Raise Prices to Improve Revenues and Margins
CHOICE 1 OBJECTIVE: RAISE PRICE WITH NO CHANGE IN PERFORMANCE AND COST
CHOICE 2 ISOLATE SEGMENTS: DUE TO A UNIQUE FUNCTION
CHOICE 3 COMPONENTS: CHANGE THE BASIS OF CHARGE
| No. | SIC | Year | Notes |
| 1 | 2834 | 2004 | Four of Pfizer's big-selling drugs are due to lose patent protection in the next three years, but Pfizer thinks it can use its size to muscle its way out of trouble. However, playing hardball with Pfizer is tougher. If a company favors another company's medicine over Pfizer's, say Lipitor, it could mean that the benefit manager will have to pay more for Pfizer's Lipitor and Zoloft. Other pharmaceutical companies try similar tactics, but don't have such a broad menu of drugs to use as a negotiating tool. Pfizer also shuns clauses in contracts with benefit managers. Pfizer has also eliminated discounts for some hospitals that had been offered by Pharmacia, another drug company that Pfizer acquired in April 2003. Hospitals pay for Pharmacia drugs now sold by Pfizer, with an average price increase of 24% for the drugs. |
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