Pfizer Reports Third-Quarter 2012 Results

Pfizer Reports Third-Quarter 2012 Results

  • Third-Quarter 2012 Revenues of $14.0 Billion, excluding Discontinued Operations Revenues of $564 Million from the Nutrition(1) Business

  • Third-Quarter 2012 Adjusted Diluted EPS(2) of $0.53 and Reported Diluted EPS(3) of $0.43, Both Reflecting Previously Announced $0.02 Reduction Related to Over-the-Counter Nexium Agreement

  • Narrows Ranges for 2012 Financial Guidance Components

  • Board of Directors Authorizes New $10 Billi

    Pfizer Reports Third-Quarter 2012 Results

    • Third-Quarter 2012 Revenues of $14.0 Billion, excluding Discontinued Operations Revenues of $564 Million from the Nutrition(1) Business

    • Third-Quarter 2012 Adjusted Diluted EPS(2) of $0.53 and Reported Diluted EPS(3) of $0.43, Both Reflecting Previously Announced $0.02 Reduction Related to Over-the-Counter Nexium Agreement

    • Narrows Ranges for 2012 Financial Guidance Components

    • Board of Directors Authorizes New $10 Billion Share Repurchase Program Upon Sale of the Nutrition(1) Business

    • Repurchased $1.8 Billion of Common Stock in Third-Quarter 2012; Repurchased $5.9 Billion through October 31, 2012

    Thursday, November 1, 2012 7:00 am EDT

    Dateline:

    NEW YORK

    Public Company Information:

    NYSE:

    PFE

    US7170811035

    "Forward-Looking Information and Factors That May Affect Future Results"

    NEW YORK--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE):

     

    ($ in millions, except per share amounts)

     

     

     

     

    Third-Quarter

     

     

     

    Year-to-Date

     

     

     

     

     

    2012

     

     

     

     

    2011(4)

     

     

     

    Change

     

     

     

     

    2012

     

     

     

     

    2011(4)

     

     

     

    Change

    Reported Revenues

     

     

     

    $

    13,976

     

     

     

    $

    16,609

     

     

     

    (16

    %)

     

     

     

    $

    43,918

     

     

     

    $

    49,118

     

     

     

    (11

    %)

    Adjusted Income(2)

     

     

     

     

    3,949

     

     

     

     

    4,696

     

     

     

    (16

    %)

     

     

     

     

    12,964

     

     

     

     

    14,055

     

     

     

    (8

    %)

    Adjusted Diluted EPS(2)

     

     

     

     

    0.53

     

     

     

     

    0.60

     

     

     

    (12

    %)

     

     

     

     

    1.72

     

     

     

     

    1.77

     

     

     

    (3

    %)

    Reported Net Income(3)

     

     

     

     

    3,208

     

     

     

     

    3,738

     

     

     

    (14

    %)

     

     

     

     

    8,255

     

     

     

     

    8,570

     

     

     

    (4

    %)

    Reported Diluted EPS(3)

     

     

     

     

    0.43

     

     

     

     

    0.48

     

     

     

    (10

    %)

     

     

     

     

    1.09

     

     

     

     

    1.08

     

     

     

    1

    %

     

    See end of text prior to tables for notes.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Pfizer Inc. (NYSE: PFE) today reported financial results for third-quarter 2012. Third-quarter 2012 revenues were $14.0 billion, a decrease of 16% compared with $16.6 billion in the year-ago quarter, which reflects an operational decline of $1.9 billion, or 12%, and the unfavorable impact of foreign exchange of $699 million, or 4%.

    For third-quarter 2012, U.S. revenues were $5.6 billion, a decrease of 18% compared with the year-ago quarter. This decrease was primarily the result of the loss of exclusivity of Lipitor on November 30, 2011. International revenues were $8.3 billion, a decrease of 14% compared with the prior-year quarter, mainly due to the losses of exclusivity of Lipitor in developed Europe during second-quarter 2012 and the unfavorable impact of foreign exchange. U.S. revenues represented 40% of total revenues in third-quarter 2012 compared with 41% in the year-ago quarter, while international revenues represented 60% of total revenues in third-quarter 2012 compared with 59% in the year-ago quarter.

     

    Financial Performance(5)

     

     

     

     

    Third-Quarter Revenues

    ($ in millions)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Foreign

     

     

     

     

    Favorable/(Unfavorable)

     

     

     

     

    2012

     

     

     

     

    2011

     

     

     

    Change

     

     

     

    Exchange

     

     

     

    Operational

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Primary Care

     

     

     

    $

    3,610

     

     

     

    $

    5,948

     

     

     

    (39

    %)

     

     

     

    (2

    %)

     

     

     

    (37

    %)

    Specialty Care

     

     

     

     

    3,406

     

     

     

     

    3,799

     

     

     

    (10

    %)

     

     

     

    (5

    %)

     

     

     

    (5

    %)

    Established Products

     

     

     

     

    2,383

     

     

     

     

    2,230

     

     

     

    7

    %

     

     

     

    (4

    %)

     

     

     

    11

    %

    Emerging Markets

     

     

     

     

    2,389

     

     

     

     

    2,438

     

     

     

    (2

    %)

     

     

     

    (8

    %)

     

     

     

    6

    %

    Oncology

     

     

     

     

    329

     

     

     

     

    332

     

     

     

    (1

    %)

     

     

     

    (5

    %)

     

     

     

    4

    %

    Biopharmaceutical

     

     

     

     

    12,117

     

     

     

     

    14,747

     

     

     

    (18

    %)

     

     

     

    (4

    %)

     

     

     

    (14

    %)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Animal Health

     

     

     

     

    1,017

     

     

     

     

    1,041

     

     

     

    (2

    %)

     

     

     

    (6

    %)

     

     

     

    4

    %

    Consumer Healthcare

     

     

     

     

    780

     

     

     

     

    767

     

     

     

    2

    %

     

     

     

    (4

    %)

     

     

     

    6

    %

    Other(6)

     

     

     

     

    62

     

     

     

     

    54

     

     

     

    15

    %

     

     

     

    (4

    %)

     

     

     

    19

    %

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Total

     

     

     

    $

    13,976

     

     

     

    $

    16,609

     

     

     

    (16

    %)

     

     

     

    (4

    %)

     

     

     

    (12

    %)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    See end of text prior to tables for notes.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Business Commentary

    Primary Care unit revenues decreased 37% operationally in comparison with the same period last year, primarily due to the losses of exclusivity of Lipitor in the U.S. in November 2011, developed Europe during second-quarter 2012 and Japan in June 2011, as well as the resulting shift in the reporting of U.S. and Japan Lipitor revenues to the Established Products unit beginning January 1, 2012. These factors negatively impacted Primary Care unit revenues by approximately $2.0 billion, or 34%, operationally. Collectively, the decline in revenues for Lipitor and for certain other Primary Care unit products that lost exclusivity in various markets in 2012 and 2011, as well as the resulting shift in the reporting of certain product revenues to the Established Products unit, reduced Primary Care unit revenues by approximately $2.4 billion, or 40%, in comparison with third-quarter 2011. The impact of these declines was slightly offset by continued strong operational growth of Lyrica and Celebrex in developed markets and Viagra in the U.S.

    Specialty Care unit revenues declined 5% operationally in comparison with third-quarter 2011. Revenues were positively impacted by the operational growth of Enbrel, Rebif and Benefix, and negatively impacted by the decline in the Prevnar/Prevenar franchise, primarily in the U.S. and developed Europe, as the pediatric catch-up dose opportunity in third-quarter 2011 was no longer available in third-quarter 2012 since all eligible patients have been vaccinated. Additionally, utilization of Prevnar/Prevenar in adults remains minimal at this time. Specialty Care unit revenues were also negatively impacted by approximately $260 million, or 7%, in comparison with third-quarter 2011 by the losses of exclusivity of Xalatan in developed Europe in January 2012 and Geodon in the U.S. in March 2012.

    Established Products unit revenues increased 11% operationally in comparison with the prior-year period, primarily reflecting the inclusion of $320 million of U.S. and Japan branded Lipitor revenues in third-quarter 2012, as well as launches of generic versions of other Pfizer branded primary care and specialty care products. These increases were partially offset by the continuing decline of revenues of certain products that previously lost exclusivity and the impact of ongoing pricing pressures, primarily in South Korea and developed Europe. Total revenues from established products in both the Established Products and Emerging Markets units were $3.4 billion, with $1.0 billion generated in emerging markets.

    Emerging Markets unit revenues grew 6% operationally in comparison with third-quarter 2011, primarily due to volume growth in China, Mexico and Russia as a result of more targeted promotional efforts for key innovative and established products, including Lipitor, Norvasc and Lyrica. Growth was partially offset by the timing of government purchases of Prevenar 13 in Turkey in comparison with the year-ago period.

    Animal Health unit revenues increased 4% operationally in comparison with the same quarter last year, largely due to increased demand across the companion animal and global livestock portfolios in key geographies. Consumer Healthcare unit revenues increased 6% operationally in comparison with third-quarter 2011, primarily due to the addition of products from the acquisitions of Ferrosan Consumer Health in December 2011 and Alacer Corp. in February 2012.

     

    Adjusted Expenses(2), Adjusted Income(2) and Adjusted Diluted EPS(2) Highlights

     

     

     

     

    Third-Quarter Selected Costs and Expenses

    ($ in millions)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Foreign

     

     

     

     

    (Favorable)/Unfavorable

     

     

     

     

    2012

     

     

     

     

    2011

     

     

     

    Change

     

     

     

    Exchange

     

     

     

    Operational

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Adjusted Cost of Sales(2)

     

     

     

    $

    2,565

     

     

     

    $

    3,057

     

     

     

    (16%)

     

     

     

    (9%)

     

     

     

    (7%)

    As a Percent of Revenues

     

     

     

     

    18.4%

     

     

     

     

    18.4%

     

     

     

    N/A

     

     

     

    N/A

     

     

     

    N/A

    Adjusted SI&A Expenses(2)

     

     

     

     

    3,729

     

     

     

     

    4,397

     

     

     

    (15%)

     

     

     

    (4%)

     

     

     

    (11%)

    Adjusted R&D Expenses(2)

     

     

     

     

    1,935

     

     

     

     

    2,023

     

     

     

    (4%)

     

     

     

    (1%)

     

     

     

    (3%)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Total

     

     

     

    $

    8,229

     

     

     

    $

    9,477

     

     

     

    (13%)

     

     

     

    (5%)

     

     

     

    (8%)

     

    See end of text prior to tables for notes.

     

    Adjusted cost of sales(2), adjusted SI&A expenses(2) and adjusted R&D expenses(2) in the aggregate were $8.2 billion in third-quarter 2012, a decrease of 13% compared with $9.5 billion in third-quarter 2011. Excluding the favorable impact of foreign exchange of $440 million, or 5%, these costs decreased 8%, primarily reflecting the benefits of cost-reduction and productivity initiatives as well as the impact of lower revenues. Savings in adjusted R&D expenses(2) were generated in third-quarter 2012 by the discontinuation of certain therapeutic areas and R&D programs in connection with our previously announced initiatives, which were partially offset by a $250 million payment to AstraZeneca to obtain the exclusive global over-the-counter rights to Nexium. Lower adjusted SI&A expenses(2) compared with the year-ago period reflect a reduction in the field force and a decrease in promotional spending, both partially in response to product losses of exclusivity, and more streamlined corporate support functions, as well as the favorable impact of foreign exchange. Adjusted cost of sales(2) and adjusted cost of sales(2) as a percent of revenues were favorably impacted by the benefits generated from the ongoing cost-reduction and productivity initiatives to streamline the manufacturing network and by foreign exchange, while unfavorably impacted by the decline in revenues contributing to a shift in geographic and business mix. Additionally, lower adjusted cost of sales(2) compared with the same period last year reflects reduced manufacturing volumes given the aforementioned products that lost exclusivity in various markets.

    In third-quarter 2012, the effective tax rate on adjusted income(2) was 28.3%, compared with 31.2% in the third-quarter 2011. The third-quarter 2012 rate reflects the favorable impact of the change in the jurisdictional mix of earnings as well as the resolution of foreign audits pertaining to multiple tax years, partially offset by the unfavorable impact of the expiration of the U.S. research and development tax credit.

    The diluted weighted-average shares outstanding for third-quarter 2012 were 7.5 billion shares, a reduction of approximately 302 million shares compared with third-quarter 2011. This decline was primarily due to the Company's ongoing share-repurchase program.

    As a result of the aforementioned factors, third-quarter 2012 adjusted income(2) was $3.9 billion, a decrease of 16% compared with $4.7 billion in the year-ago quarter, and adjusted diluted EPS(2) was $0.53, a decrease of 12% compared with $0.60 in third-quarter 2011.

    Reported Net Income(3) and Reported Diluted EPS(3) Highlights

    In addition to the aforementioned factors, third-quarter 2012 reported earnings in comparison with the same period in 2011 were favorably impacted by lower purchase accounting adjustments, lower costs related to cost-reduction and productivity initiatives, lower acquisition-related costs and lower impairment charges. Third-quarter 2012 reported earnings in comparison with the year-ago quarter were unfavorably impacted by a $491 million charge resulting from an agreement-in-principle with the U.S. Department of Justice to resolve an investigation into Wyeth's historical promotional practices in connection with Rapamune, higher costs associated with the potential separation of the Animal Health business as well as the non-recurrence of the gain on the sale of Capsugel(4) recorded in third-quarter 2011.

    In third-quarter 2012, the effective tax rate on reported results was favorably impacted by a settlement with the U.S. Internal Revenue Service related to audits for multiple tax years. The settlement resulted in a favorable impact on net income of $1.1 billion representing tax and interest. The effective tax rate on reported results was also favorably impacted by the resolution of foreign audits as mentioned above and the change in jurisdictional mix of earnings, partially offset by the unfavorable impact of the non-deductibility of the aforementioned charge related to Rapamune, as well as the expiration of the U.S. research and development tax credit.

    As a result of all these factors, third-quarter 2012 reported net income(3) was $3.2 billion, a decrease of 14% compared with $3.7 billion in the prior-year quarter, and reported diluted EPS(3) was $0.43, a decrease of 10% compared with $0.48 in third-quarter 2011.

    Executive Commentary

    Ian Read, Chairman and Chief Executive Officer, stated, "Overall, our results this quarter reflect continued product losses of exclusivity, most notably Lipitor in all major markets. Despite a challenging and dynamic environment, worldwide revenues from many of our key medicines, including Enbrel, Celebrex and Lyrica, continued to grow operationally. Additionally, we continued to perform well in emerging markets, most notably in China, given the breadth of our portfolio and focused investment."

    "With regard to our innovative core, I am very pleased with the recent U.S. Food and Drug Administration approval of Bosulif (bosutinib) for chronic myelogenous leukemia, as well as approval of Inlyta (axitinib) for advanced renal cell carcinoma and conditional marketing authorization of Xalkori (critzotinib) for advanced non-small cell lung cancer, both in the EU. I also look forward to regulatory action for tofacitinib in moderate-to-severe rheumatoid arthritis and Eliquis (apixaban) in atrial fibrillation in the U.S., EU and Japan as well as Bosulif in key international markets."

    "Additionally, we filed a registration statement with the Securities and Exchange Commission for the potential initial public offering of a minority stake in our Animal Health business, Zoetis. Given our demonstrated ability to advance our strategic initiatives, I believe we are well-positioned to deliver attractive returns for our shareholders over time," Mr. Read concluded.

    Frank D'Amelio, Chief Financial Officer, stated, "Given our financial performance to date, we are narrowing the ranges for certain components of our 2012 financial guidance. Further, the Board of Directors has authorized a new $10 billion share repurchase program to be utilized over time, upon the sale of the Nutrition(1) business to Nestlé, which we now expect to close in the next few months. This new program is in addition to the $4.1 billion authorization remaining under our current share repurchase program. So far this year, we have repurchased approximately $5.9 billion, or 255.1 million shares, of our common stock."

    2012 Financial Guidance(7)

    Pfizer's financial guidance, at current exchange rates(8), is summarized below. Since the Nutrition(1) business is presented as a discontinued operation, the full-year results of that business only impact the Reported Diluted EPS(3) and operating cash flow components of our 2012 financial guidance.

     

     

     

     

     

    Reported Revenues

     

     

     

    $58.0 to $59.0 billion

    (previously $58.0 to $60.0 billion)

    Adjusted Cost of Sales(2) as a Percentage of Revenues

     

     

     

    18.7% to 19.2%

    (previously 19.5% to 20.5%)

    Adjusted SI&A Expenses(2)

     

     

     

    $16.3 to $16.8 billion

    (previously $16.3 to $17.3 billion)

    Adjusted R&D Expenses(2)

     

     

     

    $7.0 to $7.25 billion

    (previously $6.75 to $7.25 billion)

    Adjusted Other (Income)/Deductions(2)

     

     

     

    Approximately $900 million

    (previously approximately $1.0 billion)

    Effective Tax Rate on Adjusted Income(2)

     

     

     

    Approximately 29%

    Reported Diluted EPS(3)

     

     

     

    $1.30 to $1.38

    (previously $1.21 to $1.36)

    Adjusted Diluted EPS(2)

     

     

     

    $2.14 to $2.17

    (previously $2.12 to $2.22)

    Operating Cash Flow

     

     

     

    Approximately $18.5 billion

    (previously approximately $19.0 billion)

     

     

     

     

     

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

    (1)

     

     

     

    On April 23, 2012, Pfizer announced that it entered into an agreement to sell the Nutrition business to Nestlé. The transaction is expected to close in the next few months, assuming the receipt of the required regulatory clearances and the satisfaction of other closing conditions. As a result of Pfizer's decision to divest this business, the operating results of the Nutrition business are reported as Discontinued Operations – net of tax in the consolidated statements of income for all periods.

     

     

     

     

     

    (2)

     

     

     

    "Adjusted Income" and its components and "Adjusted Diluted Earnings Per Share (EPS)" are defined as reported U.S. generally accepted accounting principles (GAAP) net income(3) and its components and reported diluted EPS(3) excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. Adjusted Cost of Sales, Adjusted Selling, Informational and Administrative (SI&A) expenses, Adjusted Research and Development (R&D) expenses and Adjusted Other (Income)/Deductions are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. As described under Adjusted Income in the Management's Discussion and Analysis of Financial Condition and Results of Operations section of Pfizer's Form 10-Q for the fiscal quarter ended July 1, 2012, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. We believe that investors' understanding of our performance is enhanced by disclosing this measure. Reconciliations of certain GAAP reported to non-GAAP adjusted information for the third quarter and first nine months of 2012 and 2011, as well as reconciliations of full-year 2012 guidance for adjusted income and adjusted diluted EPS to full-year 2012 guidance for reported net income(3) and reported diluted EPS(3), are provided in the materials accompanying this report. The adjusted income and its components and adjusted diluted EPS measures are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.

     

     

     

     

     

    (3)

     

     

     

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

     

     

     

     

     

    (4)

     

     

     

    On August 1, 2011, Pfizer completed the sale of Capsugel to an affiliate of Kohlberg Kravis Roberts & Co. L.P.  The operating results associated with Capsugel and the gain on the sale of Capsugel are reported as Discontinued operations – net of tax in the consolidated statements of income for the three and nine months ended October 2, 2011.  Additionally, due to the acquisition of King Pharmaceuticals, Inc. (King), legacy King operations are reflected in the results beginning January 31, 2011.  Therefore, in accordance with Pfizer's domestic and international reporting periods, the operating results for the first nine months of 2011 reflect approximately eight months of King's U.S. operations and approximately seven months of King's international operations.

     

     

     

     

     

    (5)

     

     

     

    For a description of each business unit, see Note 13A to Pfizer's condensed consolidated financial statements included in Pfizer's Form 10-Q for the fiscal quarter ended July 1, 2012.

     

     

     

     

     

    (6)

     

     

     

    Other includes revenues generated primarily from Pfizer CentreSource, Pfizer's contract manufacturing and bulk pharmaceutical chemical sales organization.

     

     

     

     

     

    (7)

     

     

     

    The 2012 financial guidance includes the revenues and expenses related to the Nutrition business, which is reflected as a discontinued operation, but does not include the gain on the pending sale of the Nutrition business. Does not assume the completion of any business-development transactions not completed as of September 30, 2012, including any one-time upfront payments associated with such transactions. Also excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of September 30, 2012, except for charges for such matters that have been recorded during the first nine months of 2012.

     

     

     

     

     

    (8)

     

     

     

    The current exchange rates assumed in connection with the 2012 financial guidance are a blend of the actual exchange rates in effect during the first nine months of 2012 and the mid-October 2012 exchange rates for the remainder of the year.

     

    PFIZER INC. AND SUBSIDIARY COMPANIES

    CONSOLIDATED STATEMENTS OF INCOME(a)

    (UNAUDITED)

    (millions, except per common share data)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Third Quarter

     

    % Incr. /

     

    Nine Months

     

    % Incr. /

     

     

    2012

     

    2011

     

    (Decr.)

     

    2012

     

    2011

     

    (Decr.)

    Revenues

     

    $

    13,976

     

     

    $

    16,609

     

    (16)

     

    $

    43,918

     

    $

    49,118

     

    (11)

    Costs and expenses:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Cost of sales(b)

     

     

    2,665

     

     

     

    3,409

     

    (22)

     

     

    8,162

     

     

    10,449

     

    (22)

    Selling, informational and administrative expenses(b)

     

     

    3,847

     

     

     

    4,457

     

    (14)

     

     

    11,801

     

     

    13,635

     

    (13)

    Research and development expenses(b)

     

     

    1,981

     

     

     

    2,176

     

    (9)

     

     

    5,734

     

     

    6,487

     

    (12)

    Amortization of intangible assets(c)

     

     

    1,228

     

     

     

    1,389

     

    (12)

     

     

    3,939

     

     

    4,138

     

    (5)

    Restructuring charges and certain acquisition-related costs

     

     

    302

     

     

     

    1,090

     

    (72)

     

     

    1,089

     

     

    2,458

     

    (56)

    Other deductions--net

     

     

    962

     

     

     

    547

     

    76

     

     

    3,283

     

     

    1,802

     

    82

    Income from continuing operations before provision/(benefit) for taxes on income

     

     

    2,991

     

     

     

    3,541

     

    (16)

     

     

    9,910

     

     

    10,149

     

    (2)

    Provision/(benefit) for taxes on income

     

     

    (119

    )

     

     

    1,216

     

    (110)

     

     

    1,882

     

     

    3,167

     

    (41)

    Income from continuing operations

     

     

    3,110

     

     

     

    2,325

     

    34

     

     

    8,028

     

     

    6,982

     

    15

    Discontinued operations:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Income from discontinued operations--net of tax

     

     

    104

     

     

     

    96

     

    8

     

     

    249

     

     

    303

     

    (18)

    Gain on sale of discontinued operations--net of tax

     

     

    -

     

     

     

    1,328

     

    (100)

     

     

    -

     

     

    1,316

     

    (100)

    Discontinued operations--net of tax

     

     

    104

     

     

     

    1,424

     

    (93)

     

     

    249

     

     

    1,619

     

    (85)

    Net income before allocation to noncontrolling interests

     

     

    3,214

     

     

     

    3,749

     

    (14)

     

     

    8,277

     

     

    8,601

     

    (4)

    Less: Net income attributable to noncontrolling interests

     

     

    6

     

     

     

    11

     

    (45)

     

     

    22

     

     

    31

     

    (29)

    Net income attributable to Pfizer Inc.

     

    $

    3,208

     

     

    $

    3,738

     

    (14)

     

    $

    8,255

     

    $

    8,570

     

    (4)

    Earnings per common share--basic:(d)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Income from continuing operations attributable to Pfizer Inc. common shareholders

     

    $

    0.42

     

     

    $

    0.30

     

    40

     

    $

    1.07

     

    $

    0.88

     

    22

    Discontinued operations--net of tax

     

     

    0.01

     

     

     

    0.18

     

    (94)

     

     

    0.03

     

     

    0.21

     

    (86)

    Net income attributable to Pfizer Inc. common shareholders

     

    $

    0.43

     

     

    $

    0.48

     

    (10)

     

    $

    1.10

     

    $

    1.09

     

    1

    Earnings per common share--diluted:(d)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Income from continuing operations attributable to Pfizer Inc. common shareholders

     

    $

    0.41

     

     

    $

    0.30

     

    37

     

    $

    1.06

     

    $

    0.88

     

    20

    Discontinued operations--net of tax

     

     

    0.01

     

     

     

    0.18

     

    (94)

     

     

    0.03

     

     

    0.20

     

    (85)

    Net income attributable to Pfizer Inc. common shareholders

     

    $

    0.43

     

     

    $

    0.48

     

    (10)

     

    $

    1.09

     

    $

    1.08

     

    1

    Weighted-average shares used to calculate earnings per common share:

     

     

     

     

     

     

     

     

     

     

     

     

     

    Basic

     

     

    7,436

     

     

     

    7,770

     

     

     

     

    7,483

     

     

    7,877

     

     

    Diluted

     

     

    7,508

     

     

     

    7,810

     

     

     

     

    7,550

     

     

    7,925

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (a)

     

    The above financial statements present the three and nine months ended September 30, 2012 and October 2, 2011. Subsidiaries operating outside the United States are included for the three and nine months ended August 26, 2012 and August 28, 2011.

     

     

     

     

     

    Beginning in the second quarter of 2012, as a result of our decision to sell the Nutrition business, we report the operating results of the Nutrition business as Discontinued operations: Income from discontinued operations--net of tax for all periods presented.

     

     

     

     

     

    On August 1, 2011, we completed the sale of our Capsugel business and recognized a gain on the sale in Discontinued operations: Gain on sale of discontinued operations--net of tax for the three and nine months ended October 2, 2011. The operating results of this business are reported as Discontinued operations: Income from discontinued operations--net of tax for the three and nine months ended October 2, 2011.

     

     

     

     

     

     

     

    On January 31, 2011, we completed a tender offer for the outstanding shares of common stock of King Pharmaceuticals, Inc. (King) and, commencing from that date, our financial statements include the assets, liabilities, operating results and cash flows of King. As a result, and in accordance with our domestic and international reporting periods, our operating results for the nine months ended October 2, 2011 reflect approximately eight months of King's U.S. operations and approximately seven months of King's international operations.

     

     

     

     

     

    Certain amounts and percentages may reflect rounding adjustments.

     

     

     

     

     

    See Supplemental Information that accompanies these materials for additional details.

     

     

     

     

     

    The financial results for the three and nine months ended September 30, 2012 are not necessarily indicative of the results which could ultimately be achieved for the full year.

     

     

     

    (b)

     

    Exclusive of amortization of intangible assets, except as discussed in footnote (c) below.

     

     

     

    (c)

     

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

     

     

     

    (d)

     

    EPS amounts may not add due to rounding.

     

     

     

     

    PFIZER INC. AND SUBSIDIARY COMPANIES

    RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

    CERTAIN LINE ITEMS

    (UNAUDITED)

    (millions of dollars, except per common share data)

     

     

     

     

     

    Quarter Ended September 30, 2012

     

    Purchase
    Accounting
    Adjustments
     

     

    Acquisition-
    Related
    Costs(2)
     

     

    Certain
    Significant
    Items(3)
     

     

    Non-GAAP
    Adjusted(a)

     

    GAAP
    Reported(1)

     

     

    Discontinued
    Operations

     

     

     

     

    Revenues

     

    $

    13,976

     

     

    $

    -

     

    $

    -

     

     

    $

    -

     

     

    $

    -

     

     

    $

    13,976

    Cost of sales(b)

     

     

    2,665

     

     

     

    2

     

     

    (78

    )

     

     

    -

     

     

     

    (24

    )

     

     

    2,565

    Selling, informational and administrative expenses(b)

     

     

    3,847

     

     

     

    (2

    )

     

    (3

    )

     

     

    -

     

     

     

    (113

    )

     

     

    3,729

    Research and development expenses(b)

     

     

    1,981

     

     

     

    1

     

     

    -

     

     

     

    -

     

     

     

    (47

    )

     

     

    1,935

    Amortization of intangible assets(c)

     

     

    1,228

     

     

     

    (1,186

    )

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    42

    Restructuring charges and certain acquisition-related costs

     

     

    302

     

     

     

    -

     

     

    (149

    )

     

     

    -

     

     

     

    (153

    )

     

     

    -

    Other deductions--net

     

     

    962

     

     

     

    45

     

     

    -

     

     

     

    -

     

     

     

    (821

    )

     

     

    186

    Income from continuing operations before provision/(benefit) for taxes on income

     

     

    2,991

     

     

     

    1,140

     

     

    230

     

     

     

    -

     

     

     

    1,158

     

     

     

    5,519

    Provision/(benefit) for taxes on income

     

     

    (119

    )

     

     

    327

     

     

    40

     

     

     

    -

     

     

     

    1,316

     

     

     

    1,564

    Income from continuing operations

     

     

    3,110

     

     

     

    813

     

     

    190

     

     

     

    -

     

     

     

    (158

    )

     

     

    3,955

    Discontinued operations--net of tax

     

     

    104

     

     

     

    -

     

     

    -

     

     

     

    (104

    )

     

     

    -

     

     

     

    -

    Net income attributable to noncontrolling interests

     

     

    6

     

     

     

    -

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    6

    Net income attributable to Pfizer Inc.

     

     

    3,208

     

     

     

    813

     

     

    190

     

     

     

    (104

    )

     

     

    (158

    )

     

     

    3,949

    Earnings per common share attributable to Pfizer Inc.--diluted(d)

     

     

    0.43

     

     

     

    0.11

     

     

    0.03

     

     

     

    (0.01

    )

     

     

    (0.02

    )

     

     

    0.53

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Nine Months Ended September 30, 2012

     

     

     

     

     

     

    Purchase

     

    Acquisition-

     

     

     

     

     

     

    Certain

     

     

     

     

     

     

     

    GAAP

     

     

    Accounting

     

    Related

     

     

    Discontinued

     

     

    Significant

     

     

     

    Non-GAAP

     

     

     

    Reported(1)

     

     

    Adjustments

     

    Costs(2)

     

     

    Operations

     

     

    Items(3)

     

     

     

    Adjusted(a)

    Revenues

     

    $

    43,918

     

     

    $

    -

     

    $

    -

     

     

    $

    -

     

     

    $

    -

     

     

    $

    43,918

    Cost of sales(b)

     

     

    8,162

     

     

     

    (9

    )

     

    (214

    )

     

     

    -

     

     

     

    (51

    )

     

     

    7,888

    Selling, informational and administrative expenses(b)

     

     

    11,801

     

     

     

    4

     

     

    (8

    )

     

     

    -

     

     

     

    (174

    )

     

     

    11,623

    Research and development expenses(b)

     

     

    5,734

     

     

     

    3

     

     

    (5

    )

     

     

    -

     

     

     

    (386

    )

     

     

    5,346

    Amortization of intangible assets(c)

     

     

    3,939

     

     

     

    (3,763

    )

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    176

    Restructuring charges and certain acquisition-related costs

     

     

    1,089

     

     

     

    -

     

     

    (423

    )

     

     

    -

     

     

     

    (666

    )

     

     

    -

    Other deductions--net

     

     

    3,283

     

     

     

    15

     

     

    -

     

     

     

    -

     

     

     

    (2,644

    )

     

     

    654

    Income from continuing operations before provision/(benefit) for taxes on income

     

     

    9,910

     

     

     

    3,750

     

     

    650

     

     

     

    -

     

     

     

    3,921

     

     

     

    18,231

    Provision/(benefit) for taxes on income

     

     

    1,882

     

     

     

    1,025

     

     

    161

     

     

     

    -

     

     

     

    2,177

     

     

     

    5,245

    Income from continuing operations

     

     

    8,028

     

     

     

    2,725

     

     

    489

     

     

     

    -

     

     

     

    1,744

     

     

     

    12,986

    Discontinued operations--net of tax

     

     

    249

     

     

     

    -

     

     

    -

     

     

     

    (249

    )

     

     

    -

     

     

     

    -

    Net income attributable to noncontrolling interests

     

     

    22

     

     

     

    -

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    22

    Net income attributable to Pfizer Inc.

     

     

    8,255

     

     

     

    2,725

     

     

    489

     

     

     

    (249

    )

     

     

    1,744

     

     

     

    12,964

    Earnings per common share attributable to Pfizer Inc.--diluted(d)

     

     

    1.09

     

     

     

    0.36

     

     

    0.06

     

     

     

    (0.03

    )

     

     

    0.23

     

     

     

    1.72

     

     

    (a)

     

    Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, we stress that Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.

     

     

     

    (b)

     

    Exclusive of amortization of intangible assets, except as discussed in footnote (c) below.

     

     

     

    (c)

     

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

     

     

     

    (d)

     

    EPS amounts may not add due to rounding.

     

     

     

    See end of tables for notes (1), (2) and (3).

     

     

     

    Certain amounts may reflect rounding adjustments.

     

     

    PFIZER INC. AND SUBSIDIARY COMPANIES

    RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

    CERTAIN LINE ITEMS

    (UNAUDITED)

    (millions of dollars, except per common share data)

     

     

     

     

    Quarter Ended October 2, 2011

     

     

     

     

     

     

    Purchase

     

     

    Acquisition-

     

     

     

     

     

    Certain

     

     

     

     

     

     

    GAAP

     

     

    Accounting

     

     

    Related

     

     

    Discontinued

     

     

    Significant

     

     

    Non-GAAP

     

     

     

    Reported(1)

     

     

    Adjustments

     

     

    Costs(2)

     

     

    Operations

     

     

    Items(3)

     

     

    Adjusted(a)

    Revenues

     

    $

    16,609

     

    $

    -

     

     

    $

    -

     

     

    $

    -

     

     

    $

    -

     

     

    $

    16,609

    Cost of sales(b)

     

     

    3,409

     

     

    (286

    )

     

     

    (68

    )

     

     

    -

     

     

     

    2

     

     

     

    3,057

    Selling, informational and administrative expenses(b)

     

     

    4,457

     

     

    (9

    )

     

     

    (18

    )

     

     

    -

     

     

     

    (33

    )

     

     

    4,397

    Research and development expenses(b)

     

     

    2,176

     

     

    3

     

     

     

    (6

    )

     

     

    -

     

     

     

    (150

    )

     

     

    2,023

    Amortization of intangible assets(c)

     

     

    1,389

     

     

    (1,352

    )

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    37

    Restructuring charges and certain acquisition-related costs

     

     

    1,090

     

     

    -

     

     

     

    (202

    )

     

     

    -

     

     

     

    (888

    )

     

     

    -

    Other deductions--net

     

     

    547

     

     

    (53

    )

     

     

    -

     

     

     

    -

     

     

     

    (240

    )

     

     

    254

    Income from continuing operations before provision/(benefit) for taxes on income

     

     

    3,541

     

     

    1,697

     

     

     

    294

     

     

     

    -

     

     

     

    1,309

     

     

     

    6,841

    Provision/(benefit) for taxes on income

     

     

    1,216

     

     

    445

     

     

     

    54

     

     

     

    -

     

     

     

    419

     

     

     

    2,134

    Income from continuing operations

     

     

    2,325

     

     

    1,252

     

     

     

    240

     

     

     

    -

     

     

     

    890

     

     

     

    4,707

    Discontinued operations--net of tax(d)

     

     

    1,424

     

     

    -

     

     

     

    -

     

     

     

    (1,424

    )

     

     

    -

     

     

     

    -

    Net income attributable to noncontrolling interests

     

     

    11

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    11

    Net income attributable to Pfizer Inc.

     

     

    3,738

     

     

    1,252

     

     

     

    240

     

     

     

    (1,424

    )

     

     

    890

     

     

     

    4,696

    Earnings per common share attributable to Pfizer Inc.--diluted(e)

     

     

    0.48

     

     

    0.16

     

     

     

    0.03

     

     

     

    (0.18

    )

     

     

    0.11

     

     

     

    0.60

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Nine Months Ended October 2, 2011

     

     

     

     

     

     

    Purchase
    Accounting
    Adjustments
     

     

     

    Acquisition-
    Related
    Costs(2)
     

     

     

     

     

     

    Certain
    Significant
    Items(3)
     

     

     

     

     

     

     

    GAAP
    Reported(1)

     

     

     

     

     

     

    Discontinued
    Operations

     

     

     

     

    Non-GAAP
    Adjusted(a)

     

     

     

     

     

     

     

     

     

     

     

     

     

    Revenues

     

    $

    49,118

     

    $

    -

     

     

    $

    -

     

     

    $

    -

     

     

    $

    -

     

     

    $

    49,118

    Cost of sales(b)

     

     

    10,449

     

     

    (1,081

    )

     

     

    (410

    )

     

     

    -

     

     

     

    (7

    )

     

     

    8,951

    Selling, informational and administrative expenses(b)

     

     

    13,635

     

     

    (6

    )

     

     

    (41

    )

     

     

    -

     

     

     

    (39

    )

     

     

    13,549

    Research and development expenses(b)

     

     

    6,487

     

     

    -

     

     

     

    (9

    )

     

     

    -

     

     

     

    (398

    )

     

     

    6,080

    Amortization of intangible assets(c)

     

     

    4,138

     

     

    (4,039

    )

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    99

    Restructuring charges and certain acquisition-related costs

     

     

    2,458

     

     

    -

     

     

     

    (996

    )

     

     

    -

     

     

     

    (1,462

    )

     

     

    -

    Other deductions--net

     

     

    1,802

     

     

    (71

    )

     

     

    -

     

     

     

    -

     

     

     

    (1,269

    )

     

     

    462

    Income from continuing operations before provision/(benefit) for taxes on income

     

     

    10,149

     

     

    5,197

     

     

     

    1,456

     

     

     

    -

     

     

     

    3,175

     

     

     

    19,977

    Provision/(benefit) for taxes on income

     

     

    3,167

     

     

    1,345

     

     

     

    320

     

     

     

    -

     

     

     

    1,059

     

     

     

    5,891

    Income from continuing operations

     

     

    6,982

     

     

    3,852

     

     

     

    1,136

     

     

     

    -

     

     

     

    2,116

     

     

     

    14,086

    Discontinued operations--net of tax(d)

     

     

    1,619

     

     

    -

     

     

     

    -

     

     

     

    (1,619

    )

     

     

    -

     

     

     

    -

    Net income attributable to noncontrolling interests

     

     

    31

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    -

     

     

     

    31

    Net income attributable to Pfizer Inc.

     

     

    8,570

     

     

    3,852

     

     

     

    1,136

     

     

     

    (1,619

    )

     

     

    2,116

     

     

     

    14,055

    Earnings per common share attributable to Pfizer Inc.--diluted(e)

     

     

    1.08

     

     

    0.49

     

     

     

    0.14

     

     

     

    (0.20

    )

     

     

    0.27

     

     

     

    1.77

     

    (a)

     

    Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, we stress that Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.

     

     

     

    (b)

     

    Exclusive of amortization of intangible assets, except as discussed in footnote (c) below.

     

     

     

    (c)

     

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

     

     

     

     

     

     

     

     

     

    (d)

     

    On August 1, 2011, we completed the sale of our Capsugel business. The gain recognized related to the sale of this business, as well as the operating results of this business, are included in GAAP Reported Discontinued operations—net of tax.

     

     

     

    (e)

     

    EPS amounts may not add due to rounding.

     

     

     

    See end of tables for notes (1), (2) and (3).

     

     

     

    Certain amounts may reflect rounding adjustments.

     

     

    PFIZER INC. AND SUBSIDIARY COMPANIES

    NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION

    CERTAIN LINE ITEMS*

    (UNAUDITED)

     

     

     

    1)

     

    The financial statements present the three and nine months ended September 30, 2012 and October 2, 2011. Subsidiaries operating outside the United States are included for the three and nine months ended August 26, 2012 and August 28, 2011.

     

     

     

     

     

    Beginning in the second quarter of 2012, as a result of our decision to sell the Nutrition business, we report the operating results of the Nutrition business as Discontinued operations: Income from discontinued operations--net of tax for all periods presented.

     

     

     

     

     

    On August 1, 2011, we completed the sale of our Capsugel business and recognized a gain on the sale in Discontinued operations: Gain on sale of discontinued operations--net of tax for the three and nine months ended October 2, 2011. The operating results of this business are reported as Discontinued operations: Income from discontinued operations--net of tax for the three and nine months ended October 2, 2011.

     

     

     

     

     

     

     

    On January 31, 2011, we completed a tender offer for the outstanding shares of common stock of King Pharmaceuticals, Inc. (King) and, commencing from that date, our financial statements include the assets, liabilities, operating results and cash flows of King. As a result, and in accordance with our domestic and international reporting periods, our operating results for the nine months ended October 2, 2011 reflect approximately eight months of King's U.S. operations and approximately seven months of King's international operations.

     

     

     

    2)

     

    Acquisition-related costs include the following:

     

     

     

     

    Third Quarter

     

    Nine Months

     

     

    (millions of dollars)

     

    2012

     

    2011

     

    2012

     

    2011

     

     

     

    Transaction costs(a)

     

    $

    -

     

     

    $

    5

     

     

    $

    1

     

     

    $

    28

     

     

     

    Integration costs(a)

     

     

    87

     

     

     

    184

     

     

     

    295

     

     

     

    562

     

     

     

    Restructuring charges(a)

     

     

    62

     

     

     

    13

     

     

     

    127

     

     

     

    406

     

     

     

    Additional depreciation--asset restructuring(b)

     

     

    81

     

     

     

    92

     

     

     

    227

     

     

     

    460

     

     

     

    Total acquisition-related costs--pre-tax

     

     

    230

     

     

     

    294

     

     

     

    650

     

     

     

    1,456

     

     

     

    Income taxes(c)

     

     

    (40

    )

     

     

    (54

    )

     

     

    (161

    )

     

     

    (320

    )

     

     

    Total acquisition-related costs--net of tax

     

    $

    190

     

     

    $

    240

     

     

    $

    489

     

     

    $

    1,136

     

     

     

    (a)

     

    Transaction costs represent external costs directly related to acquired businesses and primarily include expenditures for banking, legal, accounting and other similar services. Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. Restructuring charges include employee termination costs, asset impairments and other exit costs associated with business combinations. The sum of these costs and charges is included in Restructuring charges and certain acquisition-related costs.

     

     

     

     

     

    (b)

     

    Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions related to acquisitions. Included in Cost of sales ($78 million) and Selling, informational and administrative expenses ($3 million) for the three months ended September 30, 2012. Included in Cost of sales ($214 million), Selling, informational and administrative expenses ($8 million) and Research and development expenses ($5 million) for the nine months ended September 30, 2012. Included in Cost of sales ($68 million), Selling, informational and administrative expenses ($18 million) and Research and development expenses ($6 million) for the three months ended October 2, 2011. Included in Cost of sales ($410 million), Selling, informational and administrative expenses ($41 million) and Research and development expenses ($9 million) for the nine months ended October 2, 2011.

     

     

     

     

     

     

     

     

    (c)

     

    Included in Provision/(benefit) for taxes on income.

     

     

     

     

     

     

     

     

     

     

     

    3

    )

     

    Certain significant items include the following:

     

     

     

     

     

    Third Quarter

     

    Nine Months

     

     

     

    (millions of dollars)

     

    2012

     

    2011

     

    2012

     

    2011

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    Restructuring charges(a)

     

    $

    153

     

     

    $

    888

     

     

    $

    666

     

     

    $

    1,462

     

     

     

     

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

     

     

    111

     

     

     

    183

     

     

     

    486

     

     

     

    437

     

     

     

     

    Certain legal matters(c)

     

     

    725

     

     

     

    132

     

     

     

    1,983

     

     

     

    657

     

     

     

     

    Certain asset impairment charges(d)

     

     

    54

     

     

     

    106

     

     

     

    543

     

     

     

    595

     

     

     

     

    Costs associated with the potential separation of the Animal Health business(e)

     

     

    100

     

     

     

    8

     

     

     

    191

     

     

     

    8

     

     

     

     

    Other

     

     

    15

     

     

     

    (8

    )

     

     

    52

     

     

     

    16

     

     

     

     

    Total certain significant items--pre-tax

     

     

    1,158

     

     

     

    1,309

     

     

     

    3,921

     

     

     

    3,175

     

     

     

     

    Income taxes(f)

     

     

    (1,316

    )

     

     

    (419

    )

     

     

    (2,177

    )

     

     

    (1,059

    )

     

     

     

    Total certain significant items--net of tax

     

    $

    (158

    )

     

    $

    890

     

     

    $

    1,744

     

     

    $

    2,116

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (a)

     

    Included in Restructuring charges and certain acquisition-related costs, primarily related to our cost-reduction and productivity initiatives.

     

     

     

     

     

    (b)

     

    Primarily related to our cost-reduction and productivity initiatives. Included in Cost of Sales ($19 million), Selling, informational and administrative expenses ($45 million) and Research and development expenses ($47 million) for the three months ended September 30, 2012. Included in Cost of Sales ($23 million), Selling, informational and administrative expenses ($77 million) and Research and development expenses ($386 million) for the nine months ended September 30, 2012. Included in Selling, informational and administrative expenses ($33 million) and Research and development expenses ($150 million) for the three months ended October 2, 2011. Included in Selling, informational and administrative expenses ($39 million) and Research and development expenses ($398 million) for the nine months ended October 2, 2011.

     

     

     

     

     

    (c)

     

    Included in Other deductions--net. In the third quarter of 2012, primarily includes a $491 million charge resulting from an agreement-in-principle with the U.S. Department of Justice to resolve an investigation into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation. In 2011, primarily includes charges for hormone-replacement therapy litigation.

     

     

     

     

     

    (d)

     

    Primarily included in Other deductions--net. In the first nine months of 2012, primarily includes certain intangible assets acquired in connection with our acquisitions of Wyeth and King, including in-process research and development (IPR&D) intangible assets. In the third quarter and first nine months of 2011, primarily includes certain intangible assets acquired in connection with our acquisition of Wyeth, including IPR&D intangible assets.

     

     

     

     

     

    (e)

     

    Costs incurred in connection with the potential initial public offering of a minority stake in our Animal Health business, Zoetis, Inc. Includes expenditures for banking, legal, accounting and similar services related to the potential transaction, as well as costs incurred associated with the potential separation of Animal Health employees, net assets and activities from Pfizer, such as consulting and systems costs. Included in Selling, informational and administrative expenses ($68 million) and Other deductions--net ($32 million) for the three months ended September 30, 2012. Included in Selling, informational and administrative expenses ($98 million) and Other deductions--net ($93 million) for the nine months ended September 30, 2012. Included in Selling, informational and administrative expenses for the three and nine months ended October 2, 2011.

     

     

     

     

     

    (f)

     

    Included in Provision/(benefit) for taxes on income. Includes a settlement with the U.S. IRS related to audits for multiple tax years that favorably impacted GAAP Reported net income by $1.1 billion, representing tax and interest, for the three and nine months ended September 30, 2012.

     

     

     

     

    *

     

    Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, we stress that Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.

     

    PFIZER INC.

    BUSINESS REVENUES(1)

    FIRST NINE MONTHS OF 2012 AND 2011

    (UNAUDITED)

    (millions of dollars)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2012

     

    2011

     

    Change

     

    Foreign
    Exchange

     

    Operational

    Primary Care

     

    $

    11,725

     

    $

    17,259

     

    (32

    %)

     

    (1

    %)

     

    (31

    %)

    Specialty Care

     

     

    10,483

     

     

    11,425

     

    (8

    %)

     

    (2

    %)

     

    (6

    %)

    Established Products

     

     

    7,865

     

     

    6,914

     

    14

    %

     

    (2

    %)

     

    16

    %

    Emerging Markets

     

     

    7,308

     

     

    7,031

     

    4

    %

     

    (6

    %)

     

    10

    %

    Oncology

     

     

    940

     

     

    982

     

    (4

    %)

     

    (3

    %)

     

    (1

    %)

    Biopharmaceutical

     

     

    38,321

     

     

    43,611

     

    (12

    %)

     

    (2

    %)

     

    (10

    %)

     

     

     

     

     

     

     

     

     

     

     

    Animal Health

     

     

    3,128

     

     

    3,078

     

    2

    %

     

    (4

    %)

     

    6

    %

    Consumer Healthcare

     

     

    2,276

     

     

    2,218

     

    3

    %

     

    (2

    %)

     

    5

    %

    Other

     

     

    193

     

     

    211

     

    (9

    %)

     

    (1

    %)

     

    (8

    %)

     

     

     

     

     

     

     

     

     

     

     

    Total

     

    $

    43,918

     

    $

    49,118

     

    (11

    %)

     

    (2

    %)

     

    (9

    %)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    (1)

     

    For a description of each business unit, see Note 13A to Pfizer's condensed consolidated financial statements included in Pfizer's Form 10-Q for the fiscal quarter ended July 1, 2012.

     

    PFIZER INC.

    ADJUSTED SELECTED COSTS AND EXPENSES(1)

    FIRST NINE MONTHS OF 2012 AND 2011

    (UNAUDITED)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    ($ in millions)
    (Favorable)/Unfavorable

     

    2012

     

    2011

     

    % Change

     

    Foreign
    Exchange

     

    Operational

     

     

     

     

     

     

     

     

     

     

     

    Adjusted Cost of Sales(1)

     

    $

    7,888

     

    $

    8,951

     

    (12%)

     

    (8%)

     

    (4%)

    As a Percent of Revenues

     

     

    18.0%

     

     

    18.2%

     

    N/A

     

    N/A

     

    N/A

    Adjusted SI&A Expenses(1)

     

     

    11,623

     

     

    13,549

     

    (14%)

     

    (2%)

     

    (12%)

    Adjusted R&D Expenses(1)

     

     

    5,346

     

     

    6,080

     

    (12%)

     

    (1%)

     

    (11%)

     

     

     

     

     

     

     

     

     

     

     

    Total

     

    $

    24,857

     

    $

    28,580

     

    (13%)

     

    (4%)

     

    (9%)

     

     

     

     

     

     

     

     

     

     

     

    (1) Adjusted cost of sales, Adjusted selling, informational and administrative (SI&A) expenses and Adjusted research and development (R&D) expenses are defined as the corresponding reported U.S. generally accepted accounting principles (GAAP) income statement line items excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. Reconciliations of certain GAAP reported to non-GAAP adjusted information for the third quarter and first nine months of 2012 and 2011 are provided in the materials accompanying this report. These adjusted income statement line item measures are not, and should not be viewed as, substitutes for the corresponding U.S. GAAP line items.

     

     

    PFIZER INC.

    REVENUES

    THIRD QUARTER 2012 and 2011

    (UNAUDITED)

    (millions of dollars)

     

     

     

     

     

     

     

     

     

     

     

     

     

    WORLDWIDE

     

     

     

     

     

    UNITED STATES

     

    TOTAL INTERNATIONAL(a)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2012

     

    2011

     

    % Change

     

    2012

     

    2011

     

    % Change

     

    2012

     

    2011

     

    % Change

     

     

     

     

     

     

    Total

     

    Oper.

     

     

     

     

     

    Total

     

     

     

     

     

    Total

     

    Oper.

    TOTAL REVENUES

     

    $13,976

     

    $16,609

     

    (16%)

     

    (12%)

     

    $5,627

     

    $6,879

     

    (18%)

     

    $8,349

     

    $9,730

     

    (14%)

     

    (7%)

    REVENUES FROM BIOPHARMACEUTICAL PRODUCTS:

     

    $12,117

     

    $14,747

     

    (18%)

     

    (14%)

     

    $4,769

     

    $6,019

     

    (21%)

     

    $7,348

     

    $8,728

     

    (16%)

     

    (9%)

    Lipitor(b)

     

    749

     

    2,602

     

    (71%)

     

    (70%)

     

    192

     

    1,470

     

    (87%)

     

    557

     

    1,132

     

    (51%)

     

    (48%)

    Lyrica

     

    1,036

     

    961

     

    8%

     

    14%

     

    430

     

    379

     

    13%

     

    606

     

    582

     

    4%

     

    14%

    Enbrel (Outside the U.S. and Canada)

     

    893

     

    957

     

    (7%)

     

    4%

     

    -

     

    -

     

    -

     

    893

     

    957

     

    (7%)

     

    4%

    Prevnar 13/Prevenar 13

     

    868

     

    1,006

     

    (14%)

     

    (12%)

     

    440

     

    454

     

    (3%)

     

    428

     

    552

     

    (22%)

     

    (19%)

    Celebrex

     

    676

     

    643

     

    5%

     

    7%

     

    438

     

    405

     

    8%

     

    238

     

    238

     

    -

     

    6%

    Viagra

     

    517

     

    493

     

    5%

     

    9%

     

    287

     

    244

     

    18%

     

    230

     

    249

     

    (8%)

     

    -

    Norvasc

     

    319

     

    350

     

    (9%)

     

    (6%)

     

    13

     

    5

     

    160%

     

    306

     

    345

     

    (11%)

     

    (9%)

    Zyvox

     

    328

     

    321

     

    2%

     

    7%

     

    158

     

    154

     

    3%

     

    170

     

    167

     

    2%

     

    11%

    Sutent

     

    294

     

    298

     

    (1%)

     

    7%

     

    82

     

    78

     

    5%

     

    212

     

    220

     

    (4%)

     

    7%

    Premarin family

     

    262

     

    267

     

    (2%)

     

    (1%)

     

    237

     

    241

     

    (2%)

     

    25

     

    26

     

    (4%)

     

    3%

    Genotropin

     

    212

     

    215

     

    (1%)

     

    5%

     

    59

     

    46

     

    28%

     

    153

     

    169

     

    (9%)

     

    (2%)

    Xalatan/Xalacom

     

    181

     

    277

     

    (35%)

     

    (29%)

     

    9

     

    9

     

    -

     

    172

     

    268

     

    (36%)

     

    (31%)

    BeneFIX

     

    201

     

    178

     

    13%

     

    18%

     

    96

     

    76

     

    26%

     

    105

     

    102

     

    3%

     

    12%

    Detrol/Detrol LA

     

    176

     

    213

     

    (17%)

     

    (15%)

     

    112

     

    136

     

    (18%)

     

    64

     

    77

     

    (17%)

     

    (10%)

    Vfend

     

    187

     

    171

     

    9%

     

    17%

     

    21

     

    -

     

    100%

     

    166

     

    171

     

    (3%)

     

    3%

    Chantix/Champix

     

    146

     

    156

     

    (6%)

     

    (3%)

     

    62

     

    68

     

    (9%)

     

    84

     

    88

     

    (5%)

     

    1%

    Pristiq

     

    152

     

    146

     

    4%

     

    6%

     

    120

     

    119

     

    1%

     

    32

     

    27

     

    19%

     

    32%

    Refacto AF/Xyntha

     

    150

     

    140

     

    7%

     

    17%

     

    28

     

    32

     

    (13%)

     

    122

     

    108

     

    13%

     

    25%

    Revatio

     

    135

     

    140

     

    (4%)

     

    1%

     

    78

     

