EX-99 2 a6591760ex99.htm EXHIBIT 99

Exhibit 99

Pfizer Reports Fourth-Quarter and Full-Year 2010 Results; Provides 2011 Financial Guidance and Updates 2012 Financial Targets

  • Fourth-Quarter 2010 Revenues of $17.6 Billion; Full-Year 2010 Revenues of $67.8 Billion
  • Fourth-Quarter 2010 Adjusted Diluted EPS(1) of $0.47, Reported Diluted EPS(2) of $0.36; Full-Year 2010 Adjusted Diluted EPS(1) of $2.23, Reported Diluted EPS(2) of $1.02
  • Achieves Full-Year 2010 Financial Guidance; Provides Full-Year 2011 Financial Guidance
  • Maintains Full-Year 2012 Adjusted Diluted EPS(1) Target; Reduces Full-Year 2012 Revenue Target
  • Announces Significant Increase in Planned Share Repurchases and Significant Decrease in Planned R&D Spending

NEW YORK--(BUSINESS WIRE)--February 1, 2011--Pfizer Inc. (NYSE: PFE):

                 
($ in millions, except per share amounts)          
  Fourth-Quarter

Full-Year

2010   2009   Change 2010   2009 Change
Reported Revenues $ 17,561 $ 16,537 6 % $ 67,809 $ 50,009 36 %
Reported Net Income(2) 2,890 767 277 % 8,257 8,635 (4 %)
Reported Diluted EPS(2) 0.36 0.10 260 % 1.02 1.23 (17 %)
Adjusted Income(1) 3,770 3,825 (1 %) 17,983 14,202 27 %
Adjusted Diluted EPS(1) 0.47 0.49 (4 %) 2.23 2.02 10 %
                         

See end of text prior to tables for notes.

 

Pfizer Inc. (NYSE: PFE) today reported financial results for fourth-quarter and full-year 2010. Since the acquisition of Wyeth was completed on October 15, 2009, fourth-quarter and full-year 2009 results reflect the legacy Wyeth operations from the acquisition date through Pfizer’s domestic and international year-ends (see note 17); results for all periods in 2010 reflect the legacy Wyeth operations. Fourth-quarter 2010 revenues were $17.6 billion, an increase of 6% compared with $16.5 billion in the year-ago quarter. Revenues for fourth-quarter 2010 compared with the year-ago quarter were favorably impacted by $2.3 billion, or 14%, due to legacy Wyeth products, negatively impacted by $1.2 billion, or 7%, due to legacy Pfizer products, and negatively impacted by $70 million, or 1%, due to foreign exchange. For fourth-quarter 2010, U.S. revenues were $7.2 billion, a decrease of 3% compared with the year-ago quarter. International revenues were $10.3 billion, an increase of 13% compared with the prior-year quarter, which reflected 14% operational growth partially offset by a 1% unfavorable impact of foreign exchange. U.S. revenues represented 41% of total revenues in fourth-quarter 2010 compared with 45% in the year-ago quarter, while international revenues represented 59% of total revenues in fourth-quarter 2010 compared with 55% in the year-ago quarter.


For full-year 2010, revenues were $67.8 billion, an increase of 36% compared with $50.0 billion in full-year 2009. Revenues for full-year 2010 compared with full-year 2009 were favorably impacted by $18.1 billion, or 37%, due to legacy Wyeth products, and by $1.1 billion, or 2%, due to foreign exchange, and negatively impacted by $1.4 billion, or 3%, due to legacy Pfizer products. U.S. revenues were $29.0 billion, an increase of 34% compared with full-year 2009. International revenues were $38.8 billion, an increase of 37% compared with full-year 2009, which reflected 33% operational growth and a 4% favorable impact of foreign exchange. U.S. revenues represented 43% and international revenues represented 57% of total revenues for full-year 2010, comparable with full-year 2009.

Business Revenues

Pfizer operates two distinct commercial organizations: Biopharmaceutical and Diversified. Biopharmaceutical includes the Primary Care, Specialty Care, Established Products, Emerging Markets and Oncology customer-focused units, while Diversified includes Animal Health, Consumer Healthcare, Nutrition and Capsugel.

       
  Fourth-Quarter(13)
            Operational

 

 

Foreign

 

 

Legacy

($ in millions)

2010  

2009(13)

 

Change

Exchange

Total

Pfizer

 
Primary Care(3) $ 5,886 $ 6,546 (10 %) -- (10 %) (11 %)
Specialty Care(4) 4,014 2,950 36 % (2 %) 38 % (11 %)
Established Products(5) 2,414 2,792 (14 %) -- (14 %) (10 %)
Emerging Markets(6) 2,368 1,887 25 % 2 % 23 % 3 %
Oncology(7)   369   431   (14 %) (2 %) (12 %) (14 %)
 
Biopharmaceutical   15,051   14,606   3 % (1 %) 4 % (9 %)
 
Animal Health(8) 976 901 8 % -- 8 % (4 %)
Consumer Healthcare(9) 758 494 53 % 1 % 52 % N/A
Nutrition(10) 492 191 158 % 8 % 150 % N/A
Capsugel(11)   207   223   (7 %) (2 %) (5 %) (5 %)
 
Diversified   2,433   1,809   34 % 1 % 33 % (4 %)
 
Other(12)   77   122   (37 %) (12 %) (25 %) (25 %)
 
Total $ 17,561 $ 16,537   6 % (1 %) 7 % (9 %)
                                         

See end of text prior to tables for notes.

N/A – Not applicable


For fourth-quarter 2010, revenues from Biopharmaceutical were $15.1 billion, an increase of 3% compared with $14.6 billion in the year-ago quarter. Operationally, revenues increased $515 million, or 4%, which included $1.6 billion, or 11%, attributable to legacy Wyeth products, primarily Premarin and Pristiq in the Primary Care unit, Enbrel and the Prevnar/Prevenar franchise in the Specialty Care unit, Protonix in the Established Products unit as well as Enbrel and the Prevenar franchise in the Emerging Markets unit, partially offset by a decline of $1.1 billion, or 8%, due to legacy Pfizer products, primarily Lipitor and Norvasc. The impact of foreign exchange on Biopharmaceutical revenues was immaterial.

Within the Biopharmaceutical units, legacy Pfizer operational performance was impacted in fourth-quarter 2010 compared with the year-ago quarter primarily by the loss of exclusivity of certain products and European pricing pressures, among other factors. Legacy Pfizer Primary Care unit revenues in fourth-quarter 2010 were negatively impacted by the loss of exclusivity of Lipitor in Canada and Spain in May 2010 and July 2010, respectively, as well as Aricept in the U.S. in November 2010. Taken together, the loss of exclusivity for these products reduced legacy Pfizer Primary Care revenues by approximately $500 million, or 8%. Additionally, legacy Pfizer Primary Care revenues were negatively impacted by Developed Europe pricing pressures and U.S. healthcare reform and positively impacted by growth from select brands, including Lyrica, Champix and Celebrex, among others, in key international markets, most notably Japan. Legacy Pfizer Specialty Care unit revenues were also negatively impacted by Developed Europe pricing pressures and U.S. healthcare reform as well as an overall decline in certain therapeutic markets. Legacy Pfizer Established Products unit revenues were mainly impacted by the loss of exclusivity of Norvasc in Canada in July 2009. Lastly, legacy Pfizer Emerging Markets unit revenues were negatively impacted by the loss of exclusivity of Lipitor in August 2010 and Viagra in June 2010, both in Brazil, as well as Emerging Europe pricing pressures, but positively impacted by growth in key markets, including China and Brazil.


For fourth-quarter 2010, revenues from Diversified were $2.4 billion, an increase of 34% compared with $1.8 billion in the year-ago quarter. This increase of $624 million was primarily attributable to legacy Wyeth products, principally Advil, Caltrate and Centrum in Consumer Healthcare and infant and toddler Nutrition products. The impact of foreign exchange on Diversified revenues was immaterial.

Reported Net Income(2) and Reported Diluted EPS(2)

For fourth-quarter 2010, Pfizer posted reported net income(2) of $2.9 billion, an increase of 277% compared with $767 million in the prior-year quarter, and reported diluted EPS(2) of $0.36, an increase of 260% compared with $0.10 in the prior-year quarter. For full-year 2010, Pfizer posted reported net income(2) of $8.3 billion, a decline of 4% compared with $8.6 billion in full-year 2009, and reported diluted EPS(2) of $1.02, a decline of 17% compared with $1.23 in full-year 2009. Fourth-quarter 2010 results were favorably impacted by revenues from legacy Wyeth products and substantially lower restructuring charges associated with the Wyeth acquisition, and negatively impacted primarily by lower revenues from legacy Pfizer products, expenses associated with the legacy Wyeth operations and an additional charge for asbestos litigation related to our wholly owned subsidiary Quigley Company, Inc. For full-year 2010, results were impacted by the aforementioned items as well as the favorable impact of foreign exchange and the unfavorable impact of impairment charges related to certain intangible assets acquired in connection with the Wyeth acquisition, higher purchase accounting adjustments and integration charges associated with the Wyeth acquisition as well as higher net interest expense primarily due to borrowings used to partially fund the Wyeth acquisition.

Additionally, in fourth-quarter 2010, Pfizer reached a settlement with the U.S. Internal Revenue Service related to issues the Company was appealing regarding the audits of the Pfizer Inc. and Pharmacia tax returns for multiple years. As a result of this settlement, the Company reduced its unrecognized tax benefits by approximately $1.4 billion in tax and approximately $600 million in interest and recorded a corresponding tax benefit to its income tax provision in fourth-quarter 2010, resulting in a favorable impact on net income.


Further, reported diluted EPS(2) in full-year 2010 was impacted by the increased number of shares outstanding in comparison with full-year 2009 resulting from shares issued to partially fund the Wyeth acquisition.

Adjusted Income(1) and Adjusted Diluted EPS(1)

Fourth-quarter 2010 adjusted income(1) was $3.8 billion, comparable with the year-ago quarter, and adjusted diluted EPS(1) was $0.47, a decrease of 4% compared with $0.49 in the year-ago quarter. For full-year 2010, Pfizer posted adjusted income(1) of $18.0 billion, an increase of 27% compared with $14.2 billion in full-year 2009, and adjusted diluted EPS(1) of $2.23, an increase of 10% compared with $2.02 in full-year 2009. Results were favorably impacted by revenues from legacy Wyeth products, and unfavorably impacted by expenses associated with the legacy Wyeth operations as well as lower revenues from legacy Pfizer products and, particularly in full-year 2010, higher net interest expense primarily due to borrowings used to partially fund the acquisition of Wyeth. For full-year 2010, results were favorably impacted by foreign exchange.

In addition, the effective tax rate on adjusted income(1) decreased to approximately 26% in fourth-quarter 2010 compared with approximately 28% in fourth-quarter 2009, and was approximately 30% in both full-year 2010 and 2009. The decrease in the effective tax rate on adjusted income(1) in fourth-quarter 2010 compared with fourth-quarter 2009 was primarily due to the extension of the U.S. research and development credit signed into law in December 2010 and the change in the jurisdictional mix of earnings in the respective periods.

Additionally, adjusted diluted EPS(1) in full-year 2010 was impacted by the increased number of shares outstanding in comparison with full-year 2009 resulting from shares issued to partially fund the Wyeth acquisition.


In fourth-quarter 2010, adjusted cost of sales(1) as a percentage of revenues was 21.5% compared with 17.5% in fourth-quarter 2009. This increase primarily reflects the change in the mix of products and businesses as a result of the Wyeth acquisition. Excluding the impact of foreign exchange, adjusted cost of sales(1) as a percentage of revenues was 20.7% in fourth-quarter 2010.

Adjusted SI&A expenses(1) were $5.7 billion in fourth-quarter 2010, an increase of 7% compared with $5.3 billion in the prior-year quarter. This increase was attributable primarily to the legacy Wyeth operations. Foreign exchange decreased fourth-quarter 2010 adjusted SI&A expenses(1) by $15 million compared with the year-ago quarter.

Adjusted R&D expenses(1) were $2.8 billion in fourth-quarter 2010, essentially flat compared with the prior-year period. This was attributable primarily to cost reductions that were offset by legacy Wyeth operations and continued investment in the late-stage development portfolio. Foreign exchange decreased fourth-quarter 2010 adjusted R&D expenses(1) by $9 million compared with the year-ago quarter.

Overall, foreign exchange increased adjusted total costs(14) by $96 million, or 1%, in fourth-quarter 2010 compared with the prior-year.

Executive Commentary

Ian Read, President and Chief Executive Officer, stated, “I am pleased with our solid financial performance again this quarter and this year despite continued challenging market conditions. Pfizer has a strong asset base across various therapeutic areas and geographies in addition to a promising late-stage product pipeline, which I believe positions us well going forward.”

“After evaluating our operating plans and capital allocation opportunities, we have adjusted our 2012 revenue target to exclude the projected contribution from future business development transactions and have reallocated funding to support an attractive, near-term opportunity to significantly increase our share repurchase activity. As announced today, the Board has authorized an additional share repurchase program for up to $5 billion, which increases our total current authorization to $9 billion. During 2011, we anticipate repurchasing approximately $5 billion of our common stock, with the remaining authorized amount available in 2012 and beyond. These repurchases are not expected to constrain our ability to continue dividend increases or to pursue bolt-on acquisitions.”


“We continue to closely evaluate our global research and development function and will accelerate our current strategies to improve innovation and overall productivity. Key steps in this process include greater focus in disease areas of greatest scientific, medical and commercial opportunity, a realigned global R&D footprint to increase our presence in key biomedical innovation hubs, and an increased level of outsourcing for services that do not drive competitive advantage for Pfizer. Furthermore, we plan to enhance internal programs that are designed to strengthen pipeline delivery and differentiated innovation. As a result of these actions, we expect to reduce adjusted R&D expenses(1) to between approximately $6.5 to $7.0 billion in 2012 compared with our previous target of $8.0 to $8.5 billion.”

“We believe that the planned increase in share repurchases and the decrease in research and development spending will serve to provide a greater degree of certainty and a more clearly defined path for us to achieve our 2012 adjusted diluted EPS(1) target of between $2.25 and $2.35.”

Mr. Read concluded, “In addition, during 2011 we expect to complete our ongoing review of the composition of our business portfolio to determine the optimal mix of businesses that we can appropriately fund and manage in order to achieve consistent growth and maximum return on investment. We believe these decisions, taken together, will continue to improve our business profile and provide both near-term and longer-term financial benefit.”

Frank D’Amelio, Chief Financial Officer, stated, “Our continued confidence in the business and our ability to meet our commitments and capitalize on near- to mid-term growth opportunities are clearly reflected in the achievement of our 2010 financial guidance, including our projected cost savings from the Wyeth integration, of which more than $2.0 billion was achieved in 2010, our 11% dividend increase announced in December 2010, our additional share repurchase program and recent business development transactions. Further, our 2011 financial guidance as well as our updated 2012 financial targets reflect our confidence to successfully navigate through challenging market conditions and significant events in the company, most notably the loss of exclusivity of Lipitor in many major markets later this year.”


2011 Financial Guidance(16)

For full-year 2011, Pfizer’s financial guidance, at current exchange rates(15), is summarized below.

     
Reported Revenues   $66.0 to $68.0 billion
Adjusted Cost of Sales(1) as a Percentage of Revenues   19.5% to 20.5%
Adjusted SI&A Expenses(1)   $19.2 to $20.2 billion
Adjusted R&D Expenses(1)   $8.0 to $8.5 billion
Adjusted Other (Income)/Deductions(1)   Approximately $1.0 billion
Effective Tax Rate on Adjusted Income(1)   Approximately 29%
Reported Diluted EPS(2)   $1.09 to $1.24
Adjusted Diluted EPS(1)   $2.16 to $2.26
 

2012 Financial Targets(16)

As previously stated, given the longer-term nature of these targets, they are subject to greater variability and less certainty as a result of potential material impacts related to foreign exchange fluctuations, macroeconomic activity including inflation, and industry-specific challenges including changes to government healthcare policy, among others.

