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Acquisitions, Divestitures, Equity-Method Investments, Licensing Arrangements and Collaborative Arrangements (Tables)
 12 Months Ended
Dec. 31, 2022
Business Combinations, Discontinued Operations And Disposal Groups, Collaborative Arrangements And Equity Method Investments [Abstract]  
Summarized Financial Information of Discontinued Operations
Components of Discontinued operations––net of tax:
Year Ended December 31,(a)
(MILLIONS)202220212020
Revenues$— $277 $7,572 
Costs and expenses:
Cost of sales— 204 2,106 
Selling, informational and administrative expenses8 26 1,682 
Research and development expenses— 9 224 
Acquired in-process research and development expenses— — — 
Amortization of intangible assets — 45 224 
Restructuring charges and certain acquisition-related costs— 2 29 
Other (income)/deductions––net(20)365 428 
Pre-tax income/(loss) from discontinued operations12 (375)2,879 
Provision/(benefit) for taxes on income13 (107)349 
Income/(loss) from discontinued operations––net of tax(1)(268)2,529 
Pre-tax gain/(loss) on sale of discontinued operations10 (211)— 
Provision/(benefit) for taxes on income2 (44)— 
Gain/(loss) on sale of discontinued operations––net of tax7 (167)— 
Discontinued operations––net of tax$6 $(434)$2,529 
(a)In 2022, Discontinued operations—net of tax relates to post-close adjustments. In 2021, Discontinued operations—net of tax primarily includes (i) the operations of Meridian prior to its sale on December 31, 2021 recognized in Income/(loss) from discontinued operations—net of tax, which includes a pre-tax amount to resolve a MDL relating to EpiPen against the Company in the U.S. District Court for the District of Kansas for $345 million; and (ii) the after tax loss of $167 million related to the sale of Meridian recognized in Gain/(loss) on sale of discontinued operations––net of tax. To a much lesser extent, Discontinued operations—net of tax in 2021 also includes the operations of the Mylan-Japan collaboration prior to its termination on December 21, 2020 and post-close adjustments directly related to our former Upjohn and Nutrition discontinued businesses, including adjustments for tax, benefits and legal-related matters recognized in Income/(loss) from discontinued operations—net of tax. In 2020, Discontinued operations—net of tax relates to the operations of the Upjohn Business, Meridian and the Mylan-Japan collaboration and includes the impact of the 2021 MTM change in accounting principle, pre-tax interest expense of $116 million associated with the U.S. dollar and Euro denominated senior unsecured notes issued by Upjohn Inc. and Upjohn Finance B.V. in the second quarter of 2020 and pre-tax charges of $223 million related to the remeasurement of Euro debt issued by Upjohn Finance B.V. in the second quarter of 2020.
Summarized Financial Information of Equity Method Investments
Summarized financial information for our equity-method investee, Haleon/the Consumer Healthcare JV, as of September 30, 2022, the most recent period available, and as of September 30, 2021 and for the periods ending September 30, 2022, 2021, and 2020 is as follows:
(MILLIONS)September 30, 2022September 30, 2021
Current assets$5,932 $6,890 
Noncurrent assets35,204 39,445 
Total assets
$41,137 $46,335 
Current liabilities$5,235 $5,133 
Noncurrent liabilities17,220 5,218 
Total liabilities
$22,455 $10,351 
Equity attributable to shareholders$18,455 $35,705 
Equity attributable to noncontrolling interests227 279 
Total net equity$18,682 $35,984 
For the Twelve Months Ending
(MILLIONS)September 30, 2022September 30, 2021September 30, 2020
Net sales$13,566 $12,836 $12,720 
Cost of sales(5,081)(4,755)(5,439)
Gross profit$8,486 $8,081 $7,281 
Income from continuing operations1,745 1,614 1,350 
Net income1,745 1,614 1,350 
Income attributable to shareholders1,675 1,547 1,307 
Summarized financial information for our equity-method investee, ViiV, as of December 31, 2022 and 2021 and for the years ending December 31, 2022, 2021, and 2020 is as follows:
As of December 31,
(MILLIONS)20222021
Current assets$4,043 $3,608 
Noncurrent assets3,014 3,563 
Total assets
$7,057 $7,171 
Current liabilities$3,780 $3,497 
Noncurrent liabilities5,996 6,536 
Total liabilities
$9,777 $10,033 
Total net equity/(deficit) attributable to shareholders$(2,720)$(2,862)
Year Ended December 31,
(MILLIONS)202220212020
Net sales$6,955 $6,380 $6,224 
Cost of sales(819)(682)(574)
Gross profit$6,135 $5,698 $5,650 
Income from continuing operations3,108 2,040 2,012 
Net income3,108 2,040 2,012 
Income attributable to shareholders3,108 2,040 2,012 
Schedule of Collaborative Arrangements and Non-collaborative Arrangement Transactions
The following provides the amounts and classification of payments (income/(expense)) between us and our collaboration partners:
Year Ended December 31,
(MILLIONS)202220212020
Revenues—Revenues(a)
$437 $590 $284 
Revenues—Alliance revenues(b)
8,537 7,652 5,418 
Total revenues from collaborative arrangements$8,974 $8,241 $5,703 
Cost of sales(c)
$(15,589)$(16,169)$(61)
Selling, informational and administrative expenses(d)
(196)(175)(194)
Research and development expenses(e)
272 314 (14)
Acquired in-process research and development expenses(f)
(339)(1,056)(179)
Other income/(deductions)—net(g)
664 820 567 
(a)Represents sales to our partners of products manufactured by us.
(b)Substantially all relates to amounts earned from our partners under co-promotion agreements. The increase in 2022 reflects increases in Alliance revenues from Eliquis, Comirnaty and Bavencio, while the increase in 2021 reflects increases in Alliance revenues from Comirnaty, Eliquis and Xtandi.
(c)Primarily relates to amounts paid to collaboration partners for their share of net sales or profits earned in collaboration arrangements where we are the principal in the transaction, and cost of sales for inventory purchased from our partners. The decrease in 2022, as well as the increase in 2021, primarily relate to Comirnaty.
(d)Represents net reimbursements to our partners for selling, informational and administrative expenses incurred.
(e)Represents net reimbursements (to)/from our partners for research and development expenses incurred.
(f)Primarily relates to upfront payments to our partners as well as premiums paid on our equity investments in the common stock of our partners.(g)Primarily relates to royalties from our collaboration partners.