    80

     

    (3%)

     

    57

     

    60

     

    (5%)

     

    6%

    Zoloft

     

    129

     

    139

     

    (7%)

     

    (3%)

     

    17

     

    15

     

    13%

     

    112

     

    124

     

    (10%)

     

    (5%)

    Medrol

     

    113

     

    127

     

    (11%)

     

    (7%)

     

    24

     

    33

     

    (27%)

     

    89

     

    94

     

    (5%)

     

    1%

    Zosyn/Tazocin

     

    109

     

    149

     

    (27%)

     

    (24%)

     

    39

     

    75

     

    (48%)

     

    70

     

    74

     

    (5%)

     

    1%

    Effexor

     

    107

     

    165

     

    (35%)

     

    (31%)

     

    37

     

    52

     

    (29%)

     

    70

     

    113

     

    (38%)

     

    (31%)

    Geodon/Zeldox

     

    57

     

    263

     

    (78%)

     

    (76%)

     

    26

     

    217

     

    (88%)

     

    31

     

    46

     

    (33%)

     

    (21%)

    Zithromax/Zmax

     

    89

     

    93

     

    (4%)

     

    (1%)

     

    3

     

    4

     

    (25%)

     

    86

     

    89

     

    (3%)

     

    1%

    Prevnar/Prevenar (7-valent)

     

    81

     

    98

     

    (17%)

     

    10%

     

    -

     

    -

     

    -

     

    81

     

    98

     

    (17%)

     

    10%

    Fragmin

     

    91

     

    95

     

    (4%)

     

    4%

     

    11

     

    9

     

    22%

     

    80

     

    86

     

    (7%)

     

    3%

    Relpax

     

    92

     

    86

     

    7%

     

    11%

     

    56

     

    47

     

    19%

     

    36

     

    39

     

    (8%)

     

    2%

    Rapamune

     

    92

     

    96

     

    (4%)

     

    1%

     

    49

     

    47

     

    4%

     

    43

     

    49

     

    (12%)

     

    (2%)

    Cardura

     

    79

     

    92

     

    (14%)

     

    (9%)

     

    2

     

    1

     

    100%

     

    77

     

    91

     

    (15%)

     

    (9%)

    Aricept(c)

     

    71

     

    117

     

    (39%)

     

    (34%)

     

    -

     

    -

     

    -

     

    71

     

    117

     

    (39%)

     

    (34%)

    Tygacil

     

    82

     

    76

     

    8%

     

    15%

     

    37

     

    38

     

    (3%)

     

    45

     

    38

     

    18%

     

    34%

    EpiPen

     

    67

     

    59

     

    14%

     

    14%

     

    52

     

    47

     

    11%

     

    15

     

    12

     

    25%

     

    23%

    Xanax XR

     

    66

     

    77

     

    (14%)

     

    (6%)

     

    13

     

    13

     

    -

     

    53

     

    64

     

    (17%)

     

    (7%)

    BMP2

     

    58

     

    83

     

    (30%)

     

    (30%)

     

    58

     

    77

     

    (25%)

     

    -

     

    6

     

    (100%)

     

    (100%)

    Caduet

     

    68

     

    150

     

    (55%)

     

    (53%)

     

    13

     

    80

     

    (84%)

     

    55

     

    70

     

    (21%)

     

    (16%)

    Sulperazon

     

    62

     

    51

     

    22%

     

    22%

     

    -

     

    -

     

    -

     

    62

     

    51

     

    22%

     

    22%

    Diflucan

     

    61

     

    72

     

    (15%)

     

    (9%)

     

    1

     

    -

     

    100%

     

    60

     

    72

     

    (17%)

     

    (11%)

    Dalacin/Cleocin

     

    74

     

    51

     

    45%

     

    50%

     

    40

     

    15

     

    167%

     

    34

     

    36

     

    (6%)

     

    (1%)

    Neurontin

     

    52

     

    67

     

    (22%)

     

    (18%)

     

    12

     

    14

     

    (14%)

     

    40

     

    53

     

    (25%)

     

    (17%)

    Unasyn

     

    54

     

    58

     

    (7%)

     

    (3%)

     

    -

     

    3

     

    (100%)

     

    54

     

    55

     

    (2%)

     

    1%

    Aromasin

     

    51

     

    85

     

    (40%)

     

    (36%)

     

    3

     

    8

     

    (63%)

     

    48

     

    77

     

    (38%)

     

    (34%)

    Arthrotec

     

    50

     

    61

     

    (18%)

     

    (15%)

     

    28

     

    32

     

    (13%)

     

    22

     

    29

     

    (24%)

     

    (19%)

    Inspra

     

    51

     

    51

     

    -

     

    12%

     

    1

     

    1

     

    -

     

    50

     

    50

     

    -

     

    13%

    Toviaz

     

    52

     

    49

     

    6%

     

    10%

     

    29

     

    26

     

    12%

     

    23

     

    23

     

    -

     

    8%

    Metaxalone/Skelaxin

     

    55

     

    57

     

    (4%)

     

    (5%)

     

    55

     

    57

     

    (4%)

     

    -

     

    -

     

    -

     

    -

    Methotrexate

     

    50

     

    51

     

    (2%)

     

    5%

     

    -

     

    -

     

    -

     

    50

     

    51

     

    (2%)

     

    5%

    Protonix

     

    50

     

    65

     

    (23%)

     

    (23%)

     

    50

     

    65

     

    (23%)

     

    -

     

    -

     

    -

     

    -

    Alliance Revenue(d)

     

    879

     

    919

     

    (4%)

     

    (3%)

     

    687

     

    571

     

    20%

     

    192

     

    348

     

    (45%)

     

    (42%)

    All other biopharmaceutical products

     

    1,643

     

    1,611

     

    2%

     

    8%

     

    564

     

    476

     

    18%

     

    1,079

     

    1,135

     

    (5%)

     

    3%

    All other established products(e)

     

    1,407

     

    1,406

     

    -

     

    6%

     

    453

     

    388

     

    17%

     

    954

     

    1,018

     

    (6%)

     

    2%

    REVENUES FROM OTHER PRODUCTS:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    ANIMAL HEALTH

     

    $1,017

     

    $1,041

     

    (2%)

     

    4%

     

    $451

     

    $433

     

    4%

     

    $566

     

    $608

     

    (7%)

     

    4%

    CONSUMER HEALTHCARE

     

    $780

     

    $767

     

    2%

     

    6%

     

    $388

     

    $408

     

    (5%)

     

    $392

     

    $359

     

    9%

     

    18%

    OTHER(f)

     

    $62

     

    $54

     

    15%

     

    19%

     

    $19

     

    $19

     

    -

     

    $43

     

    $35

     

    23%

     

    28%

    (a)

     

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

    (b)

     

    Lipitor lost exclusivity in the U.S. in November 2011 and various other markets in 2011 and 2012. This loss of exclusivity reduced branded worldwide revenues by $1.9 billion in the third quarter of 2012, in comparison with the third quarter of 2011.

    (c)

     

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

    (d)

     

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

    (e)

     

    Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.

    (f)

     

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

     

    Certain amounts and percentages may reflect rounding adjustments.

     

     

     

     

    PFIZER INC.

    REVENUES  

    DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION

    THIRD QUARTER 2012 and 2011

    (UNAUDITED)

    (millions of dollars)

     

     

     

     

     

     

     

     

     

    DEVELOPED EUROPE(a)

     

    DEVELOPED REST OF WORLD(b)

     

    EMERGING MARKETS(c)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2012

     

    2011

     

    % Change

     

    2012

     

    2011

     

    % Change

     

    2012

     

    2011

     

    % Change

     

     

     

     

     

     

    Total

     

    Oper.

     

     

     

     

     

    Total

     

    Oper.

     

     

     

     

     

    Total

     

    Oper.

    TOTAL INTERNATIONAL REVENUES

     

    $2,976

     

    $4,027

     

    (26%)

     

    (16%)

     

    $2,529

     

    $2,807

     

    (10%)

     

    (8%)

     

    $2,844

     

    $2,896

     

    (2%)

     

    7%

    REVENUES FROM BIOPHARMACEUTICAL PRODUCTS - INTERNATIONAL:

     

    $2,672

     

    $3,723

     

    (28%)

     

    (18%)

     

    $2,287

     

    $2,567

     

    (11%)

     

    (10%)

     

    $2,389

     

    $2,438

     

    (2%)

     

    6%

    Lipitor(d)

     

    130

     

    595

     

    (78%)

     

    (75%)

     

    207

     

    337

     

    (39%)

     

    (38%)

     

    220

     

    200

     

    10%

     

    14%

    Lyrica

     

    324

     

    326

     

    (1%)

     

    13%

     

    185

     

    162

     

    14%

     

    17%

     

    97

     

    94

     

    3%

     

    15%

    Enbrel (Outside Canada)

     

    555

     

    626

     

    (11%)

     

    1%

     

    148

     

    139

     

    6%

     

    8%

     

    190

     

    192

     

    (1%)

     

    12%

    Prevnar 13/ Prevenar 13

     

    161

     

    192

     

    (16%)

     

    (5%)

     

    63

     

    84

     

    (25%)

     

    (24%)

     

    204

     

    276

     

    (26%)

     

    (28%)

    Celebrex

     

    37

     

    46

     

    (20%)

     

    (9%)

     

    119

     

    112

     

    6%

     

    10%

     

    82

     

    80

     

    3%

     

    9%

    Viagra

     

    92

     

    102

     

    (10%)

     

    1%

     

    48

     

    57

     

    (16%)

     

    (14%)

     

    90

     

    90

     

    -

     

    7%

    Norvasc

     

    27

     

    38

     

    (29%)

     

    (14%)

     

    150

     

    187

     

    (20%)

     

    (20%)

     

    129

     

    120

     

    8%

     

    12%

    Zyvox

     

    73

     

    78

     

    (6%)

     

    5%

     

    37

     

    38

     

    (3%)

     

    -

     

    60

     

    51

     

    18%

     

    27%

    Sutent

     

    103

     

    119

     

    (13%)

     

    (2%)

     

    44

     

    42

     

    5%

     

    5%

     

    65

     

    59

     

    10%

     

    25%

    Premarin family

     

    2

     

    3

     

    (33%)

     

    -

     

    11

     

    7

     

    57%

     

    22%

     

    12

     

    16

     

    (25%)

     

    (7%)

    Genotropin

     

    71

     

    90

     

    (21%)

     

    (9%)

     

    56

     

    55

     

    2%

     

    2%

     

    26

     

    24

     

    8%

     

    16%

    Xalatan/Xalacom

     

    57

     

    126

     

    (55%)

     

    (49%)

     

    73

     

    94

     

    (22%)

     

    (21%)

     

    42

     

    48

     

    (13%)

     

    (2%)

    BeneFIX

     

    63

     

    69

     

    (9%)

     

    4%

     

    33

     

    25

     

    32%

     

    31%

     

    9

     

    8

     

    13%

     

    25%

    Detrol/Detrol LA

     

    29

     

    38

     

    (24%)

     

    (16%)

     

    24

     

    25

     

    (4%)

     

    4%

     

    11

     

    14

     

    (21%)

     

    (14%)

    Vfend

     

    68

     

    78

     

    (13%)

     

    -

     

    42

     

    34

     

    24%

     

    14%

     

    56

     

    59

     

    (5%)

     

    2%

    Chantix/Champix

     

    27

     

    37

     

    (27%)

     

    (21%)

     

    44

     

    39

     

    13%

     

    18%

     

    13

     

    12

     

    8%

     

    18%

    Pristiq

     

    -

     

    -

     

    -

     

    -

     

    22

     

    17

     

    29%

     

    41%

     

    10

     

    10

     

    -

     

    20%

    Refacto AF/Xyntha

     

    93

     

    99

     

    (6%)

     

    6%

     

    18

     

    9

     

    100%

     

    138%

     

    11

     

    -

     

    100%

     

    *

    Revatio

     

    34

     

    37

     

    (8%)

     

    6%

     

    13

     

    12

     

    8%

     

    17%

     

    10

     

    11

     

    (9%)

     

    -

    Zoloft

     

    13

     

    17

     

    (24%)

     

    (18%)

     

    67

     

    74

     

    (9%)

     

    (8%)

     

    32

     

    33

     

    (3%)

     

    9%

    Medrol

     

    21

     

    24

     

    (13%)

     

    (4%)

     

    12

     

    11

     

    9%

     

    9%

     

    56

     

    59

     

    (5%)

     

    -

    Zosyn/Tazocin

     

    10

     

    15

     

    (33%)

     

    (20%)

     

    3

     

    4

     

    (25%)

     

    -

     

    57

     

    55

     

    4%

     

    7%

    Effexor

     

    26

     

    48

     

    (46%)

     

    (38%)

     

    18

     

    39

     

    (54%)

     

    (51%)

     

    26

     

    26

     

    -

     

    12%

    Geodon/Zeldox

     

    15

     

    18

     

    (17%)

     

    (11%)

     

    4

     

    7

     

    (43%)

     

    -

     

    12

     

    21

     

    (43%)

     

    (38%)

    Zithromax/Zmax

     

    11

     

    15

     

    (27%)

     

    (13%)

     

    35

     

    37

     

    (5%)

     

    (3%)

     

    40

     

    37

     

    8%

     

    11%

    Prevnar/Prevenar (7-valent)

     

    -

     

    4

     

    (100%)

     

    (100%)

     

    70

     

    94

     

    (26%)

     

    (27%)

     

    11

     

    -

     

    100%

     

    *

    Fragmin

     

    45

     

    45

     

    -

     

    9%

     

    18

     

    21

     

    (14%)

     

    (5%)

     

    17

     

    20

     

    (15%)

     

    (5%)

    Relpax

     

    17

     

    20

     

    (15%)

     

    (5%)

     

    15

     

    15

     

    -

     

    14%

     

    4

     

    4

     

    -

     

    25%

    Rapamune

     

    13

     

    15

     

    (13%)

     

    -

     

    5

     

    4

     

    25%

     

    -

     

    25

     

    30

     

    (17%)

     

    (3%)

    Cardura

     

    22

     

    30

     

    (27%)

     

    (14%)

     

    31

     

    37

     

    (16%)

     

    (18%)

     

    24

     

    24

     

    -

     

    8%

    Aricept(e)

     

    18

     

    61

     

    (70%)

     

    (66%)

     

    44

     

    45

     

    (2%)

     

    5%

     

    9

     

    11

     

    (18%)

     

    (9%)

    Tygacil

     

    17

     

    16

     

    6%

     

    19%

     

    2

     

    1

     

    100%

     

    100%

     

    26

     

    21

     

    24%

     

    43%

    EpiPen

     

    -

     

    -

     

    -

     

    -

     

    15

     

    12

     

    25%

     

    25%

     

    -

     

    -

     

    -

     

    -

    Xanax XR

     

    22

     

    26

     

    (15%)

     

    (4%)

     

    10

     

    12

     

    (17%)

     

    (8%)

     

    21

     

    26

     

    (19%)

     

    (12%)

    BMP2

     

    -

     

    6

     

    (100%)

     

    (100%)

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

    Caduet

     

    3

     

    4

     

    (25%)

     

    -

     

    37

     

    51

     

    (27%)

     

    (25%)

     

    15

     

    15

     

    -

     

    14%

    Sulperazon

     

    -

     

    -

     

    -

     

    -

     

    9

     

    11

     

    (18%)

     

    (18%)

     

    53

     

    40

     

    33%

     

    32%

    Diflucan

     

    14

     

    21

     

    (33%)

     

    (24%)

     

    10

     

    13

     

    (23%)

     

    (17%)

     

    36

     

    38

     

    (5%)

     

    (3%)

    Dalacin/Cleocin

     

    7

     

    9

     

    (22%)

     

    (11%)

     

    7

     

    7

     

    -

     

    (14%)

     

    20

     

    20

     

    -

     

    5%

    Neurontin

     

    14

     

    17

     

    (18%)

     

    (6%)

     

    10

     

    14

     

    (29%)

     

    (21%)

     

    16

     

    22

     

    (27%)

     

    (23%)

    Unasyn

     

    9

     

    8

     

    13%

     

    25%

     

    17

     

    21

     

    (19%)

     

    (15%)

     

    28

     

    26

     

    8%

     

    4%

    Aromasin

     

    17

     

    42

     

    (60%)

     

    (52%)

     

    13

     

    17

     

    (24%)

     

    (28%)

     

    18

     

    18

     

    -

     

    6%

    Arthrotec

     

    8

     

    12

     

    (33%)

     

    (25%)

     

    12

     

    13

     

    (8%)

     

    -

     

    2

     

    4

     

    (50%)

     

    (50%)

    Inspra

     

    31

     

    33

     

    (6%)

     

    9%

     

    15

     

    13

     

    15%

     

    15%

     

    4

     

    4

     

    -

     

    25%

    Toviaz

     

    17

     

    18

     

    (6%)

     

    6%

     

    3

     

    3

     

    -

     

    -

     

    3

     

    2

     

    50%

     

    50%

    Metaxalone/Skelaxin

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

    Methotrexate

     

    9

     

    12

     

    (25%)

     

    (17%)

     

    40

     

    38

     

    5%

     

    8%

     

    1

     

    1

     

    -

     

    100%

    Protonix

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

    Alliance Revenue(f)

     

    53

     

    131

     

    (60%)

     

    (55%)

     

    128

     

    196

     

    (35%)

     

    (33%)

     

    11

     

    21

     

    (48%)

     

    (43%)

    All other biopharmaceutical products

     

    294

     

    357

     

    (18%)

     

    (7%)

     

    300

     

    282

     

    6%

     

    5%

     

    485

     

    496

     

    (2%)

     

    10%

    All other established products(g)

     

    246

     

    294

     

    (16%)

     

    (4%)

     

    271

     

    283

     

    (4%)

     

    (3%)

     

    437

     

    441

     

    (1%)

     

    10%

    REVENUES FROM OTHER PRODUCTS - INTERNATIONAL:

     

    $304

     

    $304

     

    -

     

    14%

     

    $242

     

    $240

     

    1%

     

    5%

     

    $455

     

    $458

     

    (1%)

     

    9%

     

     

     

    *

     

    Calculation not meaningful.

    (a)

     

    Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.

    (b)

     

    Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea.

    (c)

     

    Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

    (d)

     

    Lipitor lost exclusivity in various international markets in 2011 and 2012. This loss of exclusivity reduced branded international revenues by $579 million in the third quarter of 2012, in comparison with the third quarter of 2011.0

    (e)

     

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

    (f)

     

    Includes Enbrel (in Canada), Aricept, Exforge, Rebif and Spiriva.

    (g)

     

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

     

     

     

    Certain amounts and percentages may reflect rounding adjustments.

     

     

     

     

    PFIZER INC.

    REVENUES

    NINE MONTHS 2012 and 2011

    (UNAUDITED)

    (millions of dollars)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    WORLDWIDE

     

     

     

     

     

    UNITED STATES

     

    TOTAL INTERNATIONAL(a)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2012

     

    2011

     

    % Change

     

    2012

     

    2011

     

    % Change

     

    2012

     

    2011

     

    % Change

     

     

     

     

     

     

    Total

     

    Oper.

     

     

     

     

     

    Total

     

     

     

     

     

    Total

     

    Oper.

    TOTAL REVENUES

     

    $43,918

     

    $49,118

     

    (11%)

     

    (9%)

     

    $17,303

     

    $20,603

     

    (16%)

     

    $26,615

     

    $28,515

     

    (7%)

     

    (2%)

    REVENUES FROM BIOPHARMACEUTICAL PRODUCTS:

     

    $38,321

     

    $43,611

     

    (12%)

     

    (10%)

     

    $14,899

     

    $18,246

     

    (18%)

     

    $23,422

     

    $25,365

     

    (8%)

     

    (4%)

    Lipitor(b)

     

    3,364

     

    7,578

     

    (56%)

     

    (55%)

     

    871

     

    4,187

     

    (79%)

     

    2,493

     

    3,391

     

    (26%)

     

    (25%)

    Lyrica

     

    3,026

     

    2,695

     

    12%

     

    16%

     

    1,229

     

    1,116

     

    10%

     

    1,797

     

    1,579

     

    14%

     

    20%

    Enbrel (Outside the U.S. and Canada)

     

    2,780

     

    2,741

     

    1%

     

    8%

     

    -

     

    -

     

    -

     

    2,780

     

    2,741

     

    1%

     

    8%

    Prevnar 13/Prevenar 13

     

    2,725

     

    2,823

     

    (3%)

     

    (1%)

     

    1,423

     

    1,533

     

    (7%)

     

    1,302

     

    1,290

     

    1%

     

    5%

    Celebrex

     

    1,969

     

    1,856

     

    6%

     

    7%

     

    1,266

     

    1,179

     

    7%

     

    703

     

    677

     

    4%

     

    7%

    Viagra

     

    1,498

     

    1,458

     

    3%

     

    5%

     

    822

     

    732

     

    12%

     

    676

     

    726

     

    (7%)

     

    (3%)

    Norvasc

     

    1,001

     

    1,081

     

    (7%)

     

    (7%)

     

    38

     

    23

     

    65%

     

    963

     

    1,058

     

    (9%)

     

    (9%)

    Zyvox

     

    996

     

    965

     

    3%

     

    6%

     

    490

     

    486

     

    1%

     

    506

     

    479

     

    6%

     

    11%

    Sutent

     

    913

     

    870

     

    5%

     

    10%

     

    255

     

    218

     

    17%

     

    658

     

    652

     

    1%

     

    8%

    Premarin family

     

    797

     

    757

     

    5%

     

    6%

     

    724

     

    683

     

    6%

     

    73

     

    74

     

    (1%)

     

    6%

    Genotropin

     

    619

     

    654

     

    (5%)

     

    (2%)

     

    150

     

    144

     

    4%

     

    469

     

    510

     

    (8%)

     

    (4%)

    Xalatan/Xalacom

     

    617

     

    960

     

    (36%)

     

    (33%)

     

    30

     

    159

     

    (81%)

     

    587

     

    801

     

    (27%)

     

    (24%)

    BeneFIX

     

    577

     

    518

     

    11%

     

    14%

     

    272

     

    223

     

    22%

     

    305

     

    295

     

    3%

     

    8%

    Detrol/Detrol LA

     

    576

     

    668

     

    (14%)

     

    (12%)

     

    362

     

    422

     

    (14%)

     

    214

     

    246

     

    (13%)

     

    (10%)

    Vfend

     

    543

     

    558

     

    (3%)

     

    1%

     

    64

     

    64

     

    -

     

    479

     

    494

     

    (3%)

     

    1%

    Chantix/Champix

     

    496

     

    545

     

    (9%)

     

    (7%)

     

    234

     

    248

     

    (6%)

     

    262

     

    297

     

    (12%)

     

    (9%)

    Pristiq

     

    461

     

    422

     

    9%

     

    10%

     

    365

     

    348

     

    5%

     

    96

     

    74

     

    30%

     

    36%

    Refacto AF/Xyntha

     

    420

     

    380

     

    11%

     

    16%

     

    79

     

    75

     

    5%

     

    341

     

    305

     

    12%

     

    19%

    Revatio

     

    414

     

    393

     

    5%

     

    8%

     

    250

     

    229

     

    9%

     

    164

     

    164

     

    -

     

    7%

    Zoloft

     

    398

     

    420

     

    (5%)

     

    (4%)

     

    49

     

    46

     

    7%

     

    349

     

    374

     

    (7%)

     

    (5%)

    Medrol

     

    388

     

    383

     

    1%

     

    4%

     

    105

     

    116

     

    (9%)

     

    283

     

    267

     

    6%

     

    9%

    Zosyn/Tazocin

     

    378

     

    490

     

    (23%)

     

    (21%)

     

    175

     

    267

     

    (34%)

     

    203

     

    223

     

    (9%)

     

    (5%)

    Effexor

     

    342

     

    537

     

    (36%)

     

    (34%)

     

    102

     

    207

     

    (51%)

     

    240

     

    330

     

    (27%)

     

    (24%)

    Geodon/Zeldox

     

    322

     

    753

     

    (57%)

     

    (56%)

     

    218

     

    627

     

    (65%)

     

    104

     

    126

     

    (17%)

     

    (10%)

    Zithromax/Zmax

     

    318

     

    335

     

    (5%)

     

    (4%)

     

    9

     

    17

     

    (47%)

     

    309

     

    318

     

    (3%)

     

    (2%)

    Prevnar/Prevenar (7-valent)

     

    303

     

    406

     

    (25%)

     

    (22%)

     

    -

     

    -

     

    -

     

    303

     

    406

     

    (25%)

     

    (22%)

    Fragmin

     

    283

     

    283

     

    -

     

    6%

     

    36

     

    32

     

    13%

     

    247

     

    251

     

    (2%)

     

    5%

    Relpax

     

    266

     

    250

     

    6%

     

    8%

     

    160

     

    142

     

    13%

     

    106

     

    108

     

    (2%)

     

    4%

    Rapamune

     

    259

     

    285

     

    (9%)

     

    (6%)

     

    140

     

    139

     

    1%

     

    119

     

    146

     

    (18%)

     

    (13%)

    Cardura

     

    254

     

    289

     

    (12%)

     

    (9%)

     

    4

     

    4

     

    -

     

    250

     

    285

     

    (12%)

     

    (9%)

    Aricept(c)

     

    249

     

    335

     

    (26%)

     

    (22%)

     

    -

     

    -

     

    -

     

    249

     

    335

     

    (26%)

     

    (22%)

    Tygacil

     

    249

     

    224

     

    11%

     

    16%

     

    115

     

    112

     

    3%

     

    134

     

    112

     

    20%

     

    28%

    EpiPen(d)

     

    217

     

    160

     

    36%

     

    36%

     

    182

     

    133

     

    37%

     

    35

     

    27

     

    30%

     

    33%

    Xanax XR

     

    203

     

    232

     

    (13%)

     

    (7%)

     

    38

     

    41

     

    (7%)

     

    165

     

    191

     

    (14%)

     

    (7%)

    BMP2

     

    192

     

    277

     

    (31%)

     

    (31%)

     

    192

     

    260

     

    (26%)

     

    -

     

    17

     

    (100%)

     

    (98%)

    Caduet

     

    191

     

    435

     

    (56%)

     

    (55%)

     

    26

     

    235

     

    (89%)

     

    165

     

    200

     

    (18%)

     

    (16%)

    Sulperazon

     

    191

     

    155

     

    23%

     

    22%

     

    -

     

    -

     

    -

     

    191

     

    155

     

    23%

     

    22%

    Diflucan

     

    185

     

    201

     

    (8%)

     

    (5%)

     

    4

     

    3

     

    33%

     

    181

     

    198

     

    (9%)

     

    (5%)

    Dalacin/Cleocin

     

    176

     

    139

     

    27%

     

    31%

     

    72

     

    35

     

    106%

     

    104

     

    104

     

    -

     

    5%

    Neurontin

     

    172

     

    222

     

    (23%)

     

    (19%)

     

    37

     

    51

     

    (27%)

     

    135

     

    171

     

    (21%)

     

    (17%)

    Unasyn

     

    165

     

    172

     

    (4%)

     

    (2%)

     

    2

     

    4

     

    (50%)

     

    163

     

    168

     

    (3%)

     

    (1%)

    Aromasin

     

    162

     

    294

     

    (45%)

     

    (43%)

     

    10

     

    53

     

    (81%)

     

    152

     

    241

     

    (37%)

     

    (34%)

    Arthrotec

     

    159

     

    182

     

    (13%)

     

    (11%)

     

    90

     

    96

     

    (6%)

     

    69

     

    86

     

    (20%)

     

    (15%)

    Inspra

     

    156

     

    142

     

    10%

     

    16%

     

    4

     

    3

     

    33%

     

    152

     

    139

     

    9%

     

    16%

    Toviaz

     

    150

     

    137

     

    9%

     

    13%

     

    82

     

    72

     

    14%

     

    68

     

    65

     

    5%

     

    11%

    Metaxalone/Skelaxin(d)

     

    149

     

    145

     

    3%

     

    2%

     

    149

     

    145

     

    3%

     

    -

     

    -

     

    -

     

    -

    Methotrexate

     

    148

     

    133

     

    11%

     

    11%

     

    -

     

    -

     

    -

     

    148

     

    133

     

    11%

     

    11%

    Protonix

     

    140

     

    168

     

    (17%)

     

    (17%)

     

    140

     

    168

     

    (17%)

     

    -

     

    -

     

    -

     

    -

    Alliance Revenue(e)

     

    2,577

     

    2,678

     

    (4%)

     

    (3%)

     

    1,908

     

    1,628

     

    17%

     

    669

     

    1,050

     

    (36%)

     

    (35%)

    All other biopharmaceutical products

     

    5,187

     

    4,827

     

    7%

     

    11%

     

    1,926

     

    1,541

     

    25%

     

    3,261

     

    3,286

     

    (1%)

     

    5%

    All other established products(f)

     

    4,509

     

    4,207

     

    7%

     

    11%

     

    1,633

     

    1,287

     

    27%

     

    2,876

     

    2,920

     

    (2%)

     

    4%

    REVENUES FROM OTHER PRODUCTS:

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    ANIMAL HEALTH

     

    $3,128

     

    $3,078

     

    2%

     

    6%

     

    $1,289

     

    $1,205

     

    7%

     

    $1,839

     

    $1,873

     

    (2%)

     

    5%

    CONSUMER HEALTHCARE

     

    $2,276

     

    $2,218

     

    3%

     

    5%

     

    $1,054

     

    $1,087

     

    (3%)

     

    $1,222

     

    $1,131

     

    8%

     

    13%

    OTHER(g)

     

    $193

     

    $211

     

    (9%)

     

    (8%)

     

    $61

     

    $65

     

    (6%)

     

    $132

     

    $146

     

    (10%)

     

    (7%)

     

     

     

    (a)

     

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

    (b)

     

    Lipitor lost exclusivity in the U.S. in November 2011 and various other markets in 2011 and 2012. This loss of exclusivity reduced branded worldwide revenues by $4.2 billion in the first nine months of 2012, in comparison with the first nine months of 2011.

    (c)

     

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

    (d)

     

    Legacy King product. King's operations are included in our financial statements commencing from the acquisition date of January 31, 2011.

    (e)

     

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

    (f)

     

    Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.

    (g)

     

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

     

     

     

    Certain amounts and percentages may reflect rounding adjustments.

     

     

    PFIZER INC.

    REVENUES

    DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION

    NINE MONTHS 2012 and 2011

    (UNAUDITED)

    (millions of dollars)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    DEVELOPED EUROPE(a)

     

    DEVELOPED REST OF WORLD(b)

     

    EMERGING MARKETS(c)

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    2012

     

    2011

     

    % Change

     

    2012

     

    2011

     

    % Change

     

    2012

     

    2011

     

    % Change

     

     

     

     

     

     

    Total

     

    Oper.

     

     

     

     

     

    Total

     

    Oper.

     

     

     

     

     

    Total

     

    Oper.

    TOTAL INTERNATIONAL REVENUES

     

    $10,025

     

    $12,078

     

    (17%)

     

    (11%)

     

    $7,830

     

    $7,974

     

    (2%)

     

    (2%)

     

    $8,760

     

    $8,463

     

    4%

     

    10%

    REVENUES FROM BIOPHARMACEUTICAL PRODUCTS - INTERNATIONAL:

     

    $9,026

     

    $11,064

     

    (18%)

     

    (12%)

     

    $7,088

     

    $7,270

     

    (3%)

     

    (3%)

     

    $7,308

     

    $7,031

     

    4%

     

    10%

    Lipitor(d)

     

    1,042

     

    1,804

     

    (42%)

     

    (39%)

     

    777

     

    955

     

    (19%)

     

    (20%)

     

    674

     

    632

     

    7%

     

    9%

    Lyrica

     

    955

     

    931

     

    3%

     

    11%

     

    526

     

    381

     

    38%

     

    38%

     

    316

     

    267

     

    18%

     

    26%

    Enbrel (Outside Canada)

     

    1,691

     

    1,758

     

    (4%)

     

    4%

     

    451

     

    391

     

    15%

     

    13%

     

    638

     

    592

     

    8%

     

    17%

    Prevnar 13/ Prevenar 13

     

    496

     

    545

     

    (9%)

     

    (2%)

     

    201

     

    171

     

    18%

     

    19%

     

    605

     

    574

     

    5%

     

    8%

    Celebrex

     

    121

     

    134

     

    (10%)

     

    (2%)

     

    341

     

    307

     

    11%

     

    12%

     

    241

     

    236

     

    2%

     

    7%

    Viagra

     

    267

     

    296

     

    (10%)

     

    (4%)

     

    152

     

    158

     

    (4%)

     

    (3%)

     

    257

     

    272

     

    (6%)

     

    (1%)

    Norvasc

     

    91

     

    127

     

    (28%)

     

    (22%)

     

    488

     

    575

     

    (15%)

     

    (17%)

     

    384

     

    356

     

    8%

     

    10%

    Zyvox

     

    224

     

    229

     

    (2%)

     

    6%

     

    115

     

    108

     

    6%

     

    6%

     

    167

     

    142

     

    18%

     

    25%

    Sutent

     

    325

     

    353

     

    (8%)

     

    (1%)

     

    128

     

    122

     

    5%

     

    5%

     

    205

     

    177

     

    16%

     

    26%

    Premarin family

     

    7

     

    8

     

    (13%)

     

    (13%)

     

    27

     

    24

     

    13%

     

    12%

     

    39

     

    42

     

    (7%)

     

    2%

    Genotropin

     

    224

     

    267

     

    (16%)

     

    (10%)

     

    166

     

    162

     

    2%

     

    1%

     

    79

     

    81

     

    (2%)

     

    5%

    Xalatan/Xalacom

     

    220

     

    385

     

    (43%)

     

    (39%)

     

    232

     

    270

     

    (14%)

     

    (15%)

     

    135

     

    146

     

    (8%)

     

    1%

    BeneFIX

     

    182

     

    193

     

    (6%)

     

    1%

     

    98

     

    82

     

    20%

     

    18%

     

    25

     

    20

     

    25%

     

    30%

    Detrol/Detrol LA

     

    97

     

    119

     

    (18%)

     

    (14%)

     

    74

     

    82

     

    (10%)

     

    (9%)

     

    43

     

    45

     

    (4%)

     

    2%

    Vfend

     

    203

     

    226

     

    (10%)

     

    (3%)

     

    118

     

    108

     

    9%

     

    5%

     

    158

     

    160

     

    (1%)

     

    4%

    Chantix/Champix

     

    94

     

    134

     

    (30%)

     

    (27%)

     

    132

     

    124

     

    6%

     

    6%

     

    36

     

    39

     

    (8%)

     

    3%

    Pristiq

     

    -

     

    -

     

    -

     

    -

     

    62

     

    48

     

    29%

     

    33%

     

    34

     

    26

     

    31%

     

    42%

    Refacto AF/Xyntha

     

    274

     

    279

     

    (2%)

     

    5%

     

    44

     

    25

     

    76%

     

    83%

     

    23

     

    1

     

    *

     

    *

    Revatio

     

    100

     

    105

     

    (5%)

     

    3%

     

    40

     

    34

     

    18%

     

    18%

     

    24

     

    25

     

    (4%)

     

    8%

    Zoloft

     

    44

     

    61

     

    (28%)

     

    (23%)

     

    207

     

    217

     

    (5%)

     

    (6%)

     

    98

     

    96

     

    2%

     

    8%

    Medrol

     

    70

     

    78

     

    (10%)

     

    (3%)

     

    36

     

    35

     

    3%

     

    -

     

    177

     

    154

     

    15%

     

    18%

    Zosyn/Tazocin

     

    37

     

    49

     

    (24%)

     

    (18%)

     

    11

     

    11

     

    -

     

    -

     

    155

     

    163

     

    (5%)

     

    (1%)

    Effexor

     

    84

     

    141

     

    (40%)

     

    (35%)

     

    80

     

    114

     

    (30%)

     

    (30%)

     

    76

     

    75

     

    1%

     

    7%

    Geodon/Zeldox

     

    46

     

    58

     

    (21%)

     

    (14%)

     

    15

     

    17

     

    (12%)

     

    -

     

    43

     

    51

     

    (16%)

     

    (8%)

    Zithromax/Zmax

     

    45

     

    61

     

    (26%)

     

    (20%)

     

    134

     

    131

     

    2%

     

    1%

     

    130

     

    126

     

    3%

     

    5%

    Prevnar/Prevenar (7-valent)

     

    -

     

    22

     

    (100%)

     

    (100%)

     

    258

     

    277

     

    (7%)

     

    (10%)

     

    45

     

    107

     

    (58%)

     

    (44%)

    Fragmin

     

    135

     

    132

     

    2%

     

    8%

     

    58

     

    57

     

    2%

     

    9%

     

    54

     

    62

     

    (13%)

     

    (5%)

    Relpax

     

    50

     

    56

     

    (11%)

     

    (4%)

     

    43

     

    40

     

    8%

     

    8%

     

    13

     

    12

     

    8%

     

    17%

    Rapamune

     

    39

     

    45

     

    (13%)

     

    (7%)

     

    13

     

    13

     

    -

     

    -

     

    67

     

    88

     

    (24%)

     

    (17%)

    Cardura

     

    72

     

    94

     

    (23%)

     

    (18%)

     

    102

     

    116

     

    (12%)

     

    (14%)

     

    76

     

    75

     

    1%

     

    7%

    Aricept(e)

     

    93

     

    171

     

    (46%)

     

    (42%)

     

    126

     

    125

     

    1%

     

    5%

     

    30

     

    39

     

    (23%)

     

    (15%)

    Tygacil

     

    50

     

    49

     

    2%

     

    10%

     

    5

     

    4

     

    25%

     

    25%

     

    79

     

    59

     

    34%

     

    44%

    EpiPen(f)

     

    -

     

    -

     

    -

     

    -

     

    35

     

    27

     

    30%

     

    33%

     

    -

     

    -

     

    -

     

    -

    Xanax XR

     

    65

     

    80

     

    (19%)

     

    (11%)

     

    33

     

    36

     

    (8%)

     

    (8%)

     

    67

     

    75

     

    (11%)

     

    (1%)

    BMP2

     

    -

     

    17

     

    (100%)

     

    (100%)

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

    Caduet

     

    10

     

    13

     

    (23%)

     

    (15%)

     

    108

     

    143

     

    (24%)

     

    (24%)

     

    47

     

    44

     

    7%

     

    11%

    Sulperazon

     

    -

     

    -

     

    -

     

    -

     

    27

     

    32

     

    (16%)

     

    (19%)

     

    164

     

    123

     

    33%

     

    33%

    Diflucan

     

    47

     

    59

     

    (20%)

     

    (14%)

     

    30

     

    35

     

    (14%)

     

    (14%)

     

    104

     

    104

     

    -

     

    3%

    Dalacin/Cleocin

     

    23

     

    26

     

    (12%)

     

    (4%)

     

    21

     

    19

     

    11%

     

    5%

     

    60

     

    59

     

    2%

     

    10%

    Neurontin

     

    45

     

    58

     

    (22%)

     

    (17%)

     

    31

     

    42

     

    (26%)

     

    (24%)

     

    59

     

    71

     

    (17%)

     

    (11%)

    Unasyn

     

    27

     

    26

     

    4%

     

    12%

     

    55

     

    61

     

    (10%)

     

    (10%)

     

    81

     

    81

     

    -

     

    1%

    Aromasin

     

    57

     

    142

     

    (60%)

     

    (56%)

     

    41

     

    51

     

    (20%)

     

    (22%)

     

    54

     

    48

     

    13%

     

    17%

    Arthrotec

     

    26

     

    37

     

    (30%)

     

    (24%)

     

    35

     

    37

     

    (5%)

     

    (3%)

     

    8

     

    12

     

    (33%)

     

    (25%)

    Inspra

     

    96

     

    92

     

    4%

     

    13%

     

    44

     

    37

     

    19%

     

    16%

     

    12

     

    10

     

    20%

     

    30%

    Toviaz

     

    54

     

    52

     

    4%

     

    12%

     

    7

     

    7

     

    -

     

    17%

     

    7

     

    6

     

    17%

     

    17%

    Metaxalone/Skelaxin(f)

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

    Methotrexate

     

    28

     

    33

     

    (15%)

     

    (9%)

     

    117

     

    98

     

    19%

     

    16%

     

    3

     

    2

     

    50%

     

    50%

    Protonix

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

     

    -

    Alliance Revenue(g)

     

    204

     

    433

     

    (53%)

     

    (50%)

     

    414

     

    557

     

    (26%)

     

    (26%)

     

    51

     

    60

     

    (15%)

     

    (5%)

    All other biopharmaceutical products

     

    966

     

    1,086

     

    (11%)

     

    (4%)

     

    830

     

    804

     

    3%

     

    2%

     

    1,465

     

    1,396

     

    5%

     

    13%

    All other established products(h)

     

    769

     

    883

     

    (13%)

     

    (6%)

     

    786

     

    806

     

    (2%)

     

    (3%)

     

    1,321

     

    1,231

     

    7%

     

    16%

    REVENUES FROM OTHER PRODUCTS - INTERNATIONAL:

     

    $999

     

    $1,014

     

    (1%)

     

    6%

     

    $742

     

    $704

     

    5%

     

    7%

     

    $1,452

     

    $1,432

     

    1%

     

    8%

     

     

     

    *

     

    Calculation not meaningful.

    (a)

     

    Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.

    (b)

     

    Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea.

    (c)

     

    Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

    (d)

     

    Lipitor lost exclusivity in various international markets in 2011 and 2012. This loss of exclusivity reduced branded international revenues by $914 million in the first nine months of 2012, in comparison with the first nine months of 2011.

    (e)

     

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

    (f)

     

    Legacy King product. King's operations are included in our financial statements commencing from the acquisition date of January 31, 2011.

    (g)

     

    Includes Enbrel (in Canada), Aricept, Exforge, Rebif and Spiriva.

    (h)

     

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

     

     

     

    Certain amounts and percentages may reflect rounding adjustments.

     

    PFIZER INC.
    SUPPLEMENTAL INFORMATION

    1. Change in Reported Cost of Sales

    Reported cost of sales decreased 22% in both the third quarter and in the first nine months of 2012, compared to the same periods in 2011. The decreases were primarily due to a decline in revenues reflecting reduced manufacturing volumes related to products that lost exclusivity in various markets. The decreases were also due to lower purchase accounting adjustments in 2012, lower costs related to our cost-reduction and productivity initiatives, as well as the benefits generated from the ongoing productivity initiatives to streamline the manufacturing network, and favorable foreign exchange of 8% for the third quarter of 2012 and 7% for the first nine months of 2012. The decreases were partially offset by an unfavorable impact caused by a shift in geographic and business mix.

    Reported cost of sales as a percentage of revenues decreased 1.4 percentage points to 19.1% in the third quarter of 2012, compared to the same period in 2011, reflecting the aforementioned factors.

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

    Reported SI&A expenses decreased 14% in the third quarter of 2012 and 13% in the first nine months of 2012, compared to the same periods in 2011. The decreases were primarily due to savings generated from a reduction in the field force and a decrease in promotional spending, both partially in response to product losses of exclusivity, more streamlined corporate support functions, and the impact of lower revenues, as well as the favorable impact of foreign exchange of 4% for the third quarter of 2012 and 2% for the first nine months of 2012, partially offset by costs associated with the potential separation of Animal Health employees, net assets and activities from Pfizer.

    Reported R&D expenses decreased 9% in the third quarter of 2012 and 12% in the first nine months of 2012, compared to the same periods in 2011, primarily due to savings generated by the discontinuation of certain therapeutic areas and R&D programs in connection with our previously announced cost-reduction and productivity initiatives, which were partially offset by a $250 million payment to AstraZeneca to obtain the exclusive global over-the-counter rights to Nexium. In addition, charges related to those initiatives were lower in the third quarter of 2012 and in the first nine months of 2012 than in the same periods in 2011.

    3. Other Deductions – Net

     

     

     

     

     

     

     

     

     

     

     

     

     

    ($ in millions)

     

     

    Third Quarter

     

     

    Nine Months

     

     

     

    2012

     

     

    2011

     

     

    2012

     

     

    2011

    Interest income(a)

     

    $

    (108

    )

     

    $

    (109

    )

     

    $

    (275

    )

     

    $

    (331

    )

    Interest expense(a)

     

     

    382

     

     

     

    423

     

     

     

    1,151

     

     

     

    1,285

     

    Net interest expense

     

     

    274

     

     

     

    314

     

     

     

    876

     

     

     

    954

     

    Royalty-related income

     

     

    (132

    )

     

     

    (136

    )

     

     

    (353

    )

     

     

    (447

    )

    Net gain on asset disposals

     

     

    (19

    )

     

     

    (21

    )

     

     

    (45

    )

     

     

    (47

    )

    Certain legal matters, net(b)

     

     

    726

     

     

     

    132

     

     

     

    2,014

     

     

     

    619

     

    Certain asset impairment charges(c)

     

     

    49

     

     

     

    145

     

     

     

    561

     

     

     

    625

     

    Costs associated with the potential separation of the Animal Health business(d)

     

     

    32

     

     

     

    --

     

     

     

    93

     

     

     

    --

     

    Other, net

     

     

    32

     

     

     

    113

     

     

     

    137

     

     

     

    98

     

    Other deductions––net

     

    $

    962

     

     

    $

    547

     

     

    $

    3,283

     

     

    $

    1,802

     

    (a)

     

    Interest income decreased slightly in the third quarter of 2012 due to lower cash balances mostly offset by higher interest rates earned on investments. Interest income decreased in the first nine months of 2012 due to lower interest rates earned on investments. Interest expense decreased in both periods in 2012 due to lower debt balances and the effective conversion of some fixed-rate liabilities to floating-rate liabilities.

    (b)

     

    In the third quarter of 2012, primarily includes a $491 million charge resulting from an agreement-in-principle with the U.S. Department of Justice to resolve an investigation into Wyeth's historical promotional practices in connection with Rapamune. In the first nine months of 2012, primarily includes the aforementioned $491 million charge related to Rapamune, a $450 million settlement of a lawsuit by Brigham Young University related to Celebrex, and charges for hormone-replacement therapy litigation. In 2011, primarily includes charges for hormone-replacement therapy litigation.

    (c)

     

    In the first nine months of 2012, primarily includes certain intangible assets acquired in connection with our acquisitions of Wyeth and King, including in-process research and development (IPR&D) intangible assets. In the third quarter and first nine months of 2011, primarily includes certain intangible assets acquired in connection with our acquisition of Wyeth, including IPR&D intangible assets.

    (d)

     

    Costs incurred in connection with the potential initial public offering of a minority stake in our Animal Health business, Zoetis, Inc. Includes expenditures for banking, legal, accounting and similar services related to the potential transaction.

     

    4. Effective Tax Rate

    Reported
    The effective tax rate on reported results was (4.0)% in the third quarter of 2012 compared with 34.3% in the third quarter of 2011, and 19.0% in the first nine months of 2012 compared with 31.2% in the first nine months of 2011. The effective tax rates on reported results for the third quarter and first nine months of 2012 were favorably impacted by a settlement with the U.S. Internal Revenue Service related to audits for multiple tax years. The settlement resulted in a favorable impact on net income for both periods of $1.1 billion representing tax and interest. The tax rates in both periods in 2012 compared to the same periods in 2011 were also favorably impacted by the resolution of foreign audits pertaining to multiple tax years and the change in the jurisdictional mix of earnings, partially offset by the unfavorable impact of the non-deductibility of a $491 million charge resulting from an agreement-in-principle with the U.S. Department of Justice to resolve an investigation into Wyeth's historical promotional practices in connection with Rapamune, as well as the expiration of the U.S. research and development tax credit.

    Adjusted
    In third-quarter 2012, the effective tax rate on adjusted income(1) was 28.3% compared with 31.2% in third-quarter 2011, and 28.8% in the first nine months of 2012 compared with 29.5% in the first nine months of 2011. The tax rates in both periods in 2012 compared to the same periods in 2011 reflect the favorable impact of the change in the jurisdictional mix of earnings, as well as the resolution of the aforementioned foreign audits, partially offset by the unfavorable impact of the expiration of the U.S. research and development tax credit.

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

     

     

     

     

     

    Full-Year 2012 Guidance

    (Billions of dollars, except per share amounts)

     

    Net Income(b)

     

    Diluted EPS(b)

    Income/(Expense)

     

     

     

     

    Adjusted Income/Diluted EPS(1) Guidance

     

    ~$16.1 - $16.4

     

    ~$2.14 - $2.17

    Purchase Accounting Impacts of Transactions Completed as of

    9/30/12

     

    (3.6)

     

    (0.48)

    Acquisition-Related Costs

     

    (0.5 - 0.7)

     

    (0.07 - 0.09)

    Non-Acquisition-Related Restructuring Costs(c)

     

    (1.4 - 1.6)

     

    (0.18 - 0.21)

    Other Certain Significant Items incurred as of 9/30/12

    Income from Discontinued Operations(d)

     

    (0.9)

    0.4

     

    (0.12)

    0.06

    Reported Net Income Attributable to Pfizer Inc./Diluted EPS Guidance

     

    ~$9.7 - $10.4

     

    ~$1.30 - $1.38

    (a)

     

    The current exchange rates assumed in connection with the 2012 financial guidance are a blend of the actual exchange rates in effect during the first nine months of 2012 and the mid-October 2012 exchange rates for the remainder of the year.

    (b)

     

    Includes revenues and expenses related to the Nutrition business, which is reflected as a discontinued operation, but does not include the gain on the pending sale of the Nutrition business. Does not assume the completion of any business-development transactions not completed as of September 30, 2012, including any one-time upfront payments associated with such transactions. Also excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of September 30, 2012, except for charges for such matters that have been recorded during the first nine months of 2012.

    (c)

     

    Includes amounts related to our initiatives to reduce R&D spending, including our realigned R&D footprint, and amounts related to other cost-reduction and productivity initiatives. These amounts are included in Certain Significant Items.

    (d)

     

    Income attributable to Pfizer's Nutrition business.

     

     

    _______________

     

     

     

    (1)

     

    "Adjusted income" and "adjusted diluted earnings per share (EPS)" are defined as reported U.S. generally accepted accounting principles (GAAP) 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 July 1, 2012, management uses Adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. We believe that investors' understanding of our performance is enhanced by disclosing this measure. 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 November 1, 2012. We assume no obligation to update forward-looking statements contained in this earnings release and the attachments as a result of new information or future events or developments.

    This earnings release and the attachments contain forward-looking statements about our future operating and financial performance, business plans and prospects, in-line products and product candidates, strategic review, capital allocation, business development plans, and share-repurchase and dividend-rate plans that involve substantial risks and uncertainties. You can identify these statements by the fact that they use future dates or use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," "target," "forecast," "goal," "objective," "aim" and other words and terms of similar meaning. Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following:

    • the outcome of research and development activities, including, without limitation, the ability to meet anticipated clinical trial commencement and completion dates, regulatory submission and approval dates, and launch dates for product candidates;

    • 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 outcome of post-approval clinical trials, which could result in the loss of marketing approval for a product or changes in the labeling for, and/or increased or new concerns about the safety or efficacy of, a product that could affect its availability or commercial potential;

    • 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 implementation by the FDA of an abbreviated legal pathway to approve biosimilar products, which could subject our biologic products to competition from biosimilar products in the U.S., with attendant competitive pressures, after the expiration of any applicable exclusivity period and patent rights;

    • 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 the U.S. Budget Control Act of 2011 (the Budget Control Act) and the deficit-reduction actions to be taken pursuant to the Budget Control Act in order to achieve the deficit-reduction targets provided for therein, and the impact of any broader deficit-reduction efforts;

    • 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 - and of any modification or repeal of any of the provisions thereof;

    • 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, including, in particular, continued government-mandated price reductions for certain biopharmaceutical products in certain European and emerging market countries;

    • the exposure of our operations outside the U.S. to possible capital and exchange controls, expropriation and other restrictive government actions, changes in intellectual property legal protections and remedies, as well as political unrest and unstable governments and legal systems;

    • 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;

    • any significant breakdown, infiltration, or interruption of our information technology systems and infrastructure;

    • legal defense costs, insurance expenses, settlement costs, the risk of an adverse decision or settlement and the adequacy of reserves related to product liability, patent protection, government investigations, consumer, commercial, securities, antitrust, environmental and tax issues, ongoing efforts to explore various means for resolving asbestos litigation, and other legal proceedings;

    • our ability to protect our 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, without limitation, tax obligations and changes affecting the tax treatment by the U.S. of income earned outside of the U.S. that may result from pending and possible future proposals;

    • any significant issues involving our largest wholesaler customers, which account for a substantial portion of our revenues;

    • the possible impact of the increased presence of counterfeit medicines in the pharmaceutical supply chain on our revenues and on patient confidence in the integrity of our medicines;

    • any significant issues that may arise related to the outsourcing of certain operational and staff functions to third parties, including with regard to quality, timeliness and compliance with applicable legal requirements and industry standards;

    • 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 customers, suppliers and lenders and counterparties to our foreign-exchange and interest-rate agreements of challenging global economic conditions and recent and possible future changes in global financial markets; and the related risk that our allowance for doubtful accounts may not be adequate;

    • 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;

    • our ability and the ability of Nestlé to satisfy the conditions to closing the sale of our Nutrition business to Nestlé at all or within the anticipated time period; and whether and when the Company's new $10 billion share repurchase program will go into effect, which is contingent upon the closing of the sale of the Nutrition business to Nestlé;

    • the possibility that the potential initial public offering (IPO) of a minority ownership stake in our Animal Health business will not be consummated at all or within the anticipated time period, including as the result of regulatory, market or other factors; and, if the IPO is consummated, the impact of the strategic alternative that we decide to pursue with regard to our remaining ownership stake in the Animal Health business; and

    • the impact of acquisitions, divestitures, restructurings, product recalls and withdrawals and other unusual items, including (i) our ability to realize the projected benefits of our acquisition of King Pharmaceuticals, Inc., and (ii) our ability to realize the projected benefits of our cost-reduction and productivity initiatives, including those related to our research and development organization.

    A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011 and in our reports on Form 10-Q, in each case including in the sections thereof captioned "Forward-Looking Information and Factors That May Affect Future Results" and "Item 1A. Risk Factors", and in our reports on Form 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.

    This earnings release does not constitute an offer to sell, or a solicitation of an offer to buy, any securities, which will be made only by prospectus.

     

    Contact:

    Pfizer Inc.
    Media
    Joan Campion, 212-733-2798
    or
    Investors
    Suzanne Harnett, 212-733-8009
    or
    Jennifer Davis, 212-733-0717on Share Repurchase Program Upon Sale of the Nutrition(1) Business

  • Repurchased $1.8 Billion of Common Stock in Third-Quarter 2012; Repurchased $5.9 Billion through October 31, 2012

Thursday, November 1, 2012 7:00 am EDT

Dateline:

NEW YORK