Pfizer 2010 Annual Report Download - page 48

Financial Review
Pfizer Inc. and Subsidiary Companies
•Success of external business-development activities;
•Competitive developments, including the impact on our competitive position of new product entrants, in-line branded products, generic
products, private label products and product candidates that treat diseases and conditions similar to those treated by our in-line
products and product candidates;
•Ability to meet generic and branded competition after the loss of patent protection for our products or competitor products;
•Ability to successfully market both new and existing products domestically and internationally;
•Difficulties or delays in manufacturing;
•Trade buying patterns;
•Impact of existing and future legislation and regulatory provisions on product exclusivity;
•Trends toward managed care and healthcare cost containment;
•Impact of U.S. healthcare legislation enacted in 2010—the Patient Protection and Affordable Care Act, as amended by the Health Care
and Education Reconciliation Act—and of any modification, repeal or invalidation of any of the provisions thereof;
•U.S. legislation or regulatory action affecting, among other things, pharmaceutical product pricing, reimbursement or access, including
under Medicaid, Medicare and other publicly funded or subsidized health programs; the importation of prescription drugs from outside
the U.S. at prices that are regulated by governments of various foreign countries; direct-to-consumer advertising and interactions with
healthcare professionals; and the use of comparative effectiveness methodologies that could be implemented in a manner that focuses
primarily on the cost differences and minimizes the therapeutic differences among pharmaceutical products and restricts access to
innovative medicines;
•Legislation or regulatory action in markets outside the U.S. affecting pharmaceutical product pricing, reimbursement or access;
•Contingencies related to actual or alleged environmental contamination;
•Claims and concerns that may arise regarding the safety or efficacy of in-line products and product candidates;
•Significant breakdown, infiltration or interruption of our information technology systems and infrastructure;
•Legal defense costs, insurance expenses, settlement costs and the risk of an adverse decision or settlement related to product liability;
patent protection; government investigations; consumer, commercial, securities, environmental and tax issues; ongoing efforts to
explore various means for resolving asbestos litigation; and other legal proceedings;
•Ability to protect our patents and other intellectual property both domestically and internationally;
•Interest rate and foreign currency exchange rate fluctuations;
•Governmental laws and regulations affecting domestic and foreign operations including, without limitation, tax obligations and changes
affecting the tax treatment by the U.S. of income earned outside the U.S. that result from the enactment in August 2010 of the
Education Jobs and Medicaid Assistance Act of 2010 and that may result from pending and possible future proposals;
•Changes in U.S. generally accepted accounting principles;
•Uncertainties related to general economic, political, business, industry, regulatory and market conditions, including, without limitation,
uncertainties related to the impact on us, our lenders, our customers, our suppliers and counterparties to our foreign-exchange and
interest-rate agreements of challenging global economic conditions and recent and possible future changes in global financial markets;
•Any changes in business, political and economic conditions due to actual or threatened terrorist activity in the U.S. and other parts of
the world and related U.S. military action overseas;
•Growth in costs and expenses;
•Changes in our product, segment and geographic mix; and
•Impact of acquisitions, divestitures, restructurings, product recalls and withdrawals and other unusual items, including our ability to
successfully implement our announced plans regarding the Company’s research and development function, including the planned exit
from the Company’s Sandwich, U.K. site, subject to works council and union consultations, as well as our ability to realize the projected
benefits of our acquisitions of Wyeth and King and of our cost-reduction initiatives, including those related to the Wyeth integration and
to our research and development function.
We cannot guarantee that any forward-looking statement will be realized, although we believe we have been prudent in our plans
and assumptions. Achievement of anticipated results is subject to substantial risks, uncertainties and inaccurate assumptions.
Should known or unknown risks or uncertainties materialize or should underlying assumptions prove inaccurate, actual results could
vary materially from past results and those anticipated, estimated or projected. Investors should bear this in mind as they consider
forward-looking statements.
46 2010 Financial Report