Pfizer Inc Fourth-Quarter 2004 Performance Report

Pfizer Inc Fourth-Quarter 2004 Performance Report Pfizer Delivers Strong Performance In a Challenging Business Environment --- Pfizer Responds Quickly and Significantly to Tsunami Disaster --- Fourth-Quarter Reported Net Income of $2.825 Billion, Reported Diluted EPS of $.38, Reflect Asset-Impairment Charge Relating to Depo-Provera --- Fourth-Quarter Adjusted Income* Grows 16 Percent to $4.385 Billion; Fourth-Quarter Adjusted Diluted EPS. Up 16 Percent to $.58 --- Quarterly Revenues Increase 7 Percent to $14.924 Billion --- Lipitor Becomes Pharmaceutical Industry's First Ten-Billion-Dollar Product --- Quarter Marked by U.S. Regulatory Approvals of Lyrica and Macugen, U.S. Filings of Revatio and Parecoxib --- Pfizer Remains On Track to Submit an Industry-Record 20 Major U.S. Regulatory Filings in 2001-2006 --- Pfizer Well-Positioned to Meet Challenges Ahead NEW YORK, Jan. 19 /PRNewswire-FirstCall/ -- Pfizer today reported financial results for the fourth quarter of 2004. "Pfizer delivered another strong performance during the fourth quarter, despite a challenging business environment," said Hank McKinnell, chairman and chief executive officer. "These results reflect our unequaled operational capabilities and our industry-leading product portfolio and pipeline. Among many solid product performances, Lipitor continued to achieve strong double- digit revenue growth and became the world's first ten-billion-dollar pharmaceutical product. "The numerous filings, approvals, and launches of major new Pfizer products and product enhancements during 2004 demonstrated our renewed R&D productivity," Dr. McKinnell continued. "We will continue to make the investments necessary to serve patients' needs and to generate long-term growth. Our pipeline of new-product candidates is full at all stages, and the opportunities for improving human health remain abundant." Commenting on the impact of the catastrophic tsunami in Asia and Africa, Dr. McKinnell said, "Our hearts go out to the families and loved ones of those whose lives were lost and to the millions of people affected by this disaster. As for so many others, the disaster has touched our company, with Pfizer colleagues -- and their families -- among the missing and injured. "Our company has responded to the crisis in a caring and comprehensive manner. To date, we have donated more than $10 million in cash to international and local relief organizations operating in the region. We have also donated Pfizer medicines and consumer products to more than 30 relief organizations as part of our initial $25 million commitment in medicine relief. Our U.S. colleagues have personally contributed more than $350,000 to the relief effort, and our overseas colleagues have donation drives in progress. Pfizer is matching all of these colleague donations. We are also partnering with the United Nations to send Pfizer experts in supply-chain management to the affected area to support the U.N.-led relief efforts. We expect to send more colleagues to support these teams in areas of critical need, such as water purification. I am proud of the significant contributions being made to the relief effort by Pfizer colleagues in the affected area and around the world." Pfizer Delivers Strong 2004 Performance, Will Provide 2005 Guidance at Upcoming Analyst Meeting David Shedlarz, executive vice president and chief financial officer, noted, "Pfizer achieved strong financial results in the fourth quarter of 2004 and for the full year. The company continues to use its strong operating cash flow to make the investments in its business necessary to sustain long-term growth, as well as to pay a strong, growing dividend to shareholders and to repurchase the company's common stock." Pfizer revenues for the fourth quarter of 2004 grew 7 percent to $14.924 billion, compared to the fourth quarter of 2003. Revenue growth was driven by good performances by Lipitor and a number of other product lines and by the weakening of the U.S. dollar relative to a number of foreign currencies, offset in part by recent generic competition to Diflucan, Neurontin, and Accupril and other competitive challenges. Pfizer revenues for full-year 2004 grew 17 percent to $52.516 billion, compared to 2003. Revenue growth was driven by strong performances across a broad range of products; the inclusion of results of legacy Pharmacia products for the full year compared to the prior year (subsequent to the April 16, 2003, acquisition); and the weakening of the U.S. dollar relative to a number of other foreign currencies; offset in part by recent generic competition and other competitive challenges. The Company's Human Health business generated revenues of $13.101 billion, up 6 percent, in the fourth quarter. Quarterly revenues of Pfizer's Consumer Healthcare business were $992 million, up 13 percent. Pfizer's Animal Health revenues increased 11 percent in the quarter to $566 million. Reported fourth-quarter net income of $2.825 billion and reported diluted earnings per share of $.38 included $831 million ($.10 per share) of significant impacts of purchase accounting for acquisitions (primarily non- cash charges attributable to the acquisition of Pharmacia); merger-related costs of $323 million ($.04 per share); certain significant items of $360 million ($.05 per share), which includes an impairment charge of $420 million relating to Depo-Provera resulting from diminished expectations of the product's future performance and $67 million of contingent income earned from a product in development that was sold in 2003; and a loss from discontinued operations of $46 million ($.01 per share), all on an after-tax basis. Excluding these items, adjusted income* in the fourth quarter grew 16 percent to $4.385 billion, and adjusted diluted EPS* in the quarter increased 16 percent to $.58, compared to the same period in 2003. Reported full-year 2004 net income of $11.361 billion and reported diluted earnings per share of $1.49 included $3.389 billion ($.45 per share) of significant impacts of purchase accounting for acquisitions (primarily non- cash charges attributable to the acquisition of Pharmacia); merger-related costs of $786 million ($.10 per share); certain significant items of $629 million ($.08 per share), which includes an impairment charge of $420 million relating to Depo-Provera, a charge of $229 million relating to the resolution, subject to court approval and approval by claimants, of certain asbestos- related litigation matters, and $67 million of contingent income earned from a product in development that was sold in 2003; and income from discontinued operations of $29 million, all on an after-tax basis. Excluding these items, adjusted income* for the full year grew 31 percent to $16.136 