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Financial Review
Pfizer Inc. and Subsidiary Companies
2013 Financial Report
21
prior to the expiration of the co-promotion agreement, and those royalty payments are and will be included in Other (income)/
deductions––net rather than in Revenues, beginning November 1, 2013,
partially offset by:
the growth of Enbrel outside of the U.S., as well as Xeljanz and the hemophilia portfolio (BeneFIX and ReFacto AF/Xyntha) in the U.S.
The unfavorable impact of foreign exchange of 2% in 2013 also contributed to the decrease in Specialty Care unit revenues.
Collectively, products that lost exclusivity, as well as the resulting shift in the reporting of certain product revenues to the Established
Products unit, and the expiration of the co-promotion agreement for Enbrel in the U.S. and Canada reduced Specialty Care unit
revenues by $996 million, or 7%, in comparison with 2012.
• Oncology unit revenues increased 26% in 2013, compared to 2012, reflecting higher operational revenues of 29% in 2013 due to:
the recent launches of new products, most notably Inlyta and Xalkori in several major markets,
partially offset by:
the decline in Sutent revenues in the EU and Japan, due to increased competition and cost-containment measures in those markets,
as well as some conversion from Sutent to Inlyta in Japan due to a broader label for Inlyta in Japan, which overlaps with the Sutent
indication.
Inlyta’s market share is stable in the U.S. and continues to increase in international developed markets as patient feedback remains
positive both in terms of efficacy and tolerability, and as pricing and reimbursement are being granted in developed Europe. Xalkori
prescriptions and new patient starts also continue to increase, driven by initiatives established to improve molecular testing and identify
the appropriate patients for this medicine.
The operational increase in Oncology unit revenues was partially offset by the unfavorable impact of foreign exchange of 3% in 2013.
Established Products and Emerging Markets Operating Segment
• Established Products unit revenues decreased 8% in 2013, compared to 2012, reflecting a decrease in operational revenues of 5% in
2013, primarily due to:
the continued erosion of branded Lipitor in the U.S. and Japan due to generic competition and additional generic competition for
Metaxalone/Skelaxin in the U.S.,
partially offset by:
revenues from products in certain markets that were shifted to the Established Products unit from other business units beginning
January 1, 2013, including Lipitor, Caduet and Xalabrands in developed Europe and Australia and Geodon in the U.S.; and
the contribution from the collaboration with Mylan Inc. to market generic drugs in Japan.
The unfavorable impact of foreign exchange of 3% in 2013 also contributed to the decrease in Established Products unit revenues.
• Emerging Markets unit revenues increased 3% in 2013, compared to 2012, due to higher operational revenues of 6% in 2013, primarily
due to:
volume growth in China, most notably Lipitor, Norvasc and Sulperazon,
partially offset by:
the impact of the transfer of certain product rights to our equity-method investment in China in the first quarter of 2013; and
decreased government purchases of Prevenar and Enbrel, as well as government cost-containment measures, in certain emerging
markets.
The operational increase in Emerging Markets unit revenues was partially offset by the unfavorable impact of foreign exchange of 3% in
2013.
Total revenues from established products in both the Established Products and Emerging Markets units were $13.6 billion, with $4.2 billion
generated in emerging markets, in 2013.
2012 v. 2011
Worldwide revenues from biopharmaceutical products in 2012 were $51.2 billion, reflecting a decrease of 11% compared to 2011, reflecting,
among other things:
• a decrease in operational revenues of approximately $7.2 billion due to the loss of exclusivity of various products in certain markets,
including a decrease in operational revenues from branded Lipitor of $5.6 billion, Geodon of $645 million and Xalatan of $413 million; and
• a decrease in operational Alliance revenues of approximately $118 million, reflecting the loss of exclusivity for Aricept in certain markets
($209 million), the final-year terms of our collaboration agreements in certain European markets for Spiriva ($251 million) partially offset by
growth in other products generating alliance revenues,
partially offset by: