Devotion

Philippians 4:13 I can do all things

(NKJV) through Christ
who strengthens
me.

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 Strategy and
Serendipity:
A Billion-Dollar
Business
Hello!
Matindas, Glendy David Mandang, Gracia
Sampul, Julitha Naomi Pinatik, Garry Ricky
Sampelan, Grachela Goni, Baverly Hiliary
Kansil, Santo Michael

Group 2
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1 company
background
and case
outline
Pfizer Inc.
Pfizer Inc. is an American multinational
pharmaceutical corporation headquartered in
New York City. It is the world's largest
pharmaceutical company. Now, it is listed on
the New York Stock Exchange.

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Pfizer Inc.
Pfizer was first established since 1849 by
Charles Pfizer and Charles Erhart.

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Pfizer Inc.
In the 1990s, researchers at Pfizer
developed the compound UK-95,480 as a
potential drug to treat heart disease. In their
research, they focused on two things:
preventing blood clots and enhancing blood
flow. The drug did not achieve the desired
effects in human trials, but some men in the
test group reported an unexpected side-effect:
prolonged erections. Pfizer’s managers were
quick to turn this unintended result into the
blockbuster drug Viagra.
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Icos Corp.
Icos Corporation is an American biotechnology
company and the largest biotechnology company in the
US state, Washington. Founded in 1989 by David
Blech, Isaac Blech, Robert Nowinski, and George
Rathmann ,Icos is focused on developing drugs to treat
inflammatory disorders. During a 17-year history, the
company conducted clinical trials of twelve drugs, three
of which reached the final stage of clinical trials. Icos
also produced antibodies for other biotech companies.

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Icos Corp.
In the mid-1990s, the biotech firm Icos was developing
a new treatment for hypertension. Code-named IC-351,
the drug moved quickly to clinical trials because of
encouraging lab results. Then, unexpected things
happened. First was the unusually high compliance rate
of patients who took the medication required by the
trial, especially males in their 50s, despite the fact that
IC 351 turned out to be ineffective in treating
hypertension. The second surprise was that many male
patients refused to return their surplus pills. The reason:
their improved sex life. Icos’ IC-351 had failed to treat
hypertension but succeeded in treating ED. Marketed
as Cialis, it is a major competitor to Viagra. 9
Icos Corp.
icos was acquired by lilly for over $2 billion in
2007, so the logo became:

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Strategy
The competition in the ED market is becoming
more intense, however, because Pfizer’s
patent on Viagra is set to expire in 2020. In the
meantime, the pharmaceutical company Teva
will begin manufacturing and selling a generic
version of Viagra in late 2017 under a deal it
signed with Pfizer. Lilly’s patent on Cialis is set
to expire in late 2017. Lilly is working with the
pharmaceutical company Sanofi on a deal that
would make Cialis available over-the-counter,
and thus the drug could be purchased without
a prescription. 11
Serendipity
So because of the incident termed serendipity
experienced by these two companies, they
managed to get business worth more than
billion dollars a year, but they also did not get
it by chance because they could take
advantage of it with the strategies they used.

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2
Discussion
Questions
 Question 1
* Do you think “serendipity is random,”
as some say? Why or why not?

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 Question 2
* What does the discovery of Viagra
and Cialis tell us about
the strategic management process?
About the role of strategic initiatives?

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 Question 3
* Which model of the strategic management
process best explains
the Viagra/Cialis story? Why?
What is the role, if any, of the
strategic leader in this process? Explain.

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 Question 4
* If you were to design a strategic
management process where
“serendipity” is becoming less random,
what process would you put in place?
Which type of companies could
benefits from such a process?

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 Question 5
* Although Viagra is a multibillion-dollar
business for Pfizer, what is your prediction
concerning Pfizer’s profits from Viagra when
a generic version is available?
What would be a way for Pfizer to respond?

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 Question 6
* Why would Lilly pursue an
over-the-counter deal (with Sanofi)
rather than a generic drug-licensing
deal as Pfizer (with Teva) did?

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Thanks!
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