In 2018, President of the United States, Donald Trump, criticized the company Pfizer Inc. (Pfizer) for increasing drug prices—which had been a strategic move by Pfizer in response to industry-wide challenges. This announcement highlighted the complex dynamics of the pharmaceutical industry and the big challenges that innovative research and development (R&D)–intensive pharmaceutical companies faced. The entire pharmaceutical industry was being challenged by issues such as decreasing global average returns on investment and increased R&D costs. In addition, the company faced increased competition from companies from other industries and from emerging-market companies. Pfizer’s chief executive officer needed to determine whether or not these changes marked a turning point for the whole industry.
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