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Pfizer 3Q Earnings Up

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 2013Financial Guidance Components

 

NEW YORK, October 29, 2013--(BUSINESS)--Pfizer Inc. (NYSE: PFE) reported financial results for third-quarter 2013. As a result of the full disposition of Zoetis(3) on June24, 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.

“Forward-Looking Information and Factors That May Affect Future
Results”

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
            Discontinued
operations
    10.7       1.55
            Reported net income
attributable to Pfizer Inc./diluted EPS(1) guidance
    $21.2
- $21.9
      $3.05
- $3.15
                           
PFIZER INC. AND SUBSIDIARY
COMPANIES
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME(1)
(UNAUDITED)
(millions, except per
common share data)
                                     
    Third-Quarter   % Incr. /   Nine Months   % Incr. /
    2013   2012   (Decr.)   2013   2012   (Decr.)
Revenues   $ 12,643     $ 12,953     (2)   $ 38,026     $ 40,766     (7)
Costs and expenses:                                    
Cost of sales(2)     2,287       2,309     (1)     6,792       7,068     (4)
Selling, informational and
administrative expenses(2)
    3,395       3,491     (3)     10,203       10,834     (6)
Research and development
expenses(2)
    1,627       1,887     (14)     4,867       5,461     (11)
Amortization of intangible
assets(3)
    1,117       1,211     (8)     3,476       3,889     (11)
Restructuring charges and certain
acquisition-related costs
    233       312     (25)     547       1,085     (50)
Other
(income)/deductions––net(4)
    411       937     (56)     (514 )     3,264     *
Income from continuing operations
before provision
                                   
for taxes on income     3,573       2,806     27     12,655       9,165     38
Provision/(benefit) for taxes
on income(5)
    985       (183 )   *     3,876       1,622     *
Income from continuing operations     2,588       2,989     (13)     8,779       7,543     16
Discontinued operations––net
of tax
    11       225     (95)     10,719       734     *
Net income before allocation to
noncontrolling interests
    2,599       3,214     (19)     19,498       8,277     *
Less: Net income attributable
to noncontrolling interests
    9       6     50     63       22     *
Net income attributable to
Pfizer Inc.
  $ 2,590     $ 3,208     (19)   $ 19,435     $ 8,255     *
Earnings per common share––basic:                                    
Income from continuing operations
attributable to
                                   
Pfizer Inc. common shareholders   $ 0.39     $ 0.40     (3)   $ 1.26     $ 1.00     26
Discontinued operations––net
of tax
    -       0.03     *     1.54       0.10     *
Net income attributable to
Pfizer Inc. common shareholders
  $ 0.39     $ 0.43     (9)   $ 2.80     $ 1.10     *
Earnings per common share––diluted:                                    
Income from continuing operations
attributable to
                                   
Pfizer Inc. common shareholders   $ 0.39     $ 0.40     (3)   $ 1.25     $ 1.00     25
Discontinued operations––net
of tax
    -       0.03     *     1.52       0.10     *
Net income attributable to
Pfizer Inc. common shareholders
  $ 0.39     $ 0.43     (9)   $ 2.77     $ 1.09     *
Weighted-average shares used to
calculate earnings per common share:
                                   
Basic     6,581       7,436           6,938       7,483      
Diluted     6,656       7,508           7,016       7,550      
                                     

* Calculation not meaningful.

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

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

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

    2013    

   

    2012    

   

    2013    

   

    2012    

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

 

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

 

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

EPS amounts may not add due to rounding.

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

 

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

 

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

    2013    

   

    2012    

   

    2013    

   

    2012    

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

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

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

(3)

 

Certain significant items include the following:

            Third-Quarter   Nine Months
        (millions of dollars)  

    2013    

 

    2012    

 

    2013    

 

    2012    

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

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

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

2013

  2012   % Change     2013   2012   % Change     2013   2012   % Change
       

 

 

 Total 

 

 Oper. 

       

 

  Total        

 

 

 Total 

 

 Oper. 

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

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS:

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

* Calculation not meaningful.

     

(a)

 

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

    Details for these regions are located
on the following page.

(b)

 

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

(c)

 

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

(d)

 

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

(e)

 

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

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

 

 

 Total 

 

 Oper. 

       

 

 

 Total 

 

 Oper. 

       

 

 

 Total 

 

 Oper. 

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

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS -

INTERNATIONAL:

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

REVENUES FROM OTHER PRODUCTS -

INTERNATIONAL

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

(a)

 

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

(b)

 

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

(c)

 

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

(d)

 

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

(e)

 

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

(f)

 

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

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

 

 

 Total 

 

 Oper. 

       

 

 

Total

       

 

 

 Total 

 

 Oper. 

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

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS:

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

(a)

 

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

    Details for these regions are located
on the following page.

(b)

 

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

(c)

 

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

(d)

 

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

(e)

 

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

   

 

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

 Total 

 

 Oper. 

         

 Total 

 

 Oper. 

         

 Total 

 

 Oper. 

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

REVENUES FROM

BIOPHARMACEUTICAL PRODUCTS -

INTERNATIONAL:

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

REVENUES FROM OTHER PRODUCTS -

INTERNATIONAL

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

(a)

 

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

(b)

 

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

(c)

 

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

(d)

 

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

(e)

 

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

(f)

 

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

     
Certain amounts and
percentages may reflect rounding adjustments.
 

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

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.

Contacts

Pfizer Inc.
Media
Joan Campion,
212-733-2798
or
Investors
Chuck Triano,
212-733-3901
Suzanne Harnett, 212-733-8009

 

 

Posted: October 2013


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