This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Pfizer Reports Third-Quarter 2013 Results

“Over the next several months, we expect to report key clinical data read-outs that will more clearly characterize the strength of our late-stage pipeline. These data read-outs will be across a broad range of both additional indications for currently marketed products and novel compounds, including Prevnar 13 in adults, Xeljanz (psoriasis), dacomitinib, palbociclib, and the staphylococcus aureus vaccine, among others. In addition, we have just initiated a phase 3 program for bococizumab (RN316), our PCSK9 inhibitor for LDL cholesterol reduction, and are initiating a phase 3 program with our collaboration partner Merck for ertugliflozin, our SGLT2 inhibitor for the treatment of type 2 diabetes. We also plan to begin a phase 3 program for our biosimilar of Herceptin for metastatic breast cancer in the next few months. In addition, we are planning to continue development of tanezumab for the treatment of osteoarthritis, chronic low back pain and cancer pain, and have just entered into a collaboration agreement with Eli Lilly & Company to jointly develop and globally commercialize tanezumab,” Mr. Read concluded.

Frank D’Amelio, Chief Financial Officer, stated, “For the first nine months of 2013, our financial performance has been in line with our expectations. Given these results and our continued confidence in the business, we are narrowing the ranges for certain components of our 2013 financial guidance. Also, with our continued strong operating cash flow and proceeds generated from the separations of our Nutrition and Animal Health businesses, we continue to expect to repurchase in the mid-teens of billions of dollars of our common stock this year, with $13.1 billion repurchased through October 28. Additionally, we will pay approximately $6.5 billion in dividends.”

QUARTERLY FINANCIAL HIGHLIGHTS (Third-Quarter 2013 vs. Third-Quarter 2012)

  • Reported revenues (1) decreased $310 million, or 2%, which reflects an operational decline of $38 million, or less than 1%, and the unfavorable impact of foreign exchange of $272 million, or 2%. The operational decrease was primarily the result of the continued erosion for branded Lipitor in the U.S., developed Europe and certain other markets. Additionally, revenues were negatively impacted by other product losses of exclusivity, the ongoing expiration of the Spiriva collaboration in certain countries, decreased government purchases of Prevnar and Enbrel in certain emerging markets, and various other events. Revenues were positively impacted by the overall growth of Lyrica, Enbrel, Inlyta and Xalkori, as well as Celebrex and Xeljanz in the U.S. In addition, reported revenues (1) included $67 million from the transitional manufacturing and supply agreements with Zoetis (3).
  • Business unit revenues were impacted by the following:
    • Specialty Care: Revenues declined 1% operationally, primarily due to the shift in the reporting of Geodon and Revatio revenues in the U.S. and Xalabrands revenues in developed Europe and Australia to the Established Products unit beginning January 1, 2013, which was largely offset by the growth of Enbrel, as well as Prevnar and Xeljanz in the U.S.
    • Primary Care: Revenues decreased 8% operationally, primarily due to the shift in the reporting of Lipitor revenues in developed Europe and Australia to the Established Products unit beginning January 1, 2013, as well as certain other product losses of exclusivity in various markets, including Viagra in most major markets in Europe in June 2013 and Lyrica in Canada in February 2013, and the termination of the co-promotion agreement for Aricept in Japan in December 2012. Additionally, in the U.S. and certain European countries, the co-promotion collaboration for Spiriva is in its final year, which, per the terms of the collaboration agreement, has resulted in a decline in Pfizer’s share of Spiriva revenues; and in Australia, Canada and certain other European countries, the Spiriva collaboration has terminated. These declines were partially offset by the strong performance of Celebrex, Chantix, EpiPen, Premarin and Pristiq in the U.S. as well as Lyrica.
    • Emerging Markets: Revenues grew 5% operationally, primarily due to volume growth in China, most notably Lipitor, which was partially offset by the impact of the transfer of certain product rights to the Pfizer-Hisun joint venture in first-quarter 2013. Revenues were also negatively impacted by decreased government purchases of Prevnar and Enbrel, as well as government cost-containment measures, in certain other emerging markets. Full-year 2013 operational revenue growth in emerging markets is expected to be a mid-single-digit percentage.
    • Established Products: Revenues decreased 1% operationally. This performance was driven by the benefit of revenues from products in certain markets that were shifted to the Established Products unit from other business units beginning January 1, 2013, including Lipitor in developed Europe and Australia, as well as the contribution from the collaboration with Mylan Inc. to market generic drugs in Japan. Revenues were unfavorably impacted by the continued erosion of branded Lipitor in the U.S. and Japan.
    • Consumer Healthcare: Revenues increased 1% operationally, primarily due to strong international growth for Centrum as a result of several recent product launches and increased promotional activities in key markets, as well as growth of Emergen-C in the U.S. due to expanded distribution and promotional activities. This growth was partially offset by declines in sales of respiratory and other products in certain international markets due to unfavorable seasonal conditions compared with the year-ago quarter.
    • Oncology: Revenues increased 26% operationally, driven by the continued solid uptake of new products, most notably Inlyta and Xalkori in several major markets. Inlyta’s market share continues to increase as patient feedback has been positive both in terms of efficacy and tolerability, and as pricing and reimbursement are being granted in developed Europe. Xalkori prescriptions and new patient starts also continue to increase, driven by initiatives established to improve molecular testing and identify the appropriate patients for this medicine.
  • Adjusted cost of sales, adjusted SI&A expenses and adjusted R&D expenses (2) in the aggregate decreased $341 million, or 5%, primarily reflecting the benefits of cost-reduction and productivity initiatives, the non-recurrence of the $250 million payment included in adjusted R&D expenses (2) in the year-ago quarter to obtain the exclusive global over-the-counter rights to Nexium, and the favorable impact of foreign exchange, partially offset by adjusted SI&A expenses (2) to support several new product launches. The increase in Adjusted cost of sales (2) on an operational basis compared with the same period last year reflects a shift in product mix.
  • The effective tax rate on adjusted income (2) declined 0.4 percentage point to 27.6% from 28.0%. This decline was primarily due to the jurisdictional mix of earnings and the extension of the U.S. research and development tax credit that was signed into law in January 2013, partially offset by the non-recurrence of favorable audit settlements with foreign jurisdictions for multiple years in the year-ago quarter.
  • The diluted weighted-average shares outstanding declined by approximately 852 million shares, due to the company’s ongoing share repurchase program and the first full-quarter impact of the Zoetis (3) exchange offer, which was completed on June 24, 2013.
  • In addition to the aforementioned factors, third-quarter 2013 reported earnings were favorably impacted by lower charges related to legal matters, lower acquisition-related costs and lower purchase accounting adjustments. Reported earnings were unfavorably impacted by an increased effective tax rate, increased asset impairments and other related charges as well as the non-recurrence of the income from discontinued operations attributable to the company’s Animal Health and Nutrition businesses in the year-ago quarter. The effective tax rate on reported income (1) increased in third-quarter 2013 in comparison with the year-ago quarter primarily due to the non-recurrence of favorable settlements in the year-ago quarter with the U.S. Internal Revenue Service, as well as foreign jurisdictions, related to audits for multiple tax years.

