Pfizer 2010 Annual Report Download - page 25

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Financial Review
Pfizer Inc. and Subsidiary Companies
2010 vs. 2009
Worldwide Biopharmaceutical revenues in 2010 were $58.5 billion, an increase of 29% compared to 2009, due to:
•the inclusion of operational revenues from legacy Wyeth products of approximately $13.7 billion, which favorably impacted
Biopharmaceutical revenues by 30%; and
•the weakening of the U.S. dollar relative to other currencies, primarily the Canadian dollar, Australian dollar, Japanese yen and
Brazilian real, which favorably impacted Biopharmaceutical revenues by approximately $900 million, or 2%,
partially offset by:
•the decrease in operational revenues of approximately $1.5 billion, or 3%, from legacy Pfizer products overall, including Norvasc,
Camptosar, Lipitor and Detrol/Detrol LA.
Geographically,
•in the U.S., Biopharmaceutical revenues increased 30% in 2010, compared to 2009, reflecting the inclusion of revenues from legacy
Wyeth products of $6.6 billion, which had a favorable impact of 33%, partially offset by lower overall revenues from legacy Pfizer
products, including Lipitor, Detrol/Detrol LA, Celebrex, Lyrica, Chantix and Caduet and the impact of increased rebates in 2010 as a
result of the U.S. Healthcare Legislation, all of which had an unfavorable impact of $664 million, or 3%; and
•in our international markets, Biopharmaceutical revenues increased 28% in 2010, compared to 2009, reflecting the inclusion of
operational revenues from legacy Wyeth products of $7.1 billion, which had a favorable impact of 28%, and the favorable impact of
foreign exchange on international Biopharmaceutical revenues of approximately $900 million, or 3%, partially offset by lower
operational revenues from legacy Pfizer products of $819 million, or 3%. The decrease in operational revenues of legacy Pfizer
products was due to lower operational revenues from, among other products, Lipitor, Norvasc and Camptosar, all of which were
impacted by the loss of exclusivity in certain international markets.
During 2010, international Biopharmaceutical revenues represented 56% of total Biopharmaceutical revenues, consistent with 2009.
Effective July 1, 2010, January 1, 2010, August 14, 2009, and January 3, 2009, we increased the published prices for certain U.S.
Biopharmaceutical products. These price increases had no material effect on wholesaler inventory levels in comparison to the prior
year.
2009 vs. 2008
Worldwide Biopharmaceutical revenues in 2009 were $45.4 billion, an increase of 3% compared to 2008, primarily due to:
•the inclusion of operational revenues from legacy Wyeth products of approximately $2.5 billion; and
•solid operational performance from certain legacy Pfizer products, including Lyrica, Sutent and Revatio, and higher legacy Pfizer
alliance revenues,
partially offset by:
•the strengthening of the U.S. dollar relative to other currencies, primarily the euro, U.K. pound, Canadian dollar, Australian dollar and
Brazilian real, which unfavorably impacted Biopharmaceutical revenues by approximately $1.7 billion, or 4%, in 2009; and
•a decrease in revenues from certain legacy Pfizer products, including Lipitor, Norvasc, Campostar and Chantix/Champix.
Geographically,
•in the U.S., Biopharmaceutical revenues increased 6% in 2009, primarily due to revenues from legacy Wyeth products of approximately
$1.6 billion, or 9%, which were partially offset by lower revenues from certain legacy Pfizer products, including Lipitor and Celebrex,
compared to 2008, as a result of continued generic pressures. Legacy Pfizer revenues also were adversely affected by the loss of
exclusivity of Camptosar and Zyrtec/Zyrtec D, lower sales of Chantix following the changes to the product label, increased rebates
partly as a result of the impact of certain contract changes, and increased pricing pressures. These factors were partially offset by the
solid performance from certain legacy Pfizer products, including Lyrica, Viagra, Revatio, Xalatan and Sutent, and alliance revenues in
2009; and
•in our international markets, Biopharmaceutical revenues were flat in 2009, compared to 2008. Higher revenues due to the addition of
legacy Wyeth products of $931 million, or 4%, and higher operational revenues from legacy Pfizer products of $783 million, or 3%, were
offset by the unfavorable impact of foreign exchange on international revenues of $1.7 billion, or 7%. The increase in operational
revenues of legacy Pfizer products was due to operational growth from Lipitor, Lyrica, Zyvox, Vfend, Sutent and alliance products,
partially offset by lower revenues of Norvasc and Camptosar, among others.
2010 Financial Report 23