Pfizer 2013 Annual Report Download - page 23

Financial Review
Pfizer Inc. and Subsidiary Companies
22
2013 Financial Report
• an increase in operational revenues of approximately $1.4 billion in developed markets for certain biopharmaceutical products, particularly
Lyrica, Enbrel, generic atorvastatin, Celebrex, Inlyta and Benefix; and
• an increase in operational revenues of approximately $1.2 billion due to growth in the Emerging Markets unit related to various products,
including Enbrel and Prevnar.
The unfavorable impact of foreign exchange on biopharmaceutical revenues of $1.3 billion, or 2%, also contributed to a decrease in
biopharmaceutical revenues.
Geographically,
• in the U.S., revenues from biopharmaceutical products decreased $4.0 billion or 17% in 2012, compared to 2011, primarily reflecting,
among other things:
lower revenues from Lipitor, Geodon, Caduet, Xalatan and Aromasin, all due to loss of exclusivity (down approximately $5.1 billion in
2012); and
lower revenues from Effexor, Zosyn and Detrol/Detrol LA (down approximately $331 million in 2012),
partially offset by:
the strong performance of certain other biopharmaceutical products, including generic atorvastatin, Celebrex, Enbrel, Lyrica and Viagra
(up approximately $841 million in 2012); and
lower reductions related to Medicare rebates (down approximately $669 million in 2012).
• in our international markets, revenues from biopharmaceutical products decreased 7% in 2012, compared to 2011. Operationally,
revenues decreased 4% in 2012, compared to 2011, reflecting among other things:
the loss of exclusivity of Lipitor in most of developed Europe (down approximately $1.2 billion in 2012);
lower revenues from Xalatan/Xalacom, Aricept and Aromasin, all due to loss of exclusivity in certain markets (down approximately
$754 million in 2012);
lower revenues for Spiriva in certain European countries, Canada and Australia (reflecting the final-year terms of our Spiriva
collaboration agreements relating to those countries) (down approximately $258 million in 2012); and
lower revenues for Norvasc and Effexor (down approximately $221 million in 2012),
partially offset by:
the strong operational growth of Lyrica, the Prevnar family of products and Enbrel (up approximately $815 million in 2012).
The unfavorable impact of foreign exchange on international biopharmaceutical revenues of 3% in 2012 also contributed to a decrease in
revenues from biopharmaceutical products in our international markets.
During 2012, international revenues from biopharmaceutical products represented 62% of total revenues from biopharmaceutical products,
compared to 59% in 2011.
Primary Care Operating Segment
Primary Care unit revenues decreased 31% in 2012 compared to 2011, reflecting lower operational revenues of 30%, primarily due to:
• the loss of exclusivity of Lipitor in most major markets, as well as the resulting shift in the reporting of U.S. and Japan Lipitor revenues to
the Established Products unit beginning January 1, 2012. These factors impacted Primary Care operational revenues by approximately
$7.0 billion, or 31%, in 2012,
partially offset by:
• the strong operational growth of Lyrica in developed markets (approximately $488 million) and Celebrex and Viagra in the U.S.
(approximately $280 million).
Collectively, the decline in worldwide revenues for Lipitor and for certain other Primary Care unit products that lost exclusivity in various
markets in 2012 and 2011, as well as the resulting shift in the reporting of certain product revenues to the Established Products unit, reduced
Primary Care unit revenues by $7.9 billion, or 35%, in comparison with 2011.
The unfavorable impact of foreign exchange of 1% also contributed to the decrease in Primary Care unit revenues.
Specialty Care and Oncology Operating Segment
• Specialty Care unit revenues decreased 7% compared to 2011, reflecting a decrease in operational revenues of 5%, primarily due to:
a decline in the Prevnar family of products in the U.S. and developed Europe (approximately $54 million), as the pediatric catch-up
dose opportunity declined significantly in 2012 compared to 2011, with fewer children eligible to receive the catch-up dose; and
the losses of exclusivity of Vfend and Xalatan in the U.S. in February and March 2011, respectively, and the resulting shift in the
reporting of Vfend and Xalatan U.S. revenues to the Established Products unit beginning January 1, 2012, as well as the loss of
exclusivity of Xalatan and Xalacom in the majority of European markets in January 2012, and Geodon in the U.S. in March 2012.
Collectively, these developments reduced Specialty Care unit revenues by $1.2 billion, or 8%, in comparison with 2011,
partially offset by: