Pfizer Reports Second-Quarter 2010 Results

Pfizer Reports Second-Quarter 2010 Results - MarketWatch NEW YORK, Aug 03, 2010 /PRNewswire via COMTEX/ -- Second-Quarter 2010 Revenues of $17.3 Billion

Second-Quarter 2010 Reported Diluted EPS(1) of $0.31, Adjusted Diluted EPS(2) of $0.62

Reaffirms 2010 Financial Guidance and 2012 Financial Targets

Strong Quarterly Performance Reflects More Balanced Business Mix and Product Portfolio

    ($ in millions, except per share amounts)




                       Second-Quarter        Year-to-Date
                       --------------        ------------
                         2010 2009 Change      2010  2009 Change
                          ----                 ----  ---- ------
    Reported Revenues  $17,327 $10,984  58% $34,077 $21,851   56%
    Reported Net
     Income(1)           2,475   2,261   9%   4,501   4,990 (10%)
    Reported Diluted
     EPS(1)               0.31    0.34 (9%)    0.56    0.74 (24%)
    Adjusted Income(2)   4,959   3,249  53%   9,841   6,916   42%
    Adjusted Diluted
     EPS(2)               0.62    0.48  29%    1.22    1.03   18%








    See end of text prior to tables for notes.





Pfizer Inc. /quotes/comstock/13*!pfe/quotes/nls/pfe (PFE 15.48, +0.48, +3.20%) today reported financial results for second-quarter 2010. Since the acquisition of Wyeth was completed on October 15, 2009, legacy Wyeth products and operations are reflected in the first two quarters of 2010, but not reflected in the first two quarters of 2009. Second-quarter 2010 revenues were $17.3 billion, an increase of 58% compared with $11.0 billion in the year-ago quarter. Revenues for second-quarter 2010 compared with the year-ago quarter were favorably impacted by $5.4 billion, or 50%, due to the addition of the legacy Wyeth products, by $315 million, or 3%, due to legacy Pfizer products, and by $584 million, or 5%, due to foreign exchange. For second-quarter 2010, U.S. revenues were $7.4 billion, an increase of 63% compared with the year-ago quarter. International revenues were $9.9 billion, an increase of 54% compared with the prior-year quarter, which reflected 45% operational growth and a 9% favorable impact of foreign exchange. U.S. revenues represented 43% of total revenues in second-quarter 2010 compared with 41% in the year-ago quarter, while international revenues represented 57% of total revenues in second-quarter 2010 compared with 59% in the year-ago quarter.

For first-half 2010, revenues were $34.1 billion, an increase of 56% compared with $21.9 billion in the same period in 2009. Revenues for first-half 2010 compared with the year-ago period were favorably impacted by $10.7 billion, or 49%, due to the addition of the legacy Wyeth products, by $173 million, or 1%, due to legacy Pfizer products, and by $1.3 billion, or 6%, due to foreign exchange. U.S. revenues were $14.7 billion, an increase of 55% compared with first-half 2009. International revenues were $19.4 billion, an increase of 57% compared with the same period last year, which reflected 46% operational growth and an 11% favorable impact of foreign exchange. U.S. revenues represented 43% and international revenues represented 57% of the total in first-half 2010, both comparable with first-half 2009.

Business Revenues

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


                               Second-Quarter(13)
                                -----------------

    ($ in millions)        2010       2009(13)       Change
                           ----       -------        ------

    Primary Care(3)      $5,923         $5,160            15%
    Specialty
     Care(4)              3,769          1,423           165%
    Established
     Products(5)          2,730          1,670            63%
    Emerging
     Markets(6)           2,250          1,455            55%
    Oncology(7)             349            355           (2%)
                            ---            ---          ----

    Biopharmaceutical    15,021         10,063            49%
                         ------         ------           ---

    Animal Health(8)        893            648            38%
    Consumer
     Healthcare(9)          678             --           N/A
    Nutrition(10)           476             --           N/A
    Capsugel(11)            195            185             5%

    Diversified           2,242            833           169%
                          -----            ---           ---

    Other(12)                64             88          (27%)
                            ---            ---         -----

       Total            $17,327        $10,984            58%
                        =======        =======           ===








                            Second-Quarter(13)
                            -----------------
                                                 Operational
                                                 -----------
                                                         Legacy
    ($ in millions)         Foreign         Total        Pfizer
                            Exchange        -----       -------
                            --------

    Primary Care(3)                3%           12%            5%
    Specialty
     Care(4)                       5%          160%            8%
    Established
     Products(5)                   5%           58%         (10%)
    Emerging
     Markets(6)                   11%           44%           11%
    Oncology(7)                    2%          (4%)         (14%)
                                 ---          ----         -----

    Biopharmaceutical              5%           44%            3%
                                 ---           ---           ---

    Animal Health(8)               7%           31%            2%
    Consumer
     Healthcare(9)               N/A           N/A           N/A
    Nutrition(10)                N/A           N/A           N/A
    Capsugel(11)                   1%            4%            4%

    Diversified                   12%          157%            3%
                                 ---           ---           ---

    Other(12)                    (3%)         (24%)         (24%)
                                ----         -----         -----

       Total                       5%           53%            3%
                                 ===           ===           ===








    See end of text prior to tables for notes.
    N/A - Not applicable





For second-quarter 2010, revenues from Biopharmaceutical were $15.0 billion, an increase of 49% compared with $10.1 billion in the year-ago quarter. Operationally, revenues increased $4.5 billion, or 44%, which included $4.2 billion, or 41%, attributable to legacy Wyeth products, primarily Premarin in the Primary Care unit, Enbrel and the Prevnar/Prevenar franchise in the Specialty Care unit, Effexor in the Established Products unit as well as Enbrel and Prevenar in the Emerging Markets unit, and $313 million, or 3%, due to legacy Pfizer products. In addition, foreign exchange favorably impacted Biopharmaceutical revenues by 5% or $485 million.

Within the Biopharmaceutical units, legacy Pfizer operational performance was impacted in second-quarter 2010 compared with the year-ago quarter by the loss of exclusivity of certain products and by the resulting reclassification of Camptosar revenues among the units. Legacy Pfizer Oncology unit revenues no longer include Camptosar's European revenues due to its loss of exclusivity in July 2009. Camptosar's European revenues are included in the Established Products unit beginning in first-quarter 2010. This reclassification of revenues negatively impacted the Oncology unit's performance by 20% in second-quarter 2010 compared with the prior-year quarter. Further, legacy Pfizer Established Products unit revenues in second-quarter 2010 were adversely impacted by 5% due to the loss of exclusivity for Norvasc in Canada in July 2009, partially offset by the favorable impact of 1% due to the addition of Camptosar's European revenues.

For second-quarter 2010, revenues from Diversified were $2.2 billion, an increase of 169% compared with $833 million in the year-ago quarter. Operationally, revenues increased $1.3 billion, or 157%, which was primarily attributable to legacy Wyeth products, principally Centrum, Advil and Caltrate in Consumer Healthcare and infant and toddler Nutrition products. Additionally, foreign exchange favorably impacted Diversified revenues by 12% or $102 million.

Reported Net Income(1) and Reported Diluted EPS(1)

For second-quarter 2010, Pfizer posted reported net income(1) of $2.5 billion, an increase of 9% compared with $2.3 billion in the prior-year quarter, and reported diluted EPS(1) of $0.31, a decrease of 9% compared with $0.34 in the prior-year quarter. For first-half 2010, Pfizer posted reported net income(1) of $4.5 billion, a decrease of 10% compared with $5.0 billion in first-half 2009, and reported diluted EPS(1) of $0.56, a decline of 24% compared with $0.74 in the prior-year period. Results were favorably impacted by revenues from legacy Wyeth products and foreign exchange, and negatively impacted by the expenses associated with the legacy Wyeth operations as well as purchase accounting adjustments, integration charges and restructuring charges associated with the Wyeth acquisition, higher net interest expense primarily due to the borrowings used to partially fund the Wyeth acquisition and an increase in the effective tax rate.

The effective tax rate on reported results increased to approximately 37% in second-quarter 2010 from approximately 26% in second-quarter 2009, and approximately 37% in first-half 2010 compared with approximately 27% in first-half 2009. These increases were primarily the result of higher charges incurred as a result of the acquisition of Wyeth and the mix of jurisdictions in which those charges were incurred.

Additionally, reported diluted EPS(1) in second-quarter 2010 and first-half 2010 was impacted by the increased number of shares outstanding in comparison with the corresponding periods in 2009 resulting from shares issued to partially fund the Wyeth acquisition.

Adjusted Income(2) and Adjusted Diluted EPS(2)

Second-quarter 2010 adjusted income(2) was $5.0 billion, an increase of 53% compared with $3.2 billion in the year-ago quarter, and adjusted diluted EPS(2) was $0.62, an increase of 29% compared with $0.48 in the year-ago quarter. For first-half 2010, Pfizer posted adjusted income(2) of $9.8 billion, an increase of 42% compared with $6.9 billion in first-half 2009, and adjusted diluted EPS(2) of $1.22, an increase of 18% compared with $1.03 in the prior-year period. Results were favorably impacted by revenues from legacy Wyeth products and foreign exchange, which were partially offset by the expenses associated with the legacy Wyeth operations as well as higher net interest expense primarily due to the borrowings used to partially fund the acquisition of Wyeth and an increase in the effective tax rate.

The effective tax rate on adjusted income(2) increased to approximately 32% in second-quarter 2010 compared with approximately 28% in second-quarter 2009, and approximately 31% in first-half 2010 compared with approximately 29% in first-half 2009. These increases were primarily the result of certain business decisions made in connection with the acquisition of Wyeth and the change in the jurisdictional mix of earnings.

Additionally, adjusted diluted EPS(2) in second-quarter 2010 and first-half 2010 was impacted by the increased number of shares outstanding in comparison with the corresponding periods in 2009 resulting from shares issued to partially fund the Wyeth acquisition.

In second-quarter 2010, adjusted cost of sales(2) as a percentage of revenues was 17.0% compared with 15.4% in second-quarter 2009. This increase primarily reflects the change in the mix of products and businesses as a result of the Wyeth acquisition. Excluding the impact of foreign exchange, adjusted cost of sales(2) as a percentage of revenues was 18.2% in second-quarter 2010.

Adjusted SI&A expenses(2) were $4.7 billion in second-quarter 2010, an increase of 45% compared with $3.3 billion in the prior-year quarter. This increase was attributable primarily to the addition of the legacy Wyeth operations. Foreign exchange increased second-quarter 2010 adjusted SI&A expenses(2) by $126 million compared with the year-ago quarter.

Adjusted R&D expenses(2) were $2.2 billion in second-quarter 2010, an increase of 32% compared with $1.7 billion in the prior-year period. This increase was attributable primarily to the addition of the legacy Wyeth operations and continued investment in the late-stage development portfolio. Foreign exchange increased second-quarter 2010 adjusted R&D expenses(2) by $21 million compared with the year-ago quarter.

Overall, foreign exchange increased adjusted total costs(14) by $48 million, or 1%, in second-quarter 2010 compared with the prior-year period.

Executive Commentary

Jeff Kindler, Chairman and Chief Executive Officer, stated, "During the quarter, Pfizer's more balanced global portfolio, which includes small molecules, biologics and vaccines as well as off-patent pharmaceuticals and diversified products generated strong performance in a period of notable worldwide economic uncertainty. Within our Biopharmaceutical businesses, our recently launched vaccine for the prevention of pneumococcal disease in children, Prevnar/Prevenar 13, was a strong contributor, while many key products in our Primary Care, Specialty Care and Oncology units also performed well on a global basis. The Emerging Markets unit continued to benefit from our on-going investment, with year-over-year operational growth on a legacy Pfizer basis of 11%(13). Within that unit, revenues in our six key markets, led by China, increased a combined 19% on a legacy Pfizer operational basis to approximately $800 million."

"We continue to make solid progress on the Wyeth integration while we remain focused on delivering strong business performance. We expect to receive phase three clinical data for tasocitinib in rheumatoid arthritis, Sutent in lung cancer, Prevnar 13 for the prevention of pneumococcal disease in adults, axitinib in renal cell carcinoma and bosutinib in chronic myelogenous leukemia during the balance of this year. Within the Established Products unit, we anticipate continued new product launches, and within the Emerging Markets unit, we plan to continue our expansion in China and other key markets. Within our Diversified businesses, we plan to continue launching new innovations in markets around the world to grow and strengthen our product offerings, such as in our vitamin and infant formula product lines. We believe that these actions, in addition to a modest level of business development, will continue to support consistent, solid financial results," continued Mr. Kindler.

Frank D'Amelio, Chief Financial Officer, stated, "Based on our year-to-date performance, continued confidence in the business, progress on both our cost-reduction initiatives and the Wyeth integration as well as our future outlook, we are reaffirming our 2010 financial guidance and our 2012 financial targets. At this point, we anticipate that 2010 adjusted diluted EPS(2) will be at the upper-end of our guidance range, with expenses at the lower-end of our ranges. Given the continued strength of our balance sheet and significant operating cash flow, we remain confident that we have the financial wherewithal to successfully execute our strategies and continue to meet our financial objectives. Additionally, during the second quarter, we repurchased approximately $500 million, or 31 million shares, of our common stock."

2010 Financial Guidance(16)

For full-year 2010, Pfizer's financial guidance, at current exchange rates(15), is summarized below.



    Reported Revenues                                   $67.0 to $69.0 billion
    Adjusted Cost of Sales(2) as a Percentage
     of Revenues                                                19.0% to 20.0%
    Adjusted SI&A Expenses(2)                           $19.0 to $20.0 billion
    Adjusted R&D Expenses(2)                              $9.1 to $9.6 billion
    Adjusted Other (Income)/Deductions(2)                 $1.2 to $1.4 billion
    Effective Tax Rate on Adjusted Income(2)                 Approximately 30%
    Reported Diluted EPS(1)                                     $0.95 to $1.10
    ----------------------                                      --------------
    Adjusted Diluted EPS(2)                                     $2.10 to $2.20
    ----------------------                                      --------------






2012 Financial Targets

The Company is reaffirming all elements of its 2012 financial targets. As previously stated, given the longer-term nature of these targets, they are subject to greater variability and less certainty as a result of potential material impacts related to foreign exchange fluctuations, macroeconomic activity including inflation, and industry-specific challenges including changes to government healthcare policy, among others.

For 2012, at current exchange rates(15), Pfizer is targeting reported revenues between $65.2 and $67.7 billion, reported diluted EPS(1) between $1.58 and $1.73, adjusted diluted EPS(2) between $2.25 and $2.35, adjusted R&D expenses(2) between $8.0 and $8.5 billion, adjusted operating margin(2) in a range of the high 30%s to low 40%s and adjusted other (income)/deductions(2) between $1.0 and $1.2 billion in deductions. The effective tax rate on adjusted income(2) is targeted at approximately 30%, while operating cash flow is expected to be at least $19.0 billion.

Additionally, the Company remains on-track to achieve the cost-reduction target of approximately $4 to $5 billion, by the end of 2012, at 2008 average foreign exchange rates, in comparison with the 2008 pro-forma adjusted total costs(14) of Pfizer and the legacy Wyeth operations.

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

"Reported Net Income" is defined as net income attributable to Pfizer Inc. in accordance with U.S. generally accepted accounting principles. "Reported Diluted EPS" is defined as reported diluted EPS attributable to Pfizer Inc. common shareholders in accordance with U.S. generally accepted accounting principles.

"Adjusted Income" and its components and "Adjusted Diluted Earnings Per Share (EPS)" are defined as reported 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 Cost of Sales, Adjusted SI&A expenses, Adjusted R&D expenses and Adjusted Other (Income)/Deductions are income statement line items prepared on the same basis, and therefore, components of the overall adjusted income measure. As described under Adjusted Income in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of Pfizer's Form 10-Q for the fiscal quarter ended April 4, 2010, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. We believe that investors' understanding of our performance is enhanced by disclosing this measure. Reconciliations of second-quarter 2010 and 2009 and first-half 2010 and 2009 adjusted income and its components and adjusted diluted EPS to reported net income(1) and its components and reported diluted EPS(1), as well as reconciliations of full-year 2010 guidance and 2012 targets for adjusted income and adjusted diluted EPS to full-year 2010 guidance and 2012 targets for reported net income(1) and reported diluted EPS(1), 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.

The Primary Care unit includes revenues from human pharmaceutical products primarily prescribed by primary-care physicians, and may include, but are not limited to, products in the following therapeutic and disease areas: Alzheimer's disease, anxiety, cardiovascular (excluding pulmonary arterial hypertension), diabetes, pain, genitourinary, obesity, osteoporosis and respiratory. Examples of products in this unit include, but are not limited to, Celebrex, Lipitor, Lyrica, Premarin, Pristiq and Viagra. All revenues for such products are allocated to the Primary Care unit, except those generated in emerging markets(6) and those that are managed by the Established Products(5) unit.

The Specialty Care unit includes revenues from human pharmaceutical products primarily prescribed by physicians who are specialists, and may include, but are not limited to, products in the following therapeutic and disease areas: antibacterials, antifungals, antivirals, bone, inflammation, gastrointestinal, growth hormones, multiple sclerosis, ophthalmology, pulmonary arterial hypertension and psychosis. Examples of products in this unit include, but are not limited to, Enbrel, Genotropin, Geodon, the Prevnar/Prevenar franchise, Xalatan and Zyvox. All revenues for such products are allocated to the Specialty Care unit, except those generated in emerging markets(6) and those that are managed by the Established Products(5) unit.

The Established Products unit generally includes revenues from human prescription pharmaceutical products that have lost patent protection or marketing exclusivity in certain countries and/or regions. In certain situations, products may be transferred to this unit before losing patent protection or marketing exclusivity in order to maximize their value. This unit also excludes revenues generated in emerging markets(6). Examples of products in this unit include, but are not limited to, Arthrotec, Effexor, Medrol, Norvasc and Relpax.

The Emerging Markets unit includes revenues from all human prescription pharmaceutical products sold in emerging markets, including, but not limited to, Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe, Russia and Turkey.

The Oncology unit includes revenues from human oncology and oncology-related products. Examples of products in this unit include, but are not limited to, Aromasin, Sutent and Torisel. All revenues for such products are allocated to the Oncology unit, except those generated in emerging markets(6) and those that are managed by the Established Products(5) unit.

Animal Health includes worldwide revenues from products to prevent and treat disease in livestock and companion animals, including vaccines, paraciticides and anti-infectives.

Consumer Healthcare generally includes worldwide revenues from non-prescription medicines and vitamins and may include, but are not limited to, products in the following therapeutic categories: pain management, nutritionals, respiratory and GI-topicals. Examples of products in Consumer Healthcare include, but are not limited to, Advil, Centrum, Caltrate, ChapStick and Robitussin.

Nutrition generally includes revenues from a full line of infant and toddler nutritional products sold outside of North America. Examples of products in Nutrition include, but are not limited to, the S-26 and SMA product lines as well as formula for infants with special nutritional needs.

Capsugel generally includes worldwide revenues from capsule products and services for the pharmaceutical and associated healthcare industries.

Includes revenues generated primarily from Pfizer Centersource.

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

Represents the total of Adjusted Cost of Sales(2), Adjusted SI&A expenses(2) and Adjusted R&D expenses(2).

The current exchange rates assumed in connection with the 2010 financial guidance are a blend of the average of the actual exchange rates in effect during first-half 2010 and the mid-July 2010 exchange rates for the remainder of the year. The current exchanges rates assumed in connection with the 2012 financial targets are the mid-July 2010 exchange rates.

This guidance does not assume the completion of any business-development transactions not completed as of July 4, 2010. This guidance also excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of July 4, 2010.

       PFIZER INC. AND SUBSIDIARY COMPANIES
        CONSOLIDATED STATEMENTS OF INCOME
                   (UNAUDITED)
     (millions, except per common share data)





                                                                   % Incr.
                                            Second Quarter                  /
                                            --------------
                                            2010             2009 (Decr.)
                                            ----             ---- -------
     Revenues                            $17,327          $10,984       58
     Costs and expenses:
       Cost of sales (a)                   3,795            1,756      116
       Selling, informational and
        administrative expenses (a)        4,807            3,350       43
       Research and development expenses
        (a)                                2,187            1,695       29
       Amortization of intangible assets   1,407              583      141
       Acquisition-related in-process
        research and development charges       -               20    *
       Restructuring charges and certain
        acquisition-related costs            886              459       93
       Other (income)/deductions--net        271               72      276
                                             ---              ---
     Income from continuing operations
      before provision
       for taxes on income                 3,974            3,049       30
     Provision for taxes on income         1,488              786       89
                                                              ---
     Income from continuing operations     2,486            2,263       10
     Discontinued operations--net of
      tax                                     (1)               3     (133)
                                                              ---
     Net income before allocation to
      noncontrolling interests             2,485            2,266       10
     Less:   Net income attributable
      to noncontrolling interests             10                5      100

     Net income attributable to Pfizer
      Inc.                                $2,475           $2,261        9
                                          ======           ======
     Earnings per share - basic:
       Income from continuing operations
        attributable to Pfizer Inc.
        common shareholders                $0.31            $0.34       (9)
       Discontinued operations--net of
        tax                                    -                -       --
                                             ---              ---
       Net income attributable to Pfizer
        Inc. common shareholders           $0.31            $0.34       (9)
                                           =====            =====
     Earnings per share - diluted:
       Income from continuing operations
        attributable to Pfizer Inc.
        common shareholders                $0.31            $0.34       (9)
       Discontinued operations--net of
        tax                                    -                -       --
                                             ---              ---
       Net income attributable to Pfizer
        Inc. common shareholders           $0.31            $0.34       (9)
                                           =====            =====
     Weighted-average shares used to
      calculate earnings per common
      share:
       Basic                               8,046            6,728
                                           =====            =====
       Diluted                             8,072            6,752
                                           =====            =====








                                                                    % Incr.
                                                Six Months                   /
                                                ----------
                                              2010            2009 (Decr.)
                                              ----            ---- -------
     Revenues                              $34,077         $21,851       56
     Costs and expenses:
       Cost of sales (a)                     8,101           3,164      156
       Selling, informational and
        administrative expenses (a)          9,243           6,226       48
       Research and development expenses
        (a)                                  4,413           3,400       30
       Amortization of intangible assets     2,816           1,161      143
       Acquisition-related in-process
        research and development charges        74              20      270
       Restructuring charges and certain
        acquisition-related costs            1,592           1,013       57
       Other (income)/deductions--net          685              15    *
                                               ---             ---
     Income from continuing operations
      before provision
       for taxes on income                   7,153           6,852        4
     Provision for taxes on income           2,634           1,860       42
                                             -----           -----
     Income from continuing operations       4,519           4,992       (9)
     Discontinued operations--net of
      tax                                        1               4      (75)
                                               ---             ---
     Net income before allocation to
      noncontrolling interests               4,520           4,996      (10)
     Less:   Net income attributable to
      noncontrolling interests                  19               6      217
                                               ---
     Net income attributable to Pfizer
      Inc.                                  $4,501          $4,990      (10)
                                            ======          ======
     Earnings per share - basic:
       Income from continuing operations
        attributable to Pfizer Inc. common
        shareholders                         $0.56           $0.74      (24)
       Discontinued operations--net of
        tax                                      -               -       --
                                               ---             ---
       Net income attributable to Pfizer
        Inc. common shareholders             $0.56           $0.74      (24)
                                             =====           =====
     Earnings per share - diluted:
       Income from continuing operations
        attributable to Pfizer Inc. common
        shareholders                         $0.56           $0.74      (24)
       Discontinued operations--net of
        tax                                      -               -       --
                                               ---             ---
       Net income attributable to Pfizer
        Inc. common shareholders             $0.56           $0.74      (24)
                                             =====           =====
     Weighted-average shares used to
      calculate earnings per common
      share:
       Basic                                 8,053           6,726
                                             =====           =====
       Diluted                               8,085           6,752
                                             =====           =====







    (a)  Exclusive of amortization of intangible assets, except as discussed
         in footnote 5 below.
      *       Calculation not meaningful.
      Certain amounts and percentages may reflect rounding adjustments.

     1.  The above financial statements present the three-month and six-
         month periods ended July 4, 2010 and June 28, 2009.  Subsidiaries
      operating outside the United States are included for the three-month
      and six-month periods ended May 31, 2010 and May 24, 2009.
      Wyeth's results are included in our consolidated financial statements
      commencing from the acquisition date of October 15, 2009,
      in accordance with Pfizer's domestic and international year-ends.
      Therefore, our results of operations for the three-month and six-
      month periods ended June 28, 2009 do not include Wyeth's results of
      operations.  Cost of sales for 2010 includes the significant impacts
      of purchase accounting adjustments associated with inventory acquired
      from Wyeth that was sold in 2010.  Amortization of intangible assets
      for 2010 includes the amortization of intangible assets acquired from
      Wyeth.
     2.  The financial results for the three-month and six-month periods
         ended July 4, 2010, are not necessarily indicative of the results
         which
      could ultimately be achieved for the current year.
     3.  Included in Restructuring charges and certain acquisition-related
         costs for the three-month and six-month periods ended June 28,
         2009 are $184 million
      and $553 million, respectively,  of transaction costs, such as
      banking, legal, accounting and other similar costs, directly related
      to our acquisition of Wyeth.
     4.  In the first six months of 2010, we recorded $74 million of
         Acquisition-related in-process research and development charges
         (IPR&D) due to the
      resolution of contingencies associated with our 2008 acquisition of
      CovX.  In the second quarter of 2009, we recorded $20 million of
      IPR&D due to the resolution of contingencies associated with our 2008
      acquisition of CovX.
     5.  Amortization expense related to acquired intangible assets that
         contribute to our ability to sell, manufacture, research, market and
      distribute our products is included in Amortization of intangible
      assets as these intangible assets benefit multiple business
      functions.
      Amortization expense related to acquired intangible assets that are
      associated with a single function is included in Cost of sales,
      Selling, informational and administrative expenses or Research and
      development expenses, as appropriate.




                       PFIZER INC. AND SUBSIDIARY COMPANIES
       RECONCILIATION OF REPORTED NET INCOME ATTRIBUTABLE TO PFIZER INC. AND
                                  ITS COMPONENTS
     AND REPORTED DILUTED EPS ATTRIBUTABLE TO PFIZER INC. COMMON SHAREHOLDERS
        TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS (a)
                                    (UNAUDITED)
                (millions of dollars, except per common share data)





                                  Quarter Ended July 4, 2010
                                  --------------------------

                                               Purchase       Acquisition-
                                               Accounting       Related
                                Reported    Adjustments         Costs(2)
                                --------    -----------         -------
    Revenues                     $17,327   $            -   $      -
    Costs and expenses:
      Cost of sales (b)            3,795             (727)            (113)
      Selling, informational
       and administrative
       expenses (b)                4,807               10             (102)
      Research and development
       expenses (b)                2,187               (5)               -
      Amortization of
       intangible assets           1,407           (1,373)               -
      Acquisition-related in-
       process research and
       development charges             -                -                -
      Restructuring charges and
       certain acquisition-
       related costs                 886                -             (886)
      Other
       (income)/deductions--
       net                           271               (3)               -
                                     ---              ---              ---
    Income from continuing
     operations before
     provision
      for taxes on income          3,974            2,098            1,101
    Provision for taxes on
     income                        1,488              540              237
                                   -----              ---              ---
    Income from continuing
     operations                    2,486            1,558              864
    Discontinued operations-
     -net of tax                      (1)               -                -
    Net income before
     allocation to
     noncontrolling interests      2,485            1,558              864
    Less:  Net income
     attributable to
     noncontrolling interests         10                -                -
                                     ---              ---              ---
    Net income attributable
     to Pfizer Inc.               $2,475           $1,558             $864
                                  ======           ======             ====
    Earnings per common share
     -diluted:
      Income from continuing
       operations attributable
       to Pfizer Inc.
       common shareholders         $0.31            $0.19            $0.11
      Discontinued operations-
       -net of tax                     -                -                -
                                     ---              ---              ---
      Net income attributable
       to Pfizer Inc. common
       shareholders                $0.31            $0.19            $0.11
                                   =====            =====            =====






                                    Quarter Ended July 4, 2010
                                    --------------------------
                                                         Certain
                                     Discontinued       Significant
                                      Operations          Items(3)   Adjusted
                                      ----------          -------    --------
    Revenues                      $        -                    $(6)  $17,321
    Costs and expenses:
      Cost of sales (b)                         -                (4)    2,951
      Selling, informational and
       administrative expenses
       (b)                                      -                12     4,727
      Research and development
       expenses (b)                             -                 -     2,182
      Amortization of intangible
       assets                                   -                 -        34
      Acquisition-related in-
       process research and
       development charges                      -                 -         -
      Restructuring charges and
       certain acquisition-
       related costs                            -                 -         -
      Other (income)/deductions-
       -net                                     -              (111)      157
                                              ---              ----       ---
    Income from continuing
     operations before
     provision
      for taxes on income                       -                97     7,270
    Provision for taxes on
     income                                     -                36     2,301
                                              ---               ---     -----
    Income from continuing
     operations                                 -                61     4,969
    Discontinued operations--
     net of tax                                 1                 -         -
                                                                          ---
    Net income before
     allocation to
     noncontrolling interests                   1                61     4,969
    Less:  Net income
     attributable to
     noncontrolling interests                   -                 -        10
                                              ---               ---       ---
    Net income attributable to
     Pfizer Inc.                               $1               $61    $4,959
                                              ===               ===    ======
    Earnings per common share -
     diluted:
      Income from continuing
       operations attributable to
       Pfizer Inc.
       common shareholders        $             -             $0.01     $0.62
      Discontinued operations--
       net of tax                               -                 -         -
                                              ---               ---       ---
      Net income attributable to
       Pfizer Inc. common
       shareholders               $             -             $0.01     $0.62
                                              ===             =====     =====






                                 Six Months Ended July 4, 2010
                                 -----------------------------

                                                Purchase       Acquisition-
                                                Accounting       Related
                                 Reported    Adjustments         Costs(2)
                                 --------    -----------         -------
    Revenues                      $34,077   $            -   $      -
    Costs and expenses:
      Cost of sales (b)             8,101           (2,077)            (126)
      Selling, informational and
       administrative expenses
       (b)                          9,243                9             (162)
      Research and development
       expenses (b)                 4,413              (15)             (20)
      Amortization of intangible
       assets                       2,816           (2,756)               -
      Acquisition-related in-
       process research and
       development charges             74              (74)               -
      Restructuring charges and
       certain acquisition-
       related costs                1,592                -           (1,592)
      Other (income)/deductions-
       -net                           685              (26)               -
                                      ---              ---              ---
    Income from continuing
     operations before
     provision
      for taxes on income           7,153            4,939            1,900
    Provision for taxes on
     income                         2,634            1,252              463
                                    -----            -----              ---
    Income from continuing
     operations                     4,519            3,687            1,437
    Discontinued operations--
     net of tax                         1                -                -
                                      ---              ---              ---
    Net income before
     allocation to
     noncontrolling interests       4,520            3,687            1,437
    Less:  Net income
     attributable to
     noncontrolling interests          19                -                -
                                      ---              ---              ---
    Net income attributable to
     Pfizer Inc.                   $4,501           $3,687           $1,437
                                   ======           ======           ======
    Earnings per common share
     -diluted:
      Income from continuing
       operations attributable
       to Pfizer Inc.
       common shareholders          $0.56            $0.45            $0.18
      Discontinued operations--
       net of tax                       -                -                -
                                      ---              ---              ---
      Net income attributable to
       Pfizer Inc. common
       shareholders                 $0.56            $0.45            $0.18
                                    =====            =====            =====








                                    Six Months Ended July 4, 2010
                                    -----------------------------
                                                          Certain
                                      Discontinued       Significant
                                       Operations          Items(3)   Adjusted
                                       ----------          -------    --------
    Revenues                      $         -                   $(13)  $34,064
    Costs and expenses:
      Cost of sales (b)                          -               (12)    5,886
      Selling, informational and
       administrative expenses
       (b)                                       -                12     9,102
      Research and development
       expenses (b)                              -                 -     4,378
      Amortization of intangible
       assets                                    -                 -        60
      Acquisition-related in-
       process research and
       development charges                       -                 -         -
      Restructuring charges and
       certain acquisition-
       related costs                             -                 -         -
      Other (income)/deductions-
       -net                                      -              (292)      367
                                               ---              ----       ---
    Income from continuing
     operations before
     provision
      for taxes on income                        -               279    14,271
    Provision for taxes on
     income                                      -                62     4,411
                                               ---               ---     -----
    Income from continuing
     operations                                  -               217     9,860
    Discontinued operations--
     net of tax                                 (1)                -         -
                                               ---               ---       ---
    Net income before
     allocation to
     noncontrolling interests                   (1)              217     9,860
    Less:  Net income
     attributable to
     noncontrolling interests                    -                 -        19
                                               ---               ---       ---
    Net income attributable to
     Pfizer Inc.                               $(1)             $217    $9,841
                                               ===              ====    ======
    Earnings per common share -
     diluted:
      Income from continuing
       operations attributable to
       Pfizer Inc.
       common shareholders        $              -             $0.03     $1.22
      Discontinued operations--
       net of tax                                -                 -         -
                                               ---               ---       ---
      Net income attributable to
       Pfizer Inc. common
       shareholders               $              -             $0.03     $1.22
                                               ===             =====     =====







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

    (b)  Exclusive of amortization of intangible assets, except as discussed
         in note 1.
      See end of tables for notes.

      Certain amounts may reflect rounding adjustments.