RECENT NOTABLE DEVELOPMENTS

Product Developments

  • Prevnar
    • Pfizer announced the completion of pneumonia case accrual in the Community-Acquired Pneumonia Immunization Trial in Adults (CAPiTA) 65 years of age and older, which was designed to evaluate whether Prevnar 13 is effective in preventing community-acquired pneumonia caused by the 13 pneumococcal serotypes included in the vaccine. The top-line results are expected to be reported in early 2014.
    • The European Commission (EC) approved Prevnar 13 for an expanded indication to include adults aged 18 to 49 years for active immunization for the prevention of invasive disease caused by vaccine-type Streptococcus pneumoniae. The EC is the first regulatory authority to approve Prevnar 13 to offer protection against invasive disease at all stages of life.
  • Xeljanz
    • The phase 3 Xeljanz psoriasis program continues to progress. The top-line results were announced from the first two (OPT Compare and OPT Retreatment) of five phase 3 clinical trials in adults with moderate-to-severe chronic plaque psoriasis. In OPT Compare, Xeljanz met the primary endpoint of non-inferiority to high-dose Enbrel at the 10 mg twice-daily (BID) dose, but did not at the 5 mg BID dose. In OPT Retreatment, Xeljanz met the primary efficacy endpoints at the 5 and 10 mg BID doses by demonstrating that a greater proportion of patients continuing Xeljanz treatment maintained their response during the treatment-withdrawal phase compared to patients who switched to placebo. Additionally, among patients who lost an adequate response, many were able to recapture their response upon retreatment with Xeljanz. No new safety signals were observed in these two studies.
    • The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) confirmed its prior negative opinion for Xeljanz for the treatment of adult patients with moderate-to-severe active RA. The company is currently evaluating the feedback from the CHMP, will determine next steps to resubmit a Marketing Authorization Application to the EMA and anticipates that this will result in a several-year delay.
  • Eliquis -- The U.S. Food and Drug Administration (FDA) accepted for review a supplemental new drug application for Eliquis for the prophylaxis of deep vein thrombosis, which may lead to pulmonary embolism, in adult patients who have undergone hip or knee replacement surgery. The PDUFA date for a decision by the FDA is March 15, 2014.
  • Duavee -- The FDA has approved Duavee (0.45 mg/20 mg tablets), a novel therapy for women with a uterus, for the treatment of moderate-to-severe vasomotor symptoms associated with menopause and the prevention of postmenopausal osteoporosis. Duavee is expected to be available in the U.S. in first-quarter 2014.

Pipeline Developments

  • Palbociclib -- A phase 3 trial (Study 1023, PALOMA-3) in advanced recurrent breast cancer recently began enrolling patients. This is a randomized global study that will evaluate palbociclib in combination with fulvestrant versus placebo plus fulvestrant in prolonging investigator-assessed, progression-free survival in women with hormone receptor positive (HR+), human epidermal growth factor receptor 2 negative (HER2-) advanced breast cancer whose disease has progressed after prior endocrine therapy.
  • Bococizumab (RN316) -- The phase 3 program was initiated for the PCSK9 monoclonal antibody to lower LDL cholesterol. This is a global program in more than 22,000 patients, which includes multiple lipid-lowering studies as well as two cardiovascular outcomes studies. This program includes the broadest range of high-risk patients including a focus on patients in greatest need of LDL-lowering.
  • Ertugliflozin -- Pfizer in collaboration with Merck is initiating a phase 3 program for the SGLT2 inhibitor for the treatment of type 2 diabetes .
  • Tanezumab -- Pfizer is planning to continue development of tanezumab for the treatment of osteoarthritis, chronic low back pain and cancer pain, and has just entered into a collaboration agreement with Eli Lilly & Company to jointly develop and globally commericialize tanezumab, which provides that Pfizer and Lilly will equally share product development expenses as well as potential revenues and certain product-related costs. The tanezumab program currently is subject to a partial clinical hold by the FDA pending submission of nonclinical data to the FDA. Pfizer anticipates submitting that data in the first half of 2014. Under the agreement with Lilly, Pfizer is eligible to receive certain payments from Lilly upon the achievement of specified clinical, regulatory and commercial milestones, including an upfront payment that is contingent upon the parties continuing in the collaboration after receipt of the FDA’s response to the submission of the nonclinical data. Both Pfizer and Lilly have the right to terminate the agreement under certain conditions.

Other Developments

  • Pfizer announced plans to internally separate its commercial operations into three businesses, which will be called the Global Innovative Pharmaceutical business, the Global Vaccines, Oncology and Consumer Healthcare business, and the Global Established Pharmaceutical business. Each of the three businesses will include developed markets and emerging markets. In most countries, the changes will be implemented in fiscal 2014. Beginning with first-quarter 2014 financial results, the company will provide greater financial transparency for each of these three businesses, which will include a 2014 baseline management view of profit and loss for each business.

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

(1)   “Reported Revenues” is defined as revenues in accordance with U.S. generally accepted accounting principles (GAAP). “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.
 
(2)

“Adjusted Income” and its components and “Adjusted Diluted Earnings Per Share (EPS)” are defined as reported U.S. GAAP net income (1) and its components and reported diluted EPS (1) excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. Adjusted Revenues, 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 Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2013, 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. See the accompanying reconciliations of certain GAAP reported to non-GAAP adjusted information for the third quarter and first nine months of 2013 and 2012, 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 (1) and reported diluted EPS (1). 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) On June 24, 2013, Pfizer completed the full disposition of Zoetis, Inc. (Zoetis) and, as a result, Pfizer reports the financial results of its Animal Health business as a discontinued operation in the condensed consolidated statements of income for year-to date 2013, and third-quarter and year-to-date 2012.
 
(4) For a description of the revenues in each business unit, see Note 13 to Pfizer’s condensed consolidated financial statements included in Pfizer’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2013.
 
(5)

Other represents revenues generated from Pfizer CentreSource, Pfizer’s contract manufacturing and bulk pharmaceutical chemical sales organization, and includes, in 2013, revenues related to our transitional manufacturing and supply agreements with Zoetis (3).

 
(6) The 2013 financial guidance reflects the following:
  • The financial results of the Animal Health business from January 1, 2013 to June 24, 2013, as well as the gain on disposal of Zoetis (3), are presented as a discontinued operation. As a result, they have been excluded from all components of the financial guidance except Reported Net Income (1) and Reported Diluted EPS (1). Reported Net Income (1) and Reported Diluted EPS (1) guidance includes the gain on disposal of Zoetis (3), as well as the financial results of the Animal Health business as follows:
    • January 1, 2013 to February 6, 2013: 100% of Zoetis (3) financial results are included
    • February 7, 2013 to June 24, 2013: 80.2% of Zoetis (3) financial results are included; 19.8% of Zoetis (3) financial results are excluded, as this interest in Zoetis (3) was no longer owned by Pfizer
    • June 24, 2013 through December 31, 2013: no actual or projected financial results of Zoetis (3) are included

   In addition, revenues and cost of sales from the transitional manufacturing and supply agreements with Zoetis (3) have been excluded from the applicable Adjusted components of the financial guidance.

  • The weighted-average shares outstanding used in the computation of Adjusted (2) and Reported (1) Diluted EPS guidance reflects the reduction in shares of Pfizer’s outstanding common stock as a result of the Zoetis (3) exchange offer. Since this reduction occurred on June 24, 2013, Adjusted (2) and Reported (1) Diluted EPS guidance reflects only a partial-year benefit.
  • Reported Diluted EPS (1) guidance includes the income from a litigation settlement with Teva Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries Ltd. for patent-infringement damages resulting from their “at-risk” launches of generic Protonix in the U.S.
  • Does not assume the completion of any business development transactions not completed as of September 29, 2013, including any one-time upfront payments associated with such transactions.
  • Excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of September 29, 2013.
  • Exchange rates assumed are a blend of the actual exchange rates in effect through September 29, 2013 and the mid-October 2013 exchange rates for the remainder of the year.
  • Reconciliation of the 2013 Adjusted Income (2) and Adjusted Diluted EPS (2) guidance to the 2013 Reported Net Income Attributable to Pfizer Inc. and Reported Diluted EPS Attributable to Pfizer Inc. common shareholders guidance:
            ($ in billions, except per share amounts)    
Income/(Expense)     Net Income       Diluted EPS
Adjusted income/diluted EPS (2) guidance $14.8 - $15.2       $2.15 - $2.20
Purchase accounting impacts of transactions completed as of September 29, 2013 (3.3) (0.49)
Acquisition-related costs (0.4 - 0.5) (0.06 - 0.07)
Non-acquisition-related restructuring costs (0.6 - 0.8) (0.09 - 0.13)
Certain other items incurred through September 29, 2013 0.3 0.04
Discontinued operations     10.7       1.55
Reported net income attributable to Pfizer Inc./diluted EPS (1) guidance     $21.2 - $21.9       $3.05 - $3.15
 
