Pfizer Reports Fourth-Quarter and Full-Year 2009 Results

Pfizer Inc.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. 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.

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.

"During the fourth quarter, we closed the Wyeth acquisition and immediately began the integration of our operations, advancing the transformation of the company," stated Jeff Kindler, Chairman and Chief Executive Officer. "We are pleased with the rapid pace of the integration and our ability to quickly realize the benefits of our combined organization."

"Our results this quarter clearly demonstrate the ability of our colleagues to remain focused and deliver solid operational performance, while working to close the Wyeth acquisition and to ensure a successful integration," Kindler continued. "We remain excited about our more diverse in-line product and pipeline portfolio, which we expect will result in improved opportunities for the company in 2010 and beyond."

Frank D'Amelio, Chief Financial Officer, stated, "Our 2010 financial guidance and 2012 financial targets balance the achievement of our projected cost reductions, including from the integration of Wyeth, with the expected increased investment to drive longer-term, top and bottom line performance. These goals reflect our continued confidence in the business and our ability to capitalize on near- to mid-term growth opportunities through a meaningful reallocation of investment. Additionally, our 2012 targets assume a modest level of planned business-development activities."

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