Pfizer 2013 Annual Report Download - page 24

Financial Review
Pfizer Inc. and Subsidiary Companies
2013 Financial Report 23
the growth of Benefix, Rebif, ReFacto/Xyntha, Enbrel and Zyvox (approximately $579 million).
The unfavorable impact of foreign exchange of 2% in 2012 also contributed to the decrease in Specialty Care unit revenues.
• Oncology unit revenues decreased 1%, compared to 2011, primarily due to:
the unfavorable impact of foreign exchange of 3%; and
the unfavorable impact of the loss of exclusivity of Aromasin in the majority of European markets in the second half of 2011 and the
resulting shift in the reporting of such revenues to the Established Products unit beginning January 1, 2012. This loss of exclusivity
reduced Oncology unit revenues by $230 million, or 17%, in comparison with 2011,
partially offset by operational revenues that were positively impacted by:
the launches of Inlyta and Xalkori in the U.S. and certain other developed markets (approximately $148 million); and
the growth of Sutent, primarily in the U.S. and emerging markets (approximately $93 million).
Established Products and Emerging Markets Operating Segment
• Established Products unit revenues increased 11% compared to 2011, reflecting higher operational revenues of 13%, primarily due to:
the shift in the reporting of branded Lipitor revenues in the U.S. and Japan from the Primary Care unit, totaling $1.4 billion, to the
Established Products unit beginning January 1, 2012;
recent launches of generic versions of certain Pfizer branded primary care and specialty care products; and
contributions from the sales of the authorized generic version of Lipitor in the U.S. by Watson Pharmaceuticals, Inc. (Watson) (The
agreement with Watson was terminated by mutual consent in January 2013),
partially offset by:
revenue declines for Effexor, Norvasc and Zosyn (approximately $518 million);
the entry of multi-source generic competition in the U.S. for donepezil (Aricept) in May 2011;
the continuing decline of revenues of certain products that previously lost exclusivity; and
the impact of ongoing pricing pressures, primarily in South Korea and developed Europe.
The operational increase in Established Products unit revenues was partially offset by the unfavorable impact of foreign exchange of 2% in
2012.
• Emerging Markets unit revenues increased 7% compared to 2011, due to higher operational revenues of 13%, primarily due to volume
growth in China, Brazil and Russia, as a result of more targeted promotional efforts for key innovative and established products, including
Lipitor, Norvasc and Lyrica. The operational increase in Emerging Markets unit revenues was partially offset by the unfavorable impact of
foreign exchange of 6% in 2012.
Total revenues from established products in both the Established Products and Emerging Markets units were $14.4 billion, with $4.1 billion
generated in emerging markets in 2012.
Consumer Healthcare Operating Segment
2013 v. 2012
Consumer Healthcare unit revenues increased 4% in 2013 compared to 2012, reflecting higher operational revenues of 5% in 2013, due to:
• strong growth for Centrum as a result of several recent product launches;
• increased promotional activities for various products in key markets; and
• the growth of Emergen-C in the U.S. due to expanded distribution and promotional activities,
partially offset by:
• declines in sales of respiratory and other products in certain international markets due to unfavorable seasonal conditions compared to
2012.
The operational increase in Consumer Healthcare revenues was partially offset by the unfavorable impact of foreign exchange of 1% in 2013.
2012 v. 2011
Consumer Healthcare unit revenues increased 6% in 2012, compared to 2011, reflecting higher operational revenues of 8% in 2012, partially
offset by the unfavorable impact of foreign exchange of 2%. The operational revenue increase was primarily due to the addition of products
from the acquisitions of the consumer healthcare business of Ferrosan in December 2011 and Alacer Corp. in February 2012.