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Pfizer Reports Fourth-Quarter And Full-Year 2012 Results; Provides 2013 Financial Guidance

The 2013 financial guidance does not assume the completion of any business development transactions not completed as of December 31, 2012, including any one-time upfront payments associated with such transactions, and excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of December 31, 2012.

The 2013 financial guidance reflects the benefit of a full-year contribution from Zoetis (4). Adjusted (2) and Reported (3) Diluted EPS guidance includes a $0.02 unfavorable impact for Zoetis (4)-related interest expense and certain duplicative and other costs given its potential separation. Reported Diluted EPS (3) guidance includes an additional $0.02 unfavorable impact for costs related to the establishment of Zoetis’ (4) corporate and manufacturing support functions, and certain other costs related to the potential separation of Zoetis (4) from Pfizer, including new branding, creation of a standalone infrastructure, site separation and certain legal registration and patent assignment costs.

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

(1)   On November 30, 2012, Pfizer completed the sale of the Nutrition business to Nestlé. The operating results of the Nutrition business are reported as Discontinued Operations – net of tax in the consolidated statements of income for all periods presented. The gain on the sale of the Nutrition business is reported as Discontinued Operations – net of tax in the consolidated statements of income for fourth-quarter and full-year 2012.
 
(2) "Adjusted Income" and its components and "Adjusted Diluted Earnings Per Share (EPS)" are defined as reported U.S. generally accepted accounting principles (GAAP) net income (3) and its components and reported diluted EPS (3) excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. Adjusted Cost of Sales, Adjusted Selling, Informational and Administrative (SI&A) expenses, Adjusted Research and Development (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 September 30, 2012, 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 certain GAAP reported to non-GAAP adjusted information for the fourth-quarter and full-year 2012 and 2011, as well as reconciliations of full-year 2013 guidance for adjusted income and adjusted diluted EPS to full-year 2013 guidance for reported net income (3) and reported diluted EPS (3), 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. GAAP net income and its components and diluted EPS.
 
(3) “Reported Net Income” is defined as net income attributable to Pfizer Inc. in accordance with U.S. GAAP. “Reported Diluted EPS” is defined as reported diluted EPS attributable to Pfizer Inc. common shareholders in accordance with U.S. GAAP.
 
(4) Pfizer previously announced its intention to initiate a potential initial public offering of up to a 19.8% stake in Zoetis Inc. (Zoetis), a subsidiary of Pfizer, and Zoetis has filed a registration statement with the Securities and Exchange Commission. Upon completion of the potential initial public offering, Pfizer will have transferred substantially all of its animal health business assets and liabilities to Zoetis. The financial results of Zoetis differ from the financial results of the Animal Health business unit as the components of this unit differ from Zoetis and, therefore, the financial results of the Animal Health business unit should not be relied upon as indicative of the performance of Zoetis.
 
(5) On August 1, 2011, Pfizer completed the sale of Capsugel to an affiliate of Kohlberg Kravis Roberts & Co. L.P. The operating results and the gain on the sale of Capsugel are reported as Discontinued operations – net of tax in the consolidated statements of income for full-year 2011. Additionally, due to the acquisition of King Pharmaceuticals, Inc. (King), legacy King operations are reflected in the results beginning January 31, 2011. Therefore, in accordance with Pfizer’s domestic and international reporting periods, in full-year 2011 the operating results reflect approximately eleven months of King’s U.S. operations and approximately ten months of King’s international operations.
 
(6) For a description of each business unit, see Note 13A to Pfizer’s condensed consolidated financial statements included in Pfizer’s Form 10-Q for the fiscal quarter ended September 30, 2012.
 
(7) Other includes revenues generated primarily from Pfizer CentreSource, Pfizer’s contract manufacturing and bulk pharmaceutical chemical sales organization.
PFIZER INC. AND SUBSIDIARY COMPANIESCONSOLIDATED STATEMENTS OF INCOME (a)(UNAUDITED)(millions, except per common share data)
             
Fourth-Quarter % Incr. / Full-Year % Incr. /
  2012   2011 (Decr.)   2012   2011 (Decr.)
Revenues $ 15,068 $ 16,141 (7) $ 58,986 $ 65,259 (10)
Costs and expenses:
Cost of sales (b) 3,172 3,627 (13) 11,334 14,076 (19)

Selling, informational and administrative expenses (b)

4,815 5,197 (7) 16,616 18,832 (12)

Research and development expenses (b)

2,136 2,587 (17) 7,870 9,074 (13)
Amortization of intangible assets (c) 1,236 1,406 (12) 5,175 5,544 (7)
Restructuring charges and certain acquisition-related costs 791 472 68 1,880 2,930 (36)
Other deductions--net   748   697 7   4,031   2,499 61
Income from continuing operations before provision
for taxes on income 2,170 2,155 1 12,080 12,304 (2)
Provision for taxes on income   680   742 (8)   2,562   3,909 (34)
Income from continuing operations 1,490 1,413 5 9,518 8,395 13
Discontinued operations--net of tax   4,831   35 *   5,080   1,654 207
Net income before allocation to noncontrolling interests 6,321 1,448 * 14,598 10,049 45
Less: Net income attributable to noncontrolling interests   6   9 (33)   28   40 (30)
Net income attributable to Pfizer Inc. $ 6,315 $ 1,439 * $ 14,570 $ 10,009 46
Earnings per common share--basic: (d)
Income from continuing operations attributable to
Pfizer Inc. common shareholders $ 0.20 $ 0.18 11 $ 1.27 $ 1.07 19
Discontinued operations--net of tax   0.66   - *   0.68   0.21 224
Net income attributable to Pfizer Inc. common shareholders $ 0.86 $ 0.19 * $ 1.96 $ 1.28 53
Earnings per common share--diluted: (d)
Income from continuing operations attributable to
Pfizer Inc. common shareholders $ 0.20 $ 0.18 11 $ 1.26 $ 1.06 19
Discontinued operations--net of tax   0.65   - *   0.68   0.21 224
Net income attributable to Pfizer Inc. common shareholders $ 0.85 $ 0.19 * $ 1.94 $ 1.27 53
Weighted-average shares used to calculate earnings per common share:
Basic   7,319   7,635   7,442   7,817
Diluted   7,395   7,687   7,508   7,870
(a) The above financial statements present the three and twelve months ended December 31, 2012 and 2011. Subsidiaries operating outside the United States are included for the three and twelve months ended November 30, 2012 and 2011.
 
On November 30, 2012, we completed the sale of our Nutrition business and recognized a gain of approximately $4.8 billion related to the sale of this business in Discontinued operations--net of tax for the three and twelve months ended December 31, 2012. The operating results of this business are reported as Discontinued operations--net of tax for all periods presented.
 
On August 1, 2011, we completed the sale of our Capsugel business and recognized a gain of approximately $1.3 billion related to the sale of this business. The gain and the operating results of this business are reported as Discontinued operations--net of tax for the twelve months ended December 31, 2011.
 
On January 31, 2011, we completed a tender offer for the outstanding shares of common stock of King Pharmaceuticals, Inc. (King) and, commencing from that date, our financial statements include the assets, liabilities, operating results and cash flows of King. As a result, and in accordance with our domestic and international reporting periods, our operating results for the twelve months ended December 31, 2011 reflect approximately eleven months of King’s U.S. operations and approximately ten months of King’s international operations.
 

* Calculation not meaningful.

 
Certain amounts and percentages may reflect rounding adjustments.
 
See Supplemental Information that accompanies these materials for additional details.
 
(b) Exclusive of amortization of intangible assets, except as discussed in footnote (c) below.
 
(c) Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property 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.
 
(d) EPS amounts may not add due to rounding.
PFIZER INC. AND SUBSIDIARY COMPANIESRECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATIONCERTAIN LINE ITEMS(UNAUDITED)(millions of dollars, except per common share data)
             
Quarter Ended December 31, 2012

GAAP

Reported (1)

PurchaseAccountingAdjustments Acquisition-RelatedCosts (2) DiscontinuedOperations CertainSignificantItems (3) Non-GAAPAdjusted (a)
Revenues $ 15,068 $ - $ - $ - $ - $ 15,068
Cost of sales (b) 3,172 4 (53) - (17) 3,106

Selling, informational and administrative expenses (b)

4,815 9 (1) - (165) 4,658
Research and development expenses (b) 2,136 - (1) - (135) 2,000
Amortization of intangible assets (c) 1,236 (1,210) - - - 26
Restructuring charges and certain acquisition-related costs 791 - (262) - (529) -
Other deductions--net 748 (10) - - (557) 181
Income from continuing operations before provision for taxes on income 2,170 1,207 317 - 1,403 5,097
Provision for taxes on income 680 334 50 - 515 1,579
Income from continuing operations 1,490 873 267 - 888 3,518
Discontinued operations--net of tax 4,831 - - (4,831) - -
Net income attributable to noncontrolling interests 6 - - - - 6
Net income attributable to Pfizer Inc. 6,315 873 267 (4,831) 888 3,512
Earnings per common share attributable to Pfizer Inc.--diluted (d) 0.85 0.12 0.04 (0.65) 0.12 0.47
 
 
 
 
Twelve Months Ended December 31, 2012

GAAP Reported (1)

PurchaseAccountingAdjustments Acquisition-RelatedCosts (2)

DiscontinuedOperations

CertainSignificantItems (3) Non-GAAPAdjusted (a)
Revenues $ 58,986 $ - $ - $ - $ - $ 58,986
Cost of sales (b) 11,334 (5) (267) - (68) 10,994

Selling, informational and administrative expenses (b)

16,616 13 (9) - (339) 16,281
Research and development expenses (b) 7,870 3 (6) - (521) 7,346
Amortization of intangible assets (c) 5,175 (4,973) - - - 202
Restructuring charges and certain acquisition-related costs 1,880 - (685) - (1,195) -
Other deductions--net 4,031 5 - - (3,201) 835
Income from continuing operations before provision for taxes on income 12,080 4,957 967 - 5,324 23,328
Provision for taxes on income 2,562 1,359 211 - 2,692 6,824
Income from continuing operations 9,518 3,598 756 - 2,632 16,504
Discontinued operations--net of tax 5,080 - - (5,080) - -
Net income attributable to noncontrolling interests 28 - - - - 28
Net income attributable to Pfizer Inc. 14,570 3,598 756 (5,080) 2,632 16,476
Earnings per common share attributable to Pfizer Inc.--diluted (d) 1.94 0.48 0.10 (0.68) 0.35 2.19
  (a) Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.
 
(b) Exclusive of amortization of intangible assets, except as discussed in footnote (c) below.
 
(c) Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property 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 expensesor Research and development expenses, as appropriate.
 
(d) EPS amounts may not add due to rounding.
 
See end of tables for notes (1), (2) and (3).
 
Certain amounts may reflect rounding adjustments.
PFIZER INC. AND SUBSIDIARY COMPANIESRECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATIONCERTAIN LINE ITEMS(UNAUDITED)(millions of dollars, except per common share data)
               
Quarter Ended December 31, 2011

GAAP Reported (1)

PurchaseAccountingAdjustments

Acquisition-RelatedCosts (2)

DiscontinuedOperations

Certain

SignificantItems (3)

Non-GAAPAdjusted (a)
Revenues $ 16,141 $ - $ - $ - $ - $ 16,141
Cost of sales (b) 3,627 (149) (145) - (250) 3,083

Selling, informational and administrative expenses (b)

5,197 (5) (4) - (15) 5,173
Research and development expenses (b) 2,587 2 (14) - (257) 2,318
Amortization of intangible assets (c) 1,406 (1,353) - - - 53
Restructuring charges and certain acquisition-related costs 472 - (360) - (112) -
Other deductions--net 697 (51) - - (538) 108
Income from continuing operations before provision for taxes on income 2,155 1,556 523 - 1,172 5,406
Provision for taxes on income 742 408 202 - 261 1,613
Income from continuing operations 1,413 1,148 321 - 911 3,793
Discontinued operations--net of tax 35 - - (35) - -
Net income attributable to noncontrolling interests 9 - - - - 9
Net income attributable to Pfizer Inc. 1,439 1,148 321 (35) 911 3,784
Earnings per common share attributable to Pfizer Inc.--diluted (d) 0.19 0.15 0.04 - 0.12 0.49
 
 
 
 
Twelve Months Ended December 31, 2011

GAAP Reported (1)

 

PurchaseAccountingAdjustments

Acquisition-Related

Costs (2)

 

DiscontinuedOperations

 

CertainSignificantItems (3)

 

Non-GAAPAdjusted (a)

Revenues $ 65,259 $ - $ - $ - $ - $ 65,259
Cost of sales (b) 14,076 (1,230) (555) - (257) 12,034
Selling, informational and administrative expenses (b) 18,832 (11) (45) - (54) 18,722
Research and development expenses (b) 9,074 2 (23) - (655) 8,398
Amortization of intangible assets (c) 5,544 (5,392) - - - 152
Restructuring charges and certain acquisition-related costs 2,930 - (1,356) - (1,574) -
Other deductions--net 2,499 (122) - - (1,807) 570
Income from continuing operations before provision for taxes on income 12,304 6,753 1,979 - 4,347 25,383
Provision for taxes on income 3,909 1,753 522 - 1,320 7,504
Income from continuing operations 8,395 5,000 1,457 - 3,027 17,879
Discontinued operations--net of tax 1,654 - - (1,654) - -
Net income attributable to noncontrolling interests 40 - - - - 40
Net income attributable to Pfizer Inc. 10,009 5,000 1,457 (1,654) 3,027 17,839
Earnings per common share attributable to Pfizer Inc.--diluted (d) 1.27 0.64 0.19 (0.21) 0.38 2.27
  (a) Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.
 
(b) Exclusive of amortization of intangible assets, except as discussed in footnote (c) below.
 
(c) Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property 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.
 
(d) EPS amounts may not add due to rounding.
 
See end of tables for notes (1), (2) and (3).
 
Certain amounts may reflect rounding adjustments.
PFIZER INC. AND SUBSIDIARY COMPANIESNOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATIONCERTAIN LINE ITEMS*(UNAUDITED)
 
(1) The financial statements present the three and twelve months ended December 31, 2012 and 2011. Subsidiaries operating outside the United States are included for the three and twelve months ended November 30, 2012 and 2011.
 
On November 30, 2012, we completed the sale of our Nutrition business and recognized a gain of approximately $4.8 billion related to the sale of this business in Discontinued operations--net of tax for the three and twelve months ended December 31, 2012. The operating results of this business are reported as Discontinued operations--net of tax for all periods presented.
 
On August 1, 2011, we completed the sale of our Capsugel business and recognized a gain of approximately $1.3 billion related to the sale of this business. The gain and the operating results of this business are reported as Discontinued operations--net of tax for the twelve months ended December 31, 2011.
 
On January 31, 2011, we completed a tender offer for the outstanding shares of common stock of King Pharmaceuticals, Inc. (King) and, commencing from that date, our financial statements include the assets, liabilities, operating results and cash flows of King. As a result, and in accordance with our domestic and international reporting periods, our operating results for the twelve months ended December 31, 2011 reflect approximately eleven months of King’s U.S. operations and approximately ten months of King’s international operations.
 
(2) Acquisition-related costs include the following:
            Fourth-Quarter   Full-Year
(millions of dollars)           2012       2011     2012       2011  
 
Transaction costs (a) $ - $ 2 $ 1 $ 30
Integration costs (a) 110 163 405 725
Restructuring charges (a) 152 195 279 601

Additional depreciation -- asset restructuring (b)

  55     163     282     623  
Total acquisition-related costs -- pre-tax 317 523 967 1,979
Income taxes (c)   (50 )   (202 )   (211 )   (522 )
Total acquisition-related costs -- net of tax $ 267   $ 321   $ 756   $ 1,457  
  (a) Transaction costs represent external costs directly related to acquired businesses and primarily include expenditures for banking, legal, accounting and other similar services. Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. Restructuring charges include employee termination costs, asset impairments and other exit costs associated with business combinations. All of these costs and charges are included in Restructuring charges and certain acquisition-related costs.
 
(b) Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions related to acquisitions. Included in Cost of sales ($53 million), Selling, informational and administrative expenses ($1 million), and Research and development expenses ($1 million) for the three months ended December 31, 2012. Included in Cost of sales ($267 million), Selling, informational and administrative expenses ($9 million) and Research and development expenses ($6 million) for the twelve months ended December 31, 2012. Included in Cost of sales ($145 million), Selling, informational and administrative expenses ($4 million) and Research and development expenses ($14 million) for the three months ended December 31, 2011. Included in Cost of sales ($555 million), Selling, informational and administrative expenses ($45 million) and Research and development expenses ($23 million) for the twelve months ended December 31, 2011.
 
(c) Included in Provision for taxes on income.
 
(3) Certain significant items include the following:
        Fourth-Quarter   Full-Year
(millions of dollars)           2012       2011     2012       2011  
 
Restructuring charges (a) $ 529 $ 112 $ 1,195 $ 1,574

Implementation costs and additional depreciation -- asset restructuring (b)

207 522 693 959
Certain legal matters (c) 208 165 2,191 822
Certain asset impairment charges (d) 369 261 912 856
Costs associated with the potential separation of Zoetis (e) 134 27 325 35
Other   (44 )   85     8     101  
Total certain significant items -- pre-tax 1,403 1,172 5,324 4,347
Income taxes (f)   (515 )   (261 )   (2,692 )   (1,320 )
Total certain significant items -- net of tax $ 888   $ 911   $ 2,632   $ 3,027  
  (a) Primarily related to our cost-reduction and productivity initiatives, included in Restructuring charges and certain acquisition-related costs.
 
(b) Primarily related to our cost-reduction and productivity initiatives. Included in Cost of sales ($8 million), Selling, informational and administrative expenses ($64 million) and Research and development expenses ($135 million) for the three months ended December 31, 2012. Included in Cost of sales ($31 million), Selling, informational and administrative expenses ($141 million) and Research and development expenses ($521 million) for the twelve months ended December 31, 2012. Included in Cost of sales ($250 million), Selling, informational and administrative expenses ($15 million) and Research and development expenses ($257 million) for the three months ended December 31, 2011. Included in Cost of sales ($250 million), Selling, informational and administrative expenses ($54 million) and Research and development expenses ($655 million) for the twelve months ended December 31, 2011.
 
(c) Included in Other deductions--net. In fourth-quarter 2012, primarily includes charges related to Chantix litigation. In full-year 2012, primarily includes a $491 million charge resulting from an agreement-in-principle with the U.S. Department of Justice to resolve an investigation into Wyeth’s historical promotional practices in connection with Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges related to hormone-replacement therapy litigation and Chantix litigation. In 2011, primarily includes charges for hormone-replacement therapy litigation.
 
(d) Primarily included in Other deductions--net. In fourth-quarter and full-year 2012, primarily relates to certain intangible assets acquired in connection with our acquisitions of Wyeth and King, including in-process research and development (IPR&D) intangible assets. In fourth-quarter 2011, primarily relates to our indefinite-lived brand asset, Xanax, as a result of an increased competitive environment. In full-year 2011, substantially all relates to certain intangible assets acquired in connection with our acquisition of Wyeth, including IPR&D intangible assets, and our indefinite-lived brand asset, Xanax, as mentioned in the previous sentence.
 
(e)

Costs incurred in connection with the potential initial public offering of up to a 19.8% ownership stake in Zoetis. Includes expenditures for banking, legal, accounting and similar services related to the potential transaction, as well as costs incurred associated with the potential separation of Zoetis employees, net assets and operations from Pfizer, such as consulting and systems costs. Included in Cost of sales ($6 million), Selling, informational and administrative expenses ($96 million) and Other deductions--net ($32 million) for the three months ended December 31, 2012. Included in Cost of sales ($6 million), Selling, informational and administrative expenses ($194 million) and Other deductions--net ($125 million) for the twelve months ended December 31, 2012. For the three and twelve months ended December 31, 2011, substantially all included in Other deductions--net.

 
(f) Included in Provision for taxes on income. Includes a settlement with the U.S. IRS related to audits for multiple tax years of $1.1 billion, representing tax and interest, for the twelve months ended December 31, 2012.
 
* Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.
PFIZER INC.BUSINESS REVENUES (1)TWELVE MONTHS 2012 AND 2011(UNAUDITED)(millions of dollars)
       
 
 
  2012   2011 Change      

Foreign

Exchange

Operational
Primary Care $ 15,558 $ 22,670 (31 %) (1 %) (30 %)
Specialty Care 14,151 15,245 (7 %) (2 %) (5 %)
Established Products 10,235 9,214 11 % (2 %) 13 %
Emerging Markets 9,960 9,295 7 % (5 %) 12 %
Oncology   1,310   1,323 (1 %)       (3 %) 2 %
Biopharmaceutical 51,214 57,747 (11 %) (2 %) (9 %)
 
Animal Health 4,299 4,184 3 % (3 %) 6 %
Consumer Healthcare 3,212 3,028 6 % (2 %) 8 %
Other   261   300 (13 %)       (1 %) (12 %)
 
Total $ 58,986 $ 65,259 (10 %)       (2 %) (8 %)
 
(1) For a description of each business unit, see Note 13A to Pfizer's condensed consolidatedfinancial statements included in Pfizer's Form 10-Q for the fiscal quarter ended September 30, 2012.
PFIZER INC.ADJUSTED SELECTED COSTS AND EXPENSESTWELVE MONTHS 2012 AND 2011(UNAUDITED)
       
 
 
($ in millions)

 

 

 

Foreign

 

(Favorable)/Unfavorable

2012

2011

Change

     

Exchange

Operational

Adjusted Cost of Sales (1) $ 10,994 $ 12,034 (9 %) (4 %) (5 %)
As a Percent of Revenues 18.6 % 18.4 % N/A N/A N/A
Adjusted SI&A Expenses (1) 16,281 18,722 (13 %) (2 %) (11 %)
Adjusted R&D Expenses (1)   7,346     8,398   (13 %)       (1 %) (12 %)
 
Total $ 34,621   $ 39,154   (12 %)       (2 %) (10 %)
 
 
(1) Adjusted cost of sales, Adjusted selling, informational and administrative (SI&A)expenses and Adjusted research and development (R&D) expenses are defined as the correspondingreported U.S. generally accepted accounting principles (GAAP) income statement line items excludingpurchase accounting adjustments, acquisition-related costs, discontinued operations and certainsignificant items. Reconciliations of certain GAAP reported to non-GAAP adjusted information forthe three and twelve months ended December 31, 2012 and 2011 are provided in the materialsaccompanying this report. These adjusted income statement line item measures are not, and shouldnot be viewed as, substitutes for the corresponding U.S. GAAP line items.

PFIZER INC.

REVENUES

FOURTH-QUARTER 2012 and 2011

(UNAUDITED)

(millions of dollars)

     

 

 

 

   

WORLDWIDE

 

UNITED STATES

 

TOTAL INTERNATIONAL (a)

 

 

 

  % Change

 

 

 

 

% Change

 

 

 

  % Change
   

2012

 

2011

  Total   Oper.  

2012

 

2011

  Total  

2012

 

2011

  Total   Oper.
TOTAL REVENUES   $ 15,068   $ 16,141   (7 %)   (5 %)   $ 5,783   $ 6,328   (9 %)   $ 9,285   $ 9,813   (5 %)   (3 %)

REVENUES FROM BIOPHARMACEUTICAL PRODUCTS:

  $ 12,893   $ 14,136   (9 %)   (7 %)   $ 4,809   $ 5,459   (12 %)   $ 8,084   $ 8,677   (7 %)   (4 %)
Lyrica 1,132 998 13 %   16 % 443 398 11 % 689 600 15 %   18 %
Lipitor (b) 584 1,999 (71 %) (70 %) 61 816 (93 %) 523 1,183 (56 %) (55 %)
Enbrel (Outside the U.S. and Canada) 957 925 3 % 8 % - - - 957 925 3 % 8 %
Prevnar 13/Prevenar 13 993 834 19 % 22 % 464 395 17 % 529 439 21 % 25 %
Celebrex 750 667 12 % 13 % 479 418 15 % 271 249 9 % 11 %
Viagra 553 523 6 % 6 % 313 271 15 % 240 252 (5 %) (3 %)
Norvasc 348 364 (4 %) (3 %) 10 - 100 % 338 364 (7 %) (7 %)
Zyvox 349 318 10 % 12 % 175 154 14 % 174 164 6 % 11 %
Sutent 323 317 2 % 5 % 82 89 (8 %) 241 228 6 % 10 %
Premarin family 276 256 8 % 8 % 253 232 9 % 23 24 (4 %) 1 %
Genotropin 213 235 (9 %) (7 %) 54 61 (11 %) 159 174 (9 %) (5 %)
Xalatan/Xalacom 189 290 (35 %) (33 %) 8 17 (53 %) 181 273 (34 %) (31 %)
BeneFIX 198 175 13 % 15 % 86 78 10 % 112 97 15 % 19 %
Detrol/Detrol LA 185 215 (14 %) (13 %) 124 135 (8 %) 61 80 (24 %) (22 %)
Vfend 211 189 12 % 16 % 25 22 14 % 186 167 11 % 18 %
Chantix/Champix 174 175 (1 %) - 79 78 1 % 95 97 (2 %) (2 %)
Pristiq 169 155 9 % 9 % 128 126 2 % 41 29 41 % 37 %
Refacto AF/Xyntha 164 126 30 % 33 % 27 22 23 % 137 104 32 % 34 %
Zoloft 143 153 (7 %) (4 %) 19 17 12 % 124 136 (9 %) (6 %)
Revatio 120 142 (15 %) (14 %) 62 83 (25 %) 58 59 (2 %) 1 %
Medrol 135 127 6 % 8 % 35 36 (3 %) 100 91 10 % 13 %
Zosyn/Tazocin 106 146 (27 %) (26 %) 42 77 (45 %) 64 69 (7 %) (4 %)
Zithromax/Zmax 117 118 (1 %) 1 % 3 3 - 114 115 (1 %) 1 %
Effexor 83 141 (41 %) (40 %) 7 35 (80 %) 76 106 (28 %) (27 %)
Prevnar/Prevenar (7-valent) 96 82 17 % 13 % - - - 96 82 17 % 13 %
Fragmin 98 99 (1 %) - 6 11 (45 %) 92 88 5 % 6 %
Relpax 102 91 12 % 14 % 59 51 16 % 43 40 8 % 9 %
Rapamune 87 87 - 3 % 45 49 (8 %) 42 38 11 % 16 %
Cardura 84 91 (8 %) (6 %) 1 1 - 83 90 (8 %) (7 %)
Tygacil 86 74 16 % 17 % 37 36 3 % 49 38 29 % 33 %
Aricept (c) 77 115 (33 %) (33 %) - - - 77 115 (33 %) (33 %)
Xanax XR 71 74 (4 %) - 12 11 9 % 59 63 (6 %) (2 %)
BMP2 71 63 13 % 12 % 71 63 13 % - - - -
Sulperazon 71 63 13 % 11 % - - - 71 63 13 % 11 %
Diflucan 74 64 16 % 17 % - 2 (100 %) 74 62 19 % 19 %
Caduet 67 103 (35 %) (35 %) 7 37 (81 %) 60 66 (9 %) (9 %)
Neurontin 63 67 (6 %) (5 %) 11 12 (8 %) 52 55 (5 %) (6 %)
Dalacin/Cleocin 56 53 6 % 8 % 18 14 29 % 38 39 (3 %) 4 %
Unasyn 63 59 7 % 8 % - 2 (100 %) 63 57 11 % 11 %
Metaxalone/Skelaxin 74 58 28 % 29 % 74 58 28 % - - - -
Inspra 58 53 9 % 12 % 1 1 - 57 52 10 % 12 %
Toviaz 57 50 14 % 16 % 31 27 15 % 26 23 13 % 17 %
Somavert 55 50 10 % 14 % 13 12 8 % 42 38 11 % 15 %
Alliance revenues (d) 915 952 (4 %) (3 %) 712 599 19 % 203 353 (42 %) (42 %)
All other biopharmaceutical products (e) 2,096 2,200 (5 %) (2 %) 732 910 (20 %) 1,364 1,290 6 % 11 %
All other established products (e)     1,565     1,464   7 %   9 %     532     496   7 %     1,033     968   7 %   11 %
REVENUES FROM OTHER PRODUCTS:
ANIMAL HEALTH $ 1,171 $ 1,106 6 % 8 % $ 482 $ 443 9 % $ 689 $ 663 4 % 8 %
CONSUMER HEALTHCARE $ 936 $ 810 16 % 17 % $ 472 $ 403 17 % $ 464 $ 407 14 % 16 %
OTHER (f)   $ 68   $ 89   (24 %)   (23 %)   $ 20   $ 23   (13 %)   $ 48   $ 66   (27 %)   (28 %)
 
(a)   Total International represents Developed Europe region + Developed Rest of World region + Emerging Markets region. Details for these regions are located on the following page.
(b) Lipitor lost exclusivity in the U.S. in November 2011 and various other major markets in 2011 and 2012. This loss of exclusivity reduced branded worldwide revenues by $1.4 billion in the fourth quarter of 2012, in comparison with the fourth quarter of 2011.
(c) Represents direct sales under license agreement with Eisai Co., Ltd.
(d) Includes Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.
(e) Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.
(f) Includes revenues generated primarily from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization.
 
Certain amounts and percentages may reflect rounding adjustments.

PFIZER INC.

REVENUES

DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION

FOURTH-QUARTER 2012 and 2011

(UNAUDITED)

(millions of dollars)

     

 

 

 

   

DEVELOPED EUROPE (a)

 

DEVELOPED REST OF WORLD (b)

 

EMERGING MARKETS (c)

 

 

 

  % Change  

 

 

 

  % Change  

 

 

 

  % Change  
   

2012

 

2011

  Total   Oper.  

2012

 

2011

  Total   Oper.  

2012

 

2011

  Total   Oper.
TOTAL INTERNATIONAL REVENUES   $ 3,350   $ 4,022   (17 %)   (13 %)   $ 2,724   $ 3,002   (9 %)   (9 %)   $ 3,211   $ 2,789   15 %   18 %
REVENUES FROM BIOPHARMACEUTICAL PRODUCTS - INTERNATIONAL:   $ 2,984   $ 3,674   (19 %)   (15 %)   $ 2,448   $ 2,739   (11 %)   (10 %)   $ 2,652   $ 2,264   17 %   20 %
Lyrica 364 324 12 %   18 % 217 188 15 %   16 % 108 88 23 %   25 %
Lipitor (d) 107 596 (82 %) (81 %) 201 360 (44 %) (44 %) 215 227 (5 %) (4 %)

Enbrel (Outside Canada)

627 629 - 4 % 104 133 (22 %) (21 %) 226 163 39 % 45 %

Prevnar 13/Prevenar 13

208 199 5 % 9 % 65 70 (7 %) (7 %) 256 170 51 % 58 %
Celebrex 40 48 (17 %) (10 %) 138 124 11 % 11 % 93 77 21 % 23 %
Viagra 103 104 (1 %) 2 % 49 54 (9 %) (9 %) 88 94 (6 %) (5 %)
Norvasc 28 38 (26 %) (21 %) 171 198 (14 %) (13 %) 139 128 9 % 8 %
Zyvox 78 77 1 % 6 % 39 41 (5 %) - 57 46 24 % 28 %
Sutent 114 115 (1 %) 4 % 48 47 2 % 2 % 79 66 20 % 24 %
Premarin family 3 2 50 % - 9 10 (10 %) 11 % 11 12 (8 %) -
Genotropin 71 89 (20 %) (17 %) 58 59 (2 %) - 30 26 15 % 23 %
Xalatan/Xalacom 55 124 (56 %) (52 %) 79 99 (20 %) (19 %) 47 50 (6 %) (2 %)
BeneFIX 66 62 6 % 10 % 39 31 26 % 33 % 7 4 75 % 50 %
Detrol/Detrol LA 22 38 (42 %) (39 %) 28 27 4 % - 11 15 (27 %) (14 %)
Vfend 78 78 - 5 % 44 45 (2 %) 10 % 64 44 45 % 51 %
Chantix/Champix 35 41 (15 %) (12 %) 47 46 2 % - 13 10 30 % 18 %
Pristiq - - - - 28 19 47 % 30 % 13 10 30 % 40 %
Refacto AF/Xyntha 99 95 4 % 7 % 20 8 150 % 122 % 18 1 * *
Zoloft 15 20 (25 %) (20 %) 71 84 (15 %) (13 %) 38 32 19 % 19 %
Revatio 33 36 (8 %) (3 %) 16 13 23 % 15 % 9 10 (10 %) -
Medrol 24 25 (4 %) 4 % 12 13 (8 %) - 64 53 21 % 23 %
Zosyn/Tazocin 11 14 (21 %) (14 %) 2 3 (33 %) - 51 52 (2 %) -
Zithromax/Zmax 14 19 (26 %) (22 %) 52 53 (2 %) (2 %) 48 43 12 % 14 %
Effexor 26 40 (35 %) (32 %) 22 41 (46 %) (46 %) 28 25 12 % 16 %
Prevnar/Prevenar (7-valent) - 1 (100 %) - 88 81 9 % 12 % 8 - 100 % 60 %
Fragmin 47 46 2 % 7 % 26 20 30 % 10 % 19 22 (14 %) (5 %)
Relpax 20 20 - 11 % 17 16 6 % 6 % 6 4 50 % 50 %
Rapamune 15 15 - 7 % 5 5 - - 22 18 22 % 26 %
Cardura 25 25 - - 32 39 (18 %) (18 %) 26 26 - -
Tygacil 17 15 13 % 20 % 2 2 - - 30 21 43 % 36 %
Aricept (e) 17 58 (71 %) (67 %) 51 45 13 % 9 % 9 12 (25 %) (18 %)
Xanax XR 24 27 (11 %) (7 %) 11 14 (21 %) (8 %) 24 22 9 % 9 %
BMP2 - - - - - - - - - - - -
Sulperazon - - - - 9 10 (10 %) (9 %) 62 53 17 % 15 %
Diflucan 13 21 (38 %) (33 %) 11 12 (8 %) (15 %) 50 29 72 % 72 %
Caduet 4 5 (20 %) (20 %) 41 46 (11 %) (11 %) 15 15 - 7 %
Neurontin 13 18 (28 %) (26 %) 14 15 (7 %) (20 %) 25 22 14 % 14 %
Dalacin/Cleocin 9 9 - - 5 8 (38 %) (14 %) 24 22 9 % 9 %
Unasyn 12 8 50 % 63 % 21 20 5 % - 30 29 3 % 7 %
Metaxalone/Skelaxin - - - - - - - - - - - -
Inspra 35 34 3 % 9 % 17 14 21 % 13 % 5 4 25 % 25 %
Toviaz 22 19 16 % 21 % 1 1 - - 3 3 - 50 %
Somavert 34 32 6 % 13 % 5 3 67 % 25 % 3 3 - -
Alliance revenues (f) 38 103 (63 %) (60 %) 151 228 (34 %) (34 %) 14 22 (36 %) (29 %)
All other biopharmaceutical products (g) 418 405 3 % 9 % 382 394 (3 %) 2 % 564 491 15 % 19 %
All other established products (g)     281     290   (3 %)   2 %     265     288   (8 %)   (7 %)     487     390   25 %   30 %
REVENUES FROM OTHER PRODUCTS - INTERNATIONAL:   $ 366   $ 348   5 %   9 %   $ 276   $ 263   5 %   3 %   $ 559   $ 525   6 %   11 %
 
* Calculation not meaningful.
(a)   Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.
(b) Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea.
(c) 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 and Turkey.
(d) Lipitor lost exclusivity in various international markets in 2011 and 2012. This loss of exclusivity reduced branded international revenues by $636 million in the fourth quarter of 2012, in comparison with the fourth quarter of 2011.
(e) Represents direct sales under license agreement with Eisai Co., Ltd.
(f) Includes Enbrel (in Canada), Aricept, Exforge, Rebif and Spiriva.
(g) Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.
 
Certain amounts and percentages may reflect rounding adjustments.

PFIZER INC.

REVENUES

TWELVE MONTHS 2012 and 2011

(UNAUDITED)

(millions of dollars)

         

 

 

 

   

WORLDWIDE

         

UNITED STATES

 

TOTAL INTERNATIONAL (a)

 

 

 

% Change

 

 

 

  % Change

 

 

 

  % Change
   

2012

   

2011

  Total   Oper.  

2012

   

2011

  Total  

2012

   

2011

  Total   Oper.
TOTAL REVENUES   $ 58,986   $ 65,259   (10 %)   (8 %)   $ 23,086   $ 26,933   (14 %)   $ 35,900   $ 38,326   (6 %)   (2 %)
REVENUES FROM BIOPHARMACEUTICAL PRODUCTS:   $ 51,214   $ 57,747   (11 %)   (9 %)   $ 19,708   $ 23,707   (17 %)   $ 31,506   $ 34,040   (7 %)   (4 %)
Lyrica 4,158 3,693 13 % 16 % 1,672 1,514 10 % 2,486 2,179 14 %   19 %
Lipitor (b) 3,948 9,577 (59 %) (58 %) 932 5,003 (81 %) 3,016 4,574 (34 %) (33 %)
Enbrel (Outside the U.S. and Canada) 3,737 3,666 2 % 8 % - - - 3,737 3,666 2 % 8 %
Prevnar 13/Prevenar 13 3,718 3,657 2 % 4 % 1,887 1,928 (2 %) 1,831 1,729 6 % 10 %
Celebrex 2,719 2,523 8 % 9 % 1,745 1,597 9 % 974 926 5 % 8 %
Viagra 2,051 1,981 4 % 5 % 1,135 1,003 13 % 916 978 (6 %) (3 %)
Norvasc 1,349 1,445 (7 %) (6 %) 48 23 109 % 1,301 1,422 (9 %) (8 %)
Zyvox 1,345 1,283 5 % 8 % 665 640 4 % 680 643 6 % 11 %
Sutent 1,236 1,187 4 % 9 % 337 307 10 % 899 880 2 % 8 %
Premarin family 1,073 1,013 6 % 7 % 977 915 7 % 96 98 (2 %) 5 %
Genotropin 832 889 (6 %) (4 %) 204 205 - 628 684 (8 %) (4 %)
Xalatan/Xalacom 806 1,250 (36 %) (33 %) 38 176 (78 %) 768 1,074 (28 %) (26 %)
BeneFIX 775 693 12 % 14 % 358 301 19 % 417 392 6 % 11 %
Detrol/Detrol LA 761 883 (14 %) (13 %) 486 557 (13 %) 275 326 (16 %) (13 %)
Vfend 754 747 1 % 5 % 89 86 3 % 665 661 1 % 5 %
Chantix/Champix 670 720 (7 %) (6 %) 313 326 (4 %) 357 394 (9 %) (7 %)
Pristiq 630 577 9 % 10 % 493 474 4 % 137 103 33 % 37 %
Refacto AF/Xyntha 584 506 15 % 20 % 106 97 9 % 478 409 17 % 23 %
Zoloft 541 573 (6 %) (4 %) 68 63 8 % 473 510 (7 %) (5 %)
Revatio 534 535 - 2 % 312 312 - 222 223 - 5 %
Medrol 523 510 3 % 5 % 140 152 (8 %) 383 358 7 % 10 %
Zosyn/Tazocin 484 636 (24 %) (22 %) 217 344 (37 %) 267 292 (9 %) (5 %)
Zithromax/Zmax 435 453 (4 %) (3 %) 12 20 (40 %) 423 433 (2 %) (1 %)
Effexor 425 678 (37 %) (35 %) 109 242 (55 %) 316 436 (28 %) (24 %)
Prevnar/Prevenar (7-valent) 399 488 (18 %) (16 %) - - - 399 488 (18 %) (16 %)
Fragmin 381 382 - 4 % 42 43 (2 %) 339 339 - 5 %
Relpax 368 341 8 % 10 % 219 193 13 % 149 148 1 % 5 %
Rapamune 346 372 (7 %) (4 %) 185 188 (2 %) 161 184 (13 %) (7 %)
Cardura 338 380 (11 %) (9 %) 5 5 - 333 375 (11 %) (9 %)
Tygacil 335 298 12 % 16 % 152 148 3 % 183 150 22 % 30 %
Aricept (c) 326 450 (28 %) (25 %) - - - 326 450 (28 %) (25 %)
Xanax XR 274 306 (10 %) (5 %) 50 52 (4 %) 224 254 (12 %) (6 %)
BMP2 263 340 (23 %) (23 %) 263 323 (19 %) - 17 (100 %) (98 %)
Sulperazon 262 218 20 % 19 % - - - 262 218 20 % 19 %
Diflucan 259 265 (2 %) 1 % 4 5 (20 %) 255 260 (2 %) 1 %
Caduet 258 538 (52 %) (52 %) 33 272 (88 %) 225 266 (15 %) (14 %)
Neurontin 235 289 (19 %) (16 %) 48 63 (24 %) 187 226 (17 %) (14 %)
Dalacin/Cleocin 232 192 21 % 24 % 90 49 84 % 142 143 (1 %) 4 %
Unasyn 228 231 (1 %) - 2 6 (67 %) 226 225 - 2 %
Metaxalone/Skelaxin (d) 223 203 10 % 10 % 223 203 10 % - - - -
Inspra 214 195 10 % 15 % 5 4 25 % 209 191 9 % 15 %
Toviaz 207 187 11 % 14 % 113 99 14 % 94 88 7 % 13 %
Somavert 197 183 8 % 14 % 46 39 18 % 151 144 5 % 13 %
Alliance revenues (e) 3,492 3,630 (4 %) (3 %) 2,620 2,227 18 % 872 1,403 (38 %) (37 %)
All other biopharmaceutical products (f) 8,289 8,584 (3 %) (1 %) 3,265 3,503 (7 %) 5,024 5,081 (1 %) 4 %
All other established products (f)     6,074     5,671   7 %   10 %     2,165     1,783   21 %     3,909     3,888   1 %   5 %
REVENUES FROM OTHER PRODUCTS:
ANIMAL HEALTH $ 4,299 $ 4,184 3 % 6 % $ 1,771 $ 1,648 7 % $ 2,528 $ 2,536 - 5 %
CONSUMER HEALTHCARE $ 3,212 $ 3,028 6 % 8 % $ 1,526 $ 1,490 2 % $ 1,686 $ 1,538 10 % 13 %
OTHER (g)   $ 261   $ 300   (13 %)   (12 %)   $ 81   $ 88   (8 %)   $ 180   $ 212   (15 %)   (13 %)
 
 
(a)   Total International represents Developed Europe region + Developed Rest of World region + Emerging Markets region. Details for these regions are located on the following page.
(b) Lipitor lost exclusivity in the U.S. in November 2011 and various other major markets in 2011 and 2012. This loss of exclusivity reduced branded worldwide revenues by $5.6 billion in 2012, in comparison with 2011.
(c) Represents direct sales under license agreement with Eisai Co., Ltd.
(d) Legacy King product. King's operations are included in our financial statements commencing from the acquisition date of January 31, 2011.
(e) Includes Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.
(f) Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.
(g)

Includes revenues generated primarily from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization.

 

Certain amounts and percentages may reflect rounding adjustments.

PFIZER INC.

REVENUES

DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION

TWELVE MONTHS 2012 and 2011

(UNAUDITED)

(millions of dollars)

     

 

 

 

   

DEVELOPED EUROPE (a)

 

DEVELOPED REST OF WORLD (b)

 

EMERGING MARKETS (c)

 

 

 

  % Change  

 

 

 

  % Change  

 

 

 

  % Change  
   

2012

   

2011

  Total   Oper.  

2012

   

2011

  Total   Oper.  

2012

   

2011

  Total   Oper.
TOTAL INTERNATIONAL REVENUES   $ 13,375   $ 16,099   (17 %)   (11 %)   $ 10,554   $ 10,975   (4 %)   (4 %)   $ 11,971   $ 11,252   6 %   12 %
REVENUES FROM BIOPHARMACEUTICAL PRODUCTS - INTERNATIONAL:   $ 12,010   $ 14,737   (19 %)   (13 %)   $ 9,536   $ 10,008   (5 %)   (5 %)   $ 9,960   $ 9,295   7 %   12 %
Lyrica 1,319 1,255 5 %   12 % 743 569 31 %   31 % 424 355 19 %   26 %
Lipitor (d) 1,149 2,400 (52 %) (50 %) 978 1,315 (26 %) (26 %) 889 859 3 % 5 %
Enbrel (Outside Canada) 2,318 2,387 (3 %) 4 % 555 524 6 % 5 % 864 755 14 % 23 %

Prevnar 13/Prevenar 13

704 744 (5 %) 1 % 266 241 10 % 11 % 861 744 16 % 18 %
Celebrex 161 182 (12 %) (4 %) 479 431 11 % 12 % 334 313 7 % 11 %
Viagra 370 400 (8 %) (3 %) 201 212 (5 %) (4 %) 345 366 (6 %) (2 %)
Norvasc 119 165 (28 %) (22 %) 659 773 (15 %) (16 %) 523 484 8 % 9 %
Zyvox 302 306 (1 %) 6 % 154 149 3 % 4 % 224 188 19 % 26 %
Sutent 439 468 (6 %) 1 % 176 169 4 % 4 % 284 243 17 % 26 %
Premarin family 10 10 - - 36 34 6 % 9 % 50 54 (7 %) 2 %
Genotropin 295 356 (17 %) (12 %) 224 221 1 % - 109 107 2 % 8 %
Xalatan/Xalacom 275 509 (46 %) (42 %) 311 369 (16 %) (16 %) 182 196 (7 %) -
BeneFIX 248 255 (3 %) 4 % 137 113 21 % 21 % 32 24 33 % 33 %
Detrol/Detrol LA 119 157 (24 %) (21 %) 102 109 (6 %) (6 %) 54 60 (10 %) (3 %)
Vfend 281 304 (8 %) (1 %) 162 153 6 % 5 % 222 204 9 % 14 %
Chantix/Champix 129 175 (26 %) (23 %) 179 170 5 % 5 % 49 49 - 8 %
Pristiq - - - - 90 67 34 % 32 % 47 36 31 % 42 %
Refacto AF/Xyntha 373 374 - 6 % 64 33 94 % 94 % 41 2 * *
Zoloft 59 81 (27 %) (22 %) 278 301 (8 %) (8 %) 136 128 6 % 11 %
Revatio 133 141 (6 %) 1 % 56 47 19 % 17 % 33 35 (6 %) 6 %
Medrol 94 103 (9 %) (2 %) 48 48 - - 241 207 16 % 19 %
Zosyn/Tazocin 48 63 (24 %) (17 %) 13 14 (7 %) (7 %) 206 215 (4 %) (1 %)
Zithromax/Zmax 59 80 (26 %) (21 %) 186 184 1 % (1 %) 178 169 5 % 7 %
Effexor 110 181 (39 %) (35 %) 102 155 (34 %) (34 %) 104 100 4 % 9 %
Prevnar/Prevenar (7-valent) - 23 (100 %) (100 %) 346 358 (3 %) (5 %) 53 107 (50 %) (39 %)
Fragmin 182 178 2 % 8 % 84 77 9 % 9 % 73 84 (13 %) (6 %)
Relpax 70 76 (8 %) (1 %) 60 56 7 % 9 % 19 16 19 % 25 %
Rapamune 54 60 (10 %) (3 %) 18 18 - - 89 106 (16 %) (8 %)
Cardura 97 119 (18 %) (13 %) 134 155 (14 %) (14 %) 102 101 1 % 6 %
Tygacil 67 64 5 % 14 % 7 6 17 % 17 % 109 80 36 % 44 %
Aricept (e) 110 229 (52 %) (49 %) 177 170 4 % 6 % 39 51 (24 %) (18 %)
Xanax XR 89 107 (17 %) (10 %) 44 50 (12 %) (10 %) 91 97 (6 %) 2 %
BMP2 - 17 (100 %) (100 %) - - - - - - - -
Sulperazon - - - - 36 42 (14 %) (16 %) 226 176 28 % 27 %
Diflucan 60 80 (25 %) (19 %) 41 47 (13 %) (13 %) 154 133 16 % 18 %
Caduet 14 18 (22 %) (17 %) 149 189 (21 %) (22 %) 62 59 5 % 8 %
Neurontin 58 76 (24 %) (18 %) 45 57 (21 %) (23 %) 84 93 (10 %) (5 %)
Dalacin/Cleocin 32 35 (9 %) (3 %) 26 27 (4 %) - 84 81 4 % 10 %
Unasyn 39 34 15 % 24 % 76 81 (6 %) (9 %) 111 110 1 % 3 %
Metaxalone/Skelaxin (f) - - - - - - - - - - - -
Inspra 131 126 4 % 12 % 61 51 20 % 18 % 17 14 21 % 29 %
Toviaz 76 71 7 % 14 % 8 8 - 13 % 10 9 11 % 11 %
Somavert 123 121 2 % 10 % 17 14 21 % 23 % 11 9 22 % 33 %
Alliance revenues (g) 242 536 (55 %) (52 %) 565 785 (28 %)

(29

%)

65 82 (21 %) (12 %)
All other biopharmaceutical products (h) 1,452 1,671 (13 %) (7 %) 1,443 1,416 2 % 2 % 2,129 1,994 7 % 14 %
All other established products (h)     1,050     1,173   (10 %)   (4 %)     1,051     1,094   (4 %)   (4 %)     1,808     1,621   12 %   19 %
REVENUES FROM OTHER PRODUCTS - INTERNATIONAL:   $ 1,365   $ 1,362   -     7 %   $ 1,018   $ 967   5 %   6 %   $ 2,011   $ 1,957   3 %   8 %
 
* Calculation not meaningful.
(a)   Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.
(b) Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea.
(c) 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 and Turkey.
(d) Lipitor lost exclusivity in various international markets in 2011 and 2012. This loss of exclusivity reduced branded international revenues by $1.6 billion in 2012, in comparison with 2011.
(e) Represents direct sales under license agreement with Eisai Co., Ltd.
(f) Legacy King product. King's operations are included in our financial statements commencing from the acquisition date of January 31, 2011.
(g) Includes Enbrel (in Canada), Aricept, Exforge, Rebif and Spiriva.
(h) Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.
 
Certain amounts and percentages may reflect rounding adjustments.

PFIZER INC. SUPPLEMENTAL INFORMATION

1. Change in Reported Cost of Sales

Reported cost of sales decreased 13% in the fourth quarter and 19% in full-year 2012, compared to the same periods in 2011. The decreases were primarily due to lower purchase accounting adjustments in 2012, lower costs related to our cost-reduction and productivity initiatives and acquisition-related costs, as well as the benefits generated from the ongoing productivity initiatives to streamline the manufacturing network. Additionally, the decreases were due to reduced manufacturing volumes related to products that lost exclusivity in various markets. The decreases were partially offset by the unfavorable impact of a shift in geographic, business and product mix for both periods. In addition, reported cost of sales in fourth-quarter 2012 reflects the unfavorable impact of foreign exchange of 7%, while reported cost of sales in full-year 2012 reflects the favorable impact of foreign exchange of 3%.

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