Pfizer 2015 Annual Report Download - page 28

Financial Review
Pfizer Inc. and Subsidiary Companies
2015 Financial Report
27
• BeneFIX and ReFacto AF/Xyntha (GIP) are hemophilia products using state-of-the-art manufacturing that assist patients with their
lifelong hemophilia bleeding disorders. BeneFIX worldwide revenues decreased 5% operationally in 2015, compared to 2014, primarily as
a result of the erosion of market share in the U.S. due to the launch of competing new extended half-life treatment options. Foreign
exchange had an unfavorable impact on revenues of 7% in 2015, compared to 2014.
ReFacto AF/Xyntha recorded a 5% operational decrease in worldwide revenues in 2015, compared to 2014, largely due to price erosion in
the U.K. and Australia, erosion of market share in the U.S. due to the launch of competing new extended half-life treatment options and
loss of the annual 2015 contract in Iraq. Foreign exchange had an unfavorable impact on revenues of 11% in 2015, compared to 2014.
• Ibrance (O) was approved and launched in the U.S., Macau, Chile and Albania as a first-line treatment for certain forms of advanced
breast cancer. Ibrance recorded worldwide revenues of $723 million in 2015, nearly all of which were recorded in the U.S.
• Pristiq (GEP) is indicated for the treatment of major depressive disorder in the U.S. and in various other countries. Pristiq has also been
indicated for treatment of moderate-to-severe vasomotor symptoms (VMS) associated with menopause in Thailand, Mexico, the
Philippines and Ecuador. Pristiq recorded a 1% operational increase in worldwide revenues in 2015, compared to 2014. Foreign exchange
had an unfavorable impact on revenues of 4% the 2015, compared to 2014.
In the U.S., Pristiq revenues were relatively flat in 2015 compared to 2014 due to price increases offset by decreased market share.
Internationally, Pristiq revenues increased 5% operationally due to volume growth in certain markets. Foreign exchange had an
unfavorable impact on international revenues of 16% in 2015, compared to 2014.
• Chantix/Champix (GIP) is approved as an aid to smoking-cessation treatment in adults 18 years of age and older in multiple markets
worldwide. Worldwide revenues increased 9% operationally in 2015, compared to 2014. Foreign exchange had an unfavorable impact on
revenues of 5% in 2015, compared to 2014.
In the U.S., Chantix revenues increased 13% in 2015, compared to 2014, primarily due to two price increases and higher year-over-year
demand driven by steadily improving coverage by insurers in response to the requirements of the Affordable Care Act and direct-to-
consumer advertising on TV, partially offset by intensified competition by over-the-counter nicotine replacement therapies that utilize TV
and retail channels and higher-than-expected Medicaid rebates.
Internationally, Champix revenues increased 4% operationally in 2015, compared to 2014, primarily due to a significant tobacco tax
increase in Korea and strong growth across emerging markets. Foreign exchange had an unfavorable impact on international revenues of
13% in 2015, compared to 2014.
• Xeljanz (GIP) is approved for use as a second-line therapy for the treatment of adult patients with moderate to severe active rheumatoid
arthritis (after traditional disease-modifying antirheumatic drugs) in more than 40 markets including the U.S., Japan, Australia, Canada,
Switzerland and Brazil. Xeljanz recorded a 72% increase in worldwide revenues operationally in 2015, compared to 2014. In the U.S.,
Xeljanz revenues increased 63% in 2015, compared to 2014 driven by continued adoption by rheumatologists, growing awareness among
patients and price increases. Foreign exchange had a 2% unfavorable impact in 2015, compared to 2014.
• Xalkori (O) is indicated for the treatment of patients with locally advanced or metastatic non-small cell lung cancer (NSCLC) that is
anaplastic lymphoma kinase (ALK)-positive. Xalkori worldwide revenues increased 20% operationally in 2015, compared to 2014, as a
result of a steady increase in diagnostic rates for the ALK gene mutation across key markets, which has led to more patients being treated,
and price increases in the U.S. Foreign exchange had a 9% unfavorable impact in 2015, compared to 2014.
• Inlyta (O) is indicated for the treatment of patients with advanced renal cell carcinoma (RCC) after failure of a prior systemic treatment.
Worldwide revenues increased 14% operationally in 2015, compared to 2014, primarily due to increased demand across key markets with
greater access and reimbursement, particularly in Europe, as well as price increases in the U.S. Foreign exchange had a 9% unfavorable
impact on revenues in 2015, compared to 2014.
• Alliance revenues (GEP/GIP) increased 45% operationally in 2015, compared to 2014, mainly due to:
an increase in Eliquis alliance revenues as a result of increased market share,
partially offset by:
the termination of the Spiriva (GEP) co-promotion collaboration, which resulted in a decrease of approximately $143 million
operationally in 2015, compared to 2014.
• Eliquis (apixaban) (GIP) is being jointly developed and commercialized by Pfizer and Bristol-Myers Squibb (BMS). The two companies
share commercialization expenses and profit/losses equally on a global basis. In April 2015, we signed an agreement with BMS to
transfer full commercialization rights in certain smaller markets to us, beginning in the third quarter of 2015. BMS supplies the product to
us at cost plus a percentage of the net sales to end-customers in these markets. Eliquis is part of the Novel Oral Anticoagulant (NOAC)
market; the agents in this class were developed as alternative treatment options to warfarin in appropriate patients. Eliquis (apixaban) is
approved for multiple indications in major markets around the world:
to reduce the risk of stroke and systemic embolism in patients with nonvalvular atrial fibrillation (NVAF);
for the treatment of deep vein thrombosis (DVT) and pulmonary embolism (PE), and for the reduction in the risk of recurrent DVT and
PE following initial therapy; and
for the prophylaxis of DVT, which may lead to PE, in patients who have undergone hip or knee replacement surgery.
The NOAC class penetration continues to expand across key markets. Eliquis has become the most prescribed oral anticoagulant in
new to brand prescriptions among cardiologists in the U.S., Japan, and several other markets. Eliquis share uptake with primary care
physicians has also been strong, following the launch, in the fourth quarter of 2014, of the treatment indications for DVT and PE and
reduction in the risk of recurrent DVT and PE.
See the “Our Operating Environment—Intellectual Property Rights and Collaboration/Licensing Rights” section of this Financial Review, for
information regarding the expiration of various contract rights relating to Spiriva, Enbrel and Rebif.
See Notes to Consolidated Financial Statements—Note 17. Commitments and Contingencies for a discussion of recent developments
concerning patent and product litigation relating to certain of the products discussed above.