Pfizer Inc.: Characteristics Of Debt And Equity Instruments

Debt capital: borrowing someone else’s money to finance the business under the condition that the money plus accrued interest must be paid back in full by an agreed upon date in the future

Debt financing, by contrast, is cash borrowed from a lender at a fixed rate of interest and with a predetermined maturity date. The principal must be paid back in full by the maturity date, but

However, the issuance of debt can have signalling effects for investors. Generally, when firms issue debt it signals to investors that the firm is in a good financial situation as the firm is able to undertake repayments of future interest.

A turnaround strategy needs to address the following: a suffered reputation, lost patent protection on several drugs, a slowing pipeline, and a decreasing stock price. Merck is not shying away from lawsuits and is taking cases to court. Its legal defense budget was increased, but it did not set aside funds for liabilities showing that it confident it will win. The opinions of 200 employees were solicited in deciding the company’s future strategy. Cutting costs

In 2000, Merck began to cooperate with Schering-Plough on several research products and in 2009 acquired their longtime partner in an effort to diversify its products and reach a broader consumer base. With challenges that include rising prices of research and prescription drugs, Merck has managed to forge forward and overcome obstacles. Merck’s survival has been a subject of speculation many times throughout the years; from the 2004 recall of their top selling drug (Vioxx) due to undesirable side effects to the recently curtailed trials of their very promising new anti-clotting drug (Vorapaxar) due to negative trial results. Kenneth Frazier, Merck’ CEO, has also come under heavy criticism due to his unconventional decision not to cut research budgets in order to increase profits. This strategy differs greatly from the usual path and it has cost Merck investor confidence which resulted in lowered stock prices . Although Merck has been subjected to challenges throughout their history they have always managed to stay afloat and maintain their reputation as a leader in healthcare.

Debt is a burden that is implemented by those who own it. Debt is the punishment for any group or person that dedicates their work to only helping those in need. Debt can only be lifted by those with enough money. An employer helps an employee 's debt in exchange for work, a student 's debt is alleviated if the University grants a scholarship, a bank receiving a bailout from the government ; or a person/group giving money, donating money to something or someone else. The only way that there is no cost to the receiver, is if the money were given. Workers must work for there money, a student must succeed in school, and a donation must be to a certain thing and

Pfizer Inc is a multinational investment company. It ventures in the medical and pharmaceutical industry. It is renowned as a giant pharmaceutical company, founded in 1849. It is based in the United States, New York, Manhattan at Midtown. It is the largest universal producer and trader of pharmaceuticals (Turner, 2005, pg 161). Some of the products availed to the market by the company are Lipitor, Lyrica, Diflucan, Zithromax, Zoloft, Viagra and Celebrex. These products are targeted to patients and persons in need of enhancements in their body systems and anatomy. It has an employee capacity of 12000 people in all its departmental sectors and sub-branches. The sub-branches are distributed all over and in all continents (Turner, 2005, pg 163).

In the last several years, Merck’s individual R &D department has not been able to keep pace with declining revenues from existing products. It is only through Mergers and Acquisitions that Merck has supplemented this income.

F remains the pharmaceutical firm because it has higher Margins due to the capacity to keep high drug prices. It also spends a significant amount on R&D while the competition is always coming up with a new product.

Pfizer is the largest American pharmaceutical company and one of the largest pharmaceutical companies in the world. It competes with Merck and Glaxo, and markets such well-known medications as Celebrex and Viagra. However, the pharmaceutical industry as a whole has undergone changes in recent years with significant consolidation taking place and with increased scrutiny regarding the ways in which drugs are developed, tested and marketed. In addition, recent controversies have erupted regarding Merck's drug Vioxx, and Pfizer has been the target of unwanted publicity regarding its painkiller Celebrex. This research considers the strategic position of Pfizer, including its strengths and weaknesses as well

Opportunities for Pfizer exist in two areas, first being the restructuring into a more lean and competitive organization and second is the penetration into emerging markets such as China and India who are now more able to purchase their products. With sales of approximately $50 billion per year, Pfizer has the opportunity to streamline its operations, cut costs, and add flexibility to the organization. If successful in this, they can better realize their profits and invest that money into future competitive products for the market.

6. Yes, we think that it is better for the society if companies use debt. This allows people who have extra funds and need to invest it to earn interest revenue on their funds. Debt is generally less risky than equity investing because as we know debt has certain maturity date and

There are two basic ways of financing for a business: Debt financing and equity financing. Debt financing is defined as 'borrowing money that is to be repaid over a period of time, usually with interest" (Financing Basics, 1). The lender does not gain any ownership in the business that is borrowing. Equity financing is described as "an exchange of money for a share of business ownership" (Financing Basics, 1). This form of financing allows the business to obtain funds without having to repay a specific amount of money at any particular time. There are also a few different instruments that could be defined as either debt or equity. One such instrument is stock options that an employee can exercise after so many years with the

Pfizer is known as one of the first and one of the world’s largest Pharmaceutical company that was establish in 1849. It was founded by two cousins called Charles Pfizer and Charles F. Erhart in New York City. Pfizer was as a manufacturer for fine chemicals but because of the discovery that was made in 1950 which made the company the path towards becoming the research-based pharmaceutical that it is update. The product that was first produced was the palatable form of sautonin which was used to treat intestinal worm. The Headquarters of Pfizer is located in New York City, with its research headquarters in Groton, Connecticut, which is nowadays the top multinational corporation that is sold all over the world. It is ranked as the second in the US and Japan market, and Novartis in first place and Roche in third place. The Pfizer Inc. is consisted with a trademark that is called PFIZER. Because of Pfizer’s strategies, Pfizer

Capital: The bank needs to know what assets the organization owns that can be quickly turned into cash.