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For fourth-quarter 2008, Pfizer posted online currency trading reported net income of $266
million, star online foreign exchange a decline of 90% compared with the prior-year quarter, and
reported diluted EPS of $0.04, a decrease of 90% compared with the
prior-year quarter. See end of tables for notes. Pfizer continues its educational and promotional efforts with
physicians and patients, focused on Chantix s benefit-risk proposition
given the significant negative health online currency trading consequences of smoking, as well
as the importance of physician-patient dialogue in helping patients quit
smoking.
Our combined company will be one of the most diversified in
the industry and will benefit from complementary patient-centric units
that match speed with the benefits of a global company s scale and
resources, continued Kindler. These charges include
approximately $1.1 billion of intangible asset impairments, $661
million of inventory write-offs, $454 million of fixed asset
impairments, and $578 million of other exit costs. In fourth-quarter 2008, adjusted forex trading cost of sales(1) as a
percentage of revenues was 11.7% compared with 17.7% in fourth-quarter
2007.
2008 Actual
2009 Guidance
Adjusted Revenues(1)
$48.3 billion
$44.0 to foreign exchange $46.0 billion
Adjusted Cost of Sales(1) as a Percentage of Revenues
14.6%
14.5% to 15.5%
Adjusted SI&A Expenses(1)
$14.0 billion
$13.5 to $14.0 currency market billion
Adjusted R&D Expenses(1)
$7.5 billion
$7.1 to $7.5 billion
Adjusted Other (Income)/Deductions(1)
($1.4 billion)
($500 to $700 million)
Effective Tax Rate on Adjusted Income(1)
22.0%
Approx. Both periods foreign exchange also
benefited from the favorable impact of our cost-reduction initiatives. Other (income)/deductions--net for the full year ended
, includes charges of approximately $900 million,
recorded in the third quarter of 2008, associated with the
resolution of certain litigation involving our non-steroidal
anti-inflammatory pain medicines and charges of approximately money market $2.3
billion, recorded in the fourth quarter of 2008, resulting from an
agreement in principle to resolve previously disclosed
investigations regarding allegations of past off-label promotional
practices concerning Bextra, as well as other open investigations. (8)
Includes Consumer Healthcare business transition activity,
Capsugel forex trade and Pfizer Centersource. The Company also intends to reduce the number of
manufacturing sites to 41 from 46 today, as well as reduce its
facilities square footage by approximately 15%. Income/(loss) from discontinued operations--net of tax
2
-
-
(2
)
-
-
Gains/(losses) on sales of discontinued operations--net of tax
forex micro trading
38
-
-
(38
)
-
-
Discontinued operations--net of tax
forex trading
40
-
-
(40
)
-
-
Net income
fx trading
$
266
$
441
$
9
$
(40
)
$
3,713
$
4,389
Earnings per com share - diluted. We achieved our financial objectives, including
exceeding money market our cost-reduction target, despite the tumultuous mini forex trading global
economy. The above financial statements present the three-month and
twelve-month periods ended of each year.
(5)
Represents worldwide revenues for pharmaceutical products launched
since 2006. As described under Adjusted Income
in the Management s Discussion and Analysis of Financial foreign currency trading Condition
and Results of Operations section of Pfizer's Form 10-Q for the
fiscal quarter ended , management uses adjusted
income, among other factors, to set performance goals and to measure
the performance of the overall company. (e)
forex trading reviews
The financial results for the full year ended ,
include charges primarily related to the decision to exit Exubera
which are comprised of approximately $1.1 billion of intangible
asset impairments, $661 million of inventory write-offs, $454
million forex of fixed asset impairments and $578 million of other exit
costs. Cost of sales (a)
8,112
-
-
-
(1,072
)
7,040
Selling, informational and administrative expenses (a)
forex micro trading
14,537
12
-
-
(505
)
14,044
Research and development expenses (a)
7,945
(28
)
-
-
(429
)
forex
7,488
Amortization of intangible assets
2,668
(2,525
)
-
-
-
143
currency trade
Acquisition-related in-process R&D charges
633
(633
)
-
-
-
-
Restructuring charges and acquisition-related costs
currency trade
2,675
-
(49
)
-
(2,626
)
-
Other (income)/deductions--net
2,032
(5
)
-
foreign currency trading -
(3,413
)
(1,386
)
Income from continuing operations before provision
currency market
for taxes on income and minority interests
9,694
3,179
49
-
forex trade
8,090
21,012
Provision for taxes on income
1,645
740
10
-
2,228
4,623
Minority interests
fx trading
23
-
-
-
-
currency trading
23
Income from continuing operations
8,026
2,439
39
-
5,862
16,366
Discontinued operations. Calculation not meaningful.
