Abbott is one of the most successful and oldest pharmaceutical and medical product companies in the United States. A Physician named Wallace Calvin Abbott started the small pharmaceutical operation from a kitchen in Chicago, in the late 1800’s. Morphine, quinine, strychnine, and codeine, which were all in liquid form, where commonly prescribed to patients by physicians, including Dr. Abbott himself. After hearing that a Belgium surgeon had developed alkaloids in solid form, Dr. Abbott found that he was dissatisfied with their quality and decided to manufacture his own. Abbott created “dosimetric granules”, which far exceeded the needs of his own practice because they provided more accurate ...view middle of the document...
Abbott Laboratories competes in a large industry that contains many similar giant competitors. Abbott holds a competitive and prominent position in the pharmaceutical industry, and key competitors within the pharmaceutical market include Merck, and Pfizer. Competition among competitors is intense with companies racing to launch new products before other companies release similar products.
Lipitor is Pfizers best selling drug with projected sales of $13 billion as its 12% sales decline in the USA was offset by higher international revenues and weak dollar. There were 20 blockbuster cardiovascular drugs in 2008 and the market leader was Lipitor followed by Plavix and Diovan.
Pfizer's drug pipeline is drying up. The company's researchers haven't made any key findings that have promise for a major new source of revenue. The Ranbaxy deal was a win for the company, yes, but it only delays the inevitable loss of revenue when Lipitor's patents expire.
Singulair is Merck’s best selling drug, this asthma medication had $4.3 billion in sales last year, which makes the pill Merck’s biggest seller. The patent doesn’t expire until 2012. But sales are becoming low.
To try and boost sales Merck is offering any $20 coupons for Singulair on its website and it extended its spring ad campaign into the summer.
In the past few years, performance of pharmaceutical companies has demonstrated the potential success or failure of numerous companies competing in the same industry. The pharmaceutical industry is a highly saturated industry in which many global companies compete. Abbott Laboratories is a research-based, global pharmaceutical company that discovers, develops, manufactures and markets leading prescription medicines as well as many of the world’s best known consumer healthcare products. Abbott’s products span from nutritional products and laboratory diagnostics through medical devices and pharmaceutical therapies.
Companies like Abbott, Pfizer, and Merck do business in other countries because moving profits from the United States to low tax jurisdictions, is the way successful U.S. pharmaceutical companies keep their taxes low. Corporate tax directors strive to reduce the tax rates to strengthen reported profits and stock prices. When one affiliate of a multinational corporation makes a sale or loan to another affiliate, profits are shifted. When the terms of the transactions are set so that affiliates in low-tax countries get the better deals, the low-tax affiliates get larger shares of the profits and the multinational group reduces its overall income tax burden. This all works because drug prices are generally considered to be higher in the United States than in other countries.
Merck & Company is also a global pharmaceutical and chemical company, and a soon to be former market leader in the laboratory distribution business. Merck’s research and development expenditure increased slightly to become one...