Pfizer 2005 Annual Report Download - page 18

2005 Financial Report 17
Financial Review
Pfizer Inc and Subsidiary Companies
Pfizer will continue to explore regulatory approval
opportunities for Caduet.
•Alliance revenue reflects revenue primarily Inc. (OSI), associated
with our co-promotion of Aricept, Macugen, Rebif and Spiriva.
—Aricept, discovered and developed by our alliance partner
Eisai Co., Ltd, is the world’s leading medicine to treat
symptoms of Alzheimer’s disease.
—Macugen, discovered and developed by our alliance partner
OSI Pharmaceuticals, Inc. (OSI), for the treatment of
neovascular (wet) age-related macular degeneration (AMD).
—Rebif, discovered and developed by Serono S.A. (Serono), is
used to treat symptoms of relapsing forms of multiple
sclerosis. Pfizer co-promotes Rebif with Serono in the U.S.
—Spiriva, discovered and developed by our alliance partner
Boehringer Ingelheim (BI), is used to treat chronic obstructive
pulmonary disease, a chronic respiratory disorder that
includes chronic bronchitis and emphysema.
Alliances allow us to co-promote or license these products for sale
in certain countries. Under the co-promotion agreements, these
products are marketed and promoted with our alliance partners.
We provide funding through cash, staff and other resources to sell,
market, promote and further develop these products.
Recent Product Launches
We continue to invest in clinical research for our in-line medicines,
increasing the value of our medicines to patients and their
healthcare providers. We are also reinvigorating our portfolio by
launching a series of new medicines or existing medicines in new
markets. The following highlights the achievements for several
of these products in 2005:
•Macugen, for treatment of AMD, the leading cause of blindness
in people over 60, was launched in the U.S. in January 2005 and
approved in the E.U. in 2006. While new competitors are expected
to enter the market, Macugen has a strong foothold with more
than 40,000 patients treated to date. Macugen’s favorable safety
profile has been maintained for more than two years of clinical
testing and marketing.
•Revatio, for treatment of pulmonary arterial hypertension
(PAH) was approved by the FDA in June 2005 and by the EMEA
in November 2005.
•Zmax,for treatment of mild-to-moderate acute bacterial
sinusitis and community acquired pneumonia in adult patients
appropriate for oral therapy due to susceptible pathogens
was launched in the U.S. in August 2005.
•Lyrica, for add-on therapy for adult epilepsy patients with
partial onset seizures, as well as neuropathic pain due to
diabetic neuropathy and post-herpetic neuralgia, was launched
in the U.S. in September 2005 with more than 500,000
prescriptions written as of December 23, 2005. Lyrica has
already gained more than a 7% new-prescription share of the
U.S. anti-epileptic market as of December 23, 2005.
Consumer Healthcare
Revenues of our Consumer Healthcare business follow:
YEAR ENDED DEC. 31, % CHANGE
__________________________________________ _________________
(MILLIONS OF DOLLARS) 2005 2004 2003 05/04 04/03
Consumer Healthcare $3,878 $3,516 $2,949 10 19
Our Consumer Healthcare business is one of the largest in the
world.
On February 7, 2006, we announced that we are exploring
strategic options for our Consumer Healthcare business, including
apossible sale or spin-off of the business.
The increase in Consumer Healthcare revenues in 2005, as
compared to 2004, was attributable to:
•the 11% increase in 2005 in sales of Listerine mouthwash,
which benefited from the U.S. launch of Listerine Whitening in
April 2005, as well as continued strong performance in
international markets;
•the 13% growth from upper-respiratory products, 55% growth
from Zantac, and 15% growth from tobacco dependence
products;
•inclusion of Purell sales in 2005 following the acquisition of the
Purell brand in November 2004; and
•the favorable impact of the weakening of the U.S. dollar
relative to many foreign currencies.
The increase in Consumer Healthcare revenues in 2004, as
compared to 2003, was attributable to:
•the 22% increase in 2004 in sales of Listerine mouthwash,
which benefited from the U.S. launch of Natural Citrus flavor
in September 2003 and the launch of Listerine Advanced in
September 2004;
•the favorable impact of the weakening of the U.S. dollar
relative to many foreign currencies; and
•the inclusion of Pharmacia product revenues for a full year in
2004.
Animal Health
Revenues of our Animal Health business follow:
YEAR ENDED DEC. 31, % CHANGE
__________________________________________ _________________
(MILLIONS OF DOLLARS) 2005 2004 2003 05/04 04/03
Livestock products $1,379 $1,200 $970 15 24
Companion animal
products 827 753 628 10 20
Total Animal Health $2,206 $1,953 $1,598 13 22
Our Animal Health business is one of the largest in the world.
The increase in Animal Health revenues in 2005, as compared to
2004, was attributable to:
•in livestock, the continued performance of Excede (long acting
anti-infective) in the U.S. and Draxxin (for treatment of
respiratory disease in cattle and swine) in Europe and in the U.S.,
as well as Spectramast (antibiotic formulated to treat clinical
mastitis), which was launched in the U.S. in May 2005;
•in companion animal, increased promotional activities
throughout our markets resulted in Revolution (a parasiticide
for dogs and cats) and Clavamox (an antibiotic for dogs and cats)
growing at double-digit rates in 2005, and the launch of
Simplicef (small animal anti-infective) in the U.S. in the fourth
quarter of 2004; and
•the favorable impact of the weakening of the U.S. dollar
relative to many foreign currencies.