Full-year 2008 currency trading revenues were unfavorably impacted by the aforementioned
loss of exclusivity of Norvasc, Zyrtec and Camptosar, partially offset
by revenues from in-line and new products(6), which increased
7% from the prior year. Reported revenues were $5.3 billion in fourth-quarter 2008, a
decrease of 8% compared with the year-ago quarter. Product Performance
($ in millions, except percentages)
Fourth-Quarter
Full-Year
2008
2007
Change
2008
2007
Change
In-Line Products(4)
$10,132
$10,061
1%
$ 39,635
$ 37,424
6%
New Products(5)
451
468
(4%)
1,820
1,489
22%
crown forex reviews
Total In-Line and New Products(6)
10,583
10,529
1%
41,455
38,913
7%
Loss of Exclusivity Products(7)
658
1,173
2,936
5,511
(47%)
(44%)
Returns Adjustment
--
--
--
(217)
--
Total Pharmaceutical
11,241
11,702
(4%)
44,174
44,424
(1%)
Animal Health
783
785
--
2,825
2,639
7%
Other(8)
322
383
(16%)
1,297
1,355
(4%)
Total Revenues
$ 12,346
$12,870
(4%)
$ 48,296
$ 48,418
--
cms forex reviews
See end of text prior to tables for notes. Amortization expense related to acquired intangible assets that
contribute to our ability to sell, manufacture, research, market and
distribute our products are included in Amortization of
intangible assets as they benefit multiple business functions. See the table accompanying this
report. Overall, operational improvements decreased adjusted total costs(2)
by $1.1 billion or 12% in fourth-quarter 2008 compared with the
prior-year period, and foreign exchange decreased adjusted total costs(2)
by $702 million or 8%. (d)
Included in Revenues in the third quarter of 2008 and
reflects an adjustment to the prior years' liability for product
returns. In addition, higher fourth-quarter 2007
spending levels contributed to the quarter-over-quarter decline in
adjusted SI&A expenses(1).
International
reported revenues were $7.1 billion, a decrease of 1% compared with the
year-ago quarter, and reflect operational growth of 5%, which was more
than offset by the unfavorable impact of foreign exchange of 6%. Full-year revenues were
favorably impacted by foreign exchange of approximately $1.6 billion, or
3%, and the solid performance of many key products. Adjusted Revenues , Adjusted Income
and Adjusted Diluted EPS Results
For fourth-quarter 2008, Pfizer posted adjusted revenues(1)
of $12.3 billion, a decrease of 4% compared with $12.8 billion in the
year-ago quarter.
Cost of sales (a)
2,625
-
-
-
(359
)
2,266
Selling, informational and administrative expenses (a)
4,653
3
-
-
(124
)
4,532
Research and development expenses (a)
2,260
(7
)
-
-
(93
)
2,160
Amortization of intangible assets
756
(721
)
-
-
-
35
Acquisition-related in-process R&D charges
-
-
-
-
-
-
Restructuring charges and acquisition-related costs
216
-
(3
)
-
(213
)
-
Other (income)/deductions--net
(610
)
(2
)
-
-
219
(393
)
Income from continuing operations before provision/(benefit)
for taxes on income and minority interests
2,970
727
3
-
495
4,195
Provision/(benefit) for taxes on income
223
219
(4
)
-
319
757
Minority interests
36
-
-
-
-
36
Income from continuing operations
2,711
508
7
-
176
3,402
Discontinued operations. Fourth-quarter 2008 adjusted income(1) was $4.4 billion, an
increase of 29% compared with $3.4 billion in the year-ago quarter, and
adjusted diluted EPS(1) was $0.65, an increase of 30%
compared with $0.50 in the year-ago quarter. For fourth-quarter 2008, the Company
recorded reported revenues of $12.3 billion, a decrease of 4% compared
with the year-ago quarter. Further, its robust life
cycle plan currently includes Phase 3 clinical trials in cancers with
unmet medical need, such as breast, lung, colorectal, liver and prostate
cancers. Amortization expense related to acquired intangible assets that are
associated with a single function are included in Cost of sales,
Selling, informational and administrative expenses or Research
and development expenses, as appropriate.
(6)
Total worldwide pharmaceutical revenues excluding the revenues of
major products that have lost exclusivity in the U.S. Subsidiaries
operating outside the United States are included for the
three-month and twelve-month periods ended of each
year. As required through , the estimated value of Acquisition-related
in-process research and development charges (IPR&D) is
expensed at acquisition date. This also assumes a forex charting software reviews reduction in revenues of
approximately $3.0 billion compared with 2008 directly related to the
strengthening of the U.S. (1)
"Adjusted income" and its components and "adjusted diluted earnings
per share (EPS)" are defined as reported net income and its
components and reported diluted EPS excluding purchase-accounting
adjustments, acquisition-related costs, discontinued operations and
certain significant items.
For full-year 2008, adjusted R&D expenses(1)
were $7.5 billion, a decrease of 1% compared with 2007. For the full-year 2008, adjusted SI&A
expenses(1) were $14.0 billion, a decrease of 8% compared
with 2007. Adjusted selling, informational and administrative (SI&A) expenses(1)
were $3.5 billion in fourth-quarter 2008, a decrease of 23% compared
with the prior-year quarter. (3)
Constant currency basis means that the applicable financial forex peace army fap turbo
measure is based upon the actual foreign exchange rates in effect
during 2006. Reductions will span sales,
manufacturing, research and development, and administrative
organizations.
As part of this advancement, today we announced that we have entered
into an agreement to acquire Wyeth to create the forex trading online training world s premier
biopharmaceutical company. Pharmaceutical revenues for full-year 2008 were $44.2 billion, a
decrease of 1% compared with the prior year, including the favorable
impact of foreign exchange of approximately $1.5 billion or 3%. Certain amounts may reflect rounding adjustments.
Certain amounts may reflect rounding adjustments. It also reflects an increase in the effective tax
rate resulting from financial strategies in connection with the proposed
acquisition of Wyeth. Pharmaceutical revenues for fourth-quarter 2008 were $11.2 billion, a
decrease of 4% compared with the prior-year quarter, including the
unfavorable impact of foreign exchange of approximately $340 million or
3%. Full-year 2008 adjusted income(1) was $16.4 billion, an
increase of 8% compared with $15.1 billion in the year-ago period, and
adjusted diluted EPS(1) was $2.42, an increase of 11%
compared with $2.18. In addition,
foreign exchange unfavorably impacted reported revenues forex minimum deposit by approximately
$380 million or 3%, partially offset by the solid performance of key
products. (g)
Included in Provision for taxes on income and for the full
year ended , includes approximately $426 million
recorded in the second quarter of 2008 related to the sale of one
of our biopharmaceutical companies (Esperion Therapeutics Inc.).
(9)
Current exchange rates approximate rates at the time of the
fourth-quarter 2008 earnings (January 2009). Amortization expense related to acquired intangible assets that are
associated with a single function are included in Cost of sales,
Selling, informational and administrative expenses or Research
and development expenses, as appropriate. Full-year 2008 Animal Health revenues were $2.8 billion, an increase of
7% compared with $2.6 billion in 2007, driven by strong global livestock
and companion animal product performance. In addition, full-year 2008 pharmaceutical
revenues were negatively impacted by a $217 million adjustment to the
prior years product returns liabilities recorded in third-quarter 2008.
Adjusted research and development (R&D) expenses(1) were
$2.2 billion in fourth-quarter 2008, an increase of 2% compared with the
prior-year period. Foreign exchange positively
impacted fourth-quarter 2008 by $103 million and negatively impacted
full-year 2008 by $379 million compared with the respective year-ago
periods. Chantix has now been launched in all major markets, with nine
launches planned in 2009 in emerging markets. Foreign exchange increased full-year 2008
adjusted total costs(2) by $312 million or 1% compared with
2007. Provision for taxes on income includes a
tax benefit of $278 million in the fourth quarter of 2007 and a
tax benefit of $958 million for full-year 2007 relating to charges
associated with Exubera. online forex trading course Animal Health revenues for fourth-quarter 2008 were $783 million,
essentially flat compared with $785 million in the year-ago quarter.
Both adjusted income(1)
and adjusted diluted EPS(1) were positively impacted by
savings associated with our cost-reduction initiatives and higher
fourth-quarter 2007 spending levels in comparison with fourth-quarter
2008, partially offset by an increase in the effective tax rate. Income from continuing operations
$
1.19
$
0.36
$
-
$
-
$
0.87
$
2.42
Discontinued operations--net of tax
0.01
-
-
(0.01
)
-
-
Net income
$
1.20
$
0.36
$
-
$
(0.01
)
$
0.87
$
2.42
(a)
Exclusive of amortization of intangible assets, except as discussed
in note 1. Approximately $1 billion of these savings will be reinvested in the
business, resulting in an expected $2 billion net decrease. In addition, results were unfavorably impacted by an
increased effective tax rate, as well as an increase in pre-tax charges
of $1.2 billion ($700 million after-tax) associated with cost-reduction
initiatives, which were partially offset by savings from those
initiatives. PFIZER INC AND SUBSIDIARY COMPANIES
RECONCILIATION OF REPORTED NET INCOME AND ITS COMPONENTS AND
REPORTED DILUTED EPS
TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS
(UNAUDITED)
(millions of dollars, except per com share data)
Quarter Ended
Purchase
Acquisition-
Certain
Accounting
Related
Discontinued
Significant
Reported
Adjustments
Costs
Operations
Items(2)
Adjusted
Revenues
$
12,870
$
-
$
-
$
-
$
(75
)
$
12,795
Costs and expenses. For the full-year 2008, adjusted cost of sales(1) as a
percentage of revenues was 14.6% compared with 16.0% in 2007, an
improvement from our previous guidance of 15.0% to 15.5%. The operational improvement was driven partially
by the reduction in workforce to approximately 81,900 at year-end 2008,
a decline of 4,700 compared with the year-end 2007, as well as
manufacturing and research and development site exits. Income/(loss) from discontinued operations--net of tax
(3
)
-
-
3
-
-
Gains/(losses) on sales of discontinued operations--net of tax
16
-
-
(16
)
-
-
Discontinued operations--net of tax
13
-
-
(13
)
-
-
forex trading signals review Net income
$
2,724
$
508
$
7
$
(13
)
$
176
$
3,402
Earnings per com share - diluted.
Included in Cost of sales ($700
million), Selling, informational and administrative
expenses ($334 million), Research and development expenses
($416 million), and Other (income)/deductions - net ($61
million income) for the full year ended. Pfizer will implement a new cost-reduction initiative, which is expected
to achieve incremental cost savings of approximately $3 billion, at 2008
average foreign exchange rates, compared with 2008 adjusted total costs(2)
of $28.6 billion. Income from continuing operations
$
0.03
$
0.40
(93
)
$
1.19
$
1.19
-
Discontinued operations--net of tax
0.01
-
0.01
(0.01
)
Net income
$
0.04
$
0.40
(90
)
$
1.20
$
1.18
2
Earnings per com share - diluted. In the
U.S., Sutent revenues were $66 million, an increase of 5% year over
year, while international revenues were $154 million, an increase of
30%. 2)
Certain significant items includes the following.
Included
in Revenues ($172 million), Cost of sales ($162
million) and Selling, informational and administrative expenses ($3
million) for the full year ended. Results continued to be
negatively impacted by the changes to the Chantix U.S. The charges are primarily included in Cost of sales
($2.6 billion), Selling, informational and administrative
expenses ($85 million) and Research and development expenses ($100
million). In the U.S.,
Chantix revenues were $91 million, a decline of 55% compared with the
prior-year quarter, while international revenues were $89 million, an
increase of 13%. PFIZER INC AND SUBSIDIARY COMPANIES
RECONCILIATION OF REPORTED NET INCOME AND ITS COMPONENTS AND
REPORTED DILUTED EPS
TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS
(UNAUDITED)
(millions of dollars, except per com share data)
Quarter Ended
Purchase
Acquisition-
Certain
Accounting
Related
Discontinued
Significant
Reported
Adjustments
Costs
Operations
Items(2)
Adjusted
Revenues
$
12,346
$
-
$
-
$
-
$
(35
)
$
12,311
Costs and expenses. These factors contributed to a reduction in our
Adjusted Diluted EPS(1) of approximately $0.50. (10)
Does not assume the completion of any business forex development
transactions not completed as of , and excludes
the potential effects of litigation-related matters not
substantially resolved as of , as we do not
forecast those items.
Certain amounts and percentages may reflect rounding adjustments. And Auxilium Pharmaceuticals, Inc. 30%
Reported Diluted EPS(10)
$1.20
$1.34 to $1.49
Adjusted Diluted EPS(1)
$2.42
$1.85 to $1.95
For additional details, please see the
attached financial schedules, product revenue tables, supplemental
information and disclosure notice. /
(Decr.)
Full-Year
% Incr. The combination of Pfizer and Wyeth will
meaningfully deliver Pfizer s strategic priorities in a single
transaction. Exclusivity for Zyrtec in
and for Camptosar in as well as the loss of
exclusivity for Norvasc in Korea and Japan in and July
2008, respectively. Lipitor revenues in fourth-quarter 2008 were $3.1 billion, a decrease of
8% compared with the prior-year quarter.
Included in Revenues ($219
million), Cost of sales ($194 million), Selling,
informational and administrative expenses ($15 million), and Other
(income)/ deductions - net ($16 million income) for the
full year ended. Reconciliations of fourth-quarter 2008 and 2007 and
full-year 2008 and 2007 adjusted income and its components and
adjusted diluted EPS to reported net income and its components and
reported diluted EPS, as well as reconciliations of full-year 2009
adjusted income and adjusted diluted EPS guidance to full-year 2009
reported net income and reported diluted EPS guidance, are provided
in the materials accompanying this report. Dollar, stated D Amelio. PFIZER INC
SEGMENT/PRODUCT REVENUES
FOURTH QUARTER 2008
(UNAUDITED)
(millions of dollars)
QUARTER-TO-DATE
WORLDWIDE
U.S. ($ in millions, live forex quotes except per share amounts)
Fourth-Quarter
Full-Year
2008
2007
Change
2008
2007
Change
Reported Revenues
$ 12,346
easy forex reviews
$ 12,870
(4%)
$ 48,296
$ 48,418
--
Reported Net Income
266
2,724
(90%)
8,104
8,144
--
Reported Diluted EPS
0.04
0.40
(90%)
1.20
1.17
3%
Adjusted Revenues(1)
12,311
12,795
(4%)
48,341
48,209
--
Adjusted Income(1)
4,389
3,402
29%
16,366
15,113
8%
Adjusted Diluted EPS(1)
0.65
0.50
30%
2.42
2.18
11%
See end of text prior to tables for notes.
In the U.S., Lipitor revenues
were $1.6 billion, a decrease of 13% compared with the prior-year
quarter. Included in Cost of sales ($745
million), Selling, informational and administrative expenses
($413 million), Research and development expenses ($433
million), and Other (income)/deductions - net ($14 million)
for the full year ended. Reported revenues accounted for 43% of the total compared with 44% in
the year-ago quarter, while international reported revenues accounted
for 57% of the total compared with 56% in the year-ago quarter.
The adjusted income and
its components and adjusted diluted EPS measures are not, and should
not be vie as, substitutes for U.S. The financial results for the full year ended ,
include pre-tax charges of $2.8 billion, virtually all of which were
recorded in the third quarter of 2007, associated with the
impairment of Exubera assets and the decision to exit and stop
additional investment in the product. This
improvement reflects the benefits from our cost-reduction initiatives
and foreign exchange. The program will be substantially complete by the end
of 2010, with the full savings to be realized by the end of 2011. /
(Decr.)
