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Segment, Geographic and Other Revenue Information (Tables)
 6 Months Ended
Jun. 30, 2019
Segment Reporting [Abstract]  
Reconciliation of Revenue from Segments to Consolidated
The following table provides selected income statement information by reportable segment:
 
 
Three Months Ended
 
 
Revenues
 
Earnings(a)
(MILLIONS OF DOLLARS)
 
June 30,
2019

 
July 1,
2018

 
June 30,
2019

 
July 1,
2018

Reportable Segments:
 
 
 
 
 
 
 
 
Biopharma
 
$
9,595

 
$
9,434

 
$
6,093

 
$
5,958

Upjohn
 
2,807

 
3,147

 
1,951

 
2,222

Total reportable segments
 
12,402

 
12,581

 
8,044

 
8,181

Other business activities
 
—

 
—

 
(1,193
)
 
(1,119
)
Reconciling Items:
 
 
 
 
 
 

 
 

Corporate and other unallocated
 
862

 
886

 
(1,399
)
 
(1,576
)
Purchase accounting adjustments
 
—

 
—

 
(1,178
)
 
(1,134
)
Acquisition-related costs
 
—

 
—

 
176

 
(62
)
Certain significant items(b)
 
—

 
—

 
(309
)
 
237

 
 
$
13,264

 
$
13,466

 
$
4,141

 
$
4,527

 
 
 
Six Months Ended
 
 
Revenues
 
Earnings(a)
(MILLIONS OF DOLLARS)
 
June 30,
2019

 
July 1,
2018

 
June 30,
2019

 
July 1,
2018

Reportable Segments:
 
 
 
 
 
 
 
 
Biopharma
 
$
18,779

 
$
18,315

 
$
11,981

 
$
11,781

Upjohn
 
5,882

 
6,267

 
4,225

 
4,391

Total reportable segments
 
24,661

 
24,582

 
16,206

 
16,172

Other business activities
 
—

 
—

 
(2,306
)
 
(2,307
)
Reconciling Items:
 
 
 
 
 
 
 
 
Corporate and other unallocated
 
1,721

 
1,791

 
(2,676
)
 
(2,900
)
Purchase accounting adjustments
 
—

 
—

 
(2,217
)
 
(2,355
)
Acquisition-related costs
 
—

 
—

 
148

 
(110
)
Certain significant items(b)
 
—

 
—

 
(691
)
 
154

 
 
$
26,382

 
$
26,373

 
$
8,463

 
$
8,654

(a) 
Income from continuing operations before provision/(benefit) for taxes on income. Biopharma’s earnings include dividend income of $76 million in the second quarter of 2019 and $76 million in the second quarter of 2018, and $140 million in the first six months of 2019 and $135 million in the first six months of 2018 from our investment in ViiV. For additional information, see Note 4.
(b) 
Certain significant items are substantive and/or unusual, and in some cases recurring, items (such as restructuring or legal charges) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis.
For Earnings in the second quarter of 2019, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $113 million, (ii) charges for certain legal matters of $15 million, (iii) certain asset impairment charges of $10 million, (iv) charges for business and legal entity alignment of $141 million, (v) net gains recognized during the period on investments in equity securities of $25 million and (vi) other charges of $56 million. For additional information, see Note 3 and Note 4.
For Earnings in the second quarter of 2018, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $42 million, (ii) a net credit for certain legal matters of $88 million, (iii) certain asset impairment charges of $31 million, (iv) charges for business and legal entity alignment of $1 million, (v) net gains recognized during the period on investments in equity securities of $257 million and (vi) other charges of $35 million, which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene. For additional information, see Note 3 and Note 4.
For Earnings in the first six months of 2019, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $170 million, (ii) charges for certain legal matters of $9 million, (iii) certain asset impairment charges of $149 million, (iv) charges for business and legal entity alignment of $264 million, (v) net gains recognized during the period on investments in equity securities of $136 million, (vi) net losses on early retirement of debt of $138 million and (vii) other charges of $97 million. For additional information, see Note 3 and Note 4.
For Earnings in the first six months of 2018, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $93 million, (ii) net credits for certain legal matters of $107 million, (iii) certain asset impairment charges of $31 million, (iv) charges for business and legal entity alignment of $4 million, (v) net gains recognized during the period on investments in equity securities of $375 million, (vi) net losses on early retirement of debt of $3 million and (vii) other charges of $197 million, which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene, and a $119 million charge, in the aggregate, in Selling, informational and administrative expenses for a special, one-time bonus paid to virtually all Pfizer colleagues, excluding executives, which was one of several actions taken by us after evaluating the expected positive net impact of the December 2017 enactment of the TCJA. For additional information, see Note 3 and Note 4.
Reconciliation of Operating Profit (Loss) from Segments to Consolidated
The following table provides selected income statement information by reportable segment:
 
