 2010, from Firstworld Dossier: http://www.firstwordplus.com/FWD0141009.do

Johnson, L. A. (2008, 10 17). Board Reader. Retrieved 5 1, 2010, from Pfizer makes 894 Million Deal to End Lawsuits: http://boardreader.com/thread/Pfizer_makes_894_Million_Deal_to_End_Law_5h5tXtvo.html

NaturalNews. (2006, 8 1). Lipitor class action lawsuits expand; Pfizer cover-up alleged. Retrieved 5 1, 2010, from Natural News: http://www.naturalnews.com/020269_Pfizer_Lipitor_class_action_lawsuits.html

Wikinvest. (2010, 4). Pfizer (PFE. Retrieved 5 1, 2010, from Wikinvest: http://www.wikinvest.com/stock/Pfizer_(PFE)