2008
2007
2008
2007
Revenues
$
12,346
$
12,870
(4
)
$
48,296
$
48,418
-
Costs and expenses. Reported and adjusted diluted EPS(1) were also positively
impacted by the full benefit of Pfizer s purchase of $10.0 billion of
the Company s com stock in 2007. Zyrtec, Camptosar and Norvasc fourth-quarter 2008
revenues decreased by $515 million ($263 million, $144 million and $108
million, respectively), compared with the year-ago quarter.
Further, as part of the proposed acquisition of Wyeth, we expect to
achieve synergies of approximately $4 billion by the end of 2012, which
will be in addition to the savings from our previous cost-reduction
initiatives, continued D Amelio. In fourth-quarter 2008,
foreign exchange unfavorably impacted revenues by approximately $35
million or 4%, while in full-year 2008, foreign exchange positively
impacted revenues by approximately $80 million or 3%, compared with the
prior-year respective periods. Excluding the impact of foreign exchange, full-year 2008 adjusted
total costs(2) decreased by approximately $2.2 billion, or
7%, compared with 2007. For full-year 2008, Pfizer recorded reported revenues of $48.3 billion,
essentially flat compared with 2007 full-year revenues of $48.4 billion,
despite the loss of exclusivity of Norvasc, Zyrtec and Camptosar, which
collectively decreased revenues by $2.6 billion. PFIZER INC AND SUBSIDIARY COMPANIES
NOTES TO RECONCILIATION OF REPORTED NET INCOME AND ITS COMPONENTS AND
REPORTED DILUTED EPS TO ADJUSTED INCOME AND ITS COMPONENTS AND
ADJUSTED DILUTED EPS
(UNAUDITED)
1)
Amortization expense related to acquired intangible assets that
contribute to our ability to sell, manufacture, research, market and
distribute our products are included in Amortization of
intangible assets as they benefit multiple business retail forex trading functions. (f)
Included in Revenues ($35 million) and Cost of sales
($31 million) for the three months ended. The charges are
primarily included in Cost of sales ($2.6 billion), Selling,
informational and administrative expenses ($85 million), and Research
and development expenses ($100 million). Income from continuing operations
$
0.03
$
0.07
$
-
$
-
$
0.55
$
0.65
Discontinued operations--net of tax
0.01
-
-
(0.01
)
-
-
Net income
$
0.04
$
0.07
forex robot review
$
-
$
(0.01
)
$
0.55
$
0.65
Twelve Months Ended
Purchase
online currency trading india
Acquisition-
Certain
Accounting
Related
Discontinued
Significant
Reported
Adjustments
Costs
Operations
Items(2)
Adjusted
Revenues
$
48,296
$
-
$
-
$
-
$
45
$
48,341
Costs and expenses.
Notwithstanding an extremely competitive and increasingly
challenging environment in 2008, we made significant progress by. Cost of sales (a)
11,239
(49
)
-
-
(3,497
)
7,693
currency trading online
Selling, informational and administrative expenses (a)
15,626
12
-
-
(418
)
15,220
Research and development expenses (a)
8,089
(29
)
-
-
(516
)
7,544
Amortization of intangible assets
3,128
(3,013
)
-
-
-
115
Acquisition-related in-process R&D charges
283
(283
)
-
-
-
-
Restructuring charges and acquisition-related costs
2,534
-
(11
)
-
(2,523
)
-
Other (income)/deductions--net
(1,759
)
(22
)
-
-
235
(1,546
)
Income from continuing operations before provision
for taxes on income and minority interests
9,278
3,384
11
-
6,510
19,183
Provision for taxes on income
1,023
873
1
-
2,131
4,028
Minority interests
42
-
-
-
-
42
Income from continuing operations
8,213
2,511
10
-
4,379
15,113
Discontinued operations. Income from continuing operations
$
1.18
$
0.37
$
-
$
-
$
0.63
$
2.18
Discontinued operations--net of tax
(0.01
)
-
-
0.01
-
-
Net income
$
1.17
$
0.37
$
-
$
0.01
$
0.63
$
2.18
(a)
Exclusive of amortization of intangible assets, except as discussed
in forex metatrader review note 1. Provision for taxes on income includes tax benefits in the
full year ended , of approximately $305 million
related to favorable tax settlements and of approximately $426
million related to the sale of one of our biopharmaceutical
companies (Esperion Therapeutics Inc.), both recorded in the
second quarter of 2008. In addition, we are implementing a forex market india new cost-reduction initiative that
will drive a lower, more variable cost structure to achieve anticipated
incremental savings of approximately $3 billion by the end of 2011
compared with our 2008 adjusted total costs(2) level. Sutent revenues in fourth-quarter 2008 were $220 million, a
year-over-year increase of 21%, demonstrating continued strong
performance and market leadership in its approved historical money market rates indications. Fourth-quarter 2008 revenues were unfavorably impacted by the
aforementioned loss of exclusivity of Norvasc, Zyrtec and Camptosar,
partially offset by revenues from in-line products(4), which
increased 1% compared with the year-ago quarter.