                       PFIZER INC. AND SUBSIDIARY COMPANIES
       RECONCILIATION OF REPORTED NET INCOME ATTRIBUTABLE TO PFIZER INC. AND
                                  ITS COMPONENTS
     AND REPORTED DILUTED EPS ATTRIBUTABLE TO PFIZER INC. COMMON SHAREHOLDERS
        TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS (a)
                                    (UNAUDITED)
                (millions of dollars, except per common share data)





                                 Quarter Ended June 28, 2009
                                 ---------------------------

                                               Purchase       Acquisition-
                                               Accounting       Related
                                Reported    Adjustments         Costs(2)
                                --------    -----------         -------
    Revenues                     $10,984   $            -   $      -
    Costs and expenses:
      Cost of sales (b)            1,756                -                -
      Selling, informational
       and administrative
       expenses (b)                3,350                3                -
      Research and development
       expenses (b)                1,695               (7)               -
      Amortization of
       intangible assets             583             (556)               -
      Acquisition-related in-
       process research and
       development charges            20              (20)               -
      Restructuring charges and
       certain acquisition-
       related costs                 459                -             (285)
      Other
       (income)/deductions--
       net                            72               (1)               -
                                     ---              ---              ---
    Income from continuing
     operations before
     provision
      for taxes on income          3,049              581              285
    Provision for taxes on
     income                          786              165              100
                                     ---              ---              ---
    Income from continuing
     operations                    2,263              416              185
    Discontinued operations-
     -net of tax                       3                -                -
    Net income before
     allocation to
     noncontrolling interests      2,266              416              185
    Less:  Net income
     attributable to
     noncontrolling interests          5                -                -
                                     ---              ---              ---
    Net income attributable
     to Pfizer Inc.               $2,261             $416             $185
                                  ======             ====             ====
    Earnings per common share
     -diluted:
      Income from continuing
       operations attributable
       to Pfizer Inc.
       common shareholders         $0.34            $0.06            $0.02
      Discontinued operations-
       -net of tax                     -                -                -
                                     ---              ---              ---
      Net income attributable
       to Pfizer Inc. common
       shareholders                $0.34            $0.06            $0.02
                                   =====            =====            =====






                                   Quarter Ended June 28, 2009
                                   ---------------------------
                                                        Certain
                                    Discontinued       Significant
                                     Operations          Items(3)   Adjusted
                                     ----------          -------    --------
    Revenues                     $        -                   $(18)  $10,966
    Costs and expenses:
      Cost of sales (b)                        -               (70)    1,686
      Selling, informational and
       administrative expenses
       (b)                                     -               (89)    3,264
      Research and development
       expenses (b)                            -               (32)    1,656
      Amortization of intangible
       assets                                  -                 -        27
      Acquisition-related in-
       process research and
       development charges                     -                 -         -
      Restructuring charges and
       certain acquisition-
       related costs                           -              (174)        -
      Other (income)/deductions-
       -net                                    -              (263)     (192)
                                             ---              ----      ----
    Income from continuing
     operations before
     provision
      for taxes on income                      -               610     4,525
    Provision for taxes on
     income                                    -               220     1,271
                                             ---               ---     -----
    Income from continuing
     operations                                -               390     3,254
    Discontinued operations--
     net of tax                               (3)                -         -
                                                                         ---
    Net income before
     allocation to
     noncontrolling interests                 (3)              390     3,254
    Less:  Net income
     attributable to
     noncontrolling interests                  -                 -         5
                                             ---               ---       ---
    Net income attributable to
     Pfizer Inc.                             $(3)             $390    $3,249
                                             ===              ====    ======
    Earnings per common share
     -diluted:
      Income from continuing
       operations attributable
       to Pfizer Inc.
       common shareholders       $             -             $0.06     $0.48
      Discontinued operations--
       net of tax                              -                 -         -
                                             ---               ---       ---
      Net income attributable to
       Pfizer Inc. common
       shareholders              $             -             $0.06     $0.48
                                             ===             =====     =====






                                Six Months Ended June 28, 2009
                                ------------------------------

                                               Purchase        Acquisition-
                                               Accounting        Related
                                Reported    Adjustments          Costs(2)
                                --------    -----------          -------
    Revenues                     $21,851   $            -   $       -
    Costs and expenses:
      Cost of sales (b)            3,164                -                 -
      Selling, informational
       and administrative
       expenses (b)                6,226                6                 -
      Research and development
       expenses (b)                3,400              (14)                -
      Amortization of
       intangible assets           1,161           (1,096)                -
      Acquisition-related in-
       process research and
       development charges            20              (20)                -
      Restructuring charges and
       certain acquisition-
       related costs               1,013                -              (682)
      Other
       (income)/deductions--
       net                            15               (3)                -
                                     ---              ---               ---
    Income from continuing
     operations before
     provision
      for taxes on income          6,852            1,127               682
    Provision for taxes on
     income                        1,860              357               245
                                   -----              ---               ---
    Income from continuing
     operations                    4,992              770               437
    Discontinued operations-
     -net of tax                       4                -                 -
                                                      ---               ---
    Net income before
     allocation to
     noncontrolling interests      4,996              770               437
    Less:  Net income
     attributable to
     noncontrolling interests          6                -                 -
                                     ---              ---               ---
    Net income attributable
     to Pfizer Inc.               $4,990             $770              $437
                                  ======             ====              ====
    Earnings per common share
     -diluted:
      Income from continuing
       operations attributable
       to Pfizer Inc.
       common shareholders         $0.74            $0.11             $0.07
      Discontinued operations-
       -net of tax                     -                -                 -
                                     ---              ---               ---
      Net income attributable
       to Pfizer Inc. common
       shareholders                $0.74            $0.11             $0.07
                                   =====            =====             =====








                                 Six Months Ended June 28, 2009
                                 ------------------------------
                                                        Certain
                                    Discontinued       Significant
                                     Operations          Items(3)   Adjusted
                                     ----------          -------    --------
    Revenues                    $         -                   $(40)  $21,811
    Costs and expenses:
      Cost of sales (b)                        -              (164)    3,000
      Selling, informational
       and administrative
       expenses (b)                            -              (135)    6,097
      Research and development
       expenses (b)                            -               (65)    3,321
      Amortization of
       intangible assets                       -                 -        65
      Acquisition-related in-
       process research and
       development charges                     -                 -         -
      Restructuring charges and
       certain acquisition-
       related costs                           -              (331)        -
      Other
       (income)/deductions--
       net                                     -              (428)     (416)
                                             ---              ----      ----
    Income from continuing
     operations before
     provision
      for taxes on income                      -             1,083     9,744
    Provision for taxes on
     income                                    -               360     2,822
                                             ---               ---     -----
    Income from continuing
     operations                                -               723     6,922
    Discontinued operations-
     -net of tax                              (4)                -         -
                                             ---               ---       ---
    Net income before
     allocation to
     noncontrolling interests                 (4)              723     6,922
    Less:  Net income
     attributable to
     noncontrolling interests                  -                 -         6
                                             ---               ---       ---
    Net income attributable
     to Pfizer Inc.                          $(4)             $723    $6,916
                                             ===              ====    ======
    Earnings per common share
     -diluted:
      Income from continuing
       operations attributable
       to Pfizer Inc.
       common shareholders      $              -             $0.11     $1.03
      Discontinued operations-
       -net of tax                             -                 -         -
                                             ---               ---       ---
      Net income attributable
       to Pfizer Inc. common
       shareholders             $              -             $0.11     $1.03
                                             ===             =====     =====







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

    (b)  Exclusive of amortization of intangible assets, except as discussed
         in note 1.
      See end of tables for notes.

      Certain amounts may reflect rounding adjustments.





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


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

    2)  Acquisition-related costs includes the following:







                                          Second Quarter        Six Months
                                          --------------        ----------
     (millions of dollars)               2010       2009   2010         2009
     ---------------------               ----       ----   ----         ----

       Transaction costs(a)                $4       $184    $13         $553
       Integration costs(a)               211        101    419          129
       Restructuring
        charges(a)                        671          -  1,160            -
       Additional depreciation
        -asset
        restructuring(b)                  215          -    308            -
                                          ---        ---    ---          ---
                  Total acquisition-
                   related costs --
                   pre-tax              1,101        285  1,900          682
       Income taxes(c)                   (237)     (100)   (463)        (245)
                  Total acquisition-
                   related costs -- net
                   of tax                $864       $185 $1,437         $437
                                         ====       ==== ======         ====







    (a)Transaction costs include costs directly related to our acquisition
       of Wyeth, such as banking, legal, accounting
       and other similar costs.  Integration costs represent external,
       incremental costs directly related to integrating
       Wyeth and primarily include expenditures for consulting and systems
       integration. Restructuring charges relate to our
       acquisition of Wyeth and include employee termination costs, asset
       impairments and exit costs.

    (b)Represents the impact of changes in the estimated useful lives of
       assets involved in restructuring actions related to our
       acquisition of Wyeth.  Included in Cost of Sales ($113 million) and
       Selling, informational and administrative expenses ($102
       million) for the three months ended July 4, 2010. Included in Cost of
       Sales ($126 million), Selling, informational and
       administrative expenses ($162 million) and Research and development
       expenses ($20 million) for the six months ended
       July 4, 2010.

    (c) Included in Provision for taxes on income.






      3)  Certain significant items includes the following:







                                             Second Quarter       Six Months
                                             --------------       ----------
     (millions of dollars)                  2010       2009  2010        2009
     ---------------------                  ----       ----  ----        ----

       Restructuring charges -
        Cost-reduction
        initiatives(a)                        $-       $174    $-        $331
       Implementation costs -
        Cost-reduction
        initiatives(b)                         -        156     -         330
       Certain legal matters(c)                -         (2)  142         130
       Net interest expense(d)                 -        206     -         229
       Asset impairment charges(e)           207         66   207          66
       Other(f)                             (110)        10   (70)         (3)
                                            ----        ---   ---         ---
                  Total certain significant
                   items -- pre-tax           97        610   279       1,083
       Income taxes(g)                       (36)     (220)   (62)       (360)
                  Total certain significant
                   items --net of tax        $61       $390  $217        $723
                                             ===       ====  ====        ====







    (a) Included in Restructuring charges and certain acquisition-related
        costs.

    (b) Included in Cost of sales ($45 million), Selling, informational and
        administrative expenses ($85 million), Research and
        development expenses ($32 million), and Other (income)/deductions -
        net ($6 million income) for the three months ended
        June 28, 2009. Included in Cost of sales ($121 million), Selling,
        informational and administrative expenses ($131 million),
        Research and development expenses ($73 million), and Other
        (income)/deductions -net ($5 million) for the six months ended
        June 28, 2009.

    (c) Included in Other (income)/deductions - net.

    (d) Included in Other (income)/deductions -net. Includes interest
        expense on the senior unsecured notes issued in connection
        with our acquisition of Wyeth less interest income earned on the
        proceeds of those notes.

    (e) Included in Other (income)/deductions - net. Primarily represents
        impairment charges related to in-process research and
        development ("IPR&D") intangible assets which were acquired in
        connection with our acquisition of Wyeth.

    (f) Included in Other (income)/deductions -net.  2010 primarily
        represents gain on sale of certain Pfizer Animal Health
        products.

    (g) Included in Provision for taxes on income.





                               PFIZER INC.
                         BUSINESS REVENUES(1),(2)
                    FIRST SIX MONTHS OF 2010 and 2009
                               (UNAUDITED)
                          (millions of dollars)





                                                              Operational
                                                              -----------
                            2010 2009(2) Change   Foreign   Total  Legacy
                            ---- ------  ------   Exchange  -----  Pfizer
                                                  --------         ------
    Primary Care         $11,789 $10,500      12%        4%     8%      2%
    Specialty Care         7,292   2,888     152%        7%   145%      3%
    Established Products   5,514   3,329      66%        6%    60%    -11%
    Emerging Markets       4,222   2,741      54%       10%    44%      9%
    Oncology                 710     707       -         3%    -3%    -14%
                             ---     ---     ---       ---    ---     ---
       Biopharmaceutical  29,527  20,165      46%        5%    41%      -

    Animal Health          1,739   1,185      47%        9%    38%      8%
    Consumer Healthcare    1,341       -       *         *      *       *
    Nutrition                934       -       *         *      *       *
    Capsugel                 369     339       9%        3%     6%      6%
                             ---     ---     ---       ---    ---     ---
       Diversified         4,383   1,524     188%       14%   174%      8%

    Other                    167     162       3%        1%     2%      2%
                             ---     ---     ---       ---    ---     ---

    TOTAL                $34,077 $21,851      56%        6%    50%      1%
                         ======= =======     ===       ===    ===     ===






    * - Calculation not meaningful
    (1) See notes 3-12 in the accompanying earnings release for a
    description of each business unit and of "Other".
    (2) In Biopharmaceutical, revenues from South Korea in 2009 have been
    reclassified from the Emerging Markets unit
         to the appropriate developed market units to conform to the current-
         year presentation, which reflects the fact that
         the commercial operations of South Korea, effective January 1, 2010,
         are managed within the appropriate developed market units.





                                                       PFIZER INC.
                                                         REVENUES
                                                   SECOND QUARTER 2010
                                                       (UNAUDITED)
                                                  (millions of dollars)







                                                         WORLDWIDE


                                               2010    2009       % Change
                                                                  --------
                                                              Total    Oper.
                                                              -----    -----
    TOTAL REVENUES                          $17,327 $10,984       58%      52%
    --------------                          ------- -------        -        -
    TOTAL BIOPHARMACEUTICAL:                $15,021 $10,063       49%      44%
    ------------------------                ------- -------        -        -
    Lipitor                                   2,813   2,685        5%       -
    Enbrel (Outside the U.S. and
     Canada)***                                 808       -        *        *
    Lyrica                                      762     629       21%      19%
    Effexor***                                  621       -        *        *
    Celebrex                                    604     548       10%       7%
    Viagra                                      491     423       16%      12%
    Xalatan / Xalacom                           449     395       14%      10%
    Prevnar / Prevenar 13***                    569       -        *        *
    Prevnar / Prevenar 7***                     331       -        *        *
    Norvasc                                     422     518     (19%)    (23%)
    Zyvox                                       299     257       16%      14%
    Detrol / Detrol LA                          260     273      (5%)     (7%)
    Premarin Family***                          260       -        *        *
    Sutent                                      255     223       14%      11%
    Geodon / Zeldox                             247     231        7%       6%
    Zosyn / Tazocin***                          230       -        *        *
    Genotropin                                  233     207       13%      10%
    Vfend                                       207     180       15%      12%
    Chantix / Champix                           170     192     (11%)    (16%)
    Benefix***                                  164       -        *        *
    Zoloft                                      144     125       15%       9%
    Caduet                                      126     128      (2%)     (6%)
    Aromasin                                    122     114        7%       4%
    Revatio                                     122      94       30%      27%
    Pristiq***                                  113       -        *        *
    Medrol                                      113     110        3%       1%
    Cardura                                     110     114      (4%)     (7%)
    Zithromax / Zmax                            110     100       10%       5%
    Aricept**                                   103     108      (5%)    (11%)
    Refacto / Xyntha***                          98       -        *        *
    Alliance Revenue                          1,061     598       77%      75%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical               2,604   1,811       44%      38%
        All Other Established Products        2,022   1,524       33%      27%
            Legacy Pfizer Other Established
             Products                         1,590   1,524        4%       -
    TOTAL DIVERSIFIED:                       $2,242    $833      169%     157%
    ------------------                       ------    ----      ---      ---
      ANIMAL HEALTH***                          893     648       38%      31%
      CONSUMER HEALTHCARE***                    678       -        *        *
      NUTRITION***                              476       -        *        *
      CAPSUGEL                                  195     185        5%       4%
    OTHER****                                   $64     $88     (27%)    (24%)
    ---------                                   ---     ---    -----    -----







                                                    UNITED STATES


                                               2010    2009  % Change
                                                             --------
                                                               Total
                                                               -----
    TOTAL REVENUES                           $7,381  $4,524        63%
    --------------                           ------  ------         -
    TOTAL BIOPHARMACEUTICAL:                 $6,649  $4,190        59%
    ------------------------                 ------  ------         -
    Lipitor                                   1,313   1,314         -
    Enbrel (Outside the U.S. and
     Canada)***                                   -       -         *
    Lyrica                                      365     324        13%
    Effexor***                                  492       -         *
    Celebrex                                    398     390         2%
    Viagra                                      234     207        13%
    Xalatan / Xalacom                           151     118        28%
    Prevnar / Prevenar 13***                    483       -         *
    Prevnar / Prevenar 7***                      33       -         *
    Norvasc                                      11      16      (31%)
    Zyvox                                       154     138        12%
    Detrol / Detrol LA                          176     192       (8%)
    Premarin Family***                          238       -         *
    Sutent                                       62      56        11%
    Geodon / Zeldox                             205     192         7%
    Zosyn / Tazocin***                          150       -         *
    Genotropin                                   60      50        20%
    Vfend                                        63      54        17%
    Chantix / Champix                            72     116      (38%)
    Benefix***                                   77       -         *
    Zoloft                                       19      22      (14%)
    Caduet                                       84      99      (15%)
    Aromasin                                     41      39         5%
    Revatio                                      75      59        27%
    Pristiq***                                   99       -         *
    Medrol                                       30      35      (14%)
    Cardura                                       2       2         -
    Zithromax / Zmax                              2       4      (50%)
    Aricept**                                     -       -         *
    Refacto / Xyntha***                          18       -         *
    Alliance Revenue                            750     352       113%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical                 792     411        93%
        All Other Established Products          540     373        45%
            Legacy Pfizer Other Established
             Products                           359     373       (4%)
    TOTAL DIVERSIFIED:                         $713    $316       126%
    ------------------                         ----    ----       ---
      ANIMAL HEALTH***                          338     261        30%
      CONSUMER HEALTHCARE***                    327       -         *
      NUTRITION***                                -       -         *
      CAPSUGEL                                   48      55      (13%)
    OTHER****                                   $19     $18         6%
    ---------                                   ---     ---         -







                                                 TOTAL INTERNATIONAL(1)


                                               2010    2009       % Change
                                                                  --------
                                                              Total    Oper.
                                                              -----    -----
    TOTAL REVENUES                           $9,946  $6,460       54%      45%
    --------------                           ------  ------        -        -
    TOTAL BIOPHARMACEUTICAL:                 $8,372  $5,873       43%      34%
    ------------------------                 ------  ------        -        -
    Lipitor                                   1,500   1,371        9%       1%
    Enbrel (Outside the U.S. and
     Canada)***                                 808       -        *        *
    Lyrica                                      397     305       30%      25%
    Effexor***                                  129       -        *        *
    Celebrex                                    206     158       30%      21%
    Viagra                                      257     216       19%      11%
    Xalatan / Xalacom                           298     277        8%       2%
    Prevnar / Prevenar 13***                     86       -        *        *
    Prevnar / Prevenar 7***                     298       -        *        *
    Norvasc                                     411     502     (18%)    (23%)
    Zyvox                                       145     119       22%      18%
    Detrol / Detrol LA                           84      81        4%     (3%)
    Premarin Family***                           22       -        *        *
    Sutent                                      193     167       16%      11%
    Geodon / Zeldox                              42      39        8%       2%
    Zosyn / Tazocin***                           80       -        *        *
    Genotropin                                  173     157       10%       6%
    Vfend                                       144     126       14%      10%
    Chantix / Champix                            98      76       29%      19%
    Benefix***                                   87       -        *        *
    Zoloft                                      125     103       21%      14%
    Caduet                                       42      29       45%      23%
    Aromasin                                     81      75        8%       3%
    Revatio                                      47      35       34%      26%
    Pristiq***                                   14       -        *        *
    Medrol                                       83      75       11%       8%
    Cardura                                     108     112      (4%)     (8%)
    Zithromax / Zmax                            108      96       13%       6%
    Aricept**                                   103     108      (5%)    (11%)
    Refacto / Xyntha***                          80       -        *        *
    Alliance Revenue                            311     246       26%      19%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical               1,812   1,400       29%      22%
        All Other Established Products        1,482   1,151       29%      22%
            Legacy Pfizer Other Established
             Products                         1,231   1,151        7%       -
    TOTAL DIVERSIFIED:                       $1,529    $517      196%     175%
    ------------------                       ------    ----      ---      ---
      ANIMAL HEALTH***                          555     387       43%      32%
      CONSUMER HEALTHCARE***                    351       -        *        *
      NUTRITION***                              476       -        *        *
      CAPSUGEL                                  147     130       13%      10%
    OTHER****                                   $45     $70     (36%)    (33%)
    ---------                                   ---     ---    -----    -----







    *        -  Calculation not meaningful.
    **       - Includes direct sales under license agreement with Eisai
               Co., Ltd.
    ***      - Legacy Wyeth products and operations. Animal Health
               results for the second quarter of 2010 also reflect the
               addition of legacy Wyeth products.
               Wyeth's results are included in our financial statements
               commencing from the acquisition date of October 15, 2009,
               in accordance with Pfizer's domestic and international
               year-ends.
               Therefore, our results for the second quarter of 2009 do not
               include Wyeth's results of operations.
    ****     - Includes revenues generated primarily from Pfizer
               Centersource.

    Certain amounts and percentages may reflect rounding adjustments.

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






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







                                                   DEVELOPED EUROPE(1)


                                               2010    2009       % Change
                                                                  --------
                                                              Total    Oper.
                                                              -----    -----
    TOTAL INTERNATIONAL REVENUES             $4,142  $2,909       42%      41%
    ----------------------------             ------  ------        -        -
    TOTAL INTERNATIONAL
     BIOPHARMACEUTICAL:                      $3,670  $2,621       40%      38%
    -------------------                      ------  ------      ---      ---
    Lipitor                                     664     675      (2%)     (3%)
    Enbrel (Outside the U.S. and
     Canada)***                                 547       -        *        *
    Lyrica                                      268     221       21%      20%
    Effexor***                                   63       -        *        *
    Celebrex                                     43      49     (12%)     (9%)
    Viagra                                       97     100      (3%)     (5%)
    Xalatan / Xalacom                           146     141        4%       2%
    Prevnar / Prevenar 13***                     69       -        *        *
    Prevnar / Prevenar 7***                     101       -        *        *
    Norvasc                                      55      58      (5%)     (8%)
    Zyvox                                        73      64       14%      14%
    Detrol / Detrol LA                           43      47      (9%)    (12%)
    Premarin Family***                            3       -        *        *
    Sutent                                      103     108      (5%)     (5%)
    Geodon / Zeldox                              23      23        -      (3%)
    Zosyn / Tazocin***                           28       -        *        *
    Genotropin                                   92      86        7%       6%
    Vfend                                        72      69        4%       3%
    Chantix / Champix                            44      38       16%      13%
    Benefix***                                   62       -        *        *
    Zoloft                                       21      22      (5%)     (6%)
    Caduet                                        5       3       67%     108%
    Aromasin                                     50      49        2%       -
    Revatio                                      32      26       23%      19%
    Pristiq***                                    -       -        *        *
    Medrol                                       26      25        4%       1%
    Cardura                                      37      42     (12%)    (11%)
    Zithromax / Zmax                             21      26     (19%)    (20%)
    Aricept**                                    58      64      (9%)    (12%)
    Refacto / Xyntha***                          73       -        *        *
    Alliance Revenue                            133     127        5%       2%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical                 618     558       11%      10%
        All Other Established Products          464     388       20%      18%
            Legacy Pfizer Other Established
             Products                           383     388      (1%)     (3%)
            -------------------------------
    TOTAL INTERNATIONAL DIVERSIFIED:           $444    $246       80%      79%
    --------------------------------           ----    ----        -        -
    OTHER INTERNATIONAL****                     $28     $42     (33%)      11%
    -----------------------                     ---     ---    -----        -