 
Three Months Ended
 
 
Revenues
 
Earnings(a)
(MILLIONS OF DOLLARS)
 
June 30,
2019

 
July 1,
2018

 
June 30,
2019

 
July 1,
2018

Reportable Segments:
 
 
 
 
 
 
 
 
Biopharma
 
$
9,595

 
$
9,434

 
$
6,093

 
$
5,958

Upjohn
 
2,807

 
3,147

 
1,951

 
2,222

Total reportable segments
 
12,402

 
12,581

 
8,044

 
8,181

Other business activities
 
—

 
—

 
(1,193
)
 
(1,119
)
Reconciling Items:
 
 
 
 
 
 

 
 

Corporate and other unallocated
 
862

 
886

 
(1,399
)
 
(1,576
)
Purchase accounting adjustments
 
—

 
—

 
(1,178
)
 
(1,134
)
Acquisition-related costs
 
—

 
—

 
176

 
(62
)
Certain significant items(b)
 
—

 
—

 
(309
)
 
237

 
 
$
13,264

 
$
13,466

 
$
4,141

 
$
4,527

 
 
 
Six Months Ended
 
 
Revenues
 
Earnings(a)
(MILLIONS OF DOLLARS)
 
June 30,
2019

 
July 1,
2018

 
June 30,
2019

 
July 1,
2018

Reportable Segments:
 
 
 
 
 
 
 
 
Biopharma
 
$
18,779

 
$
18,315

 
$
11,981

 
$
11,781

Upjohn
 
5,882

 
6,267

 
4,225

 
4,391

Total reportable segments
 
24,661

 
24,582

 
16,206

 
16,172

Other business activities
 
—

 
—

 
(2,306
)
 
(2,307
)
Reconciling Items:
 
 
 
 
 
 
 
 
Corporate and other unallocated
 
1,721

 
1,791

 
(2,676
)
 
(2,900
)
Purchase accounting adjustments
 
—

 
—

 
(2,217
)
 
(2,355
)
Acquisition-related costs
 
—

 
—

 
148

 
(110
)
Certain significant items(b)
 
—

 
—

 
(691
)
 
154

 
 
$
26,382

 
$
26,373

 
$
8,463

 
$
8,654

(a) 
Income from continuing operations before provision/(benefit) for taxes on income. Biopharma’s earnings include dividend income of $76 million in the second quarter of 2019 and $76 million in the second quarter of 2018, and $140 million in the first six months of 2019 and $135 million in the first six months of 2018 from our investment in ViiV. For additional information, see Note 4.
(b) 
Certain significant items are substantive and/or unusual, and in some cases recurring, items (such as restructuring or legal charges) that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis.
For Earnings in the second quarter of 2019, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $113 million, (ii) charges for certain legal matters of $15 million, (iii) certain asset impairment charges of $10 million, (iv) charges for business and legal entity alignment of $141 million, (v) net gains recognized during the period on investments in equity securities of $25 million and (vi) other charges of $56 million. For additional information, see Note 3 and Note 4.
For Earnings in the second quarter of 2018, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $42 million, (ii) a net credit for certain legal matters of $88 million, (iii) certain asset impairment charges of $31 million, (iv) charges for business and legal entity alignment of $1 million, (v) net gains recognized during the period on investments in equity securities of $257 million and (vi) other charges of $35 million, which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene. For additional information, see Note 3 and Note 4.
For Earnings in the first six months of 2019, certain significant items includes: (i) restructuring charges and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $170 million, (ii) charges for certain legal matters of $9 million, (iii) certain asset impairment charges of $149 million, (iv) charges for business and legal entity alignment of $264 million, (v) net gains recognized during the period on investments in equity securities of $136 million, (vi) net losses on early retirement of debt of $138 million and (vii) other charges of $97 million. For additional information, see Note 3 and Note 4.
For Earnings in the first six months of 2018, certain significant items includes: (i) restructuring credits and implementation costs associated with our cost-reduction initiatives that are not associated with an acquisition of $93 million, (ii) net credits for certain legal matters of $107 million, (iii) certain asset impairment charges of $31 million, (iv) charges for business and legal entity alignment of $4 million, (v) net gains recognized during the period on investments in equity securities of $375 million, (vi) net losses on early retirement of debt of $3 million and (vii) other charges of $197 million, which includes, among other things, a non-cash $50 million pre-tax gain in Other (income)/deductions––net as a result of the contribution of our allogeneic CAR T cell therapy development program assets in connection with our contribution agreement entered into with Allogene, and a $119 million charge, in the aggregate, in Selling, informational and administrative expenses for a special, one-time bonus paid to virtually all Pfizer colleagues, excluding executives, which was one of several actions taken by us after evaluating the expected positive net impact of the December 2017 enactment of the TCJA. For additional information, see Note 3 and Note 4.
Schedule of Revenues by Geographic Region
The following table provides revenues by geographic area:
 