billion, and adjusted diluted EPS* for the full year increased 25 percent to $2.12, compared to full-year 2003. "The U.S. Treasury recently issued guidance that appears to clarify some of the provisions of the American Jobs Creation Act of 2004," Mr. Shedlarz continued, "and management is now investigating whether the company might repatriate up to $29 billion in extraordinary dividends, as defined in the Act, during 2005 (subject to management and board approval). This amount could increase by $8.6 billion, the amount of Pharmacia's historical accumulated earnings, but is subject to further U.S. Treasury guidance. Since the U.S. Treasury has not yet completed the issuance of all of its guidance on the Act, the company can only make a good-faith estimate of the tax liability that would have to be recorded if these extraordinary dividends are paid. Accordingly, the company expects, based on the information presently available, that it would record a tax liability based on the 5.25-percent statutory rate in the Act. However, the actual cost to the company is dependent on a number of factors that are currently being analyzed, including the passage of the pending Technical Corrections Bill. "While Pfizer's revenue and income growth will likely be tempered in the near term due to patent expirations and other factors, the Company will continue to make the investments necessary to sustain strong longer-term growth, the prospects for which remain excellent," Mr. Shedlarz concluded. "We will provide more specific information on Pfizer's financial expectations for 2005 and beyond at our analyst meeting planned for April 5, 2005. We remain confident that Pfizer has the organizational strength and resilience, as well as the financial depth and flexibility, to succeed in the long term." Human Health Continues Industry-Leading Performance "2004 -- and especially the fourth quarter -- was an extraordinary time for Pfizer in every respect," said Karen Katen, executive vice president of the company and president of Pfizer Global Pharmaceuticals. "We saw unprecedented challenges to some of our key products and unsurpassed performances by others. We were subject to significant patent expirations and intense generic competition. We published landmark clinical-trial data from several studies and gained enhanced labeling from worldwide regulatory authorities, while also managing challenges to the safety and value of our medicines. We experienced pricing challenges from governments and other payers at the same time that we enrolled our first uninsured American consumers in the Pfizer Pfriends discount card program. "Amid this dynamic environment, our global pharmaceutical business delivered solid performance in 2004, extending our industry leadership and, more importantly, meeting patients' health needs with essential medicines and innovative programs. This performance is directly attributable to the scale of our pharmaceutical enterprise -- an enterprise deep and broad enough in therapeutic scope, and diverse enough in global market presence, to successfully exploit business opportunities and manage multiple environmental challenges," she said. Fourth-quarter human health revenue growth was led by Lipitor (up 23 percent), Celebrex (up 24 percent), Bextra (up 57 percent), Zyvox (up 73 percent), Campto/Camptosar (up 129 percent), Detrol (up 22 percent), and Xalatan/Xalacom (up 23 percent), partially offset by sales declines for Neurontin, Diflucan, and Accupril due to generic competition and Zithromax due to weak respiratory-infection trends. Full-year human health worldwide revenue growth of 17 percent was driven largely by Lipitor (up 18 percent), Zoloft (up 8 percent), Geodon (up 32 percent), Relpax (up 99 percent), Vfend (up 44 percent), and other key products -- Celebrex, Bextra, Xalatan, Detrol, and Zyvox -- partially offset by sales declines for Viagra, Diflucan, and Zithromax. Neurontin and Accupril were subject to generic competition in the fourth quarter, and Diflucan was subject to generic competition in the third and fourth quarters. Fifteen products marketed by Pfizer are number one in their respective therapeutic categories. These include five of the world's 25 top-selling medicines and the most widely-prescribed medicine in the world -- Lipitor. Ten Pfizer products each achieved more than $1 billion in 2004 revenues. Executing on Traditional Strengths. In 2004, Pfizer demonstrated in a variety of ways how our increased scale enhances our traditional strengths and provides us with an unprecedented ability to support a large in-line portfolio with robust medical, marketing, and sales efforts and rigorous clinical programs and also file and launch new products in multiple markets around the globe. These proven capabilities have enhanced Pfizer's status as the pharmaceutical industry's "partner of choice." Continued Confidence in Celebrex and Bextra As Treatment Options. Pfizer's commitment to doing what's best for patients has been the basis for our response to recent concerns regarding the cardiovascular safety of Celebrex and Bextra. This means helping to ensure that doctors have relevant data available on Celebrex and Bextra so that they can make appropriate prescribing decisions for their individual patients. Celebrex and Bextra demonstrated solid performance in 2004. Worldwide sales of Celebrex topped $3.3 billion and Bextra sales totaled nearly $1.3 billion in 2004. Fourth-quarter revenues for Celebrex ($1 billion, up 24 percent) and Bextra ($417 million, up 57 percent) were strong in absolute and growth terms. Preliminary safety information from three long-term clinical trials of Celebrex, not in arthritis but in cancer and Alzheimer's disease prevention, became available in December 2004. The resulting media and public reaction apparently contributed to a decline of the overall anti-inflammatory market in the U.S. and other major markets. For both Bextra and Celebrex, the cardiovascular safety review that is ongoing by the EMEA's Committee for Medicinal Products for Human Use (CHMP), as well as the FDA Advisory Committee hearing that is scheduled for February 16-18, 2005, will be appropriate settings for a thorough review of all available data evaluating the benefits and risks of these important medicines. In the interim, we believe that physicians should follow FDA guidance issued in late December and evaluate all available information on selective COX-2 inhibitors as well as both OTC and prescription non-selective non- steroidal anti-inflammatory drugs (NSAIDs), when selecting arthritis and pain therapies for their patients in need. Portfolio Performance. Pfizer's strong 2004 performance extended across all of our major therapeutic areas, particularly in our cardiovascular/metabolic portfolio. Lipitor continues