Pfizer wants to become more like J&J - easier said than done

Jacob Goldstein posts at the Wall Street Journal Health blog that Pfizer's Jeff Kindler is quoted by Bloomberg as saying that:

“We are breaking the company down into smaller units so we aren’t dependent on any single product. I am a great admirer of J&J and Abbott’s business model.”

While Kindler expresses admiration for J&J and Abbott, the article goes on to stress that Pfizer is a long way from replicating the business models of those two companies.

Goldstein goes on to write:

If you were about to lose a $12 billion-a-year blockbuster, you too would be eager to be less dependent on any single product. J&J is indeed a famously decentralized company, and Kindler last year said he would reorganize Pfizer into smaller business units.

What’s more, the Wyeth acquisition will help Pfizer diversify into businesses such as animal health, consumer products and vaccines.

But the buy will hardly turn Pfizer into another J&J. Pfizer will likely pull in less revenue from Wyeth’s consumer health division (which includes brands such as ChapStick and Advil) than it drew from its old consumer health business, which it sold in 2006 to J&J.

What’s more, Pfizer still won’t be a player in the medical device business, which has been central to Abbott’s growth and a key piece of J&J’s revenues.

Way back in the ’90s, Pfizer had its own medical devices unit. But the prescription drug business was booming at the time, so the company sold off its medical device business.

The question now is - Does Pfizer intend to go out an acquire a Medical Device company in a bid to remake their company?

Thomas Friedman - Invest in Biotech, Nanotech and Clean Tech

Thomas Friedman has a great piece in yesterday's NY Times. In a nutshell, Friedman thinks we should not be bailing out the economy's losers. Friedman writes:

"Our motto should be, 'Start-ups, not bailouts: nurture the next Google, don’t nurse the old G.M.’s.'"

Friedman elaborates his point when he writes:

"Yes, we have to shore up the banking system, which underpins everything; and finding a fair way to prevent hardworking people, who played by the rules, from losing their homes to foreclosure is both right and essential for stability. But beyond that, let’s think, talk and plan in more aspirational ways. We’re down, but we’re not out. As we invest taxpayer money, let’s do it with an eye to starting a new generation of biotech, info-tech, nanotech and clean-tech companies, with real innovators, real 21st-century jobs and potentially real profits for taxpayers."

Phenomenal stuff...and as usual Friedman is spot on in his assessment of what we need to do as we move forward to the Next Economy.

Career Adventure Blog

I just discovered a great blog by Kristi Daeda called Career Adventure.
Kristi is an HR professional and a Career Coach who I met on Twitter.
The posts on her blog are excellent and full of specific and tangible information that will be of help to any job seeker. Go over to her site and take a look....you will definitely learn something.

Job Hunting is all about Networking

David Rosman writing in the Columbia Business Times has a great article about Job Hunting.
You can read the article here.
Rosman's main premise is that Networking is what is going to help the majority of people find jobs. He also talks about JobAngels, which is "a 'grassroots' non-profit organization whose mission is to connect talented career professionals with those searching for work."
The work of the people involved with JobAngels further underscores the importance of networking.
Rosman closes the article with some solid advice:
There are four “Rosman Maxims” concerning the planning and execution of a career hunt. First, your future employer only cares how you can make them money, save them money or save them time. What you want is not even on the radar.
Second, a résumé will never get you the interview. But a well written, documented and professional résumé will reduce the likelihood of being first on the rejection pile.
Third, “It you tell enough people what you want, you will eventually get it.” Network, network, network. The idea that the majority of jobs are never advertised may or may not be true. However, with many companies now looking for qualified professionals, the more people in the field who know you are available, the higher the likely hood you will hear about the opening.
Fourth, “SW/SW/SW/N.” This goes along with the “If at first you don’t succeed” idea. You are going to get rejection letters; that is a fact of life. Yet another fact, many potential employers may never get back to you. These are not personal rejections. Just put a smile on your face and remember, “Some will. Some won’t. So what. Next!”

Get a copy of The Innovator's Prescription

I am in the middle of a phenomenal book entitled The Innovator's Prescription by Clayton Christensen. The book provides a comprehensive blueprint for repairing our health care system.
I will discuss the book in more detail in later posts. But if you are involved in any way in the Pharmaceutical Industry...drop everything and get yourself a copy of this book. It is not an easy read. It will make you think. But it is absolutely brilliant!

Who is Sanofi-Aventis gonna buy?

Reuters reports that Sanofi-Aventis is in the market to make an acquisition.
The article states that:

Sanofi has been mentioned as a possible buyer of Dutch vaccines maker Crucell (CRCL.AS), which has a market value of about 1 billion euros, and there has also been speculation it could make a play for its U.S. partner Bristol-Myers Squibb (BMY.N), which has a market value of around $45 billion.

My gut feeling is BMS is not a target. BMS is too big. Various other news outlets speculate while Sanofi is willing to open up it's purse strings....their targets are more likely to be small and mid-level companies. And the word on the street is that Sanofi is content to leave the big mega-mergers to Pfizer.

P&G to exit the Pharma Industry

The Financial Times is reporting that P&G may be looking to exit the Pharma industry.
The article states that:

Mr Lafley [P&G's CEO] said that when P&G had been investing heavily in pharmaceuticals in the 1990s, the returns had been well above those from consumer products. “Today, pharma companies trade at multiples at or below consumer products,” he said.

He also drew attention to greater regulatory obstacles within the pharmaceuticals industry, and increased competition from generics that reduces the pay-off of companies’ research and development.

Mr Lafley said that in weighing potential divestitures, its primary focus in making decisions would be “creating maximum value for P&G shareholders”.

This is probably a wise move for P&G. The company never seemed fully committed to the Pharma industry. People in P&G's Pharma division have always told me that they felt that the Company's primary focus was on the Consumer Goods side of the business. P&G is a wonderful Consumer Prouducts company....but developing Pharmaceuticals is a whole lot different than making Shampoos.

Merck to go shopping?

It looks like Pfizer is not the only Pharma Company with it's checkbook out.
The Wall Street Journal quotes Merck's Chief Executive Richard Clark as saying that "Merck would look 'across the whole spectrum' of deals, including a major takeover. 'I don't think in today's world any CEO can categorically rule out any type of transaction,' "

Traditionally Merck has been proud of its internal R&D programs.
But now apparently Merck wants to go shopping too.