 
Three Months Ended

Six Months Ended
(MILLIONS OF DOLLARS)
 
June 30,
2019

 
July 1,
2018

 
%
Change


June 30,
2019


July 1,
2018


%
Change

U.S.
 
$
6,335

 
$
6,225

 
2


$
12,510


$
12,500


—

Developed Europe(a)
 
2,228

 
2,334

 
(5
)

4,315


4,426


(3
)
Developed Rest of World(b)
 
1,639

 
1,694

 
(3
)

3,174


3,155


1

Emerging Markets(c)
 
3,062

 
3,214

 
(5
)

6,383


6,292


1

Revenues
 
$
13,264

 
$
13,466

 
(2
)

$
26,382


$
26,373


—

(a) 
Developed Europe region includes the following markets: Western Europe, Scandinavian countries and Finland. Revenues denominated in euros were $1.8 billion in the second quarter of 2019 and $1.9 billion in the second quarter of 2018, and were $3.5 billion in the first six months of 2019 and $3.6 billion in the first six months of 2018.
(b) 
Developed Rest of World region includes the following markets: Japan, Canada, South Korea, Australia and New Zealand.
(c) 
Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Eastern Europe, the Middle East, Africa, Central Europe and Turkey.
Schedule of Significant Product Revenues
The following table provides detailed revenue information:
(MILLIONS OF DOLLARS)
 
 
 
Three Months Ended
 
Six Months Ended
 
PRODUCT
 
PRIMARY INDICATIONS OR CLASS
 
June 30,
2019

 
July 1,
2018

 
June 30,
2019

 
July 1,
2018

TOTAL REVENUES
 
 
 
$
13,264

 
$
13,466

 
$
26,382

 
$
26,373

PFIZER BIOPHARMACEUTICALS GROUP (BIOPHARMA)(a)
 
$
9,595

 
$
9,434

 
$
18,779

 
$
18,315

Internal Medicine(b)
 
 
 
$
2,330

 
$
2,276

 
$
4,546

 
$
4,347

Eliquis alliance revenues and direct sales
 
Atrial fibrillation, deep vein thrombosis, pulmonary embolism
 
1,085

 
889

 
2,096

 
1,654

Chantix/Champix
 
An aid to smoking cessation treatment in adults 18 years of age or older
 
276

 
277

 
549

 
528

Premarin family
 
Symptoms of menopause
 
193

 
210

 
361

 
401

BMP2
 
Development of bone and cartilage
 
79

 
80

 
145

 
153

Toviaz
 
Overactive bladder
 
65

 
70

 
125

 
130

All other Internal Medicine
 
Various
 
631

 
750

 
1,270

 
1,480

Oncology(c)
 
 
 
$
2,236

 
$
1,888

 
$
4,198

 
$
3,648

Ibrance
 
Advanced breast cancer
 
1,261

 
1,027

 
2,394

 
1,960

Sutent
 
Advanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor
 
248

 
275

 
480

 
537

Xtandi alliance revenues
 
Castration-resistant prostate cancer
 
201

 
171

 
369

 
330

Xalkori
 
ALK-positive and ROS1-positive advanced NSCLC
 
133

 
137

 
255

 
290

Bosulif
 
Philadelphia chromosome–positive chronic myelogenous leukemia
 
97

 
77

 
177

 
138

Inlyta
 
Advanced RCC
 
104

 
81

 
177

 
155

Retacrit(j)
 
Anemia
 
51

 
18

 
82

 
36

All other Oncology
 
Various
 
140

 
100

 
262

 
201

Hospital(d)
 
 
 
$
1,913

 
$
2,077

 
$
3,800

 
$
4,103

Sulperazon
 
Treatment of infections
 
165

 
150

 
342

 
319

Medrol(e)
 
Steroid anti-inflammatory
 
120

 
123

 
240

 
258

Vfend
 
Fungal infections
 
94

 
110

 
178

 
207

Zithromax(e)
 
Bacterial infections
 
73

 
81

 
177

 
182

EpiPen
 
Epinephrine injection used in treatment of life-threatening allergic reactions
 
80

 
95

 
146

 
148

Zyvox
 
Bacterial infections
 
71

 
66

 
134

 
134

Fragmin
 
Slows blood clotting
 
63

 
74

 
123

 
145

Zosyn/Tazocin
 
Antibiotic
 
53

 
58

 
104

 
120

Pfizer CentreOne(f)
 
Various
 
204

 
209

 
380

 
381

All other Anti-infectives
 
Various
 
367

 
362

 
721

 
755

All other Hospital(d)
 
Various
 
623

 
748

 
1,254

 
1,455

Vaccines
 
 
 
$
1,375

 
$
1,400

 
$
2,988

 
$
2,863

Prevnar 13/Prevenar 13
 
Pneumococcal disease
 
1,179

 
1,250

 
2,665

 
2,631

FSME/IMMUN-TicoVac
 
Tick-borne encephalitis disease
 
95

 
73

 
133

 
105

Nimenrix
 
Meningococcal disease
 
58

 
30

 
107

 
49

All other Vaccines
 
Various
 
43

 
47

 
82

 
78

Inflammation & Immunology (I&I)(g)
 
 
 
$
1,219

 
$
1,222

 
$
2,256

 
$
2,235

Xeljanz
 
RA, PsA, UC
 
613

 
463

 
1,036

 
788

Enbrel (Outside the U.S. and Canada)
 
RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis
 
420

 
551

 
871

 
1,057

Inflectra/Remsima(g), (j)
 
Inflammatory diseases
 
153

 
158

 
291

 
303

Eucrisa
 
Mild-to-moderate atopic dermatitis (eczema)
 
27

 
39

 
50

 
65

All other I&I
 
Various
 
6

 
11

 
9

 
22

Rare Disease
 
 
 
$
521

 
$
571

 
$
991

 
$
1,120

BeneFIX
 
Hemophilia
 
121

 
141

 
247

 
288

Genotropin
 
Replacement of human growth hormone
 
125

 
140

 
232

 
272

Refacto AF/Xyntha
 
Hemophilia
 
108

 
141

 
214

 
271

Somavert
 
Acromegaly
 
68

 
68

 
128

 
131

Vyndaqel
 
ATTR-Cardiomyopathy and Polyneuropathy
 
63

 
38

 
104

 
72

All other Rare Disease
 
Various
 
35

 
43

 
66

 
86


(MILLIONS OF DOLLARS)
 
 
 
Three Months Ended
 
Six Months Ended
 
PRODUCT
 
PRIMARY INDICATIONS OR CLASS
 
June 30,
2019

 
July 1,
2018

 
June 30,
2019

 
July 1,
2018

UPJOHN(b), (h)
 
$
2,807

 
$
3,147

 
$
5,882

 
$
6,267

Lyrica
 
Epilepsy, post-herpetic neuralgia and diabetic peripheral neuropathy, fibromyalgia, neuropathic pain due to spinal cord injury
 
