Pfizer 2009 Annual Report Download - page 22

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Financial Review
Pfizer Inc. and Subsidiary Companies
partially offset by:
•a decrease in revenues from legacy Pfizer Animal Health products and the Capsugel business primarily due to the unfavorable impact
of foreign exchange.
Revenues from Animal Health products decreased 2% in 2009 compared to 2008, reflecting the unfavorable impact of foreign
exchange of 5%, flat operational performance of legacy Pfizer Animal Health products and the revenue increase from the addition of
legacy Wyeth Animal Health products of 3%.
The following factors impacted 2009 Animal Health results:
•the global recession, which negatively affected global spending on veterinary care;
•historically low milk prices, which have hurt the profitability of dairy farmers and negatively impacted our livestock business; and
•a planned change in terms with U.S. distributors resulting in an anticipated, one-time reduction in U.S. distributor inventories in the first
quarter of 2009.
2008 vs. 2007
Worldwide Diversified revenues in 2008 were $3.6 billion, an increase of 8% compared to 2007, primarily attributable to higher
revenues from Animal Health products and our Capsugel business.
Revenues from Animal Health products increased 7% in 2008 compared to 2007 due to:
•for livestock products, the solid performance of our cattle biologicals and intramammaries franchises in 2008;
•for companion animal products, the strong performances of Revolution (a parasiticide for dogs and cats) and new product launches,
such as Convenia (first-in-class single-dose treatment antibiotic therapy for dogs and cats), Cerenia (treatment and prevention of
vomiting in dogs) and Improvac (boar taint vaccine); and
•the favorable impact of foreign exchange, which increased revenues by 3%.
20 2009 Financial Report