Fourth-quarter 2008 results were impacted by a $2.3
billion pre-tax and after-tax charge resulting from an agreement in
principle with the Office of Jorgan Sullivan, the United States
Attorney for the District of Massachusetts, to resolve previously
disclosed investigations regarding allegations of past off-label
promotional practices concerning Bextra, as well as other open
investigations. The increase in
fourth-quarter 2008 is primarily the result of up-front payments
totaling $300 million related to the licensing agreements with
Medivation, Inc. (c)
Included in Other (income)/deductions - net and for the full
year ended , includes charges of approximately $900
million, recorded in the third quarter of 2008, associated with the
resolution of certain litigation involving our non-steroidal
anti-inflammatory pain medicines and charges of approximately $2.3
billion, recorded in the fourth quarter of 2008, resulting from an
agreement in principle to resolve previously disclosed
investigations regarding allegations of past off-label promotional
practices concerning Bextra, as well as other open investigations. Lyrica revenues in fourth-quarter 2008 were $702 million, a
year-over-year increase of 25%, driven by strong physician prescribing
patterns and patient satisfaction, as well trade forex as increased use of Lyrica
for fibromyalgia in the U.S., where the product continues to build on
its leadership position for this indication. Establishing customer-focused business units; reprioritizing and
refocusing our research on the greatest opportunities for scientific,
medical and commercial success; and increasing our Phase 3 portfolio by
approximately 60%, from 16 to 26 programs at year-end.
The anticipated net savings from this new initiative in
addition to the savings we achieved at year-end 2008 under our previous
cost-reduction initiative total approximately $4.8 billion. This was
primarily attributable to savings associated with our cost-reduction
initiatives, the 2007 after-tax charges of $1.8 billion related to the
decision to exit Exubera and the favorable impact of foreign exchange,
offset by the aforementioned charge related to Bextra and other open
investigations in fourth-quarter 2008, as well as the after-tax charge
of $640 million resulting from the agreements in principle to resolve
certain litigation involving the Company s non-steroidal
anti-inflammatory (NSAID) pain medicines in third-quarter 2008 and an
increased effective tax rate. Excluding the impact of foreign exchange, adjusted
cost of sales(1) as a percentage of revenues was 15.6% in
fourth-quarter 2008 and 15.2% for the full-year 2008.
Cost of sales (a)
1,715
2,625
(35
)
8,112
11,239
(28
)
Selling, informational and administrative expenses (a)
3,659
4,653
(21
)
14,537
15,626
(7
)
Research and development expenses (a)
2,303
2,260
2
7,945
8,089
(2
)
Amortization of intangible assets
605
756
(20
)
2,668
3,128
(15
)
Acquisition-related in-process research and development charges
66
-
633
283
forex mini
123
Restructuring charges and acquisition-related costs
1,562
216
623
2,675
2,534
6
Other (income)/deductions--net
1,811
(610
)
2,032
(1,759
)
Income from continuing operations before provision
for taxes on income and minority interests
625
2,970
(79
)
9,694
9,278
4
Provision for taxes on income
394
223
76
1,645
1,023
61
Minority interests
5
36
(87
)
23
42
(45
)
Income from continuing operations
226
2,711
(92
)
8,026
8,213
(2
)
Discontinued operations. Included in Cost of
sales ($263 million), Selling, informational and
administrative expenses ($136 million), Research and
development expenses ($124 million), and Other
(income)/deductions - net ($2 million) for the three months
ended. In the U.S., Celebrex revenues were $489
million, an increase of 4% compared with the prior-year quarter, while
international revenues were $175 million, an increase of 4%. After
allocating approximately $1 billion of investment to high-growth
opportunities, we anticipate net savings of about $2 billion compared
with our 2008 adjusted total costs(2) at 2008 average foreign
exchange rates.
Frank D Amelio, Chief Financial Officer, stated, In 2008, we exceeded
our cost-reduction target by decreasing our adjusted total costs(2)
by $2.8 billion in comparison to 2006 on a constant currency basis(3). Included in Revenues
($75 million), Cost of sales ($73 million), Selling,
informational and administrative expenses ($3 million),
and Other (income)/deductions - net ($3 million income) for
the three months ended. Income/(loss) from discontinued operations--net of tax
(2
)
-
-
2
-
-
Gains/(losses) on sales of discontinued operations--net of tax
80
-
-
(80
)
-
-
Discontinued operations--net of tax
78
-
-
(78
)
-
-
Net income
$
8,104
$
2,439
$
39
$
(78
)
$
5,862
$
16,366
Earnings per com share - diluted.
We online forex brokers believe that investors'
understanding of our performance is enhanced by disclosing this
measure. Full-year 2008 adjusted income(1) and
adjusted diluted EPS(1) were primarily impacted by the
favorable impact of foreign exchange and savings from cost-reduction
initiatives. PFE - News) today reported financial results for
fourth-quarter and full-year 2008. GAAP net income and its
components and diluted EPS. And a number of animal health product
lines from Schering-Plough Corporation, as well as two smaller
acquisitions also related to Animal Health. Basic
6,720
6,774
6,727
6,917
Diluted
6,739
6,792
6,750
6,939
(a)
Exclusive of amortization of intangible assets, except as discussed
in footnote 4 below.
Adjusted revenues(1) in both periods were
positively impacted by the solid performance of key products, and
negatively impacted by the loss of exclusivity of Norvasc, Zyrtec and
Camptosar. NEW YORK-- --Pfizer Inc (NYSE. In addition, foreign exchange unfavorably impacted
fourth-quarter 2008 revenues compared with the year-ago period by $389
million, but favorably impacted full-year 2008 revenues by $1.6 billion
compared with the prior year.
