Pfizer 2011 Annual Report Download - page 3

Financial Review
Pfizer Inc. and Subsidiary Companies
OVERVIEW OF OUR PERFORMANCE, OPERATING ENVIRONMENT, STRATEGY AND
OUTLOOK
Our Business
Our mission is to apply science and our global resources to improve health and well-being at every stage of life. We strive to set the
standard for quality, safety and value in the discovery, development and manufacturing of medicines for people and animals. Our
diversified global healthcare portfolio includes human and animal biologic and small molecule medicines and vaccines, as well as
nutritional products and many of the world’s best-known consumer products. Every day, we work across developed and emerging
markets to advance wellness, prevention, treatments and cures that challenge the most feared diseases of our time. We also
collaborate with other biopharmaceutical companies, healthcare providers, governments and local communities to support and
expand access to reliable, affordable healthcare around the world. Our revenues are derived from the sale of our products, as well
as through alliance agreements, under which we co-promote products discovered by other companies.
The majority of our revenues come from the manufacture and sale of biopharmaceutical products. The biopharmaceutical industry is
highly competitive and we face a number of industry-specific challenges, which can significantly impact our results. These factors
include, among others: the loss or expiration of intellectual property rights, the regulatory environment and pipeline productivity,
pricing and access pressures, and increasing competition among branded products. (For more information about these challenges,
see the “Our Operating Environment” section of this Financial Review.)
The financial information included in our consolidated financial statements for our subsidiaries operating outside the United States
(U.S.) is as of and for the year ended November 30 for each year presented.
The assets, liabilities, operating results and cash flows of acquired businesses, such as King Pharmaceuticals, Inc. (King) (acquired
on January 31, 2011) and Wyeth (acquired on October 15, 2009) are included in our results on a prospective basis only
commencing from the acquisition date. As such, our consolidated financial statements for the year ended December 31, 2011 reflect
approximately 11 months of King’s U.S. operations and approximately 10 months of King’s international operations, and our
consolidated financial statements for the year ended December 31, 2009 reflect approximately two-and-a-half months of Wyeth’s
U.S. operations and approximately one-and-a-half months of Wyeth’s international operations. (For more information about these
acquisitions, see the “Our Business Development Initiatives” section of this Financial Review.)
On August 1, 2011, we completed the sale of our Capsugel business. In connection with our decision to sell, the operating results
associated with the Capsugel business are classified as Discontinued operations––net of tax in our consolidated statements of
income for all periods presented, and the assets and liabilities associated with this business are classified as Assets of discontinued
operations and other assets held for sale and Liabilities of discontinued operations, as appropriate, in our consolidated balance
sheets as of December 31, 2010. (See “Our Business Development Initiatives” and “Discontinued Operations” sections of this
Financial Review for more information.)
On July 7, 2011, we announced our decision to explore strategic alternatives for our Animal Health and Nutrition businesses, which
may include, among other things, a full or partial separation of each of these businesses from Pfizer through a spin-off, sale or other
transaction. We expect to announce our strategic decision for each business in 2012. (For further information, see the “Our Business
Development Initiatives” section of this Financial Review.)
2 2011 Financial Report