. Third-Quarter 2011 Revenues of $17.2 Billion
. Third-Quarter 2011 Adjusted Diluted EPS(1) of $0.62; Reported Diluted EPS(2) of $0.48, which Reflects a $1.3 Billion After-Tax Gain on Sale of Capsugel(3)
. Increases 2011 Adjusted Diluted EPS(1) and Reported Diluted EPS(2) Guidance Ranges; Reaffirms 2012 Financial Targets
. Repurchases $2.1 Billion and $6.5 Billion of Common Stock During Third-Quarter and Year-to-Date through October 31, 2011, Respectively; Increases 2011 Share Repurchase Target to between $7 Billion and $9 Billion

($ in millions, except per share amounts)
Third-Quarter(4) Year-to-Date(4)
2011 2010 Change 2011 2010 Change
Reported Revenues $ 17,193 $ 15,995 7 % $ 50,679 $ 49,703 2 %
Adjusted Income(1) 4,820 4,352 11 % 14,354 14,141 2 %
Adjusted Diluted EPS(1) 0.62 0.54 15 % 1.81 1.75 3 %
Reported Net Income(2) 3,738 866 * 8,570 5,367 60 %
Reported Diluted EPS(2) 0.48 0.11 * 1.08 0.66 64 %

See end of text prior to tables for notes.
* Calculation not meaningful


Pfizer Inc. (NYSE: PFE) today reported financial results for third-quarter 2011. Third-quarter 2011 revenues were $17.2 billion, an increase of 7% compared with the year-ago quarter, which reflects operational growth of $247 million, or 1%, and the favorable impact of foreign exchange of $951 million, or 6%.

For third-quarter 2011, U.S. revenues were $6.9 billion, a decrease of 3% compared with the year-ago quarter. International revenues were $10.3 billion, an increase of 15% compared with the prior-year quarter, which reflected 4% operational growth and an 11% favorable impact of foreign exchange. U.S. revenues represented 40% of total revenues in third-quarter 2011 compared with 44% in the year-ago quarter, while international revenues represented 60% of total revenues in third-quarter 2011 compared with 56% in the year-ago quarter.

Financial Performance

Third-Quarter Revenues
($ in millions)
Favorable/(Unfavorable)
2011 2010 Change Foreign Exchange Operational

Primary Care(5) $ 5,948 $ 5,653 5 % 5 % --
Specialty Care(6) 3,799 3,717 2 % 7 % (5 %)
Emerging Markets(7) 2,438 2,072 18 % 6 % 12 %
Established Products(8) 2,230 2,168 3 % 7 % (4 %)
Oncology(9) 332 335 (1 %) 8 % (9 %)
Biopharmaceutical 14,747 13,945 6 % 6 % --

Animal Health(10) 1,041 860 21 % 6 % 15 %
Consumer Healthcare(11) 774 673 15 % 4 % 11 %
Nutrition(12) 577 441 31 % 7 % 24 %
Other(13) 54 76 (29 %) 2 % (31 %)

Total $ 17,193 $ 15,995 7 % 6 % 1 %


See end of text prior to tables for notes.

Business Highlights

Primary Care(5) unit revenues in third-quarter 2011 were favorably impacted primarily by foreign exchange, growth from Lipitor in the U.S. and from Celebrex, Lyrica, Pristiq and Spiriva, among others, and the addition of $119 million, or 2%, from legacy King products, while negatively impacted by the loss of exclusivity of Aricept in the U.S. in November 2010 as well as the loss of exclusivity of Lipitor in Canada and Spain in May and July 2010, respectively. Taken together, these losses of exclusivity reduced Primary Care(5) unit revenues by $415 million, or 7%, in comparison with third-quarter 2010.

Specialty Care(6) unit revenues were positively impacted by foreign exchange and strong growth in the Prevenar franchise and Enbrel in most international markets. Prevnar 13 revenues in the U.S. were lower than in third-quarter 2010 as fewer patients received the Prevnar 13 catch-up dose as the timeframe for eligibility has nearly expired. Specialty Care(6) unit revenues were also negatively impacted by the loss of exclusivity of Vfend and Xalatan in the U.S. in February and March 2011, respectively. Collectively, these losses of exclusivity reduced Specialty Care(6) unit revenues by $214 million, or 6%, in comparison with third-quarter 2010.

Emerging Markets(7) unit revenues were positively impacted by foreign exchange and growth in certain key innovative brands, primarily the Prevenar franchise, Celebrex, Enbrel, Lyrica, Vfend and Zyvox, notably with double-digit operational growth in China, Russia, Turkey and India. Revenues were negatively impacted by the loss of exclusivity of Lipitor in Brazil and Mexico in August and December 2010, respectively. These losses of exclusivity reduced Emerging Markets(7) unit revenues by $30 million, or 1%, in comparison with third-quarter 2010.

Established Products(8) unit revenues were mainly impacted by the loss of exclusivity of Protonix and Zosyn in the U.S., which taken together reduced Established Products(8) unit revenues by $242 million, or 11%, in comparison with third-quarter 2010. This decline was more than offset by $144 million, or 7%, from the addition of legacy King products, as well as foreign exchange. Total revenues from established products in both the Established Products(8) and Emerging Markets(7) units were $3.2 billion, with $996 million generated in emerging markets.

Animal Health(10) unit revenues increased by 21%, in comparison with the same quarter last year, reflecting the positive operational impact of $90 million, or 10%, due to the addition of legacy King products, as well as the favorable conditions in global livestock markets and foreign exchange. The Consumer Healthcare(11) unit generated revenue growth of 15% in comparison with third-quarter 2010, primarily driven by the non-recurrence of the voluntary withdrawal of Centrum temporarily in Europe in third-quarter 2010, the U.S. launch of new dietary supplements in third-quarter 2011, as well as foreign exchange. Nutrition(12) unit revenues increased 31% in comparison with the same quarter last year, primarily in China and the Middle East, from increased demand for premium products and from new product launches, in addition to foreign exchange.

2011 Financial Guidance(15)

For full-year 2011, Pfizer’s financial guidance, at current exchange rates(16), is summarized below.


Reported Revenues $66.2 to $67.2 billion
(previously $65.2 to $67.2 billion)

Adjusted Cost of Sales(1) as a Percentage of Revenues 19.8% to 20.3%
(previously 19.5% to 20.5%)

Adjusted SI&A Expenses(1) $19.4 to $19.9 billion
(previously $19.2 to $20.2 billion)

Adjusted R&D Expenses(1)
$8.1 to $8.4 billion
(previously $8.0 to $8.5 billion)

Adjusted Other (Income)/Deductions(1) Approximately $800 million
(previously approximately $1.0 billion)

Effective Tax Rate on Adjusted Income(1) Approximately 29%
Reported Diluted EPS(2) $1.20 to $1.30
(previously $1.09 to $1.24)

Adjusted Diluted EPS(1) $2.24 to $2.29
(previously $2.16 to $2.26)


2012 Financial Targets(15)
For full-year 2012, Pfizer’s financial targets, at current exchange rates(16), are summarized below.


Reported Revenues $62.2 to $64.7 billion
Adjusted SI&A Expenses(1) $17.5 to $18.5 billion
Adjusted R&D Expenses(1) $6.5 to $7.0 billion
Adjusted Other (Income)/Deductions(1) Approximately $1.0 billion
Adjusted Operating Margin(1) High 30%s to low 40%s
Effective Tax Rate on Adjusted Income(1) Approximately 29%
Reported Diluted EPS(2) $1.58 to $1.73
Adjusted Diluted EPS(1) $2.25 to $2.35
Operating Cash Flow At least $19.0 billion