Pfizer 2010 Annual Report Download - page 28

Financial Review
Pfizer Inc. and Subsidiary Companies
Biopharmaceutical—Selected Product Descriptions
•Lipitor, for the treatment of elevated LDL-cholesterol levels in the blood, is the most widely used branded prescription treatment for
lowering cholesterol and the best-selling prescription pharmaceutical product of any kind in the world. Lipitor recorded worldwide
revenues of $10.7 billion, or a decrease of 6%, in 2010, compared to 2009 due to:
Othe continuing impact of an intensely competitive lipid-lowering market with competition from generics and branded products
worldwide;
Oincreased payer pressure worldwide;
Oslower growth in the lipid-lowering market in the U.S. due, in part, to a slower rate of growth in the Medicare Part D population and,
reflecting challenging economic conditions, heightened overall patient cost-sensitivity in the U.S. and adoption of non-prescription
treatment options; and
Oloss of exclusivity in Canada in May 2010, Spain in July 2010 and Brazil in August 2010,
partially offset by:
Othe favorable impact of foreign exchange, which increased revenues by $220 million, or 2%.
Geographically,
Oin the U.S., Lipitor revenues were $5.3 billion, a decrease of 6% in 2010, compared to 2009; and
Oin our international markets, Lipitor revenues were $5.4 billion, a decrease of 6%, in 2010, compared to 2009. The impact of foreign
exchange increased international revenues by 4% in 2010, compared to 2009.
See the “Our Operating Environment” section of this Financial Review for a discussion concerning the expected loss of exclusivity
for Lipitor in various markets.
During the period from August through December 2010, we implemented four voluntary recalls of Lipitor 40 mg tablets due to a
small number of reports of an uncharacteristic odor related to the bottles in which Lipitor is packaged. Our recalls involved a total
of 20 lots in the U.S. and Canada. The odor related to bottles that were manufactured by a third-party supplier, most of which
entered the supply chain before August 2010. A medical assessment by us has determined that the odor is not likely to cause
adverse health consequences. We have identified the source of the odor, and we are implementing rigorous measures to prevent
odor-related issues going forward. While the rate of odor complaints is very low, we cannot rule out the possibility of further recalls
based on our quality control measures in the event that there are any future odor-related observations. These recalls have not
had any significant impact on our results of operations, and we do not expect any disruptions in the supply of Lipitor.
•Enbrel, for the treatment of rheumatoid arthritis, polyarticular juvenile rheumatoid arthritis, psoriatic arthritis, plaque psoriasis and
ankylosing spondylitis, a type of arthritis affecting the spine, recorded worldwide revenues, excluding the U.S. and Canada, of $3.3
billion in 2010. Enbrel revenues from the U.S. and Canada are included in alliance revenues. The approval of competing products for
the treatment of psoriasis has increased competition with respect to Enbrel in 2010.
Under our co-promotion agreement with Amgen Inc. (Amgen), we and Amgen co-promote Enbrel in the U.S. and Canada and
share in the profits from Enbrel sales in those countries, recorded as alliance revenues. The co-promotion term is scheduled to
end in October 2013, and, subject to the terms of the agreement, we are entitled to a royalty stream for 36 months thereafter,
which is significantly less than our current share of Enbrel profits from U.S. and Canadian sales. Following the end of the royalty
period, we will not be entitled to any further alliance revenues from Enbrel sales in the U.S. and Canada. Our exclusive rights to
Enbrel outside the U.S. and Canada will not be affected by the expiration of the co-promotion agreement with Amgen.
•Lyrica, indicated for the management of post-herpetic neuralgia (PHN), diabetic peripheral neuropathy (DPN), fibromyalgia, and as
adjunctive therapy for adult patients with partial onset seizures in the U.S., and for neuropathic pain, adjunctive treatment of epilepsy
and general anxiety disorder (GAD) in certain countries outside the U.S., recorded an increase in worldwide revenues of 8% in 2010,
compared to 2009. Lyrica had a strong operational performance in international markets in 2010, including Japan, where Lyrica was
launched as the first product approved for the peripheral neuropathic indication. In the U.S., revenues have been adversely affected by
increased generic competition, as well as managed care pricing and formulary pressures.
•Prevnar/Prevenar 13, launched in Germany in late 2009 and in the U.S. in early 2010 with launches in other markets during 2010, is
our 13-valent pneumococcal conjugate vaccine for preventing invasive pneumococcal disease in infants and young children. Prevnar/
Prevenar 13 had worldwide revenues of $2.4 billion in 2010. To date, Prevnar/Prevenar 13 has been approved in over 80 countries and
launched in over 55 of those countries. The launch of Prevnar/Prevenar 13 has resulted in a reduction of our Prevnar/Prevenar
(7-valent) revenues. We expect this trend to continue.
26 2010 Financial Report