(7)
Represents worldwide revenues for pharmaceutical products that
lost exclusivity in 2007 and 2008. Calculation not meaningful. Sutent is available in all major markets and is supported by
efficacy, survival and cost-effectiveness data. The 2009 financial guidance, in
comparison with 2008 financial results, reflects the projected impact of
the strengthening of the U.S. In the first quarter
of 2007, we expensed $283 million of IPR&D, primarily related to
our acquisitions of BioRexis Pharmaceutical Corp. During 2008, we expensed $633
million of IPR&D, primarily related to our acquisitions of
Serenex, Inc., Encysive Pharmaceuticals, Inc., CovX, Coley
Pharmaceutical Group, Inc. Provision
for taxes on income for fourth-quarter foreign currency trading and full-year 2008
also reflects the impact of the fourth-quarter 2008 legal
settlement provisions, which are either not deductible or
deductible at lower tax rates. Income/(loss) from discontinued operations--net of tax
(3
)
-
-
3
-
-
Gains/(losses) on sales of discontinued operations--net of tax
(66
)
-
-
66
-
-
Discontinued operations--net of tax
(69
)
-
-
69
-
-
Net income
$
8,144
$
2,511
$
10
$
69
$
4,379
$
15,113
Earnings per com share - diluted.
This decrease was primarily attributable to
the negative impact of the loss of U.S. Dollar, increased pension expenses and
lower interest income. In conjunction with this
program, Pfizer expects to incur costs of approximately $6 billion on a
pre-tax basis, of which $1.5 billion has been incurred. For full-year 2009, Pfizer s financial guidance, at current exchange
rates(9) is summarized below.
Cost of sales (a)
1,715
-
-
-
(271
)
1,444
Selling, informational and administrative expenses (a)
3,659
3
-
-
(152
)
3,510
Research and development expenses (a)
2,303
(6
)
-
-
(85
)
2,212
Amortization of intangible assets
605
(560
)
-
-
-
45
Acquisition-related in-process R&D charges
66
(66
)
-
-
-
-
Restructuring charges and acquisition-related costs
1,562
-
(13
)
-
(1,549
)
-
Other (income)/deductions--net
1,811
(2
)
-
-
(2,452
)
(643
)
Income from continuing operations before provision
for taxes on income and minority interests
625
631
13
-
4,474
5,743
Provision for taxes on income
394
190
4
-
761
1,349
Minority interests
5
-
-
-
-
5
Income from continuing operations
226
441
9
-
3,713
4,389
Discontinued operations. Loss from discontinued operations--net of tax
2
(3
)
forex loan online trading
(2
)
(3
)
33
Gains/(losses) on sales of discontinued operations--net of tax
38
16
138
80
(66
)
Discontinued operations--net of tax
40
13
194
78
(69
)
Net income
$
266
$
2,724
(90
)
$
8,104
$
8,144
-
Earnings per com share - basic. These successes
have provided the ideal platform from which we re advancing Pfizer
forward.
Reported revenues accounted for 42% of
the total compared with 48% in the year-ago period, while international
reported revenues accounted for 58% of the total compared with 52% in
the year-ago period. (b)
Included in Cost of sales ($225 million), Selling,
informational and administrative expenses ($143 million), Research
and development expenses ($85 million), and Other
(income)/deductions - net ($12 million) for the three months
ended. In the U.S., Lyrica
revenues were $384 million, a year-over-year increase of 20%, while
international revenues were $318 million, an increase of 31%, reflecting
operational growth of 42% and the unfavorable impact of foreign exchange
of 11%.
See end of tables for notes. As part of this cost-reduction initiative, Pfizer intends to reduce its
workforce by approximately 10%. Fourth Quarter
Twelve Months
(millions of dollars)
2008
2007
2008
2007
Restructuring charges - Cost-reduction initiatives(a)
$
1,549
$
256
$
2,626
$
2,523
Implementation costs - Cost-reduction initiatives(b)
465
525
1,605
1,389
Legal matters(c)
2,313
(5
)
3,249
56
Returns liability adjustment(d)
-
-
217
-
Asset impairment charges and other associated costs(e)
98
(6
)
213
2,798
Consumer Healthcare business transition activity(f)
(4
)
(2
)
(7
)
(26
)
Other
53
(273
)
187
(230
)
Total certain significant items, pre-tax
4,474
495
8,090
6,510
Income taxes(g)
(761
)
(319
)
(2,228
)
(2,131
)
Total certain significant items--net of tax
$
3,713
$
176
$
5,862
$
4,379
(a)
Included in Restructuring charges and acquisition-related costs. In 2009, Pfizer expects to generate revenues of $44.0 to $46.0 billion,
and adjusted diluted EPS(1) of $1.85 to $1.95, which includes
most of the anticipated $1 billion investment intended to create new
sources of revenue. (2)
Represents primarily the total of Adjusted Cost of Sales(1),
Adjusted SI&A expenses(1) and Adjusted R&D expenses(1). Reported
revenues were $20.4 billion, a decrease of 12% year over year, while
international reported revenues were $27.9 billion, an increase of 10%,
reflecting the favorable impact of foreign exchange of 6% and
operational growth of 4%. PFIZER INC AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(millions of dollars, except per com share data)
Fourth-Quarter
% Incr.