1,175

 
1,223

 
2,362

 
2,436

Lipitor
 
Reduction of LDL cholesterol
 
407

 
521

 
1,029

 
1,032

Norvasc
 
Hypertension
 
216

 
273

 
516

 
529

Celebrex
 
Arthritis pain and inflammation, acute pain
 
174

 
161

 
347

 
306

Viagra
 
Erectile dysfunction
 
114

 
185

 
259

 
372

Effexor
 
Depression and certain anxiety disorders
 
86

 
79

 
163

 
150

Zoloft
 
Depression and certain anxiety disorders
 
73

 
77

 
143

 
151

Xalatan/Xalacom
 
Glaucoma and ocular hypertension
 
72

 
85

 
133

 
157

Revatio
 
Pulmonary arterial hypertension
 
56

 
54

 
98

 
109

Xanax
 
Anxiety disorders
 
52

 
56

 
98

 
111

All other Upjohn
 
Various
 
382

 
433

 
735

 
914

CONSUMER HEALTHCARE BUSINESS(i)
 
 
 
$
862

 
$
886

 
$
1,721

 
$
1,791

Total Alliance revenues
 
Various
 
$
1,187

 
$
987

 
$
2,277

 
$
1,842

Total Biosimilars(j)
 
Various
 
$
217

 
$
188

 
$
396

 
$
361

Total Sterile Injectable Pharmaceuticals(k)
 
 
 
$
1,218

 
$
1,329

 
$
2,455

 
$
2,688


(a) 
The Pfizer Biopharmaceuticals Group encompasses Internal Medicine, Oncology, Hospital, Vaccines, Inflammation & Immunology and Rare Disease. The new Hospital business unit commercializes our global portfolio of sterile injectable and anti-infective medicines, and also includes Pfizer CentreOne(f).
(b) 
We reclassified certain products from the LEP category, including Premarin family products, and certain other products from the legacy Peri-LOE category, including Pristiq, to the Internal Medicine category and reclassified Lyrica from the Internal Medicine category to the Upjohn business to conform 2018 product revenues to the current presentation.
(c) 
We performed certain reclassifications in the All other Oncology category to conform 2018 product revenues to the current presentation.
(d) 
Hospital is a new business unit that commercializes our global portfolio of sterile injectable and anti-infective medicines. We performed certain reclassifications, primarily from the legacy Sterile Injectables Pharmaceuticals (SIP) category (Sulperazon, Medrol, Fragmin, Tygacil, Zosyn/Tazocin and Precedex, among other products), the LEP category (Epipen and Zithromax), and the legacy Peri-LOE category (Vfend and Zyvox) to the Hospital category to conform 2018 product revenues to the current presentation. Hospital also includes Pfizer CentreOne(f). All other Hospital primarily includes revenues from legacy SIP products (that are not anti-infective products) and, to a much lesser extent, solid oral dose products (that are not anti-infective products). SIP anti-infective products that are not individually listed above are recorded in “All other Anti-infectives”.
(e) 
2018 revenues for Medrol and Zithromax may not agree to previously disclosed revenues because revenues for those products were previously split between LEP and the legacy SIP categories. All revenues for these products are currently reported in the Hospital category.
(f) 
Pfizer CentreOne includes revenues from our contract manufacturing and active pharmaceutical ingredient sales operation, including sterile injectables contract manufacturing, and revenues related to our manufacturing and supply agreements, including with Zoetis Inc. In the fourth quarter of 2017, we sold our equity share in Hisun Pfizer. As a result, effective in the first quarter of 2018, Hisun Pfizer-related revenues, previously reported in emerging markets within legacy All Other LEP and legacy All Other SIP, are reported in emerging markets within Pfizer CentreOne.
(g) 
We reclassified Inflectra/Remsima from the legacy Biosimilars category to the Inflammation & Immunology category to conform 2018 product revenues to the current presentation.
(h) 
Pfizer’s Upjohn business encompasses primarily off-patent branded and generic established medicines that includes 20 of our primarily off-patent solid oral dose legacy brands including Lyrica, Lipitor, Norvasc, Celebrex and Viagra, as well as certain generic medicines.
(i) 
Pfizer’s Consumer Healthcare business is an over-the-counter medicines business, which on July 31, 2019 was combined with GSK’s consumer healthcare business to form a new consumer healthcare joint venture. For additional information, see Note 2.
(j) 
Biosimilars are highly similar versions of approved and authorized biological medicines and primarily include revenues from Inflectra/Remsima and Retacrit.
(k) 
Sterile Injectable Pharmaceuticals represents the total of all branded and generic injectable products in the Hospital business, including anti-infective sterile injectable pharmaceuticals.