The Company is updating certain elements of its 2012 financial targets and is providing for the first time a target for adjusted SI&A expenses(1). At current exchange rates(15), Pfizer is now targeting reported revenues between $63.0 and $65.5 billion, compared with the previous target of between $65.2 and $67.7 billion. This decrease primarily reflects the elimination of the projected revenue contribution from future business development transactions previously included in the target as well as certain changes in market conditions. Additionally, adjusted R&D expenses(1) are now expected to be between $6.5 and $7.0 billion, compared with the previous target of between $8.0 and $8.5 billion. Driving this decline is the planned reduction in the number of disease areas the Company will focus on based upon where the greatest medical and commercial impact can be achieved as well as a realigned R&D footprint, including a planned exit from the Sandwich, U.K. site, subject to customary requirements, shift of selected resources from Groton, CT to Cambridge, MA and outsourcing of certain functions. Additionally, the Company is planning to enhance its presence in Cambridge, MA to complement research teams in other hubs like San Francisco, New York, La Jolla and Cambridge, U.K. Further, adjusted other (income)/deductions(1) are now expected to be approximately $1.0 billion in deductions, compared with the previous target of between $1.0 and $1.2 billion in deductions, and the effective tax rate on adjusted income(1) is now targeted at approximately 29%, down from approximately 30%. All other elements of the 2012 financial targets remain unchanged, including adjusted operating margin(1) in a range of the high 30%s to low 40%s, reported diluted EPS(2) between $1.58 and $1.73, adjusted diluted EPS(1) between $2.25 and $2.35, and operating cash flow of at least $19.0 billion. In addition, the Company is now providing a target range for adjusted SI&A expenses(1) of between $17.5 and $18.5 billion.


The Company also remains on-track to achieve its cost-reduction target associated with the Wyeth acquisition of approximately $4 to $5 billion, by the end of 2012, at 2008 average foreign exchange rates, in comparison with the 2008 pro-forma adjusted total costs(14) of the legacy Pfizer and legacy Wyeth operations. This cost-reduction target does not include the impact of the planned reduction in R&D spending announced today. In 2010, the Company met its target of achieving more than $2 billion of these cost reductions.

For additional details, please see the attached financial schedules, product revenue tables, supplemental information and disclosure notice.


(1)   "Adjusted Income" and its components and "Adjusted Diluted Earnings Per Share (EPS)" are defined as reported net income(2) and its components and reported diluted EPS(2) excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. Adjusted Cost of Sales, Adjusted SI&A expenses, Adjusted R&D expenses and Adjusted Other (Income)/Deductions are income statement line items prepared on the same basis, and therefore, components of the overall adjusted income measure. As described under Adjusted Income in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of Pfizer's Form 10-Q for the fiscal quarter ended October 3, 2010, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. We believe that investors' understanding of our performance is enhanced by disclosing this measure. Reconciliations of fourth-quarter 2010 and 2009 and full-year 2010 and 2009 adjusted income and its components and adjusted diluted EPS to reported net income(2) and its components and reported diluted EPS(2), as well as reconciliations of full-year 2011 guidance and 2012 targets for adjusted income and adjusted diluted EPS to full-year 2011 guidance and 2012 targets for reported net income(2) and reported diluted EPS(2), are provided in the materials accompanying this report. The adjusted income and its components and adjusted diluted EPS measures are not, and should not be viewed as, substitutes for U.S. generally accepted accounting principles (GAAP) net income and its components and diluted EPS.
 
(2) “Reported Net Income” is defined as net income attributable to Pfizer Inc. in accordance with U.S. generally accepted accounting principles. “Reported Diluted EPS” is defined as reported diluted EPS attributable to Pfizer Inc. common shareholders in accordance with U.S. GAAP.
 
(3) The Primary Care unit includes revenues from human pharmaceutical products primarily prescribed by primary-care physicians, and may include, but are not limited to, products in the following therapeutic and disease areas: Alzheimer’s disease, anxiety, cardiovascular (excluding pulmonary arterial hypertension), diabetes, pain, genitourinary, obesity, osteoporosis and respiratory. Examples of products in this unit include, but are not limited to, Celebrex, Lipitor, Lyrica, Premarin, Pristiq and Viagra. All revenues for such products are allocated to the Primary Care unit, except those generated in emerging markets(6) and those that are managed by the Established Products(5) unit.
 
(4) The Specialty Care unit includes revenues from human pharmaceutical products primarily prescribed by physicians who are specialists, and may include, but are not limited to, products in the following therapeutic and disease areas: antibacterials, antifungals, antivirals, bone, inflammation, gastrointestinal, growth hormones, multiple sclerosis, ophthalmology, pulmonary arterial hypertension and psychosis. Examples of products in this unit include, but are not limited to, Enbrel, Genotropin, Geodon, the Prevnar/Prevenar franchise, Xalatan and Zyvox. All revenues for such products are allocated to the Specialty Care unit, except those generated in emerging markets(6) and those that are managed by the Established Products(5) unit.
 
(5) The Established Products unit generally includes revenues from human prescription pharmaceutical products that have lost patent protection or marketing exclusivity in certain countries and/or regions. In certain situations, products may be transferred to this unit before losing patent protection or marketing exclusivity in order to maximize their value. This unit also excludes revenues generated in emerging markets(6). Examples of products in this unit include, but are not limited to, Arthrotec, Effexor, Medrol, Norvasc, Protonix, Relpax and Zosyn/Tazocin.
 
(6) The Emerging Markets unit includes revenues from all human prescription pharmaceutical products sold in emerging markets, including, but not limited to, Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe, Russia and Turkey.
 
(7) The Oncology unit includes revenues from human oncology and oncology-related products. Examples of products in this unit include, but are not limited to, Aromasin, Sutent and Torisel. All revenues for such products are allocated to the Oncology unit, except those generated in emerging markets(6) and those that are managed by the Established Products(5) unit.
 
(8) Animal Health includes worldwide revenues from products to prevent and treat disease in livestock and companion animals, including vaccines, paraciticides and anti-infectives.
 
(9) Consumer Healthcare generally includes worldwide revenues from non-prescription medicines and vitamins and may include, but are not limited to, products in the following therapeutic categories: pain management, nutritionals, respiratory and GI-topicals. Examples of products in Consumer Healthcare include, but are not limited to, Advil, Caltrate, Centrum, ChapStick and Robitussin.
 
(10) Nutrition generally includes revenues from a full line of infant and toddler nutritional products sold outside of North America. Examples of products in Nutrition include, but are not limited to, the S-26 and SMA product lines as well as formula for infants with special nutritional needs.
 
(11) Capsugel generally includes worldwide revenues from capsule products and services for the pharmaceutical and associated healthcare industries. On October 6, 2010, the Company announced that it is reviewing strategic alternatives for Capsugel, which may include a divestiture.
 
(12) Includes revenues generated primarily from Pfizer Centersource.
 
(13) In Biopharmaceutical, revenues from South Korea in 2009 have been reclassified from the Emerging Markets unit to the appropriate developed market units to conform to the current-year presentation, which reflects the fact that the commercial operations of South Korea, effective January 1, 2010, are managed within the appropriate developed market units.
 
(14) Represents the total of Adjusted Cost of Sales(1), Adjusted SI&A expenses(1) and Adjusted R&D expenses(1).
 
(15) The current exchange rate assumed in connection with the 2011 financial guidance and 2012 financial targets are the mid-January 2011 exchange rates.
 
(16) Assumes the completion of the acquisition of all remaining shares of King Pharmaceuticals, Inc., but does not assume the completion of any other business-development transactions not completed as of December 31, 2010. Also excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of December 31, 2010.
 
(17) In 2009, results of operations reflect the results of the legacy Wyeth operations from the closing of the acquisition on October 15, 2009 through year-end in accordance with Pfizer's international and domestic year-ends. Therefore, the results include approximately two-and-a-half months of the fourth calendar quarter of 2009 in the case of Wyeth’s U.S. operations and one-and-a-half months of the fourth calendar quarter of 2009 in the case of Wyeth’s international operations.

                   
PFIZER INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(millions, except per common share data)
   
Fourth Quarter % Incr. / Full-Year % Incr. /
2010

2009

(Decr.) 2010 2009 (Decr.)
Revenues $ 17,561 $ 16,537 6 $ 67,809 $ 50,009 36
Costs and expenses:
Cost of sales (a) 4,282 3,935 9 16,279 8,888 83
Selling, informational and administrative expenses (a) 5,738 5,367 7 19,614 14,875 32
Research and development expenses (a) 2,806 2,813 - 9,413 7,845 20
Amortization of intangible assets 1,432 1,122 28 5,404 2,877 88
Acquisition-related in-process research and development charges 51 48 6 125 68 84
Restructuring charges and certain acquisition-related costs 1,123 3,131 (64) 3,214 4,337 (26)
Other deductions--net   1,300     117   *   4,338     292 *
Income from continuing operations before provision
for taxes on income 829 4 * 9,422 10,827 (13)
(Benefit)/Provision for taxes on income   (2,074 )   (755 ) 175   1,124     2,197 (49)
Income from continuing operations 2,903 759 282 8,298 8,630 (4)
Discontinued operations--net of tax   (5 )   8   (163)   (9 )   14 (164)
Net income before allocation to noncontrolling interests 2,898 767 278 8,289 8,644 (4)
Less: Net income attributable to noncontrolling interests   8     -   *   32     9 256
Net income attributable to Pfizer Inc. $ 2,890   $ 767   277 $ 8,257   $ 8,635 (4)
Earnings per share - basic:
Income from continuing operations attributable to
Pfizer Inc. common shareholders $ 0.36 $ 0.10 260 $ 1.03 $ 1.23 (16)
Discontinued operations--net of tax   -     -   --   -     - --
Net income attributable to Pfizer Inc. common shareholders $ 0.36   $ 0.10   260 $ 1.03   $ 1.23 (16)
Earnings per share - diluted:
Income from continuing operations attributable to
Pfizer Inc. common shareholders $ 0.36 $ 0.10 260 $ 1.02 $ 1.23 (17)
Discontinued operations--net of tax   -     -   --   -     - --
Net income attributable to Pfizer Inc. common shareholders $ 0.36   $ 0.10   260 $ 1.02   $ 1.23 (17)
Weighted-average shares used to calculate earnings per common share:
Basic   8,011     7,803     8,036     7,007
Diluted   8,048     7,847     8,074     7,045
 
 
(a) Exclusive of amortization of intangible assets, except as discussed in footnote 2 below.
* Calculation not meaningful.
Certain amounts and percentages may reflect rounding adjustments.
 
1.

The above financial statements present the three-month and twelve-month periods ended December 31, 2010 and December 31, 2009. Subsidiaries operating outside the United States are included for the three-month and twelve-month periods ended November 30 for each year. Wyeth's results are included in our consolidated financial statements commencing from the acquisition date of October 15, 2009, in accordance with Pfizer's domestic and international year-ends. Therefore, our 2009 results of operations include approximately two-and-a-half months of the fourth calendar quarter of 2009 in the case of Wyeth's U.S. operations and approximately one-and-a-half months of the fourth calendar quarter of 2009 in the case of Wyeth's international operations; all periods in 2010 reflect legacy Wyeth operations.

 

Cost of sales after the closing of the Wyeth transaction includes the significant impacts of purchase accounting adjustments associated with inventory acquired from Wyeth that was sold subsequent to the acquisition date. In addition, full-year 2010 includes a write-off of certain Wyeth-related inventory.

 

Restructuring charges and certain acquisition-related costs includes significant charges related to employee termination and other exit costs recorded in fourth-quarter 2009 as a result of the closing of the Wyeth acquisition.

 

Other deductions-net in 2010 includes impairment charges related to certain intangible assets acquired as part of our acquisition of Wyeth as well as additional charges for asbestos litigation related to our wholly owned subsidiary Quigley Company, Inc., and in 2009 includes a gain related to ViiV Healthcare Limited.

 

(Benefit)/Provision for taxes on income in 2010 includes a $2.0 billion tax benefit recorded in fourth-quarter as a result of a settlement of certain tax audits covering the years 2002-2005 as well as the tax impact of the additional charges for asbestos litigation related to our wholly owned subsidiary Quigley Company, Inc. Amounts in 2009 include tax benefits of approximately $556 million related to the sale of one of our biopharmaceutical companies (Vicuron Pharmaceuticals, Inc.), which were recorded in the fourth quarter of 2009, and tax benefits of approximately $174 million related to the final resolution of a previously disclosed settlement that resulted in the receipt of information that raised our assessment of the likelihood of prevailing on the technical merits of our tax position, which were recorded in the third quarter of 2009.

 
See Supplemental Information that accompanies these materials for additional details.
 
2.

Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute our products is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, informational and administrative expenses or Research and development expenses, as appropriate.


                     
PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF REPORTED NET INCOME ATTRIBUTABLE TO PFIZER INC. AND ITS COMPONENTS
AND REPORTED DILUTED EPS ATTRIBUTABLE TO PFIZER INC. COMMON SHAREHOLDERS
TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS (a)
(UNAUDITED)
(millions of dollars, except per common share data)
   
 
Quarter Ended December 31, 2010
Purchase Acquisition- Certain
Accounting Related Discontinued Significant
Reported Adjustments Costs(2) Operations Items(3) Adjusted
Revenues $ 17,561 $ - $ - $ - $ - $ 17,561
Costs and expenses:
Cost of sales (b) 4,282 (340 ) (159 ) - (8 ) 3,775
Selling, informational and administrative expenses (b) 5,738 8 (37 ) - 34 5,743
Research and development expenses (b) 2,806 - 12 - (18 ) 2,800
Amortization of intangible assets 1,432 (1,400 ) - - - 32
Acquisition-related in-process research and development charges 51 (51 ) - - - -
Restructuring charges and certain acquisition-related costs 1,123 - (1,123 ) - - -
Other (income)/deductions--net 1,300   90   -   - (1,283 ) 107
Income from continuing operations before provision
for taxes on income 829 1,693 1,307 - 1,275 5,104
(Benefit)/Provision for taxes on income (2,074 ) 517   397   - 2,486   1,326
Income from continuing operations 2,903 1,176 910 - (1,211 ) 3,778
Discontinued operations--net of tax (5 ) -   -   5 -   -
Net income before allocation to noncontrolling interests 2,898 1,176 910 5 (1,211 ) 3,778
Less: Net income attributable to noncontrolling interests 8   -   -   - -   8
Net income attributable to Pfizer Inc. $ 2,890   $ 1,176   $ 910   $ 5 $ (1,211 ) $ 3,770
Earnings per common share - diluted:
Income from continuing operations attributable to Pfizer Inc.
common shareholders $ 0.36 $ 0.15 $ 0.11 $ - $ (0.15 ) $ 0.47
Discontinued operations--net of tax -   -   -   - -   -
Net income attributable to Pfizer Inc. common shareholders $ 0.36   $ 0.15   $ 0.11   $ - $ (0.15 ) $ 0.47
 
 
 
Twelve Months Ended December 31, 2010
Purchase Acquisition- Certain
Accounting Related Discontinued Significant
Reported Adjustments Costs(2) Operations Items(3) Adjusted
Revenues $ 67,809 $ $ $ - $ (18 ) $ 67,791
Costs and expenses:
Cost of sales (b) 16,279 (2,904 ) (526 ) - (229 ) 12,620
Selling, informational and administrative expenses (b) 19,614 25 (227 ) - 48 19,460
Research and development expenses (b) 9,413 (23 ) (34 ) - (18 ) 9,338
Amortization of intangible assets 5,404 (5,280 ) - 124
Acquisition-related in-process research and development charges 125 (125 ) - -
Restructuring charges and certain acquisition-related costs 3,214 (3,214 ) - -
Other (income)/deductions--net 4,338   50   -   - (3,783 ) 605
Income from continuing operations before provision
for taxes on income 9,422 8,257 4,001 - 3,964 25,644
Provision for taxes on income 1,124   2,148   1,092   - 3,265   7,629
Income from continuing operations 8,298 6,109 2,909 - 699 18,015
Discontinued operations--net of tax (9 ) -   -   9 -   -
Net income before allocation to noncontrolling interests 8,289 6,109 2,909 9 699 18,015
Less: Net income attributable to noncontrolling interests 32   -   -   - -   32
Net income attributable to Pfizer Inc. $ 8,257   $ 6,109   $ 2,909   $ 9 $ 699   $ 17,983
Earnings per common share - diluted:
Income from continuing operations attributable to Pfizer Inc.
common shareholders $ 1.02 $ 0.76 $ 0.36 $ - $ 0.09 $ 2.23
Discontinued operations--net of tax -   -   -   - -   -
Net income attributable to Pfizer Inc. common shareholders $ 1.02   $ 0.76   $ 0.36   $ - $ 0.09   $ 2.23
 
 
(a) Adjusted income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.
 
(b) Exclusive of amortization of intangible assets, except as discussed in note 1.
 
See end of tables for notes.
Certain amounts may reflect rounding adjustments.

                       
PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF REPORTED NET INCOME ATTRIBUTABLE TO PFIZER INC. AND ITS COMPONENTS
AND REPORTED DILUTED EPS ATTRIBUTABLE TO PFIZER INC. COMMON SHAREHOLDERS
TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS (a)
(UNAUDITED)
(millions of dollars, except per common share data)
 
 
Quarter Ended December 31, 2009
Purchase Acquisition- Certain
Accounting Related Discontinued Significant
Reported Adjustments Costs(2) Operations Items(3) Adjusted
Revenues $ 16,537 $ - $ - $ - $ (17 ) $ 16,520
Costs and expenses:
Cost of sales (b) 3,935 (976 ) (31 ) - (42 ) 2,886
Selling, informational and administrative expenses (b) 5,367 21 (37 ) - (6 ) 5,345
Research and development expenses (b) 2,813 (15 ) (13 ) - 14 2,799
Amortization of intangible assets 1,122 (1,075 ) - - - 47
Acquisition-related in-process research and development charges 48 (48 ) - - - -
Restructuring charges and certain acquisition-related costs 3,131 - (3,131 ) - - -
Other (income)/deductions--net 117   (3 ) -   -   (4 ) 110  
Income from continuing operations before provision
for taxes on income 4 2,096 3,212 - 21 5,333
(Benefit)/Provision for taxes on income (755 ) 630   877   -   756   1,508  
Income from continuing operations 759 1,466 2,335 - (735 ) 3,825
Discontinued operations--net of tax 8   -   -   (8 ) -   -  
Net income before allocation to noncontrolling interests 767 1,466 2,335 (8 ) (735 ) 3,825
Less: Net income attributable to noncontrolling interests -   -   -   -   -   -  
Net income attributable to Pfizer Inc. $ 767   $ 1,466   $ 2,335   $ (8 ) $ (735 ) $ 3,825  
Earnings per common share - diluted:
Income from continuing operations attributable to Pfizer Inc.
common shareholders $ 0.10 $ 0.19 $ 0.30 $ - $ (0.10 ) $ 0.49
Discontinued operations--net of tax -   -   -   -   -   -  
Net income attributable to Pfizer Inc. common shareholders $ 0.10   $ 0.19   $ 0.30   $ -   $ (0.10 ) $ 0.49  
 
 
 
 
Twelve Months Ended December 31, 2009
Purchase Acquisition- Certain
Accounting Related Discontinued Significant
Reported Adjustments Costs(2) Operations Items(3) Adjusted
Revenues $ 50,009 $ - $ - $ - $ (75 ) $ 49,934
Costs and expenses:
Cost of sales (b) 8,888 (976 ) (31 ) - (208 ) 7,673
Selling, informational and administrative expenses (b) 14,875 30 (37 ) - (201 ) 14,667
Research and development expenses (b) 7,845 (37 ) (13 ) - (56 ) 7,739
Amortization of intangible assets 2,877 (2,731 ) - - - 146
Acquisition-related in-process research and development charges 68 (68 ) - - - -
Restructuring charges and certain acquisition-related costs 4,337 - (3,945 ) - (392 ) -
Other (income)/deductions--net 292   (5 ) -   -   (735 ) (448 )
Income from continuing operations before provision
for taxes on income 10,827 3,787 4,026 - 1,517 20,157
Provision for taxes on income 2,197   1,154   1,167     -     1,428     5,946  
Income from continuing operations 8,630 2,633 2,859 - 89 14,211
Discontinued operations--net of tax 14   -   -   (14 ) -   -  
Net income before allocation to noncontrolling interests 8,644 2,633 2,859 (14 ) 89 14,211
Less: Net income attributable to noncontrolling interests 9   -   -   -   -   9  
Net income attributable to Pfizer Inc. $ 8,635   $ 2,633   $ 2,859   $ (14 ) $ 89   $ 14,202  
Earnings per common share - diluted:
Income from continuing operations attributable to Pfizer Inc.
common shareholders $ 1.23 $ 0.38 $ 0.40 $ - $ 0.01 $ 2.02
Discontinued operations--net of tax -   -   -   -   -   -  
Net income attributable to Pfizer Inc. common shareholders $ 1.23   $ 0.38   $ 0.40   $ -   $ 0.01   $ 2.02  
 
 
(a) Adjusted income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.
 
(b) Exclusive of amortization of intangible assets, except as discussed in note 1.
 
See end of tables for notes.
Certain amounts may reflect rounding adjustments.

             
PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF REPORTED NET INCOME ATTRIBUTABLE TO PFIZER INC. AND ITS COMPONENTS
AND REPORTED DILUTED EPS ATTRIBUTABLE TO PFIZER INC. COMMON SHAREHOLDERS
TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS*
(UNAUDITED)
     
1)

Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute our products is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, informational and administrative expenses or Research and development expenses, as appropriate.

 
2) Acquisition-related costs includes the following:
 
Fourth Quarter Full-Year
(millions of dollars)   2010 2009 2010 2009
 
Transaction costs(a) $ 10 $ 196 $ 23 $ 768
Integration costs(a) 354 327 1,004 569
Restructuring charges(a) 759 2,608 2,187 2,608
Additional depreciation - asset restructuring(b)   184     81     787     81  
Total acquisition-related costs -- pre-tax 1,307

 

3,212 4,001 4,026
Income taxes(c)   (397 )   (877 )   (1,092 )   (1,167 )
Total acquisition-related costs -- net of tax $ 910   $ 2,335   $ 2,909   $ 2,859  
 
(a) Transaction costs include costs directly related to our acquisition of Wyeth, such as banking, legal, accounting and other similar costs. Integration costs primarily represent external, incremental costs directly related to integrating Wyeth and primarily include expenditures for consulting and systems integration. Restructuring charges primarily relate to our acquisition of Wyeth and include employee termination costs, asset impairments and exit costs.
 
 

(b)

Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions related to our acquisition of Wyeth. Included in Cost of sales($159 million), Selling, informational and administrative expenses($37 million), and Research and development expenses ($12 million income) for the three months ended December 31, 2010. Included in Cost of sales($526 million), Selling, informational and administrative expenses ($227 million) and Research and development expenses ($34 million) for the full year ended December 31, 2010. Included in Cost of sales ($31 million), Selling, informational and administrative expenses($37 million), and Research and development expenses ($13 million) for the three months and full year ended December 31, 2009.

 
(c) Included in Provision for taxes on income.
 
3) Certain significant items includes the following:
 
Fourth Quarter Full-Year
(millions of dollars)   2010 2009 2010 2009
 
Restructuring charges - Cost-reduction initiatives(a) $ - $ - $ - $ 392
Implementation costs - Cost-reduction initiatives(b) - - - 410
Certain legal matters(c) 860 124 1,703 294
Net interest expense(d) - 61 - 589
Certain asset impairment charges(e) 483 310 2,151 294
Inventory write-off(f) - - 212 -
Gain related to ViiV Healthcare Limited(g) - (482 ) - (482 )
Other   (68 )   8     (102 )   20  
Total certain significant items -- pre-tax 1,275 21 3,964 1,517
Income taxes(h)   (2,486 )   (756 )   (3,265 )   (1,428 )
Total certain significant items -- net of tax $ (1,211 ) $ (735 ) $ 699   $ 89  
 
(a) Included in Restructuring charges and certain acquisition-related costs.
 
(b) Included in Cost of sales ($144 million), Selling, informational and administrative expenses ($182 million), Research and development expenses ($78 million), and Other deductions - net ($6 million) for the full year ended December 31, 2009.
 
(c) Included in Other deductions - net. Includes an additional $620 million charge in fourth-quarter 2010 and $1.3 billion charge for full-year 2010 for asbestos litigation related to our wholly owned subsidiary, Quigley Company, Inc.
 
(d) Included in Other deductions - net. Includes interest expense through October 15, 2009, the Wyeth acquisition date, on the senior unsecured notes issued in connection with our acquisition of Wyeth less interest income earned on the proceeds of those notes.
 
(e) Included in Other deductions - net. Includes impairment charges of:
- $166 million in fourth-quarter 2010 and $1.8 billion for full-year 2010 related to certain intangible assets acquired as part of our acquisition of Wyeth (see Supplemental Information that accompanies these materials); and
- $317 million in fourth-quarter and full-year 2010 primarily related to an intangible asset associated with our product Thelin, recorded as a result of our previously announced decisions to voluntarily withdraw Thelin in regions where it is approved and to discontinue clinical studies worldwide.
Amounts in 2009 primarily represent asset impairment charges associated with certain materials used in our research and development activities that were no longer considered recoverable.
 
(f) Included in Cost of sales (see Supplemental Information that accompanies these materials).
 
(g) Included in Other deductions - net. Represents a gain related to ViiV Healthcare Limited (ViiV), a joint venture with GlaxoSmithKline plc, which is focused solely on research, development and commercialization of HIV medicines.
 

(h)

Included in (Benefit)/Provision for taxes on income. Includes a tax benefit recorded in fourth-quarter 2010 as a result of a settlement of certain tax audits covering the years 2002 - 2005 as well as the tax impact of the additional charges for asbestos litigation related to our wholly owned subsidiary Quigley Company, Inc. (see Supplemental Information that accompanies these materials for additional information). Amounts in 2009 include tax benefits of approximately $556 million related to the sale of one of our biopharmaceutical companies (Vicuron Pharmaceuticals, Inc.), which were recorded in the fourth quarter of 2009, and tax benefits of approximately $174 million related to the final resolution of a previously disclosed settlement that resulted in the receipt of information that raised our assessment of the likelihood of prevailing on the technical merits of our tax position, which was recorded in the third quarter of 2009.

 
* Adjusted income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.

                 
PFIZER INC.
BUSINESS REVENUES(1),(2)
TWELVE MONTHS 2010 and 2009
(UNAUDITED)
(millions of dollars)
 
Operational
2010    

2009(2)

  % Change    

% Foreign
Exchange

    Total %  

Legacy Pfizer
%

Primary Care $ 23,328 $ 22,576 3 1 2 (3)
Specialty Care 15,021 7,414 103 - 103 (1)
Established Products 10,098 7,790 30 2 28 (11)
Emerging Markets 8,662 6,157 41 6 35 5
Oncology   1,414       1,511     (6)     -     (6)   (14)
Biopharmaceutical 58,523 45,448 29 2 27 (3)
 
Animal Health 3,575 2,764 29 3 26 4
Consumer Healthcare 2,772 494 * * * *
Nutrition 1,867 191 * * * *
Capsugel   752       740     2     -     2   2
Diversified 8,966 4,189 114 5 109 3
 
Other   320       372     (14)     -     (14)   (14)
 
TOTAL $ 67,809     $ 50,009     36     2     34   (3)
 

*

Calculation not meaningful

 

(1)

See notes 3-12 in the accompanying earnings release for a description of each business unit and of "Other".

(2)

In Biopharmaceutical, revenues from South Korea in 2009 have been reclassified from the Emerging Markets unit to the appropriate developed market units to conform to the current-year presentation, which reflects the fact that the commercial operations of South Korea, effective January 1, 2010, are managed within the appropriate developed market units.

 

 

 
 
 

PFIZER INC.

REVENUES

FOURTH QUARTER 2010 and 2009

(UNAUDITED)

(millions of dollars)

             
    WORLDWIDE     UNITED STATES     TOTAL INTERNATIONAL(1)
                               

 

 

% Change

 

 

% Change

 

 

% Change
   

2010

   

2009

   

Total

    Oper.    

2010

   

 

2009

    Total    

2010

   

2009

    Total     Oper.
TOTAL REVENUES   $ 17,561     $ 16,537     6 %     7 %     $ 7,239     $ 7,439     (3 %)     $ 10,322     $ 9,098     13 %     14 %
TOTAL BIOPHARMACEUTICAL:   $ 15,051     $ 14,606     3 %     4 %     $ 6,408     $ 6,663     (4 %)     $ 8,643     $ 7,943     9 %     10 %
Lipitor 2,629 3,175 (17 %) (17 %) 1,408 1,522 (7 %) 1,221 1,653 (26 %) (25 %)
Enbrel (Outside the U.S. and Canada)*** 865 378 129 % 138 % - - - 865 378 129 % 138 %
Lyrica 821 820 - 2 % 351 410 (14 %) 470 410 15 % 18 %

Prevnar / Prevenar 13***

826 -

*

* 530 -

*

296 - * *
Celebrex 622 669 (7 %) (8 %) 404 467 (13 %) 218 202 8 % 5 %
Viagra 499 549 (9 %) (9 %) 263 265 (1 %) 236 284 (17 %) (17 %)
Xalatan / Xalacom 462 499 (7 %) (7 %) 173 162 7 % 289 337 (14 %) (14 %)
Effexor*** 206 520 (60 %) (60 %) 84 455 (82 %) 122 65 88 % 91 %
Norvasc 386 486 (21 %) (23 %) 9 15 (40 %) 377 471 (20 %) (23 %)
Prevnar / Prevenar 7*** 223 287 (22 %) (22 %) - 144

*

223 143 56 % 57 %
Zyvox 300 330 (9 %) (9 %) 150 175 (14 %) 150 155 (3 %) (1 %)
Sutent 295 293 1 % 3 % 72 81 (11 %) 223 212 5 % 8 %
Premarin Family*** 261 213 23 % 22 % 236 200 18 % 25 13 92 % 85 %
Geodon / Zeldox 264 289 (9 %) (8 %) 222 239 (7 %) 42 50 (16 %) (12 %)
Detrol / Detrol LA 255 309 (17 %) (17 %) 174 211 (18 %) 81 98 (17 %) (16 %)
Zosyn / Tazocin*** 203 184 10 % 11 % 122 138 (12 %) 81 46 76 % 74 %
Genotropin 235 251 (6 %) (6 %) 53 61 (13 %) 182 190 (4 %) (3 %)
Vfend 230 243 (5 %) (5 %) 73 73 - 157 170 (8 %) (6 %)
Chantix / Champix 233 176 32 % 30 % 78 83 (6 %) 155 93 67 % 62 %
Protonix*** 155 68 128 % 126 % 155 68 128 % - - - -
Benefix*** 169 98 72 % 76 % 75 56 34 % 94 42 124 % 129 %
Zoloft 142 148 (4 %) (7 %) 17 20 (15 %) 125 128 (2 %) (7 %)
Caduet 139 156 (11 %) (12 %) 83 100 (17 %) 56 56 - (2 %)
Aromasin 122 136 (10 %) (8 %) 38 42 (10 %) 84 94 (11 %) (7 %)
Revatio 129 131 (2 %) - 77 81 (5 %) 52 50 4 % 8 %
Pristiq*** 125 82 52 % 51 % 104 77 35 % 21 5 * 280 %
Medrol 114 123 (7 %) (7 %) 25 35 (29 %) 89 88 1 % 3 %
Aricept** 107 121 (12 %) (9 %) - - - 107 121 (12 %)

(9

%)
Zithromax / Zmax 112 131 (15 %) (17 %) 4 8 (50 %) 108 123 (12 %) (15 %)
Cardura 101 127 (20 %) (21 %) 1 3 (67 %) 100 124 (19 %) (21 %)
Refacto AF/Xyntha*** 114 47 143 % 153 % 19 17 12 % 95 30 217 % 233 %
BMP2*** 102 81 26 % 26 % 96 78 23 % 6 3 100 % 67 %
Rapamune*** 96 57 68 % 70 % 47 36 31 % 49 21 133 % 150 %
Fragmin 83 115 (28 %) (27 %) - 31

*

83 84 (1 %) (1 %)
Tygacil*** 74 54 37 % 39 % 31 36 (14 %) 43 18 139 % 139 %
Alliance Revenue**** 977 1,053 (7 %) (8 %) 607 716 (15 %) 370 337 10 % 9 %
All Other Biopharmaceutical 2,375 2,207 8 % 7 % 627 558 12 % 1,748 1,649 6 % 6 %
All Other Established Products 2,015 1,856 9 % 8 % 569 501 14 % 1,446 1,355 7 % 6 %
Legacy Pfizer Other Established Products     1,758       1,696     4 %     4 %       564       467     21 %       1,194       1,229     (3 %)     (3 %)
TOTAL DIVERSIFIED:   $ 2,433     $ 1,809     34 %     33 %     $ 813     $ 745     9 %     $ 1,620     $ 1,064     52 %     51 %
ANIMAL HEALTH*** 976 901 8 % 8 % 376 357 5 % 600 544 10 % 10 %
CONSUMER HEALTHCARE*** 758 494 53 % 52 % 392 331 18 % 366 163 125 % 121 %
NUTRITION*** 492 191 158 % 150 % - - - 492 191 158 % 150 %
CAPSUGEL     207       223     (7 %)     (5 %)       45       57     (21 %)       162       166     (2 %)     1 %
OTHER*****   $ 77     $ 122     (37 %)     (25 %)     $ 18     $ 31     (42 %)     $ 59     $ 91     (35 %)     (19 %)
 

*

 

- Calculation not meaningful.

**

- Includes direct sales under license agreement with Eisai Co., Ltd.

***

- Legacy Wyeth products and operations. Animal Health results also reflect the addition of legacy Wyeth products.

Wyeth's results are included in our financial statements commencing from the acquisition date of October 15, 2009, in accordance with Pfizer's domestic and international year-ends. Therefore, our 2009 results include approximately two-and-a-half months of Wyeth's U.S. operations and approximately one-and-a-half months of Wyeth's international operations.

****

- Enbrel (in the U.S. and Canada)***, Aricept, Exforge, Rebif and Spiriva.

*****

- Includes revenues generated primarily from Pfizer Centresource.

Certain amounts and percentages may reflect rounding adjustments.
   

(1)

Total International represents Developed Europe region + Developed Rest of World region + Emerging Markets region. Details for these regions are located on the following page.


 

PFIZER INC.
REVENUES
DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION
FOURTH QUARTER 2010 and 2009
(UNAUDITED)
(millions of dollars)

             
        DEVELOPED EUROPE(1)     DEVELOPED REST OF WORLD(2)     EMERGING MARKETS(3)
                       

 

 

% Change

 

 

% Change

 

 

% Change
       

2010

    2009     Total     Oper.    

2010

    2009     Total     Oper.    

2010

    2009     Total     Oper.
TOTAL INTERNATIONAL REVENUES   $ 4,352     $ 4,166     4 %     11 %     $ 2,690     $ 2,549     6 %     (2 %)     $ 3,280     $ 2,383     38 %     37 %
TOTAL INTERNATIONAL BIOPHARMACEUTICAL:   $ 3,877     $ 3,719     4 %     12 %     $ 2,397     $ 2,333     3 %     (5 %)     $ 2,369     $ 1,891     25 %     23 %
Lipitor 661 815 (19 %)     (13 %) 328 610 (46 %)     (51 %) 232 228 2 %     -
Enbrel (Outside the U.S. and Canada)*** 593 279 113 % 128 % 105 32 228 % 200 % 167 67 149 % 151 %
Lyrica 300 300 - 8 % 87 46 89 % 72 % 83 64 30 % 28 %
Prevnar / Prevenar 13*** 179 - * * 39 - * * 78 - * *
Celebrex 48 58 (17 %) (10 %) 100 82 22 % 15 % 70 62 13 % 10 %
Viagra 103 120 (14 %) (8 %) 55 47 17 % 6 % 78 117 (33 %) (34 %)
Xalatan / Xalacom 143 174 (18 %) (13 %) 94 108 (13 %) (20 %) 52 55 (5 %) (4 %)
Effexor*** 60 33 82 % 97 % 37 21 76 % 67 % 25 11 127 % 118 %
Norvasc 48 66 (27 %) (20 %) 217 299 (27 %) (34 %) 112 106 6 % 5 %
Prevnar / Prevenar 7*** 30 68 (56 %) (51 %) 49 23 113 % 135 % 144 52 177 % 162 %
Zyvox 73 82 (11 %) (2 %) 35 35 - (9 %) 42 38 11 % 5 %
Sutent 114 138 (17 %) (10 %) 40 28 43 % 28 % 69 46 50 % 50 %
Premarin Family*** 3 1 200 % 200 % 8 6 33 % 33 % 14 6 133 % 160 %
Geodon / Zeldox 21 28 (25 %) (21 %) 5 5 - - 16 17 (6 %) (6 %)
Detrol / Detrol LA 41 55 (25 %) (22 %) 26 28 (7 %) (18 %) 14 15 (7 %) (7 %)
Zosyn / Tazocin*** 18 20 (10 %) - 4 2 100 % 50 % 59 24 146 % 128 %
Genotropin 98 109 (10 %) (4 %) 55 53 4 % (6 %) 29 28 4 % 7 %
Vfend 77 87 (11 %) (5 %) 38 33 15 % - 42 50 (16 %) (12 %)
Chantix / Champix 49 48 2 % 8 % 97 37 162 % 150 % 9 8 13 % -
Protonix*** - - - - - - - - - - - -
Benefix*** 64 31 106 % 119 % 26 8 225 % 200 % 4 3 33 % 100 %
Zoloft 19 29 (34 %) (28 %) 73 70 4 % (6 %) 33 29 14 % 10 %
Caduet 6 6 - 20 % 36 37 (3 %) (11 %) 14 13 8 % 8 %
Aromasin 54 61 (11 %) (5 %) 17 17 - (6 %) 13 16 (19 %) (13 %)
Revatio 33 35 (6 %) 3 % 10 8 25 % 13 % 9 7 29 % 13 %
Pristiq*** - - - - 14 4 250 % 200 % 7 1 * *
Medrol 27 28 (4 %) - 12 13 (8 %) (14 %) 50 47 6 % 6 %
Aricept** 58 70 (17 %) (11 %) 42 39 8 % 3 % 7 12 (42 %) (33 %)
Zithromax / Zmax 21 30 (30 %) (23 %) 45 50 (10 %) (16 %) 42 43 (2 %) (7 %)
Cardura 35 48 (27 %) (19 %) 37 49 (24 %) (31 %) 28 27 4 % (4 %)
Refacto AF/Xyntha*** 87 27 222 % 248 % 6 3 100 % 100 % 2 - - -
BMP2*** 6 3 100 % 67 % - - - - - - - -
Rapamune*** 17 7 143 % 157 % 4 2 100 % 150 % 28 12 133 % 155 %
Fragmin 41 42 (2 %) - 20 20 - - 22 22 - (5 %)
Tygacil*** 20 10 100 % 120 % 2 1 100 % - 21 7 200 % 150 %
Alliance Revenue**** 155 158 (2 %) 5 % 192 160 20 % 11 % 23 19 21 % 10 %
All Other Biopharmaceutical 575 653 (12 %) (5 %) 442 357 24 % 13 % 731 639 14 % 13 %
All Other Established Products 422 467 (10 %) (3 %) 374 312 20 % 11 % 650 576 13 % 11 %
    Legacy Pfizer Other Established Products     341       417     (18 %)     (12 %)       258       257     -       (7 %)       595       555     7 %     6 %
TOTAL INTERNATIONAL DIVERSIFIED:   $ 441     $ 390     13 %     21 %     $ 282     $ 204     38 %     31 %     $ 897     $ 470     91 %     81 %
OTHER INTERNATIONAL*****   $ 34     $ 57     (40 %)     (40 %)     $ 11     $ 12     (8 %)     (17 %)     $ 14     $ 22     (36 %)     (41 %)

 

 

 
 
 

*

 

- Calculation not meaningful.

**

- Includes direct sales under license agreement with Eisai Co., Ltd.

***

- Legacy Wyeth products and operations. Animal Health results also reflect the addition of legacy Wyeth products.

Wyeth's results are included in our financial statements commencing from the acquisition date of October 15, 2009, in accordance with Pfizer's domestic and international year-ends. Therefore, our 2009 results include approximately two-and-a-half months of Wyeth's U.S. operations and approximately one-and-a-half months of Wyeth's international operations.

****

- Enbrel (in the U.S. and Canada)***, Aricept, Exforge, Rebif and Spiriva.

*****

- Includes revenues generated primarily from Pfizer Centresource.

Certain amounts and percentages may reflect rounding adjustments.
 
 

(1)

Developed Europe region includes the following markets: Western Europe and the Scandinavian countries.

(2)

Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand, and South Korea.

(3)

Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe, Russia and Turkey. In Biopharmaceutical, revenues from South Korea in 2009 have been reclassified from the Emerging Markets unit to the appropriate developed market units to conform to the current-year presentation, which reflects the fact that the commercial operations of South Korea, effective January 1, 2010, are managed within the appropriate developed market units.

 


                 

PFIZER INC.
REVENUES
TWELVE MONTHS 2010 and 2009
(UNAUDITED)
(millions of dollars)

 
    WORLDWIDE     UNITED STATES     TOTAL INTERNATIONAL(1)
                       

 

 

% Change

 

 

% Change

 

 

% Change
   

2010

    2009     Total     Oper.    

2010

    2009     Total    

2010

    2009     Total     Oper.
TOTAL REVENUES   $ 67,809     $ 50,009     36 %     34 %     $ 29,046     $ 21,749     34 %     $ 38,763     $ 28,260     37 %     33 %
TOTAL BIOPHARMACEUTICAL:   $ 58,523     $ 45,448     29 %     27 %     $ 25,962     $ 20,010     30 %     $ 32,561     $ 25,438     28 %     25 %
Lipitor 10,733 11,434 (6 %) (8 %) 5,329 5,667 (6 %) 5,404 5,767 (6 %) (10 %)
Enbrel (Outside the U.S. and Canada)*** 3,274 378 * * - - - 3,274 378 * *
Lyrica 3,063 2,840 8 % 7 % 1,424 1,504 (5 %) 1,639 1,336 23 % 22 %
Prevnar / Prevenar 13*** 2,416 - * * 1,761 -

*

655 - * *
Celebrex 2,374 2,383 - (2 %) 1,580 1,697 (7 %) 794 686 16 % 10 %
Viagra 1,928 1,892 2 % - 992 962 3 % 936 930 1 % (3 %)
Xalatan / Xalacom 1,749 1,737 1 % (1 %) 626 576 9 % 1,123 1,161 (3 %) (6 %)
Effexor*** 1,718 520 230 % 227 % 1,226 455 169 % 492 65 * *
Norvasc 1,506 1,973 (24 %) (27 %) 33 64 (48 %) 1,473 1,909 (23 %) (26 %)
Prevnar / Prevenar 7*** 1,253 287 * * 214 144 49 % 1,039 143 * *
Zyvox 1,176 1,141 3 % 2 % 613 634 (3 %) 563 507 11 % 9 %
Sutent 1,066 964 11 % 10 % 270 273 (1 %) 796 691 15 % 14 %
Premarin Family*** 1,040 213 * * 949 200

*

91 13 * *
Geodon / Zeldox 1,027 1,002 2 % 2 % 864 836 3 % 163 166 (2 %) (4 %)
Detrol / Detrol LA 1,013 1,154 (12 %) (13 %) 689 811 (15 %) 324 343 (6 %) (9 %)
Zosyn / Tazocin*** 952 184 * * 627 138

*

325 46 * *
Genotropin 885 887 - (1 %) 209 221 (5 %) 676 666 2 % -
Vfend 825 798 3 % 3 % 260 250 4 % 565 548 3 % 2 %
Chantix / Champix 755 700 8 % 5 % 330 386 (15 %) 425 314 35 % 28 %
Protonix*** 690 68 * * 690 68

*

- - - -
Benefix*** 643 98 * * 286 56

*

357 42 * *
Zoloft 532 516 3 % (1 %) 71 82 (13 %) 461 434 6 % 2 %
Caduet 527 548 (4 %) (7 %) 339 394 (14 %) 188 154 22 % 12 %
Aromasin 483 483 - - 160 163 (2 %) 323 320 1 % 1 %
Revatio 481 450 7 % 7 % 293 293 - 188 157 20 % 18 %
Pristiq*** 466 82 * * 405 77

*

61 5 * *
Medrol 455 457 - (1 %) 113 140 (19 %) 342 317 8 % 7 %
Aricept** 417 432 (3 %) (7 %) - - - 417 432 (3 %) (7 %)
Zithromax / Zmax 415 430 (3 %) (7 %) 14 18 (22 %) 401 412 (3 %) (6 %)
Cardura 413 457 (10 %) (12 %) 12 7 71 % 401 450 (11 %) (13 %)
Refacto AF/Xyntha*** 404 47 * * 80 17

*

324 30 * *
BMP2*** 400 81 * * 382 78

*

18 3 * *
Rapamune*** 388 57 * * 197 36

*

191 21 * *
Fragmin 341 359 (5 %) (8 %) 40 82 (51 %) 301 277 9 % 5 %
Tygacil*** 324 54 * * 164 36

*

160 18 * *
Alliance Revenue**** 4,084 2,925 40 % 38 % 2,818 1,849 52 % 1,266 1,076 18 % 14 %
All Other Biopharmaceutical 8,307 7,417 12 % 10 % 1,902 1,796 6 % 6,405 5,621 14 % 11 %
All Other Established Products 7,086 6,181 15 % 12 % 1,675 1,602 5 % 5,411 4,579 18 % 15 %
Legacy Pfizer Other Established Products     6,109       6,021     1 %     (1 %)       1,648       1,568     5 %       4,461       4,453     -       (3 %)
TOTAL DIVERSIFIED:   $ 8,966     $ 4,189     114 %     109 %     $ 2,981     $ 1,646     81 %     $ 5,985     $ 2,543     135 %     126 %
ANIMAL HEALTH*** 3,575 2,764 29 % 26 % 1,382 1,106 25 % 2,193 1,658 32 % 27 %
CONSUMER HEALTHCARE*** 2,772 494 * * 1,408 331

*

1,364 163 * *
NUTRITION*** 1,867 191 * * - - - 1,867 191 * *
CAPSUGEL     752       740     2 %     2 %       191       209     (9 %)       561       531     6 %     6 %
OTHER*****   $ 320     $ 372     (14 %)     (14 %)     $ 103     $ 93     11 %     $ 217     $ 279     (22 %)     (22 %)
 

*

- Calculation not meaningful.

**

- Includes direct sales under license agreement with Eisai Co., Ltd.

***

- Legacy Wyeth products and operations. Animal Health results also reflect the addition of legacy Wyeth products.

Wyeth's results are included in our financial statements commencing from the acquisition date of October 15, 2009, in accordance with Pfizer's domestic and international year-ends. Therefore, our 2009 results include approximately two-and-a-half months of Wyeth's U.S. operations and approximately one-and-a-half months of Wyeth's international operations.

****

- Enbrel (in the U.S. and Canada)***, Aricept, Exforge, Rebif and Spiriva.

*****

- Includes revenues generated primarily from Pfizer Centresource.

Certain amounts and percentages may reflect rounding adjustments.
   

(1)

Total International represents Developed Europe region + Developed Rest of World region + Emerging Markets region. Details for these regions are located on the following page.


         

PFIZER INC.
REVENUES
DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION
TWELVE MONTHS 2010 and 2009
(UNAUDITED)
(millions of dollars)

 
    DEVELOPED EUROPE(1)     DEVELOPED REST OF WORLD(2)     EMERGING MARKETS(3)
                                   

 

 

% Change

 

 

% Change

 

 

% Change
   

2010

    2009     Total     Oper.    

2010

    2009     Total     Oper.    

2010

    2009     Total     Oper.
TOTAL INTERNATIONAL REVENUES   $ 16,665     $ 12,892     29 %     32 %     $ 10,091     $ 8,196     23 %     12 %     $ 12,007     $ 7,172     67 %     61 %
TOTAL INTERNATIONAL BIOPHARMACEUTICAL:   $ 14,851     $ 11,611     28 %     31 %     $ 9,047     $ 7,666     18 %     7 %     $ 8,663     $ 6,161     41 %     35 %
Lipitor 2,648 2,864 (8 %) (6 %) 1,833 2,060 (11 %) (22 %)