                                                DEVELOPED REST OF WORLD(2)


                                               2010    2009       % Change
                                                                  --------
                                                              Total    Oper.
                                                              -----    -----
    TOTAL INTERNATIONAL REVENUES             $2,709  $1,910       42%      25%
    ----------------------------             ------  ------        -        -
    TOTAL INTERNATIONAL
     BIOPHARMACEUTICAL:                      $2,452  $1,797       36%      25%
    -------------------                      ------  ------      ---      ---
    Lipitor                                     571     475       20%       2%
    Enbrel (Outside the U.S. and
     Canada)***                                 106       -        *        *
    Lyrica                                       51      34       50%      25%
    Effexor***                                   41       -        *        *
    Celebrex                                     84      55       53%      35%
    Viagra                                       49      38       29%      11%
    Xalatan / Xalacom                           102      92       11%       1%
    Prevnar / Prevenar 13***                      2       -        *        *
    Prevnar / Prevenar 7***                      61       -        *        *
    Norvasc                                     232     327     (29%)    (34%)
    Zyvox                                        35      29       21%      15%
    Detrol / Detrol LA                           25      21       19%       8%
    Premarin Family***                            4       -        *        *
    Sutent                                       36      21       71%      56%
    Geodon / Zeldox                               4       3       33%      16%
    Zosyn / Tazocin***                            3       -        *        *
    Genotropin                                   52      45       16%       6%
    Vfend                                        34      27       26%      15%
    Chantix / Champix                            46      31       48%      28%
    Benefix***                                   22       -        *        *
    Zoloft                                       72      52       38%      27%
    Caduet                                       24      15       60%      17%
    Aromasin                                     18      14       29%      15%
    Revatio                                       9       5       80%      51%
    Pristiq***                                   10       -        *        *
    Medrol                                       12      13      (8%)     (5%)
    Cardura                                      45      45        -      (8%)
    Zithromax / Zmax                             48      37       30%      20%
    Aricept**                                    36      31       16%       1%
    Refacto / Xyntha***                           7       -        *        *
    Alliance Revenue                            160     105       52%      40%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical                 451     282       60%      45%
        All Other Established Products          395     244       62%      45%
            Legacy Pfizer Other Established
             Products                           277     244       14%       1%
            -------------------------------
    TOTAL INTERNATIONAL DIVERSIFIED:           $251    $104      141%      98%
    --------------------------------           ----    ----      ---        -
    OTHER INTERNATIONAL****                      $6      $9     (33%)       3%
    -----------------------                     ---     ---    -----        -







                                                   EMERGING MARKETS(3)


                                               2010    2009       % Change
                                                                  --------
                                                              Total    Oper.
                                                              -----    -----
    TOTAL INTERNATIONAL REVENUES             $3,095  $1,641       89%      76%
    ----------------------------             ------  ------        -        -
    TOTAL INTERNATIONAL
     BIOPHARMACEUTICAL:                      $2,250  $1,455       55%      44%
    -------------------                      ------  ------      ---      ---
    Lipitor                                     265     221       20%      11%
    Enbrel (Outside the U.S. and
     Canada)***                                 155       -        *        *
    Lyrica                                       78      50       56%      47%
    Effexor***                                   25       -        *        *
    Celebrex                                     79      54       46%      34%
    Viagra                                      111      78       42%      30%
    Xalatan / Xalacom                            50      44       14%       3%
    Prevnar / Prevenar 13***                     15       -        *        *
    Prevnar / Prevenar 7***                     136       -        *        *
    Norvasc                                     124     117        6%       3%
    Zyvox                                        37      26       42%      30%
    Detrol / Detrol LA                           16      13       23%      12%
    Premarin Family***                           15       -        *        *
    Sutent                                       54      38       42%      33%
    Geodon / Zeldox                              15      13       15%       8%
    Zosyn / Tazocin***                           49       -        *        *
    Genotropin                                   29      26       12%       5%
    Vfend                                        38      30       27%      21%
    Chantix / Champix                             8       7       14%      11%
    Benefix***                                    3       -        *        *
    Zoloft                                       32      29       10%       4%
    Caduet                                       13      11       18%      12%
    Aromasin                                     13      12        8%       -
    Revatio                                       6       4       50%      42%
    Pristiq***                                    4       -        *        *
    Medrol                                       45      37       22%      18%
    Cardura                                      26      25        4%     (1%)
    Zithromax / Zmax                             39      33       18%      11%
    Aricept**                                     9      13     (31%)    (37%)
    Refacto / Xyntha***                           -       -        *        *
    Alliance Revenue                             18      14       29%      44%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical                 743     560       33%      24%
        All Other Established Products          623     519       20%      13%
            Legacy Pfizer Other Established
             Products                           571     519       10%       4%
            -------------------------------
    TOTAL INTERNATIONAL DIVERSIFIED:           $834    $167        *        *
    --------------------------------           ----    ----        -        -
    OTHER INTERNATIONAL****                     $11     $19     (42%)       4%
    -----------------------                     ---     ---    -----        -







    *        -  Calculation not meaningful.
    **       - Includes direct sales under license agreement with Eisai
               Co., Ltd.
    ***      - Legacy Wyeth products and operations. Animal Health
               results for the second quarter of 2010 also reflect the
               addition of legacy Wyeth products.
               Wyeth's results are included in our financial statements
               commencing from the acquisition date of October 15, 2009,
               in accordance with Pfizer's domestic and international
               year-ends.
               Therefore, our results for the second quarter of 2009 do not
               do not include Wyeth's results of operations.
    ****     - Includes revenues generated primarily from Pfizer
               Centersource.

    Certain amounts and percentages may reflect rounding adjustments.


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






                                PFIZER INC.
                                 REVENUES
                   FIRST SIX MONTHS OF 2010 and 2009
                                 (UNAUDITED)
                           (millions of dollars)


                                                         WORLDWIDE


                                               2010    2009       % Change
                                                                  --------
                                                              Total    Oper.
                                                              -----    -----
    TOTAL REVENUES                          $34,077 $21,851       56%      50%
    --------------                          ------- -------        -        -
    TOTAL BIOPHARMACEUTICAL:                $29,527 $20,165       46%      41%
    ------------------------                ------- -------        -        -
    Lipitor                                   5,570   5,406        3%     (2%)
    Enbrel (Outside the U.S. and
     Canada)***                               1,610       -        *        *
    Lyrica                                    1,485   1,312       13%      10%
    Effexor***                                1,337       -        *        *
    Celebrex                                  1,174   1,112        6%       3%
    Viagra                                      970     877       11%       6%
    Xalatan / Xalacom                           871     802        9%       4%
    Prevnar / Prevenar 13***                    855       -        *        *
    Prevnar / Prevenar 7***                     851       -        *        *
    Norvasc                                     790     999     (21%)    (24%)
    Zyvox                                       591     540        9%       7%
    Detrol / Detrol LA                          521     562      (7%)    (10%)
    Premarin Family***                          516       -        *        *
    Sutent                                      514     425       21%      16%
    Geodon / Zeldox                             501     461        9%       7%
    Zosyn / Tazocin***                          494       -        *        *
    Genotropin                                  439     404        9%       4%
    Vfend                                       395     359       10%       6%
    Chantix / Champix                           359     369      (3%)     (7%)
    Benefix***                                  318       -        *        *
    Zoloft                                      264     240       10%       5%
    Caduet                                      261     262        -      (5%)
    Aromasin                                    250     224       12%       8%
    Revatio                                     236     208       13%      11%
    Pristiq***                                  223       -        *        *
    Medrol                                      222     228      (3%)     (6%)
    Cardura                                     217     221      (2%)     (6%)
    Zithromax / Zmax                            213     214        -      (5%)
    Aricept**                                   210     203        3%     (6%)
    Refacto / Xyntha***                         188       -        *        *
    Alliance Revenue                          2,065   1,180       75%      72%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical               5,017   3,557       41%      35%
        All Other Established Products        3,904   2,983       31%      27%
            Legacy Pfizer Other Established
             Products                         3,083   2,983        3%     (2%)
    TOTAL DIVERSIFIED:                       $4,383  $1,524      188%     174%
    ------------------                       ------  ------      ---      ---
      ANIMAL HEALTH***                        1,739   1,185       47%      38%
      CONSUMER HEALTHCARE***                  1,341       -        *        *
      NUTRITION***                              934       -        *        *
      CAPSUGEL                                  369     339        9%       6%
    OTHER****                                  $167    $162        3%       2%
    ---------                                  ----    ----        -        -







                                                    UNITED STATES


                                                2010    2009  % Change
                                                              --------
                                                                Total
                                                                -----
    TOTAL REVENUES                           $14,695  $9,493        55%
    --------------                           -------  ------         -
    TOTAL BIOPHARMACEUTICAL:                 $13,256  $8,899        49%
    ------------------------                 -------  ------         -
    Lipitor                                    2,623   2,766       (5%)
    Enbrel (Outside the U.S. and
     Canada)***                                    -       -         *
    Lyrica                                       717     742       (3%)
    Effexor***                                 1,084       -         *
    Celebrex                                     786     809       (3%)
    Viagra                                       487     465         5%
    Xalatan / Xalacom                            296     271         9%
    Prevnar / Prevenar 13***                     691       -         *
    Prevnar / Prevenar 7***                      214       -         *
    Norvasc                                       24      35      (31%)
    Zyvox                                        315     313         1%
    Detrol / Detrol LA                           352     403      (13%)
    Premarin Family***                           472       -         *
    Sutent                                       131     123         7%
    Geodon / Zeldox                              418     387         8%
    Zosyn / Tazocin***                           328       -         *
    Genotropin                                   105     104         1%
    Vfend                                        123     116         6%
    Chantix / Champix                            178     228      (22%)
    Benefix***                                   144       -         *
    Zoloft                                        36      43      (16%)
    Caduet                                       170     203      (16%)
    Aromasin                                      83      81         2%
    Revatio                                      144     141         2%
    Pristiq***                                   199       -         *
    Medrol                                        55      76      (28%)
    Cardura                                       10       3       233%
    Zithromax / Zmax                               6       8      (25%)
    Aricept**                                      -       -         *
    Refacto / Xyntha***                           39       -         *
    Alliance Revenue                           1,470     711       107%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical                1,556     871        79%
        All Other Established Products         1,084     778        39%
            Legacy Pfizer Other Established
             Products                            743     778       (4%)
    TOTAL DIVERSIFIED:                        $1,376    $554       148%
    ------------------                        ------    ----       ---
      ANIMAL HEALTH***                           637     455        40%
      CONSUMER HEALTHCARE***                     642       -         *
      NUTRITION***                                 -       -         *
      CAPSUGEL                                    97      99       (2%)
    OTHER****                                    $63     $40        58%
    ---------                                    ---     ---         -







                                            TOTAL INTERNATIONAL(1)


                                          2010     2009       % Change
                                                              --------
                                                          Total    Oper.
                                                          -----    -----
    TOTAL REVENUES                     $19,382  $12,358       57%      46%
    --------------                     -------  -------        -        -
    TOTAL BIOPHARMACEUTICAL:           $16,271  $11,266       44%      35%
    ------------------------           -------  -------        -        -
    Lipitor                              2,947    2,640       12%       2%
    Enbrel (Outside the U.S.
     and Canada)***                      1,610        -        *        *
    Lyrica                                 768      570       35%      26%
    Effexor***                             253        -        *        *
    Celebrex                               388      303       28%      18%
    Viagra                                 483      412       17%       8%
    Xalatan / Xalacom                      575      531        8%       1%
    Prevnar / Prevenar 13***               164        -        *        *
    Prevnar / Prevenar 7***                637        -        *        *
    Norvasc                                766      964     (21%)    (24%)
    Zyvox                                  276      227       22%      16%
    Detrol / Detrol LA                     169      159        6%     (2%)
    Premarin Family***                      44        -        *        *
    Sutent                                 383      302       27%      20%
    Geodon / Zeldox                         83       74       12%       5%
    Zosyn / Tazocin***                     166        -        *        *
    Genotropin                             334      300       11%       6%
    Vfend                                  272      243       12%       6%
    Chantix / Champix                      181      141       28%      16%
    Benefix***                             174        -        *        *
    Zoloft                                 228      197       16%       9%
    Caduet                                  91       59       54%      31%
    Aromasin                               167      143       17%      10%
    Revatio                                 92       67       37%      29%
    Pristiq***                              24        -        *        *
    Medrol                                 167      152       10%       6%
    Cardura                                207      218      (5%)    (10%)
    Zithromax / Zmax                       207      206        -      (4%)
    Aricept**                              210      203        3%     (6%)
    Refacto / Xyntha***                    149        -        *        *
    Alliance Revenue                       595      469       27%      19%
    (Enbrel (in the U.S. and
     Canada)***, Aricept,
     Rebif, and Exforge)
    All Other Biopharmaceutical          3,461    2,686       29%      21%
        All Other Established
         Products                        2,820    2,205       28%      20%
            Legacy Pfizer Other
             Established Products        2,340    2,205        6%       -
    TOTAL DIVERSIFIED:                  $3,007     $970      210%     188%
    ------------------                  ------     ----      ---      ---
      ANIMAL HEALTH***                   1,102      730       51%      37%
      CONSUMER HEALTHCARE***               699        -        *        *
      NUTRITION***                         934        -        *        *
      CAPSUGEL                             272      240       13%       9%
    OTHER****                             $104     $122     (15%)     (3%)
    ---------                             ----     ----    -----     ----







    *        -  Calculation not meaningful.
    **       - Includes direct sales under license agreement with Eisai
               Co., Ltd.
    ***      - Legacy Wyeth products and operations. Animal Health
               results for the first six months of 2010 also reflect the
               addition of legacy Wyeth products.
               Wyeth's results are included in our financial statements
               commencing from the acquisition date of October 15, 2009,
               in accordance with Pfizer's domestic and international
               year-ends.
               Therefore, our results for the first six months of 2009 do not
               include Wyeth's results of operations.
    ****     - Includes revenues generated primarily from Pfizer
               Centersource.

    Certain amounts and percentages may reflect rounding adjustments.

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






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







                                                   DEVELOPED EUROPE(1)


                                               2010    2009       % Change
                                                                  --------
                                                              Total    Oper.
                                                              -----    -----
    TOTAL INTERNATIONAL REVENUES             $8,473  $5,591       52%      45%
    ----------------------------             ------  ------        -        -
    TOTAL INTERNATIONAL
     BIOPHARMACEUTICAL:                      $7,508  $5,041       49%      43%
    -------------------                      ------  ------      ---      ---
    Lipitor                                   1,359   1,297        5%       -
    Enbrel (Outside the U.S. and
     Canada)***                               1,128       -        *        *
    Lyrica                                      534     410       30%      24%
    Effexor***                                  129       -        *        *
    Celebrex                                     90      89        1%     (2%)
    Viagra                                      204     190        7%       2%
    Xalatan / Xalacom                           296     269       10%       5%
    Prevnar / Prevenar 13***                    145       -        *        *
    Prevnar / Prevenar 7***                     207       -        *        *
    Norvasc                                     109     113      (4%)     (8%)
    Zyvox                                       146     123       19%      15%
    Detrol / Detrol LA                           90      93      (3%)     (8%)
    Premarin Family***                            5       -        *        *
    Sutent                                      218     196       11%       7%
    Geodon / Zeldox                              47      42       12%       8%
    Zosyn / Tazocin***                           61       -        *        *
    Genotropin                                  187     166       13%       7%
    Vfend                                       149     135       10%       6%
    Chantix / Champix                            88      71       24%      17%
    Benefix***                                  125       -        *        *
    Zoloft                                       45      45        -      (3%)
    Caduet                                       10       8       25%      23%
    Aromasin                                    102      93       10%       5%
    Revatio                                      64      50       28%      22%
    Pristiq***                                    -       -        *        *
    Medrol                                       52      49        6%       1%
    Cardura                                      78      81      (4%)     (8%)
    Zithromax / Zmax                             46      64     (28%)    (32%)
    Aricept**                                   119     125      (5%)     (9%)
    Refacto / Xyntha***                         136       -        *        *
    Alliance Revenue                            269     240       12%       7%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical               1,270   1,092       16%      12%
        All Other Established Products          960     766       25%      20%
            Legacy Pfizer Other Established
             Products                           793     766        4%     (1%)
            -------------------------------
    TOTAL INTERNATIONAL DIVERSIFIED:           $902    $480       88%      80%
    --------------------------------           ----    ----        -        -
    OTHER INTERNATIONAL****                     $63     $70     (10%)      15%
    -----------------------                     ---     ---    -----        -







                                                DEVELOPED REST OF WORLD(2)


                                               2010    2009       % Change
                                                                  --------
                                                              Total    Oper.
                                                              -----    -----
    TOTAL INTERNATIONAL REVENUES             $5,024  $3,688       36%      21%
    ----------------------------             ------  ------        -        -
    TOTAL INTERNATIONAL
     BIOPHARMACEUTICAL:                      $4,541  $3,484       30%      17%
    -------------------                      ------  ------      ---      ---
    Lipitor                                   1,108     938       18%       -
    Enbrel (Outside the U.S. and
     Canada)***                                 191       -        *        *
    Lyrica                                       99      65       52%      27%
    Effexor***                                   76       -        *        *
    Celebrex                                    159     106       50%      34%
    Viagra                                       96      77       25%       8%
    Xalatan / Xalacom                           184     180        2%     (7%)
    Prevnar / Prevenar 13***                      2       -        *        *
    Prevnar / Prevenar 7***                     116       -        *        *
    Norvasc                                     423     629     (33%)    (36%)
    Zyvox                                        61      56        9%       4%
    Detrol / Detrol LA                           49      40       23%       7%
    Premarin Family***                           14       -        *        *
    Sutent                                       64      35       83%      63%
    Geodon / Zeldox                               8       6       33%      25%
    Zosyn / Tazocin***                            7       -        *        *
    Genotropin                                   91      86        6%       -
    Vfend                                        62      53       17%       7%
    Chantix / Champix                            78      56       39%      18%
    Benefix***                                   41       -        *        *
    Zoloft                                      124      97       28%      19%
    Caduet                                       57      31       84%      43%
    Aromasin                                     30      26       15%       5%
    Revatio                                      16      10       60%      53%
    Pristiq***                                   17       -        *        *
    Medrol                                       22      25     (12%)    (12%)
    Cardura                                      80      89     (10%)    (14%)
    Zithromax / Zmax                             81      76        7%       2%
    Aricept**                                    72      56       29%       6%
    Refacto / Xyntha***                          13       -        *        *
    Alliance Revenue                            289     201       44%      34%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical                 811     546       49%      36%
        All Other Established Products          711     472       51%      37%
            Legacy Pfizer Other Established
             Products                           499     472        6%     (5%)
            -------------------------------
    TOTAL INTERNATIONAL DIVERSIFIED:           $468    $184      154%     112%
    --------------------------------           ----    ----      ---      ---
    OTHER INTERNATIONAL****                     $15     $20     (25%)       3%
    -----------------------                     ---     ---    -----        -







                                                   EMERGING MARKETS(3)


                                               2010    2009       % Change
                                                                  --------
                                                              Total    Oper.
                                                              -----    -----
    TOTAL INTERNATIONAL REVENUES             $5,885  $3,079       91%      79%
    ----------------------------             ------  ------        -        -
    TOTAL INTERNATIONAL
     BIOPHARMACEUTICAL:                      $4,222  $2,741       54%      44%
    -------------------                      ------  ------      ---      ---
    Lipitor                                     480     405       19%       9%
    Enbrel (Outside the U.S. and
     Canada)***                                 291       -        *        *
    Lyrica                                      135      95       42%      34%
    Effexor***                                   48       -        *        *
    Celebrex                                    139     108       29%      18%
    Viagra                                      183     145       26%      17%
    Xalatan / Xalacom                            95      82       16%       6%
    Prevnar / Prevenar 13***                     17       -        *        *
    Prevnar / Prevenar 7***                     314       -        *        *
    Norvasc                                     234     222        5%       2%
    Zyvox                                        69      48       44%      31%
    Detrol / Detrol LA                           30      26       15%       9%
    Premarin Family***                           25       -        *        *
    Sutent                                      101      71       42%      33%
    Geodon / Zeldox                              28      26        8%     (6%)
    Zosyn / Tazocin***                           98       -        *        *
    Genotropin                                   56      48       17%       8%
    Vfend                                        61      55       11%       3%
    Chantix / Champix                            15      14        7%       3%
    Benefix***                                    8       -        *        *
    Zoloft                                       59      55        7%       3%
    Caduet                                       24      20       20%      15%
    Aromasin                                     35      24       46%      36%
    Revatio                                      12       7       71%      50%
    Pristiq***                                    7       -        *        *
    Medrol                                       93      78       19%      14%
    Cardura                                      49      48        2%     (4%)
    Zithromax / Zmax                             80      66       21%      16%
    Aricept**                                    19      22     (14%)    (20%)
    Refacto / Xyntha***                           -       -        *        *
    Alliance Revenue                             37      28       32%      29%
    (Enbrel (in the U.S. and
     Canada)***, Aricept, Rebif, and
     Exforge)
    All Other Biopharmaceutical               1,380   1,048       32%      23%
        All Other Established Products        1,149     967       19%      12%
            Legacy Pfizer Other Established
             Products                         1,048     967        8%       2%
            -------------------------------
    TOTAL INTERNATIONAL DIVERSIFIED:         $1,637    $306        *        *
    --------------------------------         ------    ----        -        -
    OTHER INTERNATIONAL****                     $26     $32     (19%)      12%
    -----------------------                     ---     ---    -----        -







    *        -  Calculation not meaningful.
    **       - Includes direct sales under license agreement with Eisai
               Co., Ltd.
    ***      - Legacy Wyeth products and operations. Animal Health
               results for the first six months of 2010 also reflect the
               addition of legacy Wyeth products.
               Wyeth's results are included in our financial statements
               commencing from the acquisition date of October 15, 2009,
               in accordance with Pfizer's domestic and international
               year-ends.
               Therefore, our results for the first six months of 2009 do
               not include Wyeth's results of operations.
    ****     - Includes revenues generated primarily from Pfizer
               Centersource.

    Certain amounts and percentages may reflect rounding adjustments.


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





PFIZER INC.

SUPPLEMENTAL INFORMATION

1. Change in Reported Cost of Sales

Reported cost of sales increased 116% in the second quarter of 2010, compared to the same period in 2009, and increased 156% in the first six months of 2010, compared to the same period in 2009. The increases primarily reflect purchase accounting adjustments associated with the Wyeth acquisition, the addition of Wyeth manufacturing costs, as well as the change in the mix of products and businesses as a result of the Wyeth acquisition. In addition, the impact of foreign exchange had a favorable impact on reported cost of sales in the second quarter of 2010 and an unfavorable impact for the first six months of 2010.

Reported cost of sales as a percentage of revenues increased 5.9 percentage points to 21.9% in second-quarter 2010, compared to the same period in 2009, reflecting the aforementioned factors.

2. Change in Reported Selling, Informational & Administrative (SI&A) Expenses and Reported Research & Development (R&D) Expenses and Reported In-Process R&D (IPR&D) Charges

Reported SI&A expenses increased 43% in the second quarter of 2010, compared to the same period in 2009, and increased 48% in the first six months of 2010, compared to the same period in 2009. The increases primarily reflect the addition of Wyeth operating costs and the unfavorable impact of foreign exchange.

Reported R&D expenses increased 29% in the second quarter of 2010, compared to the same period in 2009, and increased 30% in the first six months of 2010, compared to the same period in 2009. The increases are primarily due to the addition of legacy Wyeth operations, continued investment in the late-stage development portfolio and the unfavorable impact of foreign exchange.

Reported IPR&D charges of $74 million recorded in the first six months of 2010 relate to the resolution of contingencies associated with our 2008 acquisition of CovX.

3. Other (Income)/Deductions - Net



    ($ in millions)         Second Quarter            Six Months
                            --------------            ----------
                           2010          2009   2010           2009
                           ----          ----   ----           ----
    Interest income(a)     $(85)        $(204) $(197)         $(449)
    Interest income
    Interest expense(a)     389           270    911            400
                            ---           ---    ---            ---
    Net interest
     (income)/expense       304            66    714            (49)
                            ---           ---    ---            ---
    Royalty-related income  (95)          (50)  (237)          (107)
    Net gain on asset
     disposals             (185)          (29)  (230)           (41)
    Legal matters, net       37           (19)   174             77
    Asset impairment
     charges                196            71    232             89
    Other, net               14            33     32             46
                            ---           ---    ---            ---
    Other
     (income)/deductions-
     net                   $271           $72   $685            $15
    =====================  ====           ===   ====            ===






        (a) Interest expense increased in 2010 due to our issuance of $13.5
            billion of senior unsecured notes on March 24, 2009 and $10.5
        billion of senior unsecured notes on June 3, 2009, primarily related
         to the acquisition of Wyeth. Interest income decreased in 2010 due
          to lower interest rates coupled with lower average cash balances.





4. Effective Tax Rate

The effective tax rate on reported Income from continuing operations before provision for taxes on income for second-quarter 2010 was 37.4% compared to 25.8% in the second quarter of 2009, and in the first six months of 2010 was 36.8% compared to 27.1% in the first six months of 2009. The increases in the effective tax rate primarily are the result of higher charges, incurred as a result of our acquisition of Wyeth, and the mix of jurisdictions in which those charges were incurred. In addition, the increases in the effective tax rate were impacted by the expiration of the U.S. research tax credit and, in the first six months of 2010 compared to the first six months of 2009, the write-off of the deferred tax asset of approximately $270 million related the Medicare Part D subsidy for retiree prescription drug coverage resulting from changes in the recently enacted U.S. healthcare legislation concerning the tax treatment of that subsidy effective for tax years beginning after December 31, 2012, partially offset by $410 million in tax benefits for the resolution of certain tax positions pertaining to prior years with various foreign tax authorities.

The effective tax rate on adjusted income(1) was 31.7% in second-quarter 2010 compared to 28.1% in second-quarter 2009, and in the first six months of 2010 was 30.9% compared to 29.0% in the first six months of 2009. The increases in the tax rate on adjusted income(1) primarily are the result of certain business decisions made in connection with the acquisition of Wyeth and the change in jurisdictional mix of earnings. In addition, the increases in the effective tax rate were impacted by the expiration of the U.S. research tax credit and, in the first six months of 2010 compared to the first six months of 2009, the write-off of the deferred tax asset of approximately $270 million related the Medicare Part D subsidy for retiree prescription drug coverage resulting from changes in the recently enacted U.S. healthcare legislation concerning the tax treatment of that subsidy effective for tax years beginning after December 31, 2012, largely offset by $410 million in tax benefits for the resolution of certain tax positions pertaining to prior years with various foreign tax authorities.

5. Reconciliation of 2010 Adjusted Income(1) and Adjusted Diluted EPS(1) Guidance to 2010 Reported Net Income Attributable to Pfizer Inc. and Reported Diluted EPS Attributable to Pfizer Inc. Common Shareholders Guidance (a)



                                            Full-Year 2010 Guidance
                                            -----------------------
     ($ billions, except per-share
      amounts)                         Net Income(b)    Diluted EPS(b)
                                        ------------     -------------
     Income/(Expense)
     -----------------------------
     Adjusted Income/Diluted EPS(1)
      Guidance                        ~$17.0 - $17.8    ~$2.10 - $2.20
     Purchase Accounting Impacts of
      Transactions Completed as of
      7/4/10                                     (6.3)            (0.78)
     Acquisition-Related Costs          (2.4 - 2.8)       (0.29-0.34)
     Certain Significant Items                   (0.2)            (0.03)
                                                 ----             -----
     Reported Net Income Attributable
      to Pfizer Inc./Diluted EPS
      Guidance                          ~$7.7 - $8.9    ~$0.95 - $1.10
                                        ============    ==============






    (a) The current exchange rates assumed in connection with the 2010
    financial guidance are a blend of the average of the actual exchange
    rates in effect during first-half 2010 and the mid-July 2010
    exchange rates for the remainder of the year.
    (b) Does not assume the completion of any business-development
    transactions not completed as of July 4, 2010. Amounts exclude the
    potential effects of the resolution of litigation-related matters
    not substantially resolved as of July 4, 2010.





6. Reconciliation of 2012 Adjusted Income(1) and Adjusted Diluted EPS(1) Targets to 2012 Reported Net Income Attributable to Pfizer Inc. and Reported Diluted EPS Attributable to Pfizer Inc. Common Shareholders Targets (a)



                                                   Full-Year 2012 Targets
                                                   ----------------------
     ($ billions, except per-share amounts)  Net Income(b)    Diluted EPS(b)
                                              ------------     -------------
     Income/(Expense)
     ----------------
     Adjusted Income/Diluted EPS(1) Targets ~$18.3 - $19.1    ~$2.25 - $2.35
     Purchase Accounting Impacts of
      Transactions Completed as of 7/4/10              (3.8)            (0.47)
     Acquisition-Related Costs                (1.2 - 1.6)      (0.15 - 0.20)
                                              -----------      -------------
     Reported Net Income Attributable to
      Pfizer Inc./Diluted EPS Targets       ~$12.9 - $14.1    ~$1.58 - $1.73
                                            ==============    ==============






    (a) The current exchange rates assumed in connection with the 2012
    financial targets are the mid-July 2010 exchange rates.
    (b)Given the longer-term nature of these targets, they are subject
    to greater variability and less certainty as a result of potential
    material impacts related to foreign exchange fluctuations,
    macroeconomic activity including inflation, and industry-specific
    challenges including changes to government healthcare policy, among
    others.





(1) "Adjusted income" and "adjusted diluted earnings per share (EPS)" are defined as reported net income attributable to Pfizer Inc. and reported diluted EPS attributable to Pfizer Inc. common shareholders excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. 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 April 4, 2010, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. We believe that investors' understanding of our performance is enhanced by disclosing this measure. The adjusted income and adjusted diluted EPS measures are not, and should not be viewed as, substitutes for U.S. GAAP net income and diluted EPS.

DISCLOSURE NOTICE: The information contained in this earnings release and the attachments is as of August 3, 2010. The Company assumes no obligation to update forward-looking statements contained in this earnings release or the attachments as a result of new information or future events or developments.

This earnings release and the attachments contain forward-looking information about the Company's financial results and estimates, business plans and prospects, in-line products and product candidates that involves substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "forecast" and other words and terms of similar meaning in connection with any discussion of future operating or financial performance or business plans and prospects. Among the factors that could cause actual results to differ materially are the following: the success of research and development activities; decisions by regulatory authorities regarding whether and when to approve our drug applications as well as their decisions regarding labeling, ingredients and other matters that could affect the availability or commercial potential of our products; the speed with which regulatory authorizations, pricing approvals and product launches may be achieved; the success of external business-development activities; competitive developments, including the impact on our competitive position of new product entrants, in-line branded products, generic products, private label products and product candidates that treat diseases and conditions similar to those treated by our in-line drugs and drug candidates; the ability to meet generic and branded competition after the loss of patent protection for our products or competitor products; the ability to successfully market both new and existing products domestically and internationally; difficulties or delays in manufacturing; trade buying patterns; the impact of existing and future legislation and regulatory provisions on product exclusivity; trends toward managed care and healthcare cost containment; the impact of U.S. healthcare legislation enacted in 2010 - the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act; U.S. legislation or regulatory action affecting, among other things, pharmaceutical product pricing, reimbursement or access, including under Medicaid, Medicare and other publicly funded or subsidized health programs, the importation of prescription drugs from outside the U.S. at prices that are regulated by governments of various foreign countries, direct-to-consumer advertising and interactions with healthcare professionals, and the use of comparative effectiveness methodologies that could be implemented in a manner that focuses primarily on the cost differences and minimizes the therapeutic differences among pharmaceutical products and restricts access to innovative medicines; legislation or regulatory action in markets outside the U.S. affecting pharmaceutical product pricing, reimbursement or access; contingencies related to actual or alleged environmental contamination; claims and concerns that may arise regarding the safety or efficacy of in-line products and product candidates; significant breakdown, infiltration, or interruption of our information technology systems and infrastructure; legal defense costs, insurance expenses, settlement costs and the risk of an adverse decision or settlement related to product liability, patent protection, governmental investigations, ongoing efforts to explore various means for resolving asbestos litigation, and other legal proceedings; the Company's ability to protect its patents and other intellectual property both domestically and internationally; interest rate and foreign currency exchange rate fluctuations; governmental laws and regulations affecting domestic and foreign operations, including tax obligations and changes affecting the taxation by the U.S. of income earned outside of the U.S. that may result from pending and possible future proposals; changes in U.S. generally accepted accounting principles; uncertainties related to general economic, political, business, industry, regulatory and market conditions including, without limitation, uncertainties related to the impact on us, our lenders, our customers, our suppliers and counterparties to our foreign-exchange and interest-rate agreements of weak global economic conditions and recent and possible future changes in global financial markets; any changes in business, political and economic conditions due to actual or threatened terrorist activity in the U.S. and other parts of the world, and related U.S. military action overseas; growth in costs and expenses; changes in our product, segment and geographic mix; and the impact of acquisitions, divestitures, restructurings, product withdrawals and other unusual items, including our ability to realize the projected benefits of our acquisition of Wyeth and of our cost-reduction initiatives. A further list and description of risks, uncertainties and other matters can be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and in its reports on Forms 10-Q and 8-K.

This earnings release may include discussion of certain clinical studies relating to various in-line products and/or product candidates. These studies typically are part of a larger body of clinical data relating to such products or product candidates, and the discussion herein should be considered in the context of the larger body of data.

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