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Pfizer Reports Third Quarter 2013 Results

  • Third-Quarter 2013 Reported Revenues(1) of $12.6 Billion
  • Third-Quarter 2013 Adjusted Diluted EPS(2) of $0.58 and Reported Diluted EPS(1) of $0.39
  • Repurchased $3.8 Billion and $13.1 Billion of Common Stock in Third-Quarter and to Date in 2013, Respectively
  • Narrowed Ranges for Certain 2013 Financial Guidance Components
Tuesday, October 29, 2013 - 7:00am
EDT

NEW YORK--(BUSINESS WIRE)--
Pfizer Inc. (NYSE: PFE) reported financial results for third-quarter
2013. As a result of the full disposition of Zoetis(3) on June
24, 2013, the financial results of the Animal Health business are
reported as a discontinued operation in the condensed
consolidated statements of income for year-to-date 2013, and
third-quarter and year-to-date 2012. Results and guidance are summarized
below.

OVERALL RESULTS

               

($ in millions, except

per share amounts)

           
Third-Quarter Year-to-Date
2013     2012     Change 2013     2012     Change
Reported Revenues(1)

$ 12,643

   

$ 12,953

    (2%)

$ 38,026

   

$ 40,766

    (7%)
Adjusted Income(2) 3,859 3,754 3% 11,602 12,358 (6%)
Adjusted Diluted EPS(2) 0.58 0.50 16% 1.65 1.64 1%
Reported Net Income(1) 2,590 3,208 (19%) 19,435 8,255 *
Reported Diluted EPS(1) 0.39 0.43 (9%) 2.77 1.09 *
 

* Calculation not meaningful.

 

BUSINESS UNIT(4) REVENUES

($ in millions)

Favorable/(Unfavorable)

 

    Third-Quarter       Year-to-Date
2013     2012     % Change 2013     2012     % Change
        Total     Oper.         Total     Oper.
Specialty Care $ 3,349 $ 3,406 (2%)     (1%) $ 9,891 $ 10,483 (6%)     (4%)
Primary Care 3,259 3,610 (10%) (8%) 9,830 11,725 (16%) (14%)
Emerging Markets 2,431 2,389 2% 5% 7,466 7,308 2% 5%
Established Products 2,296 2,383 (4%) (1%) 7,033 7,865 (11%) (8%)
Consumer Healthcare 788 780 1% 1% 2,399 2,276 5% 5%
Oncology 407 329 24% 26% 1,178 940 25% 28%
Other(5) 113     56     *     * 229     169     36%     36%
Total $ 12,643     $ 12,953     (2%)     -- $ 38,026     $ 40,766     (7%)     (5%)
 

* Calculation not meaningful.

 

SELECTED ADJUSTED COSTS AND EXPENSES(2)

($ in millions)

(Favorable)/Unfavorable

 

    Third-Quarter       Year-to-Date
2013     2012     % Change 2013     2012     % Change
        Total     Oper.         Total     Oper.
       
Cost of Sales(2) $ 2,178 $ 2,213 (2%) 2% $ 6,601 $ 6,806 (3%) 1%
Percent of Revenues(2) 17.3% 17.1% N/A N/A 17.4% 16.7% N/A N/A
SI&A Expenses(2) 3,351 3,441 (3%) (1%) 10,079 10,753 (6%) (5%)
R&D Expenses(2) 1,625     1,841     (12%)     (12%) 4,764     5,074     (6%)     (6%)
Total $ 7,154     $ 7,495     (5%)     (3%) $ 21,444     $ 22,633     (5%)     (3%)
 
Effective Tax Rate(2) 27.6% 28.0% 27.4% 28.4%
 
 

2013 FINANCIAL GUIDANCE(6)

The ranges for certain components of the financial guidance have
been narrowed as set forth below.

         
Adjusted Revenues(2)       $50.8 to $51.8 billion

(previously $50.8 to $52.8 billion)

Adjusted Cost of Sales(2) as a Percentage of Adjusted
Revenues(2)
      18.0% to 18.5%

(previously 18.0% to 19.0%)

Adjusted SI&A Expenses(2)       $14.2 to $14.7 billion

(previously $14.2 to $15.2 billion)

Adjusted R&D Expenses(2)       $6.3 to $6.6 billion

(previously $6.1 to $6.6 billion)

Adjusted Other (Income)/Deductions(2)       Approximately $400 million

(previously approximately $800 million)

Effective Tax Rate on Adjusted Income(2)       Approximately 28.0%
Reported Diluted EPS(1)       $3.05 to $3.15

(previously $3.07 to $3.22)

Adjusted Diluted EPS(2)       $2.15 to $2.20

(previously $2.10 to $2.20)

     

EXECUTIVE COMMENTARY

Ian Read, Chairman and Chief Executive Officer, stated, “Overall, I am
very pleased with our continued and steady progress, on many fronts, to
drive greater value for our shareholders. We continue to generate solid
financial results on an operational basis, despite the impact of product
losses of exclusivity and the ongoing expiration of the Spiriva
collaboration in certain countries as well as the challenging operating
environment. Within our innovative businesses, during third-quarter
2013, revenues from our Oncology business increased 26% operationally
due to the continued strong performance of new products, primarily
Inlyta and Xalkori in several major markets. In addition, other key
patent-protected products performed well operationally, notably Lyrica,
which grew 11%, and Celebrex, which grew 13%. With regard to recently
launched products, Eliquis prescription trends continue to improve, and
we recently began our direct-to-consumer campaign in the U.S.; in
addition, Xeljanz continues to perform in line with our expectations.”

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

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

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

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

RECENT NOTABLE DEVELOPMENTS

Product Developments

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

Pipeline Developments

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

Other Developments

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

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

(1)   “Reported Revenues” is defined as revenues in accordance with U.S.
generally accepted accounting principles (GAAP). “Reported Net
Income” is defined as net income attributable to Pfizer Inc. in
accordance with U.S. GAAP. “Reported Diluted EPS” is defined as
reported diluted EPS attributable to Pfizer Inc. common shareholders
in accordance with U.S. GAAP.
 
(2)

“Adjusted Income” and its components and “Adjusted Diluted
Earnings Per Share (EPS)” are defined as reported U.S. GAAP net
income(1) and its components and reported diluted EPS(1)
excluding purchase accounting adjustments, acquisition-related
costs, discontinued operations and certain significant items.
Adjusted Revenues, Adjusted Cost of Sales, Adjusted Selling,
Informational and Administrative (SI&A) expenses, Adjusted
Research and Development (R&D) expenses and Adjusted Other
(Income)/Deductions are income statement line items prepared on
the same basis, and, therefore, components of the overall adjusted
income measure. As described under Adjusted Income in the
Management’s Discussion and Analysis of Financial Condition and
Results of Operations section of Pfizer’s Quarterly Report on Form
10-Q for the fiscal quarter ended June 30, 2013, management uses
adjusted income, among other factors, to set performance goals and
to measure the performance of the overall company. We believe that
investors’ understanding of our performance is enhanced by
disclosing this measure. See the accompanying reconciliations of
certain GAAP reported to non-GAAP adjusted information for the
third quarter and first nine months of 2013 and 2012, as well as
reconciliations of full-year 2013 guidance for adjusted income and
adjusted diluted EPS to full-year 2013 guidance for reported net
income(1) and reported diluted EPS(1). The
adjusted income and its components and adjusted diluted EPS
measures are not, and should not be viewed as, substitutes for
U.S. GAAP net income and its components and diluted EPS.

 
(3) On June 24, 2013, Pfizer completed the full disposition of Zoetis,
Inc. (Zoetis) and, as a result, Pfizer reports the financial results
of its Animal Health business as a discontinued operation in the
condensed consolidated statements of income for year-to date 2013,
and third-quarter and year-to-date 2012.
 
(4) For a description of the revenues in each business unit, see Note 13
to Pfizer’s condensed consolidated financial statements included in
Pfizer’s Quarterly Report on Form 10-Q for the fiscal quarter ended
June 30, 2013.
 
(5)

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

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

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

  • The weighted-average shares outstanding used in the computation of
    Adjusted(2) and Reported(1) Diluted EPS guidance
    reflects the reduction in shares of Pfizer’s outstanding common stock
    as a result of the Zoetis(3) exchange offer. Since this
    reduction occurred on June 24, 2013, Adjusted(2) and
    Reported(1) Diluted EPS guidance reflects only a
    partial-year benefit.
  • Reported Diluted EPS(1) guidance includes the income from a
    litigation settlement with Teva Pharmaceutical Industries Ltd. and Sun
    Pharmaceutical Industries Ltd. for patent-infringement damages
    resulting from their “at-risk” launches of generic Protonix in the U.S.
  • Does not assume the completion of any business development
    transactions not completed as of September 29, 2013, including any
    one-time upfront payments associated with such transactions.
  • Excludes the potential effects of the resolution of litigation-related
    matters not substantially resolved as of September 29, 2013.
  • Exchange rates assumed are a blend of the actual exchange rates in
    effect through September 29, 2013 and the mid-October 2013 exchange
    rates for the remainder of the year.
  • Reconciliation of the 2013 Adjusted Income(2) and Adjusted
    Diluted EPS(2) guidance to the 2013 Reported Net Income
    Attributable to Pfizer Inc. and Reported Diluted EPS Attributable to
    Pfizer Inc. common shareholders guidance:
            ($ in billions, except per share amounts)    
Income/(Expense)     Net Income       Diluted EPS
Adjusted income/diluted EPS(2) guidance $14.8 - $15.2       $2.15 - $2.20
Purchase accounting impacts of transactions completed as of
September 29, 2013
(3.3) (0.49)
Acquisition-related costs (0.4 - 0.5) (0.06 - 0.07)
Non-acquisition-related restructuring costs (0.6 - 0.8) (0.09 - 0.13)
Certain other items incurred through September 29, 2013 0.3 0.04
Discontinuedoperations     10.7       1.55
Reported net income attributable to Pfizer Inc./diluted EPS(1)
guidance
    $21.2 - $21.9       $3.05 - $3.15
 

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PFIZER INC. AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME(1)
(UNAUDITED)
(millions, except per common share data)
           
Third-Quarter % Incr. / Nine Months % Incr. /
2013 2012 (Decr.) 2013 2012 (Decr.)
Revenues $ 12,643 $ 12,953 (2) $ 38,026 $ 40,766 (7)
Costs and expenses:
Cost of sales(2) 2,287 2,309 (1) 6,792 7,068 (4)
Selling, informational and administrative expenses(2) 3,395 3,491 (3) 10,203 10,834 (6)
Research and development expenses(2) 1,627 1,887 (14) 4,867 5,461 (11)
Amortization of intangible assets(3) 1,117 1,211 (8) 3,476 3,889 (11)
Restructuring charges and certain acquisition-related costs 233 312 (25) 547 1,085 (50)
Other (income)/deductions––net(4)   411     937   (56)   (514 )   3,264   *
Income from continuing operations before provision
for taxes on income 3,573 2,806 27 12,655 9,165 38
Provision/(benefit) for taxes on income(5)   985     (183 ) *   3,876     1,622   *
Income from continuing operations 2,588 2,989 (13) 8,779 7,543 16
Discontinued operations––net of tax   11     225   (95)   10,719     734   *
Net income before allocation to noncontrolling interests 2,599 3,214 (19) 19,498 8,277 *
Less: Net income attributable to noncontrolling interests   9     6   50   63     22   *
Net income attributable to Pfizer Inc. $ 2,590   $ 3,208   (19) $ 19,435   $ 8,255   *
Earnings per common share––basic:
Income from continuing operations attributable to
Pfizer Inc. common shareholders $ 0.39 $ 0.40 (3) $ 1.26 $ 1.00 26
Discontinued operations––net of tax   -     0.03   *   1.54     0.10   *
Net income attributable to Pfizer Inc. common shareholders $ 0.39   $ 0.43   (9) $ 2.80   $ 1.10   *
Earnings per common share––diluted:
Income from continuing operations attributable to
Pfizer Inc. common shareholders $ 0.39 $ 0.40 (3) $ 1.25 $ 1.00 25
Discontinued operations––net of tax   -     0.03   *   1.52     0.10   *
Net income attributable to Pfizer Inc. common shareholders $ 0.39   $ 0.43   (9) $ 2.77   $ 1.09   *
Weighted-average shares used to calculate earnings per common share:
Basic   6,581     7,436     6,938     7,483  
Diluted   6,656     7,508     7,016     7,550  
 

* Calculation not meaningful.

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

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

 
On November 30, 2012, we completed the sale of our Nutrition
business. The operating results of this business are reported as Discontinued
operations––net of tax
for the three and nine months ended
September 30, 2012.
 
The financial results for the three and nine months ended September
29, 2013 are not necessarily indicative of the results which could
ultimately be achieved for the full year.
 
(2) Exclusive of amortization of intangible assets, except as discussed
in footnote (3) below.
 
(3) Amortization expense related to finite-lived acquired intangible
assets that contribute to our ability to sell, manufacture,
research, market and distribute products, compounds and intellectual
property is included in Amortization of intangible assets as
these intangible assets benefit multiple business functions.
Amortization expense related to intangible assets that are
associated with a single function is included in Cost of sales,
Selling, informational and administrative expenses or Research
and development expenses,
as appropriate.
 
(4) Other (income)/deductions––net include the following:
            Third-Quarter     Nine Months
(millions of dollars)

    2013    

   

    2012    

    2013    

   

    2012    

Interest income(a) $ (94 ) $ (109 ) $ (291 ) $ (275 )
Interest expense(a)   340     381     1,067     1,149  
Net interest expense 246 272 776 874
Royalty-related income (122 ) (149 ) (305 ) (343 )
Patent litigation settlement (income)/expense(b) 9 - (1,342 ) -
Other legal matters, net(c) 1 727 (94 ) 2,014
Gain associated with the transfer of certain product rights to
an equity-method investment(d) - - (459 ) -
Net gain on asset disposals (46 ) (21 ) (100 ) (45 )
Certain asset impairments and related charges(e) 443 14 968 524
Costs associated with the Zoetis IPO(f) - 32 18 93
Other, net   (120 )   62     24     147  
Other (income)/deductions––net $ 411   $ 937   $ (514 ) $ 3,264  
  (a)   Interest income decreased in the third quarter of 2013 as portfolio
maturities were invested at lower rates; however, during the first
nine months of 2013, interest income increased due to higher cash
and investment balances. Interest expense decreased in the third
quarter and first nine months of 2013 due to lower outstanding debt,
refinancings and lower rates, and the benefit of the conversion of
some fixed-rate liabilities to floating-rate liabilities.
 
(b) Reflects income from a litigation settlement with Teva
Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries
Ltd. for patent-infringement damages resulting from their "at-risk"
launches of generic Protonix in the United States.
 
(c) In the first nine months of 2013, primarily includes an $80 million
insurance recovery related to a certain litigation matter. In the
third quarter of 2012, primarily includes a $491 million charge
related to the resolution of an investigation by the U.S. Department
of Justice into Wyeth's historical promotional practices in
connection with Rapamune. In the first nine months of 2012,
primarily includes the aforementioned $491 million charge related to
Rapamune, a $450 million settlement of a lawsuit by Brigham Young
University related to Celebrex, and charges for hormone-replacement
therapy litigation.
 
(d) In the first nine months of 2013, represents the gain associated
with the transfer of certain product rights to Pfizer's 49%-owned
equity-method investment in China.
 
(e) In the third quarter of 2013, primarily includes a loss on an option
to acquire the remaining interest in a 40%-owned generics company in
Brazil (approximately $220 million), as well as an impairment charge
related to an in-process research and development (IPR&D) compound.
In the first nine months of 2013, also includes impairment charges
related to developed technology (for use in the development of bone
and cartilage) acquired in connection with our acquisition of Wyeth
and two additional IPR&D compounds. In the first nine months of
2012, primarily includes impairment charges related to certain
intangible assets acquired in connection with our acquisitions of
Wyeth and King Pharmaceuticals Inc. (King), including IPR&D
intangible assets.
 
(f) Costs incurred in connection with the initial public offering (IPO)
of an approximate 19.8% ownership interest in Zoetis. Includes
expenditures for banking, legal, accounting and similar services.
 
(5) The Provision/(benefit) for taxes on income for the third
quarter and first nine months of 2012 was favorably impacted by a
$1.1 billion settlement (representing tax and interest) with the
U.S. Internal Revenue Service (IRS) related to audits for multiple
tax years, as well as the resolution of foreign audits pertaining to
multiple tax years.
 

td>

PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)
(millions of dollars, except per common share data)
             
Quarter Ended September 29, 2013
Purchase Acquisition- Certain
GAAP Accounting Related Discontinued Significant Non-GAAP
Reported(1) Adjustments Costs(2) Operations Items(3) Adjusted(4)
Revenues $ 12,643 $ - $ - $ - $ (67 ) $ 12,576
Cost of sales(5) 2,287 (4 ) (18 ) - (87 ) 2,178
Selling, informational and administrative expenses(5) 3,395 (1 ) - - (43 ) 3,351
Research and development expenses(5) 1,627 (1 ) - - (1 ) 1,625
Amortization of intangible assets(6) 1,117 (1,075 ) - - - 42
Restructuring charges and certain acquisition-related costs 233 - (43 ) - (190 ) -
Other (income)/deductions––net 411 121 - - (490 ) 42
Income from continuing operations before provision for taxes on
income
3,573 960 61 - 744 5,338
Provision/(benefit) for taxes on income 985 309 7 - 172 1,473
Income from continuing operations 2,588 651 54 - 572

 

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

 

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

EPS amounts may not add due to rounding.

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

 

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

 

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

    2013    

   

    2012    

    2013    

   

    2012    

 
Integration costs(a) $ 38 $ 79 $ 107 $ 279
Restructuring charges(a) 5 81 48 142
Additional depreciation––asset restructuring(b)   18     77     109     217  
Total acquisition-related costs––pre-tax 61 237 264 638
Income taxes(c)   (7 )   (43 )   42     (156 )
Total acquisition-related costs––net of tax $ 54   $ 194   $ 306   $ 482  
 
  (a)   Integration costs represent external, incremental costs directly
related to integrating acquired businesses, and primarily include
expenditures for consulting and the integration of systems and
processes. Restructuring charges include employee termination costs,
asset impairments and other exit costs associated with business
combinations. All of these costs and charges are included in Restructuring
charges and certain acquisition-related costs.
 
(b)

Represents the impact of changes in the estimated useful lives of
assets involved in restructuring actions related to acquisitions.
Included in Cost of sales for the three months ended
September 29, 2013. Included in Cost of sales ($101
million) and Selling, informational and administrative expenses
($8 million) for the nine months ended September 29, 2013.
Included in Cost of sales ($75 million) and Selling,
informational and administrative expenses
($2 million) for the
three months ended September 30, 2012. Included in Cost of sales
($205 million), Selling, informational and administrative
expenses
($7 million) and Research and development expenses
($5 million) for the nine months ended September 30, 2012.

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

(3)

Certain significant items include the following:

          Third-Quarter   Nine Months
(millions of dollars)  

    2013    

 

    2012    

    2013    

 

    2012    

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

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

 
(4) Non-GAAP Adjusted income and its components and Non-GAAP Adjusted
diluted EPS are not, and should not be viewed as, substitutes for
U.S. GAAP net income and its components and diluted EPS. Despite the
importance of these measures to management in goal setting and
performance measurement, Non-GAAP Adjusted income and its components
and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures
that have no standardized meaning prescribed by U.S. GAAP and,
therefore, have limits in their usefulness to investors. Because of
the non-standardized definitions, Non-GAAP Adjusted income and its
components and Non-GAAP Adjusted diluted EPS (unlike U.S. GAAP net
income and its components and diluted EPS) may not be comparable to
the calculation of similar measures of other companies. Non-GAAP
Adjusted income and its components and Non-GAAP Adjusted diluted EPS
are presented solely to permit investors to more fully understand
how management assesses performance.
 
(5) Exclusive of amortization of intangible assets, except as discussed
in footnote (6) below.
 
(6) Amortization expense related to finite-lived acquired intangible
assets that contribute to our ability to sell, manufacture,
research, market and distribute products, compounds and intellectual
property is included in Amortization of intangible assets as
these intangible assets benefit multiple business functions.
Amortization expense related to intangible assets that are
associated with a single function is included in Cost of sales,
Selling, informational and administrative expenses
or Research
and development expenses
, as appropriate.
 
PFIZER INC.
REVENUES
THIRD QUARTER 2013 and 2012
(UNAUDITED)
(millions of dollars)
         
WORLDWIDE UNITED STATES TOTAL INTERNATIONAL(a)
                                                 

2013

  2012   % Change 2013   2012   % Change 2013   2012   % Change
       

 

 

 Total 

 

 Oper. 

       

 

  Total        

 

 

 Total 

 

 Oper. 

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

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS:

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

* Calculation not meaningful.

 

(a)

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

Details for these regions are located on the following page.

(b)

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

(c)

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

(d)

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

(e)

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

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

 

 

 Total 

 

 Oper. 

       

 

 

 Total 

 

 Oper. 

       

 

 

 Total 

 

 Oper. 

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

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS -

INTERNATIONAL:

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

REVENUES FROM OTHER PRODUCTS -

INTERNATIONAL

  $ 122   $ 132   (8 %)   (6 %)     $ 91   $ 99   (8 %)   (10 %)     $ 249   $ 200   25 %   26 %
* Calculation not meaningful.
 

(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

(f)

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

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

 

 

 Total 

 

 Oper. 

       

 

 

Total

       

 

 

 Total 

 

 Oper. 

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

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS:

  $ 35,398   $ 38,321   (8 %)   (6 %)     $ 14,002   $ 14,899   (6 %)     $ 21,396   $ 23,422   (9 %)   (5 %)
Lyrica 3,335 3,026 10 %   12 % 1,438 1,229 17 % 1,897 1,797 6 %   9 %
Prevnar family 2,855 3,028 (6 %) (4 %) 1,336 1,423 (6 %) 1,519 1,605 (5 %) (3 %)
Enbrel (Outside the U.S. and Canada) 2,769 2,780 - 2 % - - - 2,769 2,780 - 2 %
Celebrex 2,120 1,969 8 % 9 % 1,409 1,266 11 % 711 703 1 % 6 %
Lipitor 1,704 3,364 (49 %) (48 %) 335 871 (62 %) 1,369 2,493 (45 %) (43 %)
Viagra 1,405 1,498 (6 %) (6 %) 819 822 - 586 676 (13 %) (12 %)
Zyvox 1,007 996 1 % 3 % 511 490 4 % 496 506 (2 %) 2 %
Norvasc 917 1,001 (8 %) (3 %) 31 38 (18 %) 886 963 (8 %) (2 %)
Sutent 892 913 (2 %) (1 %) 261 255 2 % 631 658 (4 %) (2 %)
Premarin family 793 797 (1 %) - 726 724 - 67 73 (8 %) (4 %)
BeneFIX 619 577 7 % 8 % 298 272 10 % 321 305 5 % 7 %
Genotropin 570 619 (8 %) (4 %) 145 150 (3 %) 425 469 (9 %) (4 %)
Vfend 557 543 3 % 5 % 49 64 (23 %) 508 479 6 % 9 %
Pristiq 516 461 12 % 13 % 402 365 10 % 114 96 19 % 22 %
Chantix/Champix 486 496 (2 %) - 253 234 8 % 233 262 (11 %) (7 %)
Detrol/Detrol LA 437 576 (24 %) (23 %) 297 362 (18 %) 140 214 (35 %) (31 %)
Xalatan/Xalacom 434 617 (30 %) (25 %) 23 30 (23 %) 411 587 (30 %) (26 %)
ReFacto AF/Xyntha 433 420 3 % 3 % 89 79 13 % 344 341 1 % -
Medrol 343 388 (12 %) (10 %) 110 105 5 % 233 283 (18 %) (16 %)
Zoloft 341 398 (14 %) (6 %) 30 49 (39 %) 311 349 (11 %) (2 %)
Effexor 326 342 (5 %) (4 %) 128 102 25 % 198 240 (18 %) (17 %)
Zosyn/Tazocin 293 378 (22 %) (22 %) 127 175 (27 %) 166 203 (18 %) (17 %)
Zithromax/Zmax 283 318 (11 %) (6 %) 5 9 (44 %) 278 309 (10 %) (5 %)
Tygacil 271 249 9 % 10 % 122 115 6 % 149 134 11 % 13 %
Relpax 263 266 (1 %) - 161 160 1 % 102 106 (4 %) -
Fragmin 263 283 (7 %) (8 %) 21 36 (42 %) 242 247 (2 %) (3 %)
Rapamune 261 259 1 % 2 % 152 140 9 % 109 119 (8 %) (6 %)
EpiPen 230 217 6 % 7 % 183 182 1 % 47 35 34 % 40 %
Revatio 225 414 (46 %) (45 %) 52 250 (79 %) 173 164 5 % 8 %
Sulperazon 222 191 16 % 17 % - - - 222 191 16 % 17 %
Cardura 221 254 (13 %) (8 %) 3 4 (25 %) 218 250 (13 %) (7 %)
Inlyta 217 53 * * 112 52 115 % 105 1 * *
Xanax XR 204 203 - 2 % 36 38 (5 %) 168 165 2 % 3 %
Xalkori 193 78 147 % 151 % 98 56 75 % 95 22 * *
Toviaz 174 150 16 % 16 % 89 82 9 % 85 68 25 % 26 %
Aricept(b) 173 249 (31 %) (30 %) - - - 173 249 (31 %) (30 %)
Caduet 164 191 (14 %) (9 %) 16 26 (38 %) 148 165 (10 %) (4 %)
Inspra 164 156 5 % 9 % 4 4 - 160 152 5 % 9 %
Diflucan 164 185 (11 %) (9 %) 2 4 (50 %) 162 181 (10 %) (8 %)
Somavert 159 143 11 % 11 % 38 33 15 % 121 110 10 % 10 %
Neurontin 158 172 (8 %) (6 %) 33 37 (11 %) 125 135 (7 %) (5 %)
Dalacin/Cleocin 149 176 (15 %) (13 %) 45 72 (38 %) 104 104 - 4 %
Xeljanz 68 - * * 67 - * 1 - * *
Alliance revenues(c) 2,187

2,577

(15 %) (15 %) 1,901 1,908 - 286 669 (57 %) (56 %)
All other biopharmaceutical products(d) 5,833 6,350 (8 %) (5 %) 2,045 2,586 (21 %) 3,788 3,764 1 % 6 %
All other established products(d)     4,278     4,360   (2 %)   1 %       1,378     1,484   (7 %)       2,900     2,876   1 %   5 %
REVENUES FROM OTHER PRODUCTS:
CONSUMER HEALTHCARE $ 2,399 $ 2,276 5 % 5 % $ 1,111 $ 1,054 5 % $ 1,288 $ 1,222 5 % 5 %
OTHER(e)   $ 229   $ 169   36 %   36 %     $ 77   $ 58   33 %     $ 152   $ 111   37 %   39 %
* Calculation not meaningful.
 

(a)

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

Details for these regions are located on the following page.

(b)

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

(c)

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

(d)

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

(e)

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

 

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

 Total 

 

 Oper. 

         

 Total 

 

 Oper. 

         

 Total 

 

 Oper. 

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

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS -

INTERNATIONAL:

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

REVENUES FROM OTHER PRODUCTS -

INTERNATIONAL

  $ 419   $ 407   3 %   2 %   $ 292   $ 295   (1 %)   -     $ 729   $ 631   16 %   17 %
* Calculation not meaningful.
 

(a)

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

(b)

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

(c)

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

(d)

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

(e)

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

(f)

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

 
Certain amounts and percentages may reflect rounding adjustments.
 

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

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 reviews, capital allocation, business-development plans, and
plans relating to share repurchases and dividends, among other things,
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, as well as the
    possibility of unfavorable clinical trial results, including
    unfavorable new clinical data and additional analyses of existing
    clinical data;
  • 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 inability of the U.S. federal government to conduct drug review
    and approval activities or to satisfy its financial obligations,
    including under Medicare, Medicaid and other publicly funded or
    subsidized health programs, that may result from the possible failure
    of the U.S. federal government in early 2014 to provide funding to
    avoid a partial or total shutdown of its operations and/or to suspend
    enforcement of or to increase the federal debt ceiling;
  • 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. federal or state 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,
    including the impact of possible currency devaluations in countries
    experiencing high inflation rates;
  • 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; and
  • the impact of acquisitions, divestitures, restructurings, internal
    reorganizations, product recalls and withdrawals and other unusual
    items, including our ability to realize the projected benefits of our
    cost-reduction and productivity initiatives, including those related
    to our research and development organization, and of our plan to
    internally separate our commercial operations into three, new, global
    businesses effective January 1, 2014.

A further list and description of risks, uncertainties and other matters
can be found in our Annual Report on Form 10-K/A for the fiscal year
ended December 31, 2012 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.

Contact: 
Contacts: 
Media 
Joan Campion 
212.733.2798 
 
Investors
Chuck Triano 
212.733.3901
 
Suzanne Harnett 
212.733.8009