PFIZER INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (1)
(UNAUDITED)
(millions, except per common share data)
           
Third-Quarter % Incr. / Nine Months % Incr. /
2013 2012 (Decr.) 2013 2012 (Decr.)
Revenues $ 12,643 $ 12,953 (2) $ 38,026 $ 40,766 (7)
Costs and expenses:
Cost of sales (2) 2,287 2,309 (1) 6,792 7,068 (4)
Selling, informational and administrative expenses (2) 3,395 3,491 (3) 10,203 10,834 (6)
Research and development expenses (2) 1,627 1,887 (14) 4,867 5,461 (11)
Amortization of intangible assets (3) 1,117 1,211 (8) 3,476 3,889 (11)
Restructuring charges and certain acquisition-related costs 233 312 (25) 547 1,085 (50)
Other (income)/deductions––net (4)   411     937   (56)   (514 )   3,264   *
Income from continuing operations before provision
for taxes on income 3,573 2,806 27 12,655 9,165 38
Provision/(benefit) for taxes on income (5)   985     (183 ) *   3,876     1,622   *
Income from continuing operations 2,588 2,989 (13) 8,779 7,543 16
Discontinued operations––net of tax   11     225   (95)   10,719     734   *
Net income before allocation to noncontrolling interests 2,599 3,214 (19) 19,498 8,277 *
Less: Net income attributable to noncontrolling interests   9     6   50   63     22   *
Net income attributable to Pfizer Inc. $ 2,590   $ 3,208   (19) $ 19,435   $ 8,255   *
Earnings per common share––basic:
Income from continuing operations attributable to
Pfizer Inc. common shareholders $ 0.39 $ 0.40 (3) $ 1.26 $ 1.00 26
Discontinued operations––net of tax   -     0.03   *   1.54     0.10   *
Net income attributable to Pfizer Inc. common shareholders $ 0.39   $ 0.43   (9) $ 2.80   $ 1.10   *
Earnings per common share––diluted:
Income from continuing operations attributable to
Pfizer Inc. common shareholders $ 0.39 $ 0.40 (3) $ 1.25 $ 1.00 25
Discontinued operations––net of tax   -     0.03   *   1.52     0.10   *
Net income attributable to Pfizer Inc. common shareholders $ 0.39   $ 0.43   (9) $ 2.77   $ 1.09   *
Weighted-average shares used to calculate earnings per common share:
Basic   6,581     7,436     6,938     7,483  
Diluted   6,656     7,508     7,016     7,550  
 

* Calculation not meaningful.

 
See next page for notes (1) through (5).
 
EPS amounts may not add due to rounding.
 
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
 
(1) The financial statements present the three and nine months ended September 29, 2013 and September 30, 2012. Subsidiaries operating outside the United States are included for the three and nine months ended August 25, 2013 and August 26, 2012.
 

On June 24, 2013, we completed the full disposition of our Animal Health business (Zoetis) and recognized a gain of approximately $10.5 billion (pre-tax) related to this disposal in Discontinued operations––net of tax for the nine months ended September 29, 2013. The operating results of this business are reported as Discontinued operations––net of tax for the nine months ended September 29, 2013 and three and nine months ended September 30, 2012.

 
On November 30, 2012, we completed the sale of our Nutrition business. The operating results of this business are reported as Discontinued operations––net of tax for the three and nine months ended September 30, 2012.
 
The financial results for the three and nine months ended September 29, 2013 are not necessarily indicative of the results which could ultimately be achieved for the full year.
 
(2) Exclusive of amortization of intangible assets, except as discussed in footnote (3) below.
 
(3) Amortization expense related to finite-lived 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 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.
 
(4) Other (income)/deductions––net include the following:
            Third-Quarter     Nine Months
(millions of dollars)

    2013    

   

    2012    

    2013    

   

    2012    

Interest income (a) $ (94 ) $ (109 ) $ (291 ) $ (275 )
Interest expense (a)   340     381     1,067     1,149  
Net interest expense 246 272 776 874
Royalty-related income (122 ) (149 ) (305 ) (343 )
Patent litigation settlement (income)/expense (b) 9 - (1,342 ) -
Other legal matters, net (c) 1 727 (94 ) 2,014
Gain associated with the transfer of certain product rights to
an equity-method investment (d) - - (459 ) -
Net gain on asset disposals (46 ) (21 ) (100 ) (45 )
Certain asset impairments and related charges (e) 443 14 968 524
Costs associated with the Zoetis IPO (f) - 32 18 93
Other, net   (120 )   62     24     147  
Other (income)/deductions––net $ 411   $ 937   $ (514 ) $ 3,264  
  (a)   Interest income decreased in the third quarter of 2013 as portfolio maturities were invested at lower rates; however, during the first nine months of 2013, interest income increased due to higher cash and investment balances. Interest expense decreased in the third quarter and first nine months of 2013 due to lower outstanding debt, refinancings and lower rates, and the benefit of the conversion of some fixed-rate liabilities to floating-rate liabilities.
 
(b) Reflects income from a litigation settlement with Teva Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries Ltd. for patent-infringement damages resulting from their "at-risk" launches of generic Protonix in the United States.
 
(c) In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. In the third quarter of 2012, primarily includes a $491 million charge related to the resolution of an investigation by the U.S. Department of Justice into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation.
 
(d) In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Pfizer's 49%-owned equity-method investment in China.
 
(e) In the third quarter of 2013, primarily includes a loss on an option to acquire the remaining interest in a 40%-owned generics company in Brazil (approximately $220 million), as well as an impairment charge related to an in-process research and development (IPR&D) compound. In the first nine months of 2013, also includes impairment charges related to developed technology (for use in the development of bone and cartilage) acquired in connection with our acquisition of Wyeth and two additional IPR&D compounds. In the first nine months of 2012, primarily includes impairment charges related to certain intangible assets acquired in connection with our acquisitions of Wyeth and King Pharmaceuticals Inc. (King), including IPR&D intangible assets.
 
(f) Costs incurred in connection with the initial public offering (IPO) of an approximate 19.8% ownership interest in Zoetis. Includes expenditures for banking, legal, accounting and similar services.
 
(5) The Provision/(benefit) for taxes on income for the third quarter and first nine months of 2012 was favorably impacted by a $1.1 billion settlement (representing tax and interest) with the U.S. Internal Revenue Service (IRS) related to audits for multiple tax years, as well as the resolution of foreign audits pertaining to multiple tax years.
 
PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)
(millions of dollars, except per common share data)
             
Quarter Ended September 29, 2013
Purchase Acquisition- Certain
GAAP Accounting Related Discontinued Significant Non-GAAP
Reported (1) Adjustments Costs (2) Operations Items (3) Adjusted (4)
Revenues $ 12,643 $ - $ - $ - $ (67 ) $ 12,576
Cost of sales (5) 2,287 (4 ) (18 ) - (87 ) 2,178
Selling, informational and administrative expenses (5) 3,395 (1 ) - - (43 ) 3,351
Research and development expenses (5) 1,627 (1 ) - - (1 ) 1,625
Amortization of intangible assets (6) 1,117 (1,075 ) - - - 42
Restructuring charges and certain acquisition-related costs 233 - (43 ) - (190 ) -
Other (income)/deductions––net 411 121 - - (490 ) 42
Income from continuing operations before provision for taxes on income 3,573 960 61 - 744 5,338
Provision/(benefit) for taxes on income 985 309 7 - 172 1,473
Income from continuing operations 2,588 651 54 - 572

 

3,865
Discontinued operations––net of tax 11 - - (11 ) - -
Net income attributable to noncontrolling interests 9 - - (3 ) - 6
Net income attributable to Pfizer Inc. 2,590 651 54 (8 ) 572 3,859
Earnings per common share attributable to Pfizer Inc.––diluted 0.39 0.10 0.01 - 0.09 0.58
 
 
Nine Months Ended September 29, 2013
Purchase Acquisition- Certain
GAAP Accounting Related Discontinued Significant Non-GAAP
Reported (1) Adjustments Costs (2) Operations Items (3) Adjusted (4)
Revenues $ 38,026 $ - $ - $ - $ (67 ) $ 37,959
Cost of sales (5) 6,792 16 (101 ) - (106 ) 6,601
Selling, informational and administrative expenses (5) 10,203 5 (8 ) - (121 ) 10,079
Research and development expenses (5) 4,867 1 - - (104 ) 4,764
Amortization of intangible assets (6) 3,476 (3,352 ) - - - 124
Restructuring charges and certain acquisition-related costs 547 - (155 ) - (392 ) -
Other (income)/deductions––net (514 ) 43 - - 836 365
Income from continuing operations before provision for taxes on income 12,655 3,287 264 - (180 ) 16,026
Provision/(benefit) for taxes on income 3,876 941 (42 ) - (376 ) 4,399
Income from continuing operations 8,779 2,346 306 - 196

 

11,627
Discontinued operations––net of tax 10,719 - - (10,719 ) - -
Net income attributable to noncontrolling interests 63 - - (38 ) - 25
Net income attributable to Pfizer Inc. 19,435 2,346 306 (10,681 ) 196 11,602
Earnings per common share attributable to Pfizer Inc.––diluted 2.77 0.33 0.04 (1.52 ) 0.03 1.65
 
See end of tables for notes (1) through (6).
 
Certain amounts may reflect rounding adjustments.

EPS amounts may not add due to rounding.

 
PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)
(millions of dollars, except per common share data)
           
Quarter Ended September 30, 2012
Purchase Acquisition- Certain
GAAP Accounting Related Discontinued Significant Non-GAAP
Reported (1) Adjustments Costs (2) Operations Items (3) Adjusted (4)
Revenues $ 12,953 $ - $ - $ - $ - $ 12,953
Cost of sales (5) 2,309 3 (75 ) - (24 ) 2,213
Selling, informational and administrative expenses (5) 3,491 (2 ) (2 ) - (46 ) 3,441
Research and development expenses (5) 1,887 1 - - (47 ) 1,841
Amortization of intangible assets (6) 1,211 (1,173 ) - - - 38
Restructuring charges and certain acquisition-related costs 312 - (160 ) - (152 ) -
Other (income)/deductions––net 937 44 - - (783 ) 198
Income from continuing operations before provision for taxes on income 2,806 1,127 237 - 1,052 5,222
Provision/(benefit) for taxes on income (183 ) 324 43 - 1,278 1,462
Income from continuing operations 2,989 803 194 - (226 )

 

3,760
Discontinued operations––net of tax 225 - - (225 ) - -
Net income attributable to noncontrolling interests 6 - - - - 6
Net income attributable to Pfizer Inc. 3,208 803 194 (225 ) (226 ) 3,754
Earnings per common share attributable to Pfizer Inc.––diluted 0.43 0.11 0.03 (0.03 ) (0.03 ) 0.50
 
 
Nine Months Ended September 30, 2012
Purchase Acquisition- Certain
GAAP Accounting Related Discontinued Significant Non-GAAP
Reported (1) Adjustments Costs (2) Operations Items (3) Adjusted (4)
Revenues $ 40,766 $ - $ - $ - $ - $ 40,766
Cost of sales (5) 7,068 (6 ) (205 ) - (51 ) 6,806
Selling, informational and administrative expenses (5) 10,834 3 (7 ) - (77 ) 10,753
Research and development expenses (5) 5,461 4 (5 ) - (386 ) 5,074
Amortization of intangible assets (6) 3,889 (3,726 ) - - - 163
Restructuring charges and certain acquisition-related costs 1,085 - (421 ) - (664 ) -
Other (income)/deductions––net 3,264 12 - - (2,606 ) 670
Income from continuing operations before provision for taxes on income 9,165 3,713 638 - 3,784 17,300
Provision/(benefit) for taxes on income 1,622 1,014 156 - 2,128 4,920
Income from continuing operations 7,543 2,699 482 - 1,656

 

12,380
Discontinued operations––net of tax 734 - - (734 ) - -
Net income attributable to noncontrolling interests 22 - - - - 22
Net income attributable to Pfizer Inc. 8,255 2,699 482 (734 ) 1,656 12,358
Earnings per common share attributable to Pfizer Inc.––diluted 1.09 0.36 0.06 (0.10 ) 0.22 1.64
 
See end of tables for notes (1) through (6).
 
Certain amounts may reflect rounding adjustments.
 
EPS amounts may not add due to rounding.
 
PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)
 
(1) The financial statements present the three and nine months ended September 29, 2013 and September 30, 2012. Subsidiaries operating outside the United States are included for the three and nine months ended August 25, 2013 and August 26, 2012.
 
On June 24, 2013, we completed the full disposition of our Animal Health business (Zoetis) and recognized a gain of approximately $10.5 billion (pre-tax) related to this disposal in Discontinued operations––net of tax for the nine months ended September 29, 2013. The operating results of this business are reported as Discontinued operations––net of tax for the nine months ended September 29, 2013 and three and nine months ended September 30, 2012.
 
On November 30, 2012, we completed the sale of our Nutrition business. The operating results of this business are reported as Discontinued operations––net of tax for the three and nine months ended September 30, 2012.
 
(2) Acquisition-related costs include the following:
            Third-Quarter     Nine Months
(millions of dollars)    

    2013    

   

    2012    

    2013    

   

    2012    

 
Integration costs (a) $ 38 $ 79 $ 107 $ 279
Restructuring charges (a) 5 81 48 142
Additional depreciation––asset restructuring (b)   18     77     109     217  
Total acquisition-related costs––pre-tax 61 237 264 638
Income taxes (c)   (7 )   (43 )   42     (156 )
Total acquisition-related costs––net of tax $ 54   $ 194   $ 306   $ 482  
 
  (a)   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 for the three months ended September 29, 2013. Included in Cost of sales ($101 million) and Selling, informational and administrative expenses ($8 million) for the nine months ended September 29, 2013. Included in Cost of sales ($75 million) and Selling, informational and administrative expenses ($2 million) for the three months ended September 30, 2012. Included in Cost of sales ($205 million), Selling, informational and administrative expenses ($7 million) and Research and development expenses ($5 million) for the nine months ended September 30, 2012.

 
(c) Included in Provision/(benefit) for taxes on income. Income taxes includes the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction’s applicable tax rate. The first nine months of 2013 also includes the unfavorable impact of the remeasurement of certain deferred tax liabilities resulting from plant network restructuring activities.
 

(3)

Certain significant items include the following:

          Third-Quarter   Nine Months
(millions of dollars)  

    2013    

 

    2012    

    2013    

 

    2012    

 
Restructuring charges (a) $ 190 $ 152 $ 392 $ 664
Implementation costs and additional depreciation––asset restructuring (b) 72 111 270 485
Patent litigation settlement (income)/expense (c) 9 - (1,342 ) -
Other legal matters, net (d) 1 723 (99 ) 1,981
Gain associated with the transfer of certain product rights to an equity-method investment (e) - - (459 ) -
Certain asset impairments and related charges (f) 440 17 929 506
Costs associated with the Zoetis IPO (g) - 32 18 93
Income associated with the transitional manufacturing and supply agreements with Zoetis (h) (10 ) - (10 ) -
Other (i)   42     17     121     55  
Total certain significant items––pre-tax 744 1,052 (180 ) 3,784
Income taxes (j)   (172 )   (1,278 )   376     (2,128 )
Total certain significant items––net of tax $ 572   $ (226 ) $ 196   $ 1,656  
 
  (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 ($41 million), Selling, informational and administrative expenses ($30 million) and Research and development expenses ($1 million) for the three months ended September 29, 2013. Included in Cost of sales ($60 million), Selling, informational and administrative expenses ($106 million) and Research and development expenses ($104 million) for the nine months ended September 29, 2013. Included in Cost of sales ($18 million), Selling, informational and administrative expenses ($46 million) and Research and development expenses ($47 million) for the three months ended September 30, 2012. Included in Cost of sales ($22 million), Selling, informational and administrative expenses ($77 million) and Research and development expenses ($386 million) for the nine months ended September 30, 2012.
 
(c) Included in Other (income)/deductions––net. In the first nine months of 2013, reflects income from a litigation settlement with Teva Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries Ltd. for patent-infringement damages resulting from their "at-risk" launches of generic Protonix in the United States.
 
(d) Included in Other (income)/deductions––net. In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter. In the third quarter of 2012, primarily includes a $491 million charge related to the resolution of an investigation by the U.S. Department of Justice into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation.
 
(e) Included in Other (income)/deductions––net. In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Pfizer's 49%-owned equity-method investment in China.
 
(f) Primarily included in Other (income)/deductions––net. In the third quarter of 2013, primarily includes a loss on an option to acquire the remaining interest in a 40%-owned generics company in Brazil (approximately $220 million), as well as an impairment charge related to an IPR&D compound. In the first nine months of 2013, also includes impairment charges related to developed technology (for use in the development of bone and cartilage) acquired in connection with our acquisition of Wyeth and two additional IPR&D compounds. In the first nine months of 2012, primarily includes impairment charges related to certain intangible asset acquired in connection with our acquisitions of Wyeth and King, including IPR&D intangible assets.
 
(g) Included in Other (income)/deductions––net. Costs incurred in connection with the initial public offering of an approximate 19.8% ownership interest in Zoetis. Includes expenditures for banking, legal, accounting and similar services.
 
(h) Included in Revenues ($67 million) and in Cost of sales ($57 million) for the three and nine months ended September 29, 2013.
 
(i) Primarily included in Other (income)/deductions––net.
 
(j)

Included in Provision/(benefit) for taxes on income. Income taxes includes the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdiction’s applicable tax rate. The first nine months of 2013 were unfavorably impacted by the tax liability associated with the patent litigation settlement income, by the non-deductibility of goodwill derecognized and the jurisdictional mix of the other intangible assets divested as part of the transfer of certain product rights to Pfizer's 49%-owned equity-method investment in China, as well as the non-deductibility of the loss on an option to acquire the remaining interest in a 40%-owned generics company in Brazil since we expect to retain the investment indefinitely. In the third quarter and first nine months of 2012, includes a settlement with the U.S. IRS related to audits for multiple tax years that favorably impacted GAAP Reported net income by $1.1 billion, representing tax and interest.

 
(4) 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.
 
(5) Exclusive of amortization of intangible assets, except as discussed in footnote (6) below.
 
(6) Amortization expense related to finite-lived 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 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.
REVENUES
THIRD QUARTER 2013 and 2012
(UNAUDITED)
(millions of dollars)
         
WORLDWIDE UNITED STATES TOTAL INTERNATIONAL (a)
                                                 

2013

  2012   % Change 2013   2012   % Change 2013   2012   % Change
       

 

 

 Total 

 

 Oper. 

       

 

  Total        

 

 

 Total 

 

 Oper. 

TOTAL REVENUES   $ 12,643   $ 12,953   (2 %)   -       $ 5,186   $ 5,174   -       $ 7,457   $ 7,779   (4 %)   (1 %)

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS:

  $ 11,742   $ 12,117   (3 %)   (1 %)     $ 4,747   $ 4,769   -       $ 6,995   $ 7,348   (5 %)   (1 %)
Lyrica 1,135 1,036 10 %   11 % 509 430 18 % 626 606 3 %   6 %
Prevnar family 959 949 1 % 3 % 469 440 7 % 490 509 (4 %) (1 %)
Enbrel (Outside the U.S. and Canada) 932 893 4 % 6 % - - - 932 893 4 % 6 %
Celebrex 752 676 11 % 13 % 508 438 16 % 244 238 3 % 8 %
Lipitor 533 749 (29 %) (27 %) 78 192 (59 %) 455 557 (18 %) (16 %)
Viagra 460 517 (11 %) (11 %) 294 287 2 % 166 230 (28 %) (27 %)
Zyvox 319 328 (3 %) (1 %) 165 158 4 % 154 170 (9 %) (6 %)
Norvasc 303 319 (5 %) 2 % 11 13 (15 %) 292 306 (5 %) 3 %
Sutent 278 294 (5 %) (5 %) 85 82 4 % 193 212 (9 %) (8 %)
Premarin family 276 262 5 % 6 % 254 237 7 % 22 25 (12 %) 6 %
BeneFIX 213 201 6 % 7 % 101 96 5 % 112 105 7 % 8 %
Genotropin 183 212 (14 %) (9 %) 45 59 (24 %) 138 153 (10 %) (3 %)
Vfend 193 187 3 % 5 % 18 21 (14 %) 175 166 5 % 8 %
Pristiq 173 152 14 % 15 % 134 120 12 % 39 32 22 % 25 %
Chantix/Champix 154 146 5 % 9 % 82 62 32 % 72 84 (14 %) (9 %)
Detrol/Detrol LA 131 176 (26 %) (24 %) 89 112 (21 %) 42 64 (34 %) (30 %)
Xalatan/Xalacom 140 181 (23 %) (17 %) 8 9 (11 %) 132 172 (23 %) (17 %)
ReFacto AF/Xyntha 148 150 (1 %) (3 %) 29 28 4 % 119 122 (2 %) (4 %)
Medrol 107 113 (5 %) (4 %) 31 24 29 % 76 89 (15 %) (13 %)
Zoloft 116 129 (10 %) (2 %) 14 17 (18 %) 102 112 (9 %) 1 %
Effexor 96 107 (10 %) (11 %) 36 37 (3 %) 60 70 (14 %) (15 %)
Zosyn/Tazocin 104 109 (5 %) (3 %) 47 39 21 % 57 70 (19 %) (17 %)
Zithromax/Zmax 84 89 (6 %) 1 % 3 3 - 81 86 (6 %) -
Tygacil 92 82 12 % 12 % 38 37 3 % 54 45 20 % 20 %
Relpax 83 92 (10 %) (9 %) 49 56 (13 %) 34 36 (6 %) (1 %)
Fragmin 83 91 (9 %) (10 %) 2 11 (82 %) 81 80 1 % (1 %)
Rapamune 91 92 (1 %) - 55 49 12 % 36 43 (16 %) (15 %)
EpiPen 85 67 27 % 28 % 67 52 29 % 18 15 20 % 28 %
Revatio 75 135 (44 %) (44 %) 18 78 (77 %) 57 57 - 2 %
Sulperazon 78 62 26 % 26 % - - - 78 62 26 % 26 %
Cardura 70 79 (11 %) (5 %) 1 2 (50 %) 69 77 (10 %) (5 %)
Inlyta 83 29 186 % * 42 28 50 % 41 1 * *
Xanax XR 69 66 5 % 5 % 13 13 - 56 53 6 % 5 %
Xalkori 73 38 92 % 92 % 35 24 46 % 38 14 171 % 164 %
Toviaz 57 52 10 % 10 % 31 29 7 % 26 23 13 % 17 %
Aricept (b) 52 71 (27 %) (25 %) - - - 52 71 (27 %) (25 %)
Caduet 52 68 (24 %) (14 %) 5 13 (62 %) 47 55 (15 %) (6 %)
Inspra 53 51 4 % 5 % 1 1 - 52 50 4 % 4 %
Diflucan 59 61 (3 %) (1 %) 1 1 - 58 60 (3 %) (2 %)
Somavert 56 49 14 % 11 % 13 12 8 % 43 37 16 % 11 %
Neurontin 50 52 (4 %) (2 %) 12 12 - 38 40 (5 %) (2 %)
Dalacin/Cleocin 50 74 (32 %) (30 %) 15 40 (63 %) 35 34 3 % 9 %
Xeljanz 35 - * * 34 - * 1 - * *
Alliance revenues (c) 684 879 (22 %) (22 %) 605 687 (12 %) 79 192 (59 %) (57 %)
All other biopharmaceutical products (d) 1,923 1,952 (1 %) 3 % 700 720 (3 %) 1,223 1,232 (1 %) 7 %
All other established products (d)     1,455     1,352   8 %   11 %       514     398   29 %       941     954   (1 %)   4 %
REVENUES FROM OTHER PRODUCTS:
CONSUMER HEALTHCARE $ 788 $ 780 1 % 1 % $ 396 $ 388 2 % $ 392 $ 392 - -
OTHER (e)   $ 113   $ 56   *   *     $ 43   $ 17   *     $ 70   $ 39   79 %   80 %

