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Notes to Consolidated Financial Statements
Pfizer Inc. and Subsidiary Companies
2012 Financial Report
85
B. Other Intangible Assets
The following table provides the components of Identifiable intangible assets:
December 31, 2012 December 31, 2011
(MILLIONS OF DOLLARS)
Gross
Carrying
Amount
Accumulated
Amortization
Identifiable
Intangible
Assets, less
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Identifiable
Intangible
Assets, less
Accumulated
Amortization
Finite-lived intangible assets
Developed technology rights $ 73,112 $ (37,069)$ 36,043 $72,678 $ (31,922) $ 40,756
Brands 1,873 (781)1,092 1,678 (687)991
License agreements and other 1,085 (793)292 1,048 (577)471
76,070 (38,643)37,427 75,404 (33,186) 42,218
Indefinite-lived intangible assets
Brands 7,828 —7,828 7,694 —7,694
In-process research and
development 688 — 688 1,200 —1,200
Trademarks/Tradenames 70 — 70 72 — 72
8,586 —8,586 8,966 —8,966
Identifiable intangible assets(a) $ 84,656 $ (38,643)$ 46,013 $84,370 $ (33,186) $ 51,184
(a) The decrease is primarily related to amortization, as well as impairment charges (see Note 4. Other Deductions—Net), partially offset by the assets acquired as
part of the acquisitions of NextWave, Ferrosan and Alacer (see Note 2A. Acquisitions, Divestitures, Collaborative Arrangements and Equity-Method
Investments: Acquisitions).
As of December 31, 2012, our identifiable intangible assets are associated with the following, as a percentage of total identifiable intangible
assets, less accumulated amortization:
• Developed Technology Rights: Specialty Care (66%); Established Products (19%); Primary Care (13%); Animal Health (1%); and
Oncology (1%);
• Brands, finite-lived: Consumer Healthcare (64%); Established Products (24%); and Animal Health (12%);
• Brands, indefinite-lived: Consumer Healthcare (66%); and Established Products (34%); and
• IPR&D: Worldwide Research and Development (55%); Established Products (20%); Primary Care (12%); Specialty Care (10%); and
Animal Health (3%).
There are no percentages for our Emerging Markets business unit as it is a geographic-area unit, not a product-based unit. The carrying value
of the assets associated with our Emerging Markets business unit is included within the assets associated with the other four
biopharmaceutical business units.
For information about intangible asset impairments, see Note 4. Other Deductions—Net.
Developed Technology Rights
Developed technology rights represent the amortized cost associated with developed technology, which has been acquired from third parties
and which can include the right to develop, use, market, sell and/or offer for sale the product, compounds and intellectual property that we
have acquired with respect to products, compounds and/or processes that have been completed. We possess a well-diversified portfolio of
hundreds of developed technology rights across therapeutic categories, primarily representing the commercialized products included in our
five biopharmaceutical business units. Virtually all of these assets were acquired in connection with our Wyeth acquisition in 2009 and our
Pharmacia acquisition in 2003. The more significant components of developed technology rights are the following (in order of significance):
Prevnar 13/Prevenar 13 Infant and Enbrel and, to a lesser extent, Premarin, Prevnar 13/Prevenar 13 Adult, Effexor, Pristiq, Tygacil, BMP-2,
Refacto AF and Benefix. Also included in this category are the post-approval milestone payments made under our alliance agreements for
certain biopharmaceutical products.
Brands
Brands represent the amortized or unamortized cost associated with tradenames and know-how, as the products themselves do not receive
patent protection. Most of these assets are associated with our Consumer Healthcare business unit. Virtually all of these assets were acquired
in connection with our Wyeth acquisition in 2009 and our Pharmacia acquisition in 2003. The more significant components of indefinite-lived
brands are the following (in order of significance): Advil, Xanax, Centrum and Medrol. The more significant components of finite-lived brands
are the following (in order of significance): Depo-Provera, Advil Cold and Sinus and Idoform and Bifiform.