Pfizer 2012 Annual Report Download - page 10

Financial Review
Pfizer Inc. and Subsidiary Companies
2012 Financial Report 9
• On September 6, 2012, Pfizer and Zhejiang Hisun Pharmaceuticals Co., Ltd., a leading Chinese pharmaceutical company, created a new
company, Hisun Pfizer Pharmaceuticals Company Limited (HPP), to develop, manufacture and commercialize off-patent pharmaceutical
products in China and global markets. HPP was established with registered capital of $250 million. For additional information, see Notes
to Consolidated Financial Statements—Note 2D. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments:
Equity-Method Investments.
• On August 13, 2012, we announced that we entered into an agreement with AstraZeneca for the global over-the-counter (OTC) rights for
Nexium, a leading prescription drug currently approved to treat the symptoms of gastroesophageal reflux disease. We made an upfront
payment of $250 million to AstraZeneca, and AstraZeneca is eligible to receive milestone payments of up to $550 million based on
product launches and level of sales as well as royalty payments based on sales. A marketing authorization application for OTC Nexium in
a 20mg tablet form was filed with the European Medicines Agency in June 2012. A new drug application filing for OTC Nexium in the U.S.
in a 20mg delayed-release capsule is targeted for the first half of 2013. For additional information, see Notes to Consolidated Financial
Statements—Note 2A. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisitions.
• On March 12, 2012, Biocon and Pfizer announced the conclusion of their October 18, 2010 alliance to commercialize Biocon’s biosimilar
versions of insulin and insulin analog products. The companies agreed that, due to the individual priorities for their respective biosimilars
businesses, each company would move forward independently.
• On February 26, 2012, we completed our acquisition of Alacer Corp. (Alacer), a company that manufactures, markets and distributes
Emergen-C, a line of effervescent, powdered drink mix vitamin supplements that is the largest-selling branded vitamin C line in the U.S.
For additional information, see Notes to Consolidated Financial Statements—Note 2A. Acquisitions, Divestitures, Collaborative
Arrangements and Equity-Method Investments: Acquisitions.
• On December 1, 2011, we completed our acquisition of the consumer healthcare business of Ferrosan Holding A/S (Ferrosan), a Danish
company engaged in the sale of science-based consumer healthcare products, including dietary supplements and lifestyle products,
primarily in the Nordic region and the emerging markets of Russia and Central and Eastern Europe. Our acquisition of Ferrosan’s
consumer healthcare business strengthens our presence in dietary supplements with a new set of brands and pipeline products. For
additional information, see Notes to Consolidated Financial Statements—Note 2A. Acquisitions, Divestitures, Collaborative Arrangements
and Equity-Method Investments: Acquisitions.
• On November 30, 2011, we completed our acquisition of Excaliard Pharmaceuticals, Inc. (Excaliard), a privately owned
biopharmaceutical company. Excaliard‘s lead compound, EXC-001, a Phase 2 compound, is an antisense oligonucleotide designed to
interrupt the process of skin fibrosis by inhibiting expression of connective tissue growth factor (CTGF). The total consideration for the
acquisition was approximately $174 million. For additional information, see Notes to Consolidated Financial Statements—Note 2A.
Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisitions.
• In October 2011, we entered into an agreement with GlycoMimetics, Inc. for their investigational compound GMI-1070. GMI-1070 is a
pan-selectin antagonist currently in Phase 2 development for the treatment of vaso-occlusive crisis associated with sickle cell disease.
GMI-1070 has received Orphan Drug and Fast Track status from the FDA. Under the terms of the agreement, Pfizer received an
exclusive worldwide license to GMI-1070 for vaso-occlusive crisis associated with sickle cell disease and for other diseases for which the
drug candidate may be developed. GlycoMimetics is responsible for completion of the ongoing Phase 2 trial under Pfizer’s oversight, and
Pfizer is responsible for all further development and commercialization. GlycoMimetics is entitled to payments up to approximately $340
million, including an upfront payment as well as development, regulatory and commercial milestones. GlycoMimetics is also eligible for
royalties on any sales.
• On September 20, 2011, we completed our cash tender offer for the outstanding shares of Icagen, Inc. (Icagen), resulting in an
approximate 70% ownership of the outstanding shares of Icagen, a biopharmaceutical company focused on discovery, development and
commercialization of novel, orally-administered small molecule drugs that modulate ion channel targets. On October 27, 2011, we
acquired all of the remaining shares of Icagen. For additional information, see Notes to Consolidated Financial Statements—Note 2A.
Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisitions.
• On August 1, 2011, we sold our Capsugel business for approximately $2.4 billion in cash. For additional information, see Notes to
Consolidated Financial Statements—Note 2B. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments:
Divestitures.
• On January 31, 2011 (the acquisition date), we completed a tender offer for the outstanding shares of common stock of King and
acquired approximately 92.5% of the outstanding shares for approximately $3.3 billion in cash. On February 28, 2011, we acquired the
remaining shares of King for approximately $300 million in cash. As a result, the total fair value of consideration transferred for King was
approximately $3.6 billion in cash ($3.2 billion, net of cash acquired). For additional information, see Notes to Consolidated Financial
Statements—Note 2A. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method Investments: Acquisitions.
• On November 8, 2010, we consummated our partnership to develop and commercialize generic medicines with Laboratório Teuto
Brasileiro S.A. (Teuto) a leading generics company in Brazil. As part of the transaction, we acquired a 40% equity stake in Teuto, and
entered into a series of commercial agreements. The partnership is enhancing our position in Brazil, a key emerging market, by providing
access to Teuto’s portfolio of products. Through this partnership, we have access to significant distribution networks in rural and suburban
areas in Brazil and the opportunity to register and commercialize Teuto’s products in various markets outside Brazil. For additional
information, see also Notes to Consolidated Financial Statements—Note 2D. Acquisitions, Divestitures, Collaborative Arrangements and
Equity-Method Investments: Equity-Method Investments.
• On October 6, 2010, we completed our acquisition of FoldRx Pharmaceuticals, Inc. (FoldRx), a privately held drug discovery and clinical
development company. FoldRx’s lead product candidate, Vyndaqel (tafamidis meglumine), was approved in the EU in November 2011
and our new drug application was accepted for review in the U.S. in February 2012. This product is a first-in-class oral therapy for the
treatment of transthyretin familial amyloid polyneuropathy (TTR-FAP), a progressively fatal genetic neurodegenerative disease, for which