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Market Analysis of Pharmaceutical Sector
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VIT BUSINESS SCHOOL
Market Analysis of
Pharmaceutical Sector Pfizer
Jeevan Raj
Contents VIT Business School: ............................................................................................................................. 3
Introduction to Pharmaceutical Sectors ................................................................................................. 4
Market Share Analysis............................................................................................................................. 5
Turnover in Billions of Top 10 Companies .............................................................................................. 5
Interpretation ......................................................................................................................................... 5
Capital Labour Ratio ................................................................................................................................ 6
Introduction ............................................................................................................................................ 6
Interpretation ......................................................................................................................................... 6
Employee Strength and Turnover ........................................................................................................... 7
Company Analysis ................................................................................................................................... 7
Prediction of Share Price by Weka Introduction..................................................................................... 7
Forecast of share price using SPSS Software .......................................................................................... 8
Conclusion ............................................................................................................................................. 11
VIT Business School:
VIT University was established in 1984 by well-known educationalist and former
parliamentarian, Dr. G. Viswanathan, Founder and Chancellor. Dr. V. Raju, Former
Professor of State University of New York, USA, currently the Vice Chancellor, Dr.
Anand A. Samuel, Pro-Vice Chancellor. Chennai Campus is in Vandalur-Kelambakkam
Road.VIT University has more than 17 Bachelor’s and 32 Masters’ programmes, 29000
(including 1000 foreign students from 44 countries) and 4000 faculty members
Accreditation:
The National Assessment and Accreditation Council (NAAC) of the University Grants
Commission (UGC) has accredited the university with a 'A'.
The Institution of Engineering and Technology (IET), and the Energy Institute, UK have
audited the teaching-learning processes at VIT and accredited the programmes in 2004,
with the highest validity of five years
Programmes at VIT are accredited by the Institution of Engineers, India (IEI).
The Accreditation Board for Engineering and Technology (ABET) of the USA accredited
the Civil, Mech, CSE, biomedical, ECE, EEE programmes.
VIT Business School, under the aegis VIT University has created a niche for itself as an
institution promoting excellence in management education and research with Dr. M J Xavier
as its Executive Director.
Introduction to Pharmaceutical Sectors
Pharmaceutical industries play a major role in the developing world. Pharmaceutical Industries
develop, manufactures and produces drugs licensed for use as medications. The Drugs which are
manufacturing are subject to a variety of laws and regulations regarding the patenting, testing and
ensuring safety and efficacy and marketing of drugs. Most of today's major pharmaceutical
companies were founded in the late 19th and early 20th centuries. As diseases are growing more in
number, It is a great challenge for researchers and scientist to develop new drugs in the present
scenario.
Numerous new drugs were developed during the 1950s and mass-produced and marketed through
the 1960s. These included the first oral contraceptive, "The Pill", Cortisone, blood-pressure drugs
and other heart medications. MAO inhibitors, chlorpromazine (Thorazine), haloperidol (Haldol) and
the tranquilizers ushered in the age of psychiatric medication. Diazepam (Valium), discovered in
1960, was marketed from 1963 and rapidly became the most prescribed drug in history, prior to
controversy over dependency and habituation.
The pharmaceutical industry entered the 1980s pressured by economics and a host of new
regulations, both safety and environmental, but also transformed by new DNA chemistries and new
technologies for analysis and computation. Drugs for heart disease and for AIDS were a feature of
the 1980s, involving challenges to regulatory bodies and a faster approval process.
Drug development progressed from a hit-and-miss approach to rational drug discovery in both
laboratory design and natural-product surveys. Demand for nutritional supplements and so-called
alternative medicines created new opportunities and increased competition in the industry.
Market Share Analysis
Turnover in Billions of Top 10 Companies
Interpretation From the distribution of sales turnover of top 10 Pharmaceutical companies, it is noted that
Johnson & Johnson has excelled in its volume of sales and revenue generation with a
turnover of 67200 Billion, followed by Pfizer with a turnover of 58986 Billion. Novartis
holds the third position with a turnover of 56673 Billion.
59
56
45
67
47
40
46 23 27 39
Pfizer
Novartis
Roche
Johnson & Johnson
Merck & Co
GlaxoSmithKline
Sanofi
Eli Lilly
AstraZeneca
Abbott Laboratories
Capital Labour Ratio
Introduction The following bar chart is a graphical representation of Labour capital ratio. Labour
Capital Ratio is calculated by Firm’s Capital by Number of employees.
Interpretation
From the findings it is inferred that Johnson & Johnson has a highest Labour Capital Ratio. Pfizer
stands in the second position and GlaxoSmithKline stands in the third position.
0 0.1 0.2 0.3 0.4 0.5 0.6 0.7
Pfizer
Novartis
Roche
Johnson & Johnson
Merck & Co
GlaxoSmithKline
Sanofi
Eli Lilly
AstraZeneca
Abbott Laboratories
Labour Capital Ratio
Labour Capital Ratio
Employee Strength and Turnover
Company Analysis
Prediction of Share Price by Weka
Introduction Weka is a collection of machine learning algorithms for data mining tasks, Weka is used here to
forecast the share price of Pfizer using data of the last traded price. The forecast uses data of
0
20000
40000
60000
80000
100000
120000
140000
Turn Over in Millions
No of Employees
previous month. Horizontal axis indicates the last traded share price. The bold red line indicates the
last trade price until available data, and the jotted lines indicate the predicted price.
Interpretation
The prediction of the share price of Pfizer was done using Weka and it proved successful to gauge
the price. In the above prediction it is inferred that the price Increases gradually.
Forecast of share price using SPSS Software Introduction
SPSS Software package was used for statistical analysis of data using dependent and independent
variables to forecast the share price of Pfizer. Different variables such as last traded price, Opening
price, High price were used to forecast the share price. Data for analysis was taken for a period of 1
month prior to analysis. The blue line indicates the actual opening price of the share whereas the red
line indicates the forecasted price.
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
200000
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
Forcasted Value
Original Price
Interpretation
The level of accuracy for the forecast was high, it is inferred from the forecast that the share
price increased during end of July 2014, and dipped during the following month to rise again
at the end of June and subsequently rising till August 2014 where it touched its peak and
finally stabilized during the end of August. The analysis was 94% accurate.
Conclusion Pfizer is one of the top leading pharmaceutical Company in the world. It is founded in 1849.
Pfizer has its headquarters in New York, USA. Pfizer products and drugs have been served
worldwide. It has generated revenue of 58,986 Billion in 2013, and has employee strength of
91,500. When compared to other Pharmaceutical companies, Pfizer is pretty good in all
aspects.
Market Share Analysis
From the distribution of sales turnover of top 10 Pharmaceutical companies, it is noted that
Johnson & Johnson has excelled in its volume of sales and revenue generation with a
turnover of 67200 Billion, followed by Pfizer with a turnover of 58986 Billion. Novartis
holds the third position with a turnover of 56673 Billion.
Labour Capital Ratio
From the findings it is inferred that Johnson & Johnson has a highest Labour Capital Ratio.
Pfizer stands in the second position and GlaxoSmithKline stands in the third position.
Weka Prediction
The prediction of the share price of Pfizer was done using Weka and it proved successful to
gauge the price. In the above prediction it is inferred that the price Increases gradually.
SPSS Forecasting
The level of accuracy for the forecast was high, it is inferred from the forecast that the share
price increased during end of July 2014, and dipped during the following month to rise again
at the end of June and subsequently rising till August 2014 where it touched its peak and
finally stabilized during the end of August. The analysis was 94% accurate.
For Further details Contact:
Dr P James Daniel Paul, Professor, VIT- BS, Chennai, [email protected] Tel: +91 44 3993 1040 HP: +91 98402 94590 Mr. Jeevan Raj, Student, VIT-BS, Chennai, [email protected] Tel: +919944899472
