Adjusted Diluted EPS of $0.58 for the Third-Quarter 2007 Represents an Increase of 7% Compared to the Same Period a Year Ago.
New Products Posted Significant Growth in Revenues; Overall Third-Quarter 2007 Revenues were Adversely Impacted by Loss of U.S. Exclusivity for Norvasc and Zoloft.
Worldwide Lipitor Revenues were $3.2 Billion in the Third Quarter of 2007 Compared to $3.3 Billion in the Third Quarter of 2006.
Pfizer Inc. posted third-quarter 2007 revenues of $12.0 billion, a 2% decline from the same period last year. The Company#s reported net income was $761 million in the third quarter of 2007, a decrease of 77% from the same period last year, primarily reflecting pre-tax charges of $2.8 billion related to the decision to exit Exubera, our inhaled insulin product to treat diabetes. Adjusted income for the third quarter of 2007 increased 1% to $4.0 billion compared to the third quarter of 2006.
"We are encouraged by our operating results in the third quarter, and we remain on track to achieve our full-year 2007 revenues and adjusted diluted EPS goals. Meanwhile, we made an important decision regarding Exubera, a product for which we initially had high expectations," said Jeff Kindler, Chairman and Chief Executive Officer. "Despite our best efforts, Exubera has failed to gain the acceptance of patients and physicians. We have therefore concluded that further investment in this product is unwarranted."
"We will work with physicians to transition Exubera patients to other treatment options in the next three months. We remain committed to investing significant resources in the development of new and innovative medicines to manage diabetes, including monitoring inhalation technologies and other innovative delivery systems for insulin and other medicines."
Frank D'Amelio, Chief Financial Officer, added, "The Exubera pre-tax charges of $2.8 billion related primarily to the write-off of assets associated with this product, as well as the accrual of other exit costs. More specifically, these charges are comprised of approximately $1.1 billion of intangible assets, $661 million of inventory, $454 million of fixed assets and $584 million of other exit costs."
Commenting on the financial performance in the just-ended quarter, Mr. Kindler said, "We are achieving our operational goals in the face of major revenue losses due to patent expirations in the U.S. Most of our new products along with the favorable impact of foreign exchange are contributing significantly toward offsetting these losses as evidenced by our year-to-date results."
Mr. Kindler continued, "While optimizing revenues from our in-line products and generating strong growth from our new products, we remain focused on driving a series of fundamental changes in the Company to improve our performance and achieve a lower, more flexible cost base. We are making substantial progress on these priorities. For example, our reduction in adjusted selling, informational and administrative expenses this year is expected to exceed our previous forecast on a constant currency basis."
"However, we need to deliver better results, continue to make tough decisions about allocating our capital wisely, and bring more new products to the market as quickly as possible. Doing all of this will put Pfizer on the right course and build value for our shareholders."
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