Summary Essay Example | Topics and Well Written Essays - 500 words - 59

Summary - Essay Example in a competitive edge by developing a treatment drug for Alzheimer’s disease, of which 18 million people suffer around the world, Pfizer decided in 2008 to give Medivation a large amount of $225 million and $500 million more if it was able to successfully produce Dimebon. The feasibility of the drug as well as the extravagance of the deal were widely criticized, though past evidence from Russia suggested that the development of such a drug was possible. However, when the drug was tested by introducing it to moderate Alzheimer’s patients in phase 3 trials, it failed to achieve the expected goals. Consequently, with the termination of the partnership contract, the dreams of the two companies to gain a substantial edge in the Pharmaceutical industry collapsed too. Since Medivation used to rely heavily on its partnership with Pfizer to generate returns, the extinction of the agreement has resulted in more serious financial losses for Medivation in contrast to Pfizer. This is certainly not a good signal for Medivation as well as Pfizer. The stoppage of the development of Dimebon has caused financial setbacks to both the companies. During the first three quarters of 2011, Medivation’s shares have dropped drastically by 3.3%. At the same time, Pfizer’s stock rose only slightly by 0.4%. The plans of the two companies to become future leaders in the market have crashed along with their product. Consequently, the financial outcomes are bound to remain low for at least sometime in the future. As far as the competitors of the two companies are concerned, they have been presented with a very good opportunity to gain an edge in the market. The competitors are already aware of the significance which Alzheimer’s drug holds and the amount of sales it could trigger. Moreover, information about the failure of Medivation and Pfizer in phase 3 trial will result in competitors being further careful in developing the product and avoiding the mistakes which were committed by