Celebrex revenues in fourth-quarter 2008 were $664 million, an increase
of 4% compared with the year-ago quarter, supported by continued
educational and promotional efforts highlighting the benefit-risk
proposition of Celebrex. (4)
Represents worldwide revenues for all pharmaceutical products,
excluding revenues included in notes (5) and (7). Chantix (known as Champix outside the U.S.) revenues in fourth-quarter
2008 were $180 million, a decrease of 36% year over year. Income from continuing operations
$
0.40
$
0.07
$
-
$
-
$
0.03
$
0.50
Discontinued operations--net of tax
-
-
-
-
-
-
Net income
$
0.40
$
0.07
$
-
$
-
$
0.03
$
0.50
Twelve Months Ended
Purchase
Acquisition-
Certain
Accounting
Related
Discontinued
Significant
Reported
Adjustments
Costs
Operations
Items(2)
Adjusted
Revenues
$
48,418
$
-
$
-
$
-
$
(209
)
$
48,209
Costs and expenses. We are pleased with our performance in 2008, said Chairman and Chief
Executive Skelly Kindler. Revenues from international markets were $1.5 billion, a
decrease of 2%, reflecting the unfavorable impact of foreign exchange of
approximately $124 million, or 8%, which more than offset operational
growth of 6%.
Adjusted Revenues, Adjusted Cost of
Sales, Adjusted SI&A expenses, Adjusted R&D expenses and Adjusted
Other (Income)/Deductions-net are income statement line items
prepared on the same basis, and therefore, components of the overall
adjusted income measure. With this
initiative and our recently completed initiative, the Company expects to
reduce adjusted total costs(2) by about $4.8 billion while
absorbing inflation and compensation increases. Provision for taxes on income
for fourth-quarter and full-year 2008 also reflects the impact of
the fourth-quarter 2008 legal settlement provisions, which are
either not deductible or deductible at lower tax rates. For full-year 2008, Pfizer posted adjusted revenues(1)
of $48.3 billion, essentially flat compared with $48.2 billion in
full-year 2007. Chantix/Champix, Eraxis, Selzentry/Celsentri, Sutent,
Thelin and Toviaz. INTERNATIONAL
Change
Change
Change
TOTAL REVENUES
PHARMACEUTICAL
- CARDIOVASCULAR AND METABOLIC DISEASES
LIPITOR
3,146
3,428
(8)
1,615
1,864
(13)
1,531
1,564
(2)
NORVASC
542
650
(16)
17
26
(34)
525
624
(16)
CHANTIX / CHAMPIX
180
280
(36)
91
202
(55)
89
78
13
CADUET
148
154
(5)
117
125
(7)
31
29
5
CARDURA
121
128
(6)
2
3
(34)
119
125
(6)
- CENTRAL NERVOUS SYSTEM DISORDERS
LYRICA
702
564
25
384
320
20
318
244
31
GEODON / ZELDOX
276
232
19
228
192
19
48
40
19
ZOLOFT
131
134
(2)
24
25
(4)
107
109
(2)
ARICEPT
126
116
9
-
-
63
126
116
9
NEURONTIN
92
110
(16)
16
19
(16)
76
91
(16)
XANAX / XANAX XR
83
86
(4)
11
16
(29)
72
70
1
RELPAX
81
85
(4)
50
53
(7)
31
32
-
- ARTHRITIS AND PAIN
CELEBREX
664
637
4
489
469
4
175
168
4
- INFECTIOUS AND RESPIRATORY DISEASES
ZYVOX
283
252
13
175
155
13
108
97
13
VFEND
196
177
10
64
57
13
132
120
9
ZITHROMAX / ZMAX
109
110
(1)
2
-
260
107
110
(1)
DIFLUCAN
93
104
(11)
2
4
(36)
91
100
(10)
- UROLOGY
VIAGRA
502
498
1
239
220
9
263
278
(5)
DETROL/DETROL LA
313
324
(3)
218
219
-
95
105
(9)
- ONCOLOGY
SUTENT
220
182
21
66
63
5
154
119
30
CAMPTOSAR
112
256
(56)
(4)
142
116
114
2
AROMASIN
123
114
9
39
35
11
84
79
8
- OPHTHALMOLOGY
XALATAN / XALACOM
454
453
-. In 2007 and
2008 as described in note (7).
These decreases were primarily due to the favorable impact of
our cost-reduction initiatives. At the end of fourth-quarter 2008, Pfizer exceeded its goal to reduce
absolute adjusted total costs(2) by at least $2.0 billion by
the end of 2008 compared with 2006 on a constant currency basis(3),
realizing a total reduction of $2.8 billion. Income from continuing operations
$
0.03
$
0.40
(93
)
$
1.19
$
1.18
1
Discontinued operations--net of tax
0.01
-
0.01
(0.01
)
Net income
$
0.04
$
0.40
(90
)
$
1.20
$
1.17
3
Weighted-average shares used to calculate earnings per com share.
For full-year 2008, the Company posted reported net income of $8.1
billion, essentially flat compared with the prior year, and reported
diluted EPS of $1.20, an increase of 3% compared with $1.17. |