Pfizer 2008 Annual Report Download - page 21

Financial Review
Pfizer Inc and Subsidiary Companies
Revenues by Business Segment
We operate in the following business segments:
•Pharmaceutical
—The Pharmaceutical segment includes products that prevent and treat cardiovascular and metabolic diseases, central nervous system
disorders, arthritis and pain, infectious and respiratory diseases, urogenital conditions, cancer, eye disease and endocrine disorders, among
others.
•Animal Health
—The Animal Health segment includes products that prevent and treat diseases in livestock and companion animals.
Total Revenues by Business Segment
YEAR ENDED DECEMBER 31,
2008 2007 2006
Pharmaceutical 91.5% 91.8% 93.2%
Animal Health 5.8 5.4 4.8
Corporate/Other 2.7 2.8 2.0
Total revenues 100.0 100.0 100.0
Change in Revenues by Segment and Geographic Area
Worldwide revenues by segment and geographic area follow:
(MILLIONS OF DOLLARS)
YEAR ENDED DECEMBER 31, % CHANGE
WORLDWIDE U.S. INTERNATIONAL WORLDWIDE U.S. INTERNATIONAL
2008 2007 2006 2008 2007 2006 2008 2007 2006 08/07 07/06 08/07 07/06 08/07 07/06
Pharmaceutical $44,174 $44,424 $45,083 $18,851 $21,548 $24,503 $25,323 $22,876 $20,580 (1) (1) (13) (12) 11 11
Animal Health 2,825 2,639 2,311 1,168 1,132 1,032 1,657 1,507 1,279 714 310 10 18
Corporate/Other 1,297 1,355 977 416 473 287 881 882 690 (4) 39 (12) 65 —28
Total Revenues $48,296 $48,418 $48,371 $20,435 $23,153 $25,822 $27,861 $25,265 $22,549 ——(12) (10) 10 12
Pharmaceutical Revenues
Our pharmaceutical business is the largest in the world. Revenues from this segment contributed approximately 91% of our total revenues
in 2008, 92% of our total revenues in 2007 and 93% of our total revenues in 2006. As of September 30, 2008, nine of our pharmaceutical
products were number one in their respective therapeutic categories based on revenues.
We recorded direct product sales of more than $1 billion for each of nine products in 2008, each of eight products in 2007 and each of nine
products in 2006. These products represented 60% of our Pharmaceutical revenues in 2008, 58% of our Pharmaceutical revenues in 2007
and 64% of our Pharmaceutical revenues in 2006.
Worldwide Pharmaceutical revenues in 2008 were $44.2 billion, a decrease of 1% compared to 2007, primarily due to:
•a decrease in revenues for Zyrtec/Zyrtec D of $1.4 billion in 2008, primarily due to the loss of U.S. exclusivity and, in connection with our
divestiture of our Consumer Healthcare business, the cessation of selling this product in late January 2008;
•a decrease in revenues for Norvasc of $757 million in 2008, primarily due to the loss of U.S. exclusivity in March 2007;
•an increase in rebates in 2008 due to a 2007 favorable adjustment recorded in 2007 based on the actual claims experienced under the
Medicare Act, as well as the impact of our contracting strategies with both government and non-government entities in the U.S.;
•a decrease in revenues for Camptosar in the U.S. of $457 million in 2008, primarily due to the loss of U.S. exclusivity in February 2008;
•a decrease in revenues for Lipitor in the U.S. of $863 million in 2008, primarily resulting from competitive pressures from generics, among
other factors; and
•an adjustment to the prior years’ liabilities for product returns of $217 million recorded in 2008 (see the “Certain Charges: Adjustment of Prior
Years’ Liabilities for Product Returns” section of this Financial Review),
partially offset by:
•an aggregate increase in revenues from products launched in the U.S. since 2006, particularly Sutent, and from many in-line products,
including Lyrica, which increased 41% in 2008; and
•the weakening of the U.S. dollar relative to many foreign currencies, especially the euro, Japanese yen and Canadian dollar, which increased
Pharmaceutical revenues by approximately $1.5 billion, or 3.3%, in 2008.
2008 Financial Report 19