At the same time, the real disposable income has shown a positive trend and indicates that the personal income of the US citizens is increasing but still it remains below the former level. With particular reference to the health care, the sector has received the boost as the average life span and median age of the US citizen and around the globe has improved. This has resulted due to the advancements in the pharmaceutical sector and indirectly impacted its revenue growth over the years.
"A global depression has been averted. The world economy is recovering, and recovering better than we had previously thought likely1." The economy is expected to perform to better in the near future with a growth rate of 3.1% expected in the current year. The economists and investors around the globe have shown the optimism in their acts. However, the future still remains uncertain as most of the governments are running in huge deficits due to the fiscal stimulating programs. The governments have injected billions of dollars to revive the economy and to keep the business cycle in continuum (Schuman, 2010).
The two giants of the US drug sector, Pfizer and Merck, beat the estimate of the financial analysts for the quarterly result. These companies were supported by reduced costs as a result of the recent merger activity. This will also boost their revenue activity in the coming years. (Pierson, 2010)
Based on above information, Pfizer is the market leader in sales generation due to its sheer size, workforce and global operations. At the same time, it is not able to curtail its increasing expenses and has low efficiency. Pfizer contributes 17 cents to the final income for every $1 transaction as compared to Merck contributing 47 cents to the net income for every $1 transaction. As a result, it has a very low profit margin as compared to its rival. The lesser earnings as a