Pfizer 2005 Annual Report Download - page 32

2005 Financial Report 31
Financial Review
Pfizer Inc and Subsidiary Companies
The estimated impact of adopting SFAS 123R on our financial
position, including the short-term and long-term deferred tax
assets related to unvested options at adoption date, is expected
to be immaterial.
Forward-Looking Information and Factors
That May Affect Future Results
The Securities and Exchange Commission encourages companies
to disclose forward-looking information so that investors can
better understand a company’s future prospects and make
informed investment decisions. This report and other written or
oral statements that we make from time to time contain such
forward-looking statements that set forth anticipated results
based on management’s plans and assumptions. Such forward-
looking statements involve substantial risks and uncertainties. We
have tried, wherever possible, to identify such statements by
using words such as “will,” “anticipate,” “estimate,” “expect,”
“project,” “intend,” “plan,” “believe,” “target,” “forecast” and
other words and terms of similar meaning in connection with any
discussion of future operating or financial performance. In
particular, these include statements relating to future actions,
prospective products or product approvals, future performance
or results of current and anticipated products, sales efforts,
expenses, interest rates, foreign exchange rates, the outcome of
contingencies, such as legal proceedings, and financial results.
Among the factors that could cause actual results to differ
materially are the following:
•the success of research and development activities;
•decisions by regulatory authorities regarding whether and
when to approve our drug applications as well as their decisions
regarding labeling and other matters that could affect the
availability or commercial potential of our products;
•the speed with which regulatory authorizations, pricing
approvals, and product launches may be achieved;
•competitive developments affecting our current growth
products;
•the ability to successfully market both new and existing products
domestically and internationally;
•difficulties or delays in manufacturing;
•trade buying patterns;
•the ability to meet generic and branded competition after the
loss of patent protection for our products or for competitor
products;
•the impact of existing and future regulatory provisions on
product exclusivity;
•trends toward managed care and health care cost containment;
•possible U.S. legislation or regulatory action affecting, among
other things, pharmaceutical pricing and reimbursement,
including under Medicaid and Medicare, the importation of
prescription drugs that are marketed outside the U.S. and sold
at prices that are regulated by governments of various foreign
countries, and the involuntary approval of prescription
medicines for over-the-counter use;
•the potential impact of the Medicare Prescription Drug,
Improvement and Modernization Act of 2003;
•legislation or regulations in markets outside the U.S. affecting
product pricing, reimbursement or access;
•contingencies related to actual or alleged environmental
contamination;
•claims and concerns that may arise regarding the safety or
efficacy of in-line products and product candidates;
•legal defense costs, insurance expenses, settlement costs and
the risk of an adverse decision or settlement related to product
liability, patent protection, governmental investigations,
ongoing efforts to explore various means for resolving asbestos
litigation and other legal proceedings;
•the Company’s ability to protect its patents and other
intellectual property both domestically and internationally;
•interest rate and foreign currency exchange rate fluctuations;
•governmental laws and regulations affecting domestic and
foreign operations, including tax obligations;
•changes in U.S. generally accepted accounting principles;
•any changes in business, political and economic conditions due
to the threat of future terrorist activity in the U.S. and other
parts of the world, and related U.S. military action overseas;
•growth in costs and expenses;
•changes in our product, segment and geographic mix; and
•the impact of acquisitions, divestitures, restructurings, product
withdrawals and other unusual items, including the impact of
the possible sale or spin-off of our Consumer Healthcare
business and our ability to realize the projected benefits of our
Adapting to Scale multi-year productivity initiative.
We cannot guarantee that any forward-looking statement will be
realized, although we believe we have been prudent in our plans
and assumptions. Achievement of future results is subject to risks,
uncertainties and inaccurate assumptions. Should known or
unknown risks or uncertainties materialize, or should underlying
assumptions prove inaccurate, actual results could vary materially
from past results and those anticipated, estimated or projected.
Investors should bear this in mind as they consider forward-
looking statements.
We undertake no obligation to publicly update forward-looking
statements, whether as a result of new information, future events
or otherwise. You are advised, however, to consult any further
disclosures we make on related subjects in our Forms 10-Q, 8-K
and 10-K reports to the Securities and Exchange Commission.
Certain risks, uncertainties and assumptions are discussed here and
under the heading entitled “Risk Factors and Cautionary Factors
That May Affect Future Results” in Item 1 of our Annual Report
on Form 10-K for the year ended December 31, 2005, which will
be filed in March 2006. We note these factors for investors as
permitted by the Private Securities Litigation Reform Act of 1995.
You should understand that it is not possible to predict or identify
all such factors. Consequently, you should not consider any such
list to be a complete set of all potential risks or uncertainties.