* Calculation not meaningful.

 

(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)

Represents direct sales under license agreement with Eisai Co., Ltd.

(c)

Includes Enbrel (in the U.S. and Canada), Spiriva, Rebif, Aricept and Eliquis.

(d)

All other established products is a subset of All other biopharmaceutical products.

(e)

Other represents revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and includes, in 2013, the revenues related to our transitional manufacturing and supply agreements with Zoetis.

 
Certain amounts and percentages may reflect rounding adjustments.
 
PFIZER INC.
INTERNATIONAL REVENUES BY GEOGRAPHIC REGION
THIRD QUARTER 2013 and 2012
(UNAUDITED)
(millions of dollars)
         
DEVELOPED EUROPE (a) DEVELOPED REST OF WORLD (b) EMERGING MARKETS (c)
                                                     
2013   2012   % Change 2013   2012   % Change 2013   2012   % Change
       

 

 

 Total 

 

 Oper. 

       

 

 

 Total 

 

 Oper. 

       

 

 

 Total 

 

 Oper. 

TOTAL INTERNATIONAL REVENUES   $ 2,785   $ 2,804   (1 %)   (5 %)     $ 1,992   $ 2,386   (17 %)   (3 %)     $ 2,680   $ 2,589   4 %   6 %

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS -

INTERNATIONAL:

  $ 2,663   $ 2,672   -     (5 %)     $ 1,901   $ 2,287   (17 %)   (3 %)     $ 2,431   $ 2,389   2 %   5 %
Lyrica 361 324 11 %   7 % 152 185 (18 %)   (1 %) 113 97 16 %   18 %
Prevnar family 164 161 2 % (3 %) 116 133 (13 %) 1 % 210 215 (2 %) -
Enbrel (Outside Canada) 600 555 8 % 3 % 127 148 (14 %) 2 % 205 190 8 % 15 %
Celebrex 36 37 (3 %) (9 %) 115 119 (3 %) 9 % 93 82 13 % 15 %
Lipitor 71 130 (45 %) (48 %) 122 207 (41 %) (32 %) 262 220 19 % 19 %
Viagra 54 92 (41 %) (43 %) 36 48 (25 %) (18 %) 76 90 (16 %) (16 %)
Zyvox 81 73 11 % 6 % 35 37 (5 %) 8 % 38 60 (37 %) (29 %)
Norvasc 25 27 (7 %) (15 %) 115 150 (23 %) (7 %) 152 129 18 % 17 %
Sutent 96 103 (7 %) (12 %) 35 44 (20 %) (11 %) 62 65 (5 %) (1 %)
Premarin family 3 2 50 % (8 %) 8 11 (27 %) (12 %) 11 12 (8 %) -
BeneFIX 67 63 6 % 3 % 33 33 - 11 % 12 9 33 % 29 %
Genotropin 65 71 (8 %) (13 %) 47 56 (16 %) 5 % 26 26 - 8 %
Vfend 74 68 9 % 3 % 38 42 (10 %) 9 % 63 56 13 % 13 %
Pristiq - - - - 25 22 14 % 16 % 14 10 40 % 43 %
Chantix/Champix 26 27 (4 %) (4 %) 35 44 (20 %) (15 %) 11 13 (15 %) 4 %
Detrol/Detrol LA 11 29 (62 %) (61 %) 19 24 (21 %) (11 %) 12 11 9 % 5 %
Xalatan/Xalacom 40 57 (30 %) (34 %) 56 73 (23 %) (8 %) 36 42 (14 %) (11 %)
ReFacto AF/Xyntha 96 93 3 % (1 %) 16 18 (11 %) (3 %) 7 11 (36 %) (29 %)
Medrol 22 21 5 % - 9 12 (25 %) (8 %) 45 56 (20 %) (19 %)
Zoloft 15 13 15 % 14 % 53 67 (21 %) (4 %) 34 32 6 % 6 %
Effexor 22 26 (15 %) (20 %) 16 18 (11 %) (17 %) 22 26 (15 %) (7 %)
Zosyn/Tazocin 8 10 (20 %) (25 %) 4 3 33 % 6 % 45 57 (21 %) (16 %)
Zithromax/Zmax 12 11 9 % 4 % 25 35 (29 %) (15 %) 44 40 10 % 14 %
Tygacil 19 17 12 % 5 % 1 2 (50 %) (2 %) 34 26 31 % 31 %
Relpax 17 17 - (3 %) 13 15 (13 %) (3 %) 4 4 - 10 %
Fragmin 45 45 - (2 %) 22 18 22 % 13 % 14 17 (18 %) (16 %)
Rapamune 13 13 - (13 %) 4 5 (20 %) (8 %) 19 25 (24 %) (18 %)
EpiPen - - - - 18 15 20 % 28 % - - - -
Revatio 37 34 9 % 5 % 12 13 (8 %) 10 % 8 10 (20 %) (18 %)
Sulperazon - - - - 7 9 (22 %) (4 %) 71 53 34 % 31 %
Cardura 20 22 (9 %) (10 %) 23 31 (26 %) (9 %) 26 24 8 % 4 %
Inlyta 20 1 * * 19 - * * 2 - * *
Xanax XR 23 22 5 % (1 %) 9 10 (10 %) 6 % 24 21 14 % 19 %
Xalkori 18 5 * * 13 8 63 % 83 % 7 1 * *
Toviaz 21 17 24 % 15 % 3 3 - 51 % 2 3 (33 %) 3 %
Aricept (d) 9 18 (50 %) (51 %) 36 44 (18 %) (15 %) 7 9 (22 %) (23 %)
Caduet 2 3 (33 %) (9 %) 35 37 (5 %) 6 % 10 15 (33 %) (33 %)
Inspra 34 31 10 % 2 % 14 15 (7 %) 11 % 4 4 - (2 %)
Diflucan 13 14 (7 %) (12 %) 8 10 (20 %) (5 %) 37 36 3 % 3 %
Somavert 35 30 17 % 10 % 4 4 - 13 % 4 3 33 % 21 %
Neurontin 11 14 (21 %) (21 %) 9 10 (10 %) (6 %) 18 16 13 % 16 %
Dalacin/Cleocin 8 7 14 % 4 % 5 7 (29 %) 1 % 22 20 10 % 13 %
Xeljanz - - - - 1 - * * - - - -
Alliance revenues (e) 26 53 (51 %) (54 %) 44 128 (66 %) (62 %) 9 11 (18 %) (14 %)
All other biopharmaceutical products (f) 343 316 9 % 2 % 364 374 (3 %) 19 % 516 542 (5 %) (1 %)
All other established products (f)     250     247   1 %   1 %       277     270   3 %   3 %       414     437   (5 %)   (2 %)

REVENUES FROM OTHER PRODUCTS -

INTERNATIONAL

  $ 122   $ 132   (8 %)   (6 %)     $ 91   $ 99   (8 %)   (10 %)     $ 249   $ 200   25 %   26 %
* 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, the Middle East, Eastern Europe, Africa, Turkey and Central Europe.

(d)

Represents direct sales under license agreement with Eisai Co., Ltd.

(e)

Includes Enbrel (in Canada), Spiriva, Aricept and Eliquis.

(f)

All other established products is a subset of All other biopharmaceutical products.

 
Certain amounts and percentages may reflect rounding adjustments.
 
PFIZER INC.
REVENUES
NINE MONTHS 2013 and 2012
(UNAUDITED)
(millions of dollars)
         
WORLDWIDE UNITED STATES TOTAL INTERNATIONAL (a)
                                                 
2013   2012   % Change 2013   2012   % Change 2013   2012   % Change
       

 

 

 Total 

 

 Oper. 

       

 

 

Total

       

 

 

 Total 

 

 Oper. 

TOTAL REVENUES   $ 38,026   $ 40,766   (7 %)   (5 %)     $ 15,190   $ 16,011   (5 %)     $ 22,836   $ 24,755   (8 %)   (5 %)

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS:

  $ 35,398   $ 38,321   (8 %)   (6 %)     $ 14,002   $ 14,899   (6 %)     $ 21,396   $ 23,422   (9 %)   (5 %)
Lyrica 3,335 3,026 10 %   12 % 1,438 1,229 17 % 1,897 1,797 6 %   9 %
Prevnar family 2,855 3,028 (6 %) (4 %) 1,336 1,423 (6 %) 1,519 1,605 (5 %) (3 %)
Enbrel (Outside the U.S. and Canada) 2,769 2,780 - 2 % - - - 2,769 2,780 - 2 %
Celebrex 2,120 1,969 8 % 9 % 1,409 1,266 11 % 711 703 1 % 6 %
Lipitor 1,704 3,364 (49 %) (48 %) 335 871 (62 %) 1,369 2,493 (45 %) (43 %)
Viagra 1,405 1,498 (6 %) (6 %) 819 822 - 586 676 (13 %) (12 %)
Zyvox 1,007 996 1 % 3 % 511 490 4 % 496 506 (2 %) 2 %
Norvasc 917 1,001 (8 %) (3 %) 31 38 (18 %) 886 963 (8 %) (2 %)
Sutent 892 913 (2 %) (1 %) 261 255 2 % 631 658 (4 %) (2 %)
Premarin family 793 797 (1 %) - 726 724 - 67 73 (8 %) (4 %)
BeneFIX 619 577 7 % 8 % 298 272 10 % 321 305 5 % 7 %
Genotropin 570 619 (8 %) (4 %) 145 150 (3 %) 425 469 (9 %) (4 %)
Vfend 557 543 3 % 5 % 49 64 (23 %) 508 479 6 % 9 %
Pristiq 516 461 12 % 13 % 402 365 10 % 114 96 19 % 22 %
Chantix/Champix 486 496 (2 %) - 253 234 8 % 233 262 (11 %) (7 %)
Detrol/Detrol LA 437 576 (24 %) (23 %) 297 362 (18 %) 140 214 (35 %) (31 %)
Xalatan/Xalacom 434 617 (30 %) (25 %) 23 30 (23 %) 411 587 (30 %) (26 %)
ReFacto AF/Xyntha 433 420 3 % 3 % 89 79 13 % 344 341 1 % -
Medrol 343 388 (12 %) (10 %) 110 105 5 % 233 283 (18 %) (16 %)
Zoloft 341 398 (14 %) (6 %) 30 49 (39 %) 311 349 (11 %) (2 %)
Effexor 326 342 (5 %) (4 %) 128 102 25 % 198 240 (18 %) (17 %)
Zosyn/Tazocin 293 378 (22 %) (22 %) 127 175 (27 %) 166 203 (18 %) (17 %)
Zithromax/Zmax 283 318 (11 %) (6 %) 5 9 (44 %) 278 309 (10 %) (5 %)
Tygacil 271 249 9 % 10 % 122 115 6 % 149 134 11 % 13 %
Relpax 263 266 (1 %) - 161 160 1 % 102 106 (4 %) -
Fragmin 263 283 (7 %) (8 %) 21 36 (42 %) 242 247 (2 %) (3 %)
Rapamune 261 259 1 % 2 % 152 140 9 % 109 119 (8 %) (6 %)
EpiPen 230 217 6 % 7 % 183 182 1 % 47 35 34 % 40 %
Revatio 225 414 (46 %) (45 %) 52 250 (79 %) 173 164 5 % 8 %
Sulperazon 222 191 16 % 17 % - - - 222 191 16 % 17 %
Cardura 221 254 (13 %) (8 %) 3 4 (25 %) 218 250 (13 %) (7 %)
Inlyta 217 53 * * 112 52 115 % 105 1 * *
Xanax XR 204 203 - 2 % 36 38 (5 %) 168 165 2 % 3 %
Xalkori 193 78 147 % 151 % 98 56 75 % 95 22 * *
Toviaz 174 150 16 % 16 % 89 82 9 % 85 68 25 % 26 %
Aricept (b) 173 249 (31 %) (30 %) - - - 173 249 (31 %) (30 %)
Caduet 164 191 (14 %) (9 %) 16 26 (38 %) 148 165 (10 %) (4 %)
Inspra 164 156 5 % 9 % 4 4 - 160 152 5 % 9 %
Diflucan 164 185 (11 %) (9 %) 2 4 (50 %) 162 181 (10 %) (8 %)
Somavert 159 143 11 % 11 % 38 33 15 % 121 110 10 % 10 %
Neurontin 158 172 (8 %) (6 %) 33 37 (11 %) 125 135 (7 %) (5 %)
Dalacin/Cleocin 149 176 (15 %) (13 %) 45 72 (38 %) 104 104 - 4 %
Xeljanz 68 - * * 67 - * 1 - * *
Alliance revenues (c) 2,187 2,577 (15 %) (15 %) 1,901 1,908 - 286 669 (57 %) (56 %)
All other biopharmaceutical products (d) 5,833 6,350 (8 %) (5 %) 2,045 2,586 (21 %) 3,788 3,764 1 % 6 %
All other established products (d)     4,278     4,360   (2 %)   1 %       1,378     1,484   (7 %)       2,900     2,876   1 %   5 %
REVENUES FROM OTHER PRODUCTS:
CONSUMER HEALTHCARE $ 2,399 $ 2,276 5 % 5 % $ 1,111 $ 1,054 5 % $ 1,288 $ 1,222 5 % 5 %
OTHER (e)   $ 229   $ 169   36 %   36 %     $ 77   $ 58   33 %     $ 152   $ 111   37 %   39 %
* Calculation not meaningful.
 

(a)

Total International represents Developed Europe + Developed Rest of World + Emerging Markets.

Details for these regions are located on the following page.

(b)

Represents direct sales under license agreement with Eisai Co., Ltd.

(c)

Includes Enbrel (in the U.S. and Canada), Spiriva, Rebif, Aricept and Eliquis.

(d)

All other established products is a subset of All other biopharmaceutical products.

(e)

Other represents revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and includes, in 2013, the revenues related to our transitional manufacturing and supply agreements with Zoetis.

 

Certain amounts and percentages may reflect rounding adjustments.
 
PFIZER INC.
INTERNATIONAL REVENUES BY GEOGRAPHIC REGION
NINE MONTHS 2013 and 2012
(UNAUDITED)
(millions of dollars)
     
DEVELOPED EUROPE (a) DEVELOPED REST OF WORLD (b) EMERGING MARKETS (c)
                                                 
2013   2012   % Change 2013   2012   % Change 2013   2012   % Change
           

 Total 

 

 Oper. 

         

 Total 

 

 Oper. 

         

 Total 

 

 Oper. 

TOTAL INTERNATIONAL REVENUES   $ 8,502   $ 9,433   (10 %)   (11 %)   $ 6,139   $ 7,383   (17 %)   (7 %)   $ 8,195   $ 7,939   3 %   6 %

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS -

INTERNATIONAL:

  $ 8,083   $ 9,026   (10 %)   (12 %)   $ 5,847   $ 7,088   (18 %)   7 %   $ 7,466   $ 7,308   2 %   5 %
Lyrica 1,045 955 9 %   8 % 497 526 (6 %)   8 % 355 316 12 %   15 %
Prevnar family 507 496 2 % - 385 459 (16 %) (7 %) 627 650 (4 %) (2 %)
Enbrel (Outside Canada) 1,754 1,691 4 % 2 % 379 451 (16 %) (4 %) 636 638 - 7 %
Celebrex 110 121 (9 %) (11 %) 334 341 (2 %) 8 % 267 241 11 % 11 %
Lipitor 227 1,042 (78 %) (79 %) 381 777 (51 %) (46 %) 761 674 13 % 14 %
Viagra 228 267 (15 %) (15 %) 113 152 (26 %) (21 %) 245 257 (5 %) (4 %)
Zyvox 238 224 6 % 4 % 101 115 (12 %) 1 % 157 167 (6 %) -
Norvasc 80 91 (12 %) (14 %) 364 488 (25 %) (13 %) 442 384 15 % 14 %
Sutent 293 325 (10 %) (11 %) 103 128 (20 %) (11 %) 235 205 15 % 18 %
Premarin family 7 7 - (6 %) 26 27 (4 %) 1 % 34 39 (13 %) (8 %)
BeneFIX 186 182 2 % 1 % 101 98 3 % 11 % 34 25 36 % 36 %
Genotropin 197 224 (12 %) (14 %) 147 166 (11 %) 3 % 81 79 3 % 9 %
Vfend 222 203 9 % 8 % 110 118 (7 %) 7 % 176 158 11 % 13 %
Pristiq - - - - 74 62 19 % 21 % 40 34 18 % 24 %
Chantix/Champix 88 94 (6 %) (6 %) 109 132 (17 %) (12 %) 36 36 - 4 %
Detrol/Detrol LA 41 97 (58 %) (58 %) 63 74 (15 %) (7 %) 36 43 (16 %) (15 %)
Xalatan/Xalacom 117 220 (47 %) (48 %) 172 232 (26 %) (15 %) 122 135 (10 %) (7 %)
ReFacto AF/Xyntha 278 274 1 % - 52 44 18 % 22 % 14 23 (39 %) (36 %)
Medrol 67 70 (4 %) (6 %) 29 36 (19 %) (8 %) 137 177 (23 %) (21 %)
Zoloft 47 44 7 % 5 % 163 207 (21 %) (7 %) 101 98 3 % 6 %
Effexor 70 84 (17 %) (18 %) 51 80 (36 %) (36 %) 77 76 1 % 5 %
Zosyn/Tazocin 30 37 (19 %) (21 %) 10 11 (9 %) (16 %) 126 155 (19 %) (17 %)
Zithromax/Zmax 44 45 (2 %) (5 %) 95 134 (29 %) (17 %) 139 130 7 % 8 %
Tygacil 53 50 6 % 4 % 5 5 - 15 % 91 79 15 % 19 %
Relpax 50 50 - (2 %) 38 43 (12 %) (2 %) 14 13 8 % 10 %
Fragmin 130 135 (4 %) (5 %) 65 58 12 % 11 % 47 54 (13 %) (13 %)
Rapamune 38 39 (3 %) (5 %) 13 13 - 2 % 58 67 (13 %) (8 %)
EpiPen - - - - 47 35 34 % 40 % - - - -
Revatio 112 100 12 % 10 % 37 40 (8 %) 8 % 24 24 - 1 %
Sulperazon - - - - 20 27 (26 %) (9 %) 202 164 23 % 21 %
Cardura 64 72 (11 %) (12 %) 76 102 (25 %) (12 %) 78 76 3 % 3 %
Inlyta 46 1 * * 56 - * * 3 - * *
Xanax XR 73 65 12 % 10 % 26 33 (21 %) (9 %) 69 67 3 % 3 %
Xalkori 41 11 * * 33 9 * * 21 2 * *
Toviaz 61 54 13 % 11 % 15 7 114 % 146 % 9 7 29 % 35 %
Aricept (d) 34 93 (63 %) (64 %) 116 126 (8 %) (7 %) 23 30 (23 %) (21 %)
Caduet 9 10 (10 %) (10 %) 106 108 (2 %) 7 % 33 47 (30 %) (28 %)
Inspra 104 96 8 % 6 % 42 44 (5 %) 12 % 14 12 17 % 24 %
Diflucan 37 47 (21 %) (22 %) 24 30 (20 %) (9 %) 101 104 (3 %) (2 %)
Somavert 98 90 9 % 7 % 12 12 - 13 % 11 8 38 % 33 %
Neurontin 37 45 (18 %) (18 %) 28 31 (10 %) (6 %) 60 59 2 % 6 %
Dalacin/Cleocin 23 23 - (2 %) 16 21 (24 %) (11 %) 65 60 8 % 11 %
Xeljanz - - - - 1 - * * - - - -
Alliance revenues (e) 89 204 (56 %) (57 %) 164 414 (60 %) (57 %) 33 51 (35 %) (34 %)
All other biopharmaceutical products (f) 1,108 1,048 6 % 4 % 1,048 1,072 (2 %) 12 % 1,632 1,644 (1 %) 4 %
All other established products (f)     795     769   3 %   2 %     779     786   (1 %)   11 %     1,326     1,321   -     3 %

REVENUES FROM OTHER PRODUCTS -

INTERNATIONAL

  $ 419   $ 407   3 %   2 %   $ 292   $ 295   (1 %)   -     $ 729   $ 631   16 %   17 %
* 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, the Middle East, Eastern Europe, Africa, Turkey and Central Europe.

(d)

Represents direct sales under license agreement with Eisai Co., Ltd.

(e)

Includes Enbrel (in Canada), Spiriva, Aricept and Eliquis.

(f)

All other established products is a subset of All other biopharmaceutical products.

 
Certain amounts and percentages may reflect rounding adjustments.
 

DISCLOSURE NOTICE: The information contained in this earnings release and the attachments is as of October 29, 2013. We assume no obligation to update forward-looking statements contained in this earnings release and the attachments as a result of new information or future events or developments.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,172.68 -107.06 -0.62%
S&P 500 1,994.29 -16.11 -0.80%
NASDAQ 4,527.6890 -52.10 -1.14%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs