. Fourth-Quarter 2009 Revenues of $16.5 Billion; Full-Year 2009 Revenues of $50.0 Billion
. Fourth-Quarter 2009 Reported Diluted EPS(1) of $0.10, Adjusted Diluted EPS(2) of $0.49; Full-Year 2009 Reported Diluted EPS(1) of $1.23, Adjusted Diluted EPS(2) of $2.02
. Achieves Full-Year 2009 Revenue and Adjusted Diluted EPS(2) Guidance
. Provides Full-Year 2010 Financial Guidance; Provides Updated 2012 Financial Targets.
$ in millions, except per share amounts)
Fourth-Quarter Full-Year
2009 2008 Change 2009 2008 Change
Reported Revenues $ 16,537 $ 12,346 34% $ 50,009 $ 48,296 4%
Reported Net Income(1) 767 266 188% 8,635 8,104 7%
Reported Diluted EPS(1) 0.10 0.04 150% 1.23 1.20 3%
Adjusted Income(2) 3,825 4,389 (13%) 14,202 16,366 (13%)
Adjusted Diluted EPS(2) 0.49 0.65 (25%) 2.02 2.42 (17%)
See end of text prior to tables for notes.
Pfizer Inc. (NYSE: PFE) today reported financial results for fourth-quarter and full-year 2009. On October 15, 2009, Pfizer completed the acquisition of Wyeth and, consequently, fourth-quarter and full-year 2009 results include the legacy Wyeth operations from the acquisition date through Pfizer’s domestic and international year-ends (see note 16). Fourth-quarter 2009 revenues were $16.5 billion, an increase of 34% compared with $12.3 billion in the year-ago quarter. Revenues for fourth-quarter 2009 compared with the year-ago quarter were favorably impacted by $3.3 billion, or 27%, due to the addition of the legacy Wyeth products, $419 million, or 3%, due to legacy Pfizer products, and $469 million, or 4%, due to foreign exchange. For fourth-quarter 2009, U.S. revenues were $7.4 billion, an increase of 42% compared with the year-ago quarter. International revenues were $9.1 billion, an increase of 28% compared with the prior-year quarter, and reflected 21% operational growth and a 7% favorable impact of foreign exchange. U.S. revenues represented 45% compared with 42% of the total in the year-ago quarter, while international revenues represented 55% compared with 58% of the total in fourth-quarter 2008.
For full-year 2009, revenues were $50.0 billion, an increase of 4% compared with $48.3 billion in the same period in 2008. For full-year 2009, revenues were favorably impacted by approximately $3.3 billion, or 7%, due to the addition of the legacy Wyeth products, $247 million, or 1%, due to legacy Pfizer products, and unfavorably impacted by $1.8 billion, or 4%, due to foreign exchange. U.S. revenues were $21.7 billion, an increase of 7% compared with full-year 2008. International revenues were $28.3 billion, an increase of 1% compared with last year, and reflected 8% operational growth and a 7% unfavorable impact of foreign exchange. U.S. revenues represented 43% compared with 42% of the total last year, and international revenues represented 57% compared with 58% of the total in 2008.
Business Revenues
Since the close of the Wyeth acquisition, Pfizer has operated two distinct commercial organizations: Biopharmaceutical and Diversified. Biopharmaceutical includes the Primary Care, Specialty Care, Established Products, Emerging Markets and Oncology customer-focused units, while Diversified includes Animal Health, Consumer Healthcare, Capsugel and Nutrition.
Fourth-Quarter
Operational
($ in millions) 2009 2008 Change Foreign Exchange Total Legacy Pfizer
Primary Care(3) $ 6,521 $ 5,930 10 % 4 % 6 % 1 %
Specialty Care(4) 2,934 1,595 84 % 5 % 79 % 9 %
Established Products(5) 2,749 1,749 57 % 6 % 51 % 1 %
Emerging Markets(6) 1,974 1,582 25 % 1 % 24 % 10 %
Oncology(7) 428 385 11 % 5 % 6 % (2 %)
Biopharmaceutical 14,606 11,241 30 % 4 % 26 % 4 %
Animal Health(8) 901 783 15 % 4 % 11 % 1 %
Consumer Healthcare(9) 494 -- * -- 100 % --
Capsugel(10) 223 203 10 % 5 % 5 % 5 %
Nutrition(11) 191 -- * -- 100 % --
Diversified 1,809 986 83 % 5 % 78 % 1 %
Other(12) 122 119 3 % 4 % (1 %) (1 %)
Total $ 16,537 $ 12,346 34 % 4 % 30 % 3 %
See end of text prior to tables for notes.
* Calculation not meaningful
For fourth-quarter 2009, revenues from Biopharmaceutical were $14.6 billion, an increase of 30% compared with $11.2 billion in the year-ago quarter. Operationally, revenues increased $2.9 billion, or 26%, of which $2.5 billion, or 22%, was attributable to legacy Wyeth products, primarily Premarin in the Primary Care unit, Enbrel and Prevnar in the Specialty Care unit, Effexor in the Established Products unit as well as Enbrel and Prevenar in the Emerging Markets unit. Additionally, the favorable impact of foreign exchange increased revenues by 4% or $419 million.
For fourth-quarter 2009, revenues from Diversified were $1.8 billion, an increase of 83% compared with $1.0 billion in the year-ago quarter. Operationally, revenues increased $778 million, or 78%, of which $764 million, or 77%, was attributable to legacy Wyeth products, primarily Centrum, Advil and Robitussin in Consumer Healthcare and certain Nutrition products. Additionally, the favorable impact of foreign exchange increased revenues by 5% or $45 million.
Reported Net Income(1) and Reported Diluted EPS(1)
For fourth-quarter 2009, Pfizer posted reported net income(1) of $767 million, an increase of 188% compared with $266 million in the prior-year quarter, and reported diluted EPS(1) of $0.10, an increase of 150% compared with $0.04 in the prior-year quarter. Results for fourth-quarter 2009 compared with the same period in 2008 were favorably impacted by increased revenues as well as the non-recurrence of the pre-tax and after-tax charge of $2.3 billion in the year-ago quarter related to the resolution of certain investigations concerning Bextra and various other products in addition to the favorable impact of lower costs incurred in connection with our cost-reduction initiatives in 2009. These factors were largely offset by significant purchase accounting adjustments and acquisition-related costs associated with the Wyeth acquisition. In addition, the effective tax rate in fourth-quarter 2009 was favorably impacted by the tax benefits related to the sale of one of our biopharmaceutical companies, Vicuron Pharmaceuticals, Inc., and the jurisdictional mix of certain expenses incurred in connection with the acquisition of Wyeth. The fourth-quarter 2008 effective tax rate was negatively impacted by the unfavorable tax implications of the aforementioned charge related to Bextra and various other products.
For full-year 2009, Pfizer posted reported net income(1) of $8.6 billion, an increase of 7% compared with $8.1 billion last year, and reported diluted EPS(1) of $1.23, an increase of 3% compared with $1.20 in 2008. These results were impacted by increased revenues and the aforementioned fourth-quarter factors as well as the non-recurrence of a $640 million after-tax charge related to the resolution of certain litigation involving the Company’s non-steroidal anti-inflammatory pain medicines in third-quarter 2008. These factors were partially offset by the unfavorable impact of foreign exchange and higher net interest expense. Additionally, the effective tax rate on reported results increased to approximately 20% in full-year 2009 from approximately 17% in full-year 2008, primarily due to the increased tax cost associated with certain business decisions executed to finance the Wyeth acquisition.
Additionally, reported diluted EPS(1) in fourth-quarter and full-year 2009 was impacted by the increased number of shares outstanding in comparison with the corresponding periods in 2008 resulting primarily from shares issued to partially fund the Wyeth acquisition.
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* Calculation not meaningful
For fourth-quarter 2009, revenues from Biopharmaceutical were $14.6 billion, an increase of 30% compared with $11.2 billion in the year-ago quarter. Operationally, revenues increased $2.9 billion, or 26%, of which $2.5 billion, or 22%, was attributable to legacy Wyeth products, primarily Premarin in the Primary Care unit, Enbrel and Prevnar in the Specialty Care unit, Effexor in the Established Products unit as well as Enbrel and Prevenar in the Emerging Markets unit. Additionally, the favorable impact of foreign exchange increased revenues by 4% or $419 million.
For fourth-quarter 2009, revenues from Diversified were $1.8 billion, an increase of 83% compared with $1.0 billion in the year-ago quarter. Operationally, revenues increased $778 million, or 78%, of which $764 million, or 77%, was attributable to legacy Wyeth products, primarily Centrum, Advil and Robitussin in Consumer Healthcare and certain Nutrition products. Additionally, the favorable impact of foreign exchange increased revenues by 5% or $45 million.
Reported Net Income(1) and Reported Diluted EPS(1)
For fourth-quarter 2009, Pfizer posted reported net income(1) of $767 million, an increase of 188% compared with $266 million in the prior-year quarter, and reported diluted EPS(1) of $0.10, an increase of 150% compared with $0.04 in the prior-year quarter. Results for fourth-quarter 2009 compared with the same period in 2008 were favorably impacted by increased revenues as well as the non-recurrence of the pre-tax and after-tax charge of $2.3 billion in the year-ago quarter related to the resolution of certain investigations concerning Bextra and various other products in addition to the favorable impact of lower costs incurred in connection with our cost-reduction initiatives in 2009. These factors were largely offset by significant purchase accounting adjustments and acquisition-related costs associated with the Wyeth acquisition. In addition, the effective tax rate in fourth-quarter 2009 was favorably impacted by the tax benefits related to the sale of one of our biopharmaceutical companies, Vicuron Pharmaceuticals, Inc., and the jurisdictional mix of certain expenses incurred in connection with the acquisition of Wyeth. The fourth-quarter 2008 effective tax rate was negatively impacted by the unfavorable tax implications of the aforementioned charge related to Bextra and various other products.
For full-year 2009, Pfizer posted reported net income(1) of $8.6 billion, an increase of 7% compared with $8.1 billion last year, and reported diluted EPS(1) of $1.23, an increase of 3% compared with $1.20 in 2008. These results were impacted by increased revenues and the aforementioned fourth-quarter factors as well as the non-recurrence of a $640 million after-tax charge related to the resolution of certain litigation involving the Company’s non-steroidal anti-inflammatory pain medicines in third-quarter 2008. These factors were partially offset by the unfavorable impact of foreign exchange and higher net interest expense. Additionally, the effective tax rate on reported results increased to approximately 20% in full-year 2009 from approximately 17% in full-year 2008, primarily due to the increased tax cost associated with certain business decisions executed to finance the Wyeth acquisition.
Additionally, reported diluted EPS(1) in fourth-quarter and full-year 2009 was impacted by the increased number of shares outstanding in comparison with the corresponding periods in 2008 resulting primarily from shares issued to partially fund the Wyeth acquisition.
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