to be the best-selling medicine in any category, with fourth-quarter revenues of $3.264 billion, up 23 percent, and full-year 2004 revenues of $10.862 billion, up 18 percent. The success of Lipitor is the result of an unprecedented array of clinical data supporting both efficacy and safety, further enhanced by every new study that has been released. These clear benefits have enabled Lipitor to record 87 million patient years of experience globally. Lipitor holds more than 40 percent of the worldwide lipid-lowering market and more than 42 percent of the U.S. market in total prescriptions and continues to post strong, double-digit growth around the world. In November 2004, Lipitor achieved 23-percent growth in U.S. new prescriptions, its strongest growth in more than two years. Based on this strong demand growth, Lipitor exceeded $2 billion in U.S. sales in the fourth quarter, representing 20-percent growth over 2003. The performance of Lipitor is driven by the wealth of clinical evidence from such trials as ASCOT-LLA, REVERSAL, CARDS, and PROVE-IT, which are shaping cholesterol management. The novel data emerging from these trials are informing treatment guidelines, such as the National Cholesterol Education Program, which now recommend that cardiovascular risk factors be managed more aggressively and holistically than in the past and for more patients than were previously considered candidates for statin therapy. Based on this emerging evidence, the Lipitor label was revised in 2004 to include a new indication for the primary prevention of cardiovascular disease in patients with multiple risk factors. Pfizer also submitted a U.S. regulatory filing in the fourth quarter of 2004 based on favorable stroke data from the CARDS trial. In addition to the proven benefits of aggressive LDL-cholesterol lowering, the abundance of emerging data indicates early and dramatic benefits associated with Lipitor therapy. The ASCOT-LLA and CARDS trials were both stopped approximately two years early because of compelling evidence that Lipitor use prevented first cardiovascular events in patients with hypertension and diabetes, respectively. In patients with acute coronary syndrome, the PROVE-IT trial showed that Lipitor therapy helped prevent heart attacks as early as 30 days after starting treatment. Pfizer is actively investing in clinical trials to gain further insights in these areas, with studies such as TNT and IDEAL. The results of these studies may help support Lipitor and also provide the clinical foundation for Caduet, the dual therapy of Lipitor and Norvasc, demonstrating how Pfizer can leverage data to support multiple products in a given therapeutic area. Norvasc demonstrated solid performance throughout 2004. Fourth-quarter revenues totaled $1.253 billion worldwide (up 1 percent). Norvasc reached a 52-week high with a 6.1-percent share of total prescriptions of the U.S. cardiovascular market in November 2004. After fourteen years on the market, Norvasc remains the leading agent for treating hypertension, with its safety and efficacy proven in more than 400 trials involving more than 400,000 patients. New clinical evidence in 2004 reinforced the significant benefits of Norvasc therapy. The ASCOT trial was halted early because the results so clearly showed that Norvasc provided significant cardiovascular benefits. This is the first time a hypertensive trial using an active control has been stopped because the benefits were so apparent. The CAMELOT study and its sub-study NORMALISE further demonstrated the cardiovascular benefits associated with adding Norvasc to the treatment regimens of patients already being treated aggressively for coronary artery disease. The benefit associated with treating cardiovascular risk factors concurrently is supported by our evolving clinical-trial program spanning Norvasc, Lipitor, and Caduet. We expect that the full results of the ASCOT study indicating early favorable outcomes associated with Lipitor and Norvasc should further validate the premise of our new and unique medicine Caduet. By building on Lipitor and Norvasc, the gold standards in their respective classes, Caduet is an ideal physician's tool for optimizing systemic care to patients. Since its U.S. launch in May 2004, Caduet is gaining traction due to increased product awareness and acceptance. In the fourth quarter, Caduet generated a 65-percent increase in total prescriptions over its prescription levels in the first six months post-launch. Formulary acceptance of Caduet indicates its potential for future growth, with 80 percent of patients in managed care having unrestricted access to this medicine. A sizable proportion of the Caduet business is incremental to that provided by its component compounds, with approximately 50 percent of Caduet patients not previously having been prescribed either Norvasc or Lipitor. Our oncology portfolio generated revenues of $1.232 billion in 2004, and new clinical data continue to affirm the value of our oncology agents. Campto/Camptosar, with fourth-quarter 2004 worldwide revenues of $189 million, anchors the portfolio and is a foundation treatment for metastatic colon cancer. Its total patient share for metastatic colorectal cancer in the U.S. market as of November 2004 was 30.6 percent, representing nearly 35-percent growth in patients since January 2004. Data published in The New England Journal of Medicine in June 2004 demonstrated a 25-month survival benefit with Campto/Camptosar in combination with Avastin, a Genentech product, the longest-recorded survival ever seen in the treatment of metastatic colorectal cancer. There is now clear evidence that using Campto/Camptosar as standard first-line treatment results in the best survival for patients with colorectal cancer, with the least neurotoxicity. In September 2004, Pfizer acquired rights to Campto for Europe and Asia, except Japan, making it a truly global brand for Pfizer and enabling us to explore new therapeutic uses of Campto/Camptosar. Aromasin continues to be the fastest-growing aromatase inhibitor on the U.S. market, with new-prescription growth of 128 percent through November year-to-date. This performance is driven by growing support among oncologists for switching patients from tamoxifen to Aromasin. We anticipate this growth will be fueled by landmark data, first published in The New England Journal of Medicine in March 2004, showing that treatment with Aromasin results in a 32- percent reduction in the risk of recurrence of breast cancer for patients switching to it after two to four years of tamoxifen therapy. Pfizer filed Aromasin in the U.S. in December 2004 for use as adjuvant treatment of postmenopausal women with breast cancer. In the neuroscience portfolio, Zoloft achieved worldwide revenues in the fourth quarter of $959 million. Zoloft remains the number-one antidepressant prescribed in the U.S. market. While recent proposed regulatory changes to antidepressant prescribing information and the resulting heightened media attention have slowed overall market growth, we remain confident that Zoloft will continue to grow, given its unmatched breadth of indications and 13 billion patient days of safety data. Geodon continues to experience strong growth in the atypical antipsychotic market, with full-year 2004 global sales of $467 million, up 32 percent compared to 2003. In the fourth quarter, Geodon achieved its strongest quarterly growth ever in the U.S., with an all-time new-prescription share high of 5.5 percent, and 36-percent prescription growth year over year, compared with 6-percent market growth in the same period. In August 2004, Geodon received FDA approval for bipolar acute manic and mixed episodes, more than doubling the patient population that can now benefit from Geodon. Pfizer filed for the bipolar mania indication in the E.U. in the fourth quarter of 2004. Full-year worldwide revenues for Neurontin were $2.723 billion in 2004, up 1 percent, and were $481 million in the fourth quarter of 2004, down 39 percent. The decline in the fourth quarter is due to the at-risk launch of generic gabapentin by Ivax, Alpharma, and Teva in the U.S. Pfizer subsequently launched generic gabapentin through its Greenstone subsidiary. Pfizer has sued these and other companies for patent infringement, and if the court determines that these companies have infringed Pfizer's Neurontin patent, we will seek all available remedies and damages, including Pfizer's lost profits. Since its 2004 launches in the U.K. and Germany, Lyrica sales have outpaced those of any other agent for neuropathic pain or epilepsy during the first three months after launch. This strong early performance indicates that physicians and patients are recognizing that Lyrica offers significant benefits over existing therapies for neuropathic pain and is an important add-on therapy for uncontrolled partial epilepsy. The rapid and sustained pain relief provided by Lyrica will be extended to even more patients as it continues to be launched in other markets worldwide. With its approval by the FDA on December 30, 2004, Lyrica becomes the first FDA-approved treatment for the two most common forms of neuropathic pain -- diabetic peripheral neuropathy and post-herpetic neuralgia. Our urology portfolio is industry-leading, with $2.634 billion in 2004 global revenue. Viagra remains one of the world's most recognized pharmaceutical brands and maintains a strong leadership position in the erectile dysfunction (ED) category with a 71-percent worldwide market share among phosphodiesterase-5 inhibitors. In the U.S., which represents 53 percent of the worldwide ED market, Viagra generated strong fourth-quarter revenues of $248 million, representing a 14-percent increase over the third quarter. Outside the U.S., Viagra growth was even stronger, with 19-percent growth versus the previous quarter. The Viagra best-in-class clinical database, improved messaging to both physicians and consumers, and innovative programs, such as the Value Card for Viagra, position this medicine for solid results in 2005. Worldwide sales of Detrol/Detrol LA totaled $285 million in the fourth quarter of 2004, reflecting growth of 22 percent compared to the same period in 2003. Its robust performance included launches of a once-daily formulation in Latin America and Asia. As part of Pfizer's ongoing overactive bladder (OAB) research worldwide, the first validated patient screener for OAB, called the OAB-V8 screener, has been recently launched and will help physicians identify the millions of patients currently suffering with this condition. Our allergy and respiratory portfolio is becoming more diversified and increasingly important to the company. Spiriva, co-promoted with its discoverer Boehringer Ingelheim, is firmly established as a best-in-class product in the chronic obstructive pulmonary disease (COPD) market. It represents a significant medical advance that addresses the world's fourth- leading cause of death. Spiriva is already the number-one-selling COPD product in seven countries, including Germany and Australia, and is ranked number two worldwide. Spiriva has received outstanding formulary and opinion- leader acceptance since its U.S. launch last June, with a 15.4-percent share in the maintenance COPD market. This performance has established it as the number-three brand in the U.S. in its first few months since launch. Spiriva is poised to reach blockbuster status with continued strong growth in 2005. The infectious-disease portfolio generated $4.715 billion in Pfizer sales in 2004, supporting our position as the number-two company in the antibiotic, antifungal, and antiviral sectors. Zithromax remains the leading branded antibiotic in the community-acquired pneumonia market due to its proven track record of clinical efficacy, safety, and short course of therapy. A novel microsphere formulation that delivers a full course of Zithromax therapy in a single dose has been submitted to regulatory authorities in the U.S., Germany, and other countries. This is expected to further simplify treatment and facilitate patient compliance in completing their antibiotic regimen. Zyvox has proven to be an important treatment option for infections known or suspected to be caused by methicillin-resistant Staphylococcus aureus (MRSA). The annual number of Zyvox therapy days worldwide has increased 50 percent since 2003, growth that has been fueled by recent publications reporting its efficacy in treating patients with hospital-acquired pneumonia and complicated skin and soft-tissue infections caused by MRSA. Vfend is a new-generation antifungal that achieved strong 2004 global growth of 44 percent due to increased demand and new market launches. A new indication for candidemia in neutropenic patients received a positive opinion from the EMEA, while in December 2004 the FDA approved use of Vfend for candidemia in non-neutropenic patients as well as other specified disseminated Candida infections. Pfizer's ophthalmology portfolio is building on the success of Xalatan and Xalacom, which continue to outpace the growth of the total glaucoma market. Full-year Xalatan sales surpassed $1 billion in 2004, and it has displaced beta blockers as the accepted gold standard in intraocular-pressure-lowering agents. Xalacom is a combination of Xalatan and the beta-blocker timolol that provides incremental efficacy for patients who have an insufficient response to monotherapy, with the simplicity of a single daily dose. Macugen, which was recently approved by the FDA for neovascular (wet) age-related macular degeneration (AMD), builds on our best-in-class glaucoma franchise. Co-promoted with our partner Eyetech Pharmaceuticals, Inc., Macugen is a first-in-class agent that addresses an underlying cause of AMD by blocking vascular endothelial growth factor. AMD is the leading cause of irreversible severe vision loss in patients older than 50 years of age in developed countries. Because Macugen can be used to effectively treat all forms of wet AMD, it significantly expands the number of patients who can now be treated. Expanded Scale: Cornerstone of Future Performance. Pfizer has the resilience to adapt to an ever-changing market environment and to sustain long-term growth. We have overall revenue stability that transcends the volatility of individual products or markets, as well as an unmatched ability to strategically allocate resources and drive operating efficiencies. Beyond immediate operating results, we continue to invest in redefining our industry. That move is anchored in our core belief that Pfizer can uniquely take advantage of our scale to extend the value we already offer patients and their providers, from the multiple perspectives of delivering an array of new medicines that fill unmet needs; expanding our geographic presence in communities and markets around the world to ensure patients have access to our products; and finding solutions to difficult problems in our healthcare systems. Our financial strength enables us to conduct research on a scale that can help redefine medical practice. Pfizer has combined that ability with a fully integrated portfolio-planning approach that aligns our research, development, and marketing functions in the search for new medical opportunities. We have well over 200 novel concepts in development across multiple therapeutic areas, and we are leveraging our status as the industry's partner of choice to expand our licensing operations. This is enabling Pfizer to strengthen our core cardiovascular and neuroscience portfolios, as well as to become a powerhouse in other therapeutic areas, including oncology and ophthalmology. We have also conducted a concerted geographic effort to expand Pfizer's presence in emerging markets worldwide, notably China, one of the world's top-ten pharmaceutical markets and among the five fastest-growing markets. According to IMS data, China's pharmaceutical market is expected to reach nearly $13 billion by 2009, with a compound annual growth rate of 14 percent. Pfizer has achieved double-digit sales growth over the last three years to become China's largest multinational pharmaceutical company. We plan to launch up to 12 new products there in the next five years. In the U.S., we have helped to address systemic healthcare problems by offering support to high-risk, vulnerable patient populations and showing how we can achieve better health outcomes through high-quality, affordable care. We had a major success with the Florida: A Healthy State program, in which we found that 52 percent of patients improved physical health scores and 39 percent improved medication compliance. On a financial basis, the $61 million in savings and investment we delivered to Florida far exceeded the $37 million that was originally guaranteed. This approach to nurturing good health is also being explored in the U.K. and Italy. Based on the case we built in Florida, Pfizer and our partner Humana have been selected to develop one of ten pilot sites under the new Medicare Chronic Care Improvement Program. This three-year project, called "Green Ribbon Health," will cover some 20,000 Medicare fee-for-service beneficiaries with diabetes and congestive heart failure in Florida. The program will provide patients with access to coordinated services that improve health and reduce overall costs. We believe this program will ultimately provide a nationwide blueprint for high-quality, affordable healthcare management. Our longstanding value proposition has been to prove that our medicines cure disease, and this will always be our core mission. But we have now expanded our value proposition to also show that our medicines can cure not only disease but also health systems, by reducing overall healthcare costs, improving societies' economic well-being, and increasing effective prevention and treatment of disease. We look forward to elaborating on this theme throughout the next few years as we continue Pfizer's proud tradition of industry leadership and financial performance. New Product Approvals and Filings and Expansion of Development Pipeline Highlight R&D Achievements in 2004 "The fourth quarter of 2004 completed an extraordinarily productive year for Pfizer research and development," said Dr. John LaMattina, President, Pfizer Global Research and Development (PGRD). "During the year, PGRD or our development partners submitted five New Drug Applications (NDAs) for important new drug candidates: Macugen, Oporia (lasofoxifene), Zithromax microspheres, parecoxib, and Revatio. Including these submissions, we have completed 11 of the 20 NDA filings we targeted for the five-year period through 2006, and we are on track to achieve this ambitious goal. Specific accomplishments during the fourth quarter included approval of two important NDAs for new molecular entities and one key supplemental NDA: -- Macugen, an anti-angiogenic vascular endothelial growth factor inhibitor for treatment of neovascular (wet) age-related macular degeneration (AMD) that Pfizer developed in partnership with its discoverer Eyetech Pharmaceuticals, Inc., was approved by the FDA on December 20, 2004. Approval followed a priority review under the FDA's Pilot 1 rolling-submission program based on data from the companies' Phase II/III pivotal clinical trials. Macugen has also been submitted for approval in the E.U., Canada, Australia, and Brazil. -- On December 30, 2004, Lyrica, the brand name for pregabalin, a new chemical entity discovered and developed by Pfizer for the treatment of neuropathic pain associated with diabetic peripheral neuropathy and post-herpetic neuralgia, was approved by the FDA. -- On December 28, 2004, the FDA granted a supplemental approval for Pfizer's extended-spectrum antifungal agent Vfend, to treat bloodstream infections caused by Candida in non-neutropenic patients. The quarter's achievements also included submission of several important regulatory filings in the U.S. and E.U.: -- Revatio, the brand name for sildenafil citrate as a novel oral treatment for pulmonary arterial hypertension (PAH), was submitted to European regulators and the FDA for approval in December 2004. PAH is a life-threatening disorder affecting about 200,000 patients in North America and Europe. -- A regulatory filing for parecoxib, the injectable prodrug of valdecoxib with potential opioid-sparing benefits currently marketed in Europe under the trade name Dynastat, was submitted to the FDA in December 2004. -- A filing for use of Oporia (lasofoxifene), a selective estrogen receptor modulator, for treatment of vaginal atrophy was submitted to the FDA in December 2004. The U.S. filing of Oporia for prevention of osteoporosis was submitted in August 2004, and the product is also being developed for treatment of osteoporosis. Osteoporosis is a disease that affects some 8 million American women, with 22 million more estimated to have low bone mass, placing them at increased risk of osteoporosis. -- A regulatory filing for the use of Geodon for treating manic bipolar disorder was submitted in Europe in December 2004. Geodon was approved for this indication in the U.S. in August 2004. -- Supplemental submissions were completed in both the U.S. and Europe in December 2004 for use of Aromasin for early breast-cancer treatment. -- Data from the Collaborative Atorvastatin Diabetes Study (CARDS) were submitted to the FDA in December 2004 for inclusion in the Lipitor prescribing information. -- Pfizer submitted a supplemental filing to the FDA in December 2004 for a pediatric oral-suspension dosage form of Vfend. The Pfizer advanced development pipeline continues to progress. Pfizer currently has four candidates in registration in the U.S.: -- Oporia (lasofoxifene), a selective estrogen receptor modulator for osteoporosis prevention and vaginal atrophy; -- Zithromax microspheres, a sustained-release form of the antibiotic Zithromax; -- Revatio, the brand name for sildenafil for treatment of pulmonary arterial hypertension; and -- parecoxib, the injectable prodrug of valdecoxib, for treatment of acute pain. Key drug candidates advancing in late-stage development include: -- Exubera, or inhalable insulin, for type 1 and type 2 diabetes; -- indiplon, a GABA receptor modulator in development with Neurocrine Biosciences, Inc. for treatment of insomnia; -- Sutent, or SU-11248, an angiogenesis inhibitor for treatment of gastrointestinal stromal tumors and renal carcinoma; -- varenicline, a nicotine-receptor partial agonist for smoking cessation; -- Daxas, a phosphodiesterase-4 inhibitor in co-development with Altana Pharma for chronic obstructive pulmonary disease and asthma, now under regulatory review in the E.U.; -- edotecarin, a topoisomerase-1 inhibitor for colorectal cancer; -- UK-427,857, a CCR-5 receptor antagonist for HIV; -- capravirine, a non-nucleoside reverse transcriptase inhibitor for HIV; -- torcetrapib/Lipitor, a combination CETP inhibitor/statin for heart disease; -- asenapine for schizophrenia and bipolar disorder, under co-development with Akzo Nobel's Organon healthcare unit; and -- Zithromax/chloroquine for treatment of malaria. In exploratory development, 19 clinical development candidates entered Phase II proof-of-concept testing, and 23 compounds advanced into human testing, during 2004. In discovery research, 43 new drug candidates were delivered into preclinical development during the year. "PGRD has the scale to go where others cannot in undertaking bold new therapeutic programs of considerable size, complexity, and commercial potential," Dr. LaMattina continued. "A good example is our torcetrapib/Lipitor program. Substantial evidence from epidemiologic and experimental studies shows the potential cardioprotective effect of raising HDL-cholesterol levels. Pfizer is investigating the potential of torcetrapib/Lipitor to optimize lipid profiles through a combination of robust HDL-cholesterol raising and simultaneous LDL-cholesterol lowering. Pfizer is making an $800-million investment in the torcetrapib/ Lipitor clinical program. "Our current high level of R&D productivity will be maintained in the years to come," Dr. LaMattina concluded. "As the number of fully functional pharmaceutical R&D organizations capable of turning ideas into medicines continues to shrink, Pfizer's ability to sustain innovation and R&D productivity will become increasingly valuable, both to Pfizer shareholders and to patients everywhere." Pfizer Expands Patient-Access and Corporate-Citizenship Initiatives Pfizer continues to make progress in its efforts to expand patient access to medicines and healthcare resources to help people obtain the care they need. During 2004, the company launched Pfizer Helpful Answers, a comprehensive initiative that provides all uninsured Americans, regardless of age or income, with access to Pfizer medicines free or at significant savings. Helpful Answers provides one-stop shopping for a number of Pfizer access programs, including Pfizer Pfriends, a program that offers Pfizer medicines free or at substantial savings regardless of age or income. Other Pfizer programs that operate under the Helpful Answers banner offer free Pfizer medicines to the uninsured with very low incomes. In addition, Pfizer has joined Together Rx Access, a collaboration of more than ten pharmaceutical companies offering savings on more than 275 medicines to uninsured Americans under age 65. "We understand the concerns Americans have about healthcare costs, particularly the millions of people who do not have health insurance," Dr. McKinnell said. "We see our access programs as part of the solution to this problem. These programs offer patients and doctors choice and simplicity, and we encourage Americans to take advantage of them." Pfizer Well-Positioned to Meet Challenges Ahead "These are challenging times for our company and our industry, and the years 2005-2007 represent a critical period for Pfizer," Dr. McKinnell concluded. "At the same time, we see enormous opportunities based on our unmatched global scale, financial flexibility, and the skills and resilience of our colleagues. I am confident that we will be successful in taking advantage of these opportunities and positioning Pfizer for long-term success. We continue in our unwavering commitment to create value for patients, customers, colleagues, investors, business partners, and the communities in which we work." For additional details, please see the attached financial schedules, product revenue tables, and supplemental information. DISCLOSURE NOTICE: The information contained in this document and the attachments is as of January 19, 2005. The Company assumes no obligation to update any forward-looking statements contained in this document and the attachments as a result of new information or future events or developments. This document and the attachments contain forward-looking information about the Company's financial results and estimates, business prospects, and products in research that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. 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 commercial potential of our products; actions relating to Celebrex and/or Bextra that may be taken by the FDA and/or the European Medicines Evaluation Agency in connection with their respective reviews of the benefits and risks of COX-2-specific inhibitor medicines and related agents; 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; trends toward managed care and healthcare cost containment; possible U.S. legislation or regulatory action affecting, among other things, pharmaceutical pricing and reimbursement, including Medicaid and Medicare, and 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 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 mix; and the impact of acquisitions, divestitures, restructurings, product withdrawals, and other unusual items, including our ability to integrate and to obtain the anticipated results and synergies from our acquisition of Pharmacia. A further list and description of these risks, uncertainties, and other matters can be found in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2003, and in its periodic reports on Forms 10-Q and 8-K. * "Adjusted income" and "adjusted diluted earnings per share (EPS)" are defined as reported net income and reported diluted earnings per share excluding discontinued operations, the cumulative effect of a change in accounting principle, significant impacts of purchase accounting for acquisitions, merger-related costs, and certain significant items. Reconciliations to reported net income and reported diluted EPS for both the fourth quarter and the full year are provided within this document. PFIZER INC AND SUBSIDIARY COMPANIES CONDENSED CONSOLIDATED STATEMENT OF INCOME (UNAUDITED) (millions of dollars, except per common share data) Fourth Quarter % Incr./ Full Year % Incr./ 2004 2003 (Decr.)* 2004 2003 (Decr.)* Revenues $14,924 $13,981 7 $52,516 $44,736 17 Costs and expenses: Cost of sales 2,356 3,266 (28) 7,541 9,589 (21) Selling, informational and administrative expenses 4,676 4,629 1 16,903 15,108 12 Research and development expenses 2,328 2,407 (3) 7,684 7,487 3 Amortization of intangible assets 868 998 (13) 3,364 2,187 54 Merger-related in-process research and development charges 116 9 M+ 1,071 5,052 (79) Merger-related costs 467 378 24 1,193 1,058 13 Other (income)/ deductions--net 614 1,347 (55) 753 1,009 (25) Income from continuing operations before provision for taxes on income, minority interests and cumulative effect of change in accounting principle 3,499 947 269 14,007 3,246 332 Provision for taxes on income 625 333 88 2,665 1,614 65 Minority interests 3 2 28 10 3 222 Income from continuing operations before cumulative effect of change in accounting principle 2,871 612 369 11,332 1,629 596 Discontinued operations: Income/(loss) from operations of discontinued businesses and product lines--net of tax (49) (10) 409 (22) 26 ** Gains on sales of discontinued businesses and product lines--net of tax 3 - - 51 2,285 (98) Discontinued operations--net of tax (46) (10) 378 29 2,311 (99) Income before cumulative effect of change in accounting principle 2,825 602 369 11,361 3,940 188 Cumulative effect of change in accounting principle--net of tax - - ** - (30) ** Net income $2,825 $602 369 $11,361 $3,910 191 Earnings per common share - Basic: Income from continuing operations before cumulative effect of change in accounting principle $.39 $.08 388 $1.51 $.22 586 Discontinued operations (.01) - - - .32 ** Income before cumulative effect of change in accounting principle .38 .08 375 1.51 .54 180 Cumulative effect of change in accounting principle - - - - - - Net income $.38 $.08 375 $1.51 $.54 180 Earnings per common share - Diluted: Income from continuing operations before cumulative effect of change in accounting principle $.39 $.08 388 $1.49 $.22 577 Discontinued operations (.01) - - - .32 ** Income before cumulative effect of change in accounting principle .38 .08 375 1.49 .54 176 Cumulative effect of change in accounting principle - - - - - - Net income $.38 $.08 375 $1.49 $.54 176 Weighted average shares used to calculate earnings/(loss) per common share: Basic 7,461.2 7,585.6 7,530.6 7,212.8 Diluted 7,510.6 7,668.3 7,613.9 7,285.6 * - Percentages may reflect rounding adjustments. ** - Calculation not meaningful. M+ - Change greater than one thousand percent. 1. The above financial statement presents the three-month and twelve- month periods ended December 31 of each year. Subsidiaries operating outside the United States are included for the three-month and twelve- month periods ended November 30 of each year. 2. On April 16, 2003, we completed our acquisition of Pharmacia Corporation (Pharmacia) and Pfizer and Pharmacia combined operations. The acquisition has been accounted for as a purchase under accounting principles generally accepted in the United States of America (GAAP). Pharmacia's financial results have been reported in Pfizer's financial reporting beginning on April 16, 2003. 3. As required by Financial Accounting Standards Board Interpretation No. 4, Applicability of FASB Statement No. 2 to Business Combinations Accounted for by the Purchase Method ("FIN 4"), the portion of the purchase price allocated to acquired in-process research and development of $116 million (primarily relates to our acquisition of Meridica Ltd. on November 12, 2004) and $1,071 million (primarily relates to our acquisition of Esperion Therapeutics, Inc. on February 10, 2004 ($920 million)), was expensed in the three-month and twelve- month periods ended December 31, 2004 and $9 million and $5,052 million (in connection with the acquisition of Pharmacia) was expensed in the three-month and twelve-month periods ended December 31, 2003. A project by project valuation was performed by third party valuation specialists to determine the fair value of research and development projects which were in-process, but not yet completed. 4. During 2004, we either sold or decided to sell certain businesses and product lines. Specifically, on April 23, 2004, we sold our in-vitro allergy and diagnostics testing (Diagnostics) business for $575 million in cash, on June 26, 2004, we sold our surgical ophthalmic business for $450 million in cash and on June 28, 2004, we sold certain non-core consumer healthcare products marketed primarily in Europe, for 135 million Euro (approximately $163 million) in cash. In addition, in March 2004, we decided to sell certain European generic pharmaceutical businesses, one of which was sold in the fourth quarter of 2004 for 53 million Euro (approximately $65 million). Diagnostics, our surgical ophthalmic business, our European generic businesses and certain of the non-core consumer healthcare products were acquired in connection with our acquisition of Pharmacia in April 2003. We have included the results of operations of these businesses and product lines in discontinued operations for three-month and twelve-month periods ended December 31 of each year. Due to the timing of our acquisition of Pharmacia in April 2003, the results of operations relating to these businesses and product lines for the twelve-month period ended December 31, 2003 were included in our consolidated results of operations from the acquisition date except for those relating to certain legacy Pfizer non-core consumer healthcare products which have been included in discontinued operations for the entire twelve-month period. Included in Income/(loss) from operations of discontinued businesses and product lines-net of tax for the three- month and twelve-month periods ended December 31, 2004 is a charge of $61 million ($37 million net of tax), primarily relating to the expected loss on the sale of one of the European generic businesses which is expected to close in the first quarter of 2005. Gains, where applicable, on these transactions are recognized in the period in which the sale is completed. 5. In April 2003, we sold the hormone replacement therapy femhrt for $160 million in cash ($83 million after-tax gain recognized). In March 2003, we sold the Adams confectionery products business for $4.2 billion in cash ($1,824 million after-tax gain recognized), the Schick-Wilkinson Sword shaving products business for $930 million in cash ($262 million after-tax gain recognized) and the Loestrin and Estrostep women's health product lines for $197 million in cash ($116 million after-tax gain recognized). The above financial statement reflects these businesses and product lines as discontinued operations for all periods presented. 6. On January 1, 2003, we adopted Statement of Financial Accounting Standards (SFAS) No. 143, Accounting for Asset Retirement Obligations. As a result, we recorded a non-cash pre-tax charge of $47 million ($30 million net of tax) for the change in accounting for costs associated with the eventual retirement of certain manufacturing facilities. This charge is reported as a one-time cumulative effect of a change in accounting principle as of the beginning of 2003. PFIZER INC AND SUBSIDIARY COMPANIES RECONCILIATION FROM REPORTED INCOME AND EARNINGS PER SHARE TO ADJUSTED INCOME AND EARNINGS PER SHARE (UNAUDITED) (millions of dollars, except per common share data) Fourth Quarter % Incr./ Full Year % Incr./ 2004 2003 (Decr.) 2004 2003 (Decr.) Reported net income $2,825 $602 369 $11,361 $3,910 191 Discontinued operations--net of tax 46 10 378 (29) (2,311) (99) Cumulative effect of change in accounting principle--net of tax - - - - 30 ** Purchase accounting adjustments--net of tax 831 1,573 (47) 3,389 8,666 (61) Merger-related costs-- net of tax 323 239 35 786 659 19 Certain significant items--net of tax 360 1,358 (74) 629 1,358 (54) Adjusted income $4,385 $3,782 16 $16,136 $12,312 31 Reported diluted earnings per common share $.38 $.08 375 $1.49 $.54 176 Discontinued operations-- net of tax .01 - - - (.32) ** Cumulative effect of change in accounting principle--net of tax - - - - - - Purchase accounting adjustments--net of tax .10 .21 (52) .45 1.19 (62) Merger-related costs-- net of tax .04 .03 33 .10 .09 11 Certain significant items --net of tax .05 .18 (72) .08 .19 (58) Adjusted diluted earnings per common share $.58 $.50 16 $2.12 $1.69 25 ** - Calculation not meaningful. Certain amounts and percentages may reflect rounding adjustments. 1. The above table presents the three-month and twelve-month periods ended December 31 of each year. Subsidiaries operating outside the United States are included for the three-month and twelve-month periods ended November 30 of each year. 2. On April 16, 2003, we completed our acquisition of Pharmacia Corporation (Pharmacia) and Pfizer and Pharmacia combined operations. The acquisition has been accounted for as a purchase under accounting principles generally accepted in the United States of America (GAAP). Pharmacia's financial results have been reported in Pfizer's financial reporting beginning on April 16, 2003. 3. As required by Financial Accounting Standards Board Interpretation No. 4, Applicability of FASB Statement No. 2 to Business Combinations Accounted for by the Purchase Method ("FIN 4"), the portion of the purchase price allocated to acquired in-process research and development of $116 million (primarily relates to our acquisition of Meridica Ltd. on November 12, 2004) and $1,071 million (primarily relates to our acquisition of Esperion Therapeutics, Inc. on February 10, 2004 ($920 million)), was expensed in the three-month and twelve- month periods ended December 31, 2004 and $9 million and $5,052 million (in connection with the acquisition of Pharmacia) was expensed in the three-month and twelve-month periods ended December 31, 2003. A project by project valuation was performed by third party valuation specialists to determine the fair value of research and development projects which were in-process, but not yet completed. 4. On January 1, 2003, we adopted Statement of Financial Accounting Standards (SFAS) No. 143, Accounting for Asset Retirement Obligations. As a result, we recorded a non-cash pre-tax charge of $47 million ($30 million net of tax) for the change in accounting for costs associated with the eventual retirement of certain manufacturing facilities. This charge is reported as a one-time cumulative effect of a change in accounting principle as of the beginning of 2003. 5. In 2004, in response to a change in Pfizer's business strategy, we revised our basis for Adjusted Income such that we no longer consider certain items in Adjusted Income. For example, copromotion charges and payments for intellectual property rights for unapproved products being developed by third parties and the operational contribution of divestitures are no longer presented in an alternative manner from U.S. GAAP. We have revised our previous 2003 basis for Adjusted Income to conform to the 2004 presentation. Adjusted Income and diluted earnings per common share as shown above reflect the following items: (millions of dollars) Fourth Quarter Full Year 2004 2003 2004 2003 Discontinued operations, pre-tax: Loss/(income) from operations of discontinued businesses and product lines (a) $81 $16 $39 $(43) Gains on sales of discontinued businesses and product lines (a) (7) - (75) (3,885) Total discontinued operations, pre-tax 74 16 (36) (3,928) Income taxes (28) (6) 7 1,617 Total discontinued operations--net of tax 46 10 (29) (2,311) Cumulative effect of change in accounting principle--net of tax - - - 30 Purchase accounting adjustments, pre-tax: In-process research and development charges (b) 116 9 1,071 5,052 Intangible amortization and other (c) 835 1,061 3,285 2,336 Sale of acquired inventory written up to fair value (d) 40 1,077 40 2,747 Total purchase accounting adjustments, pre-tax 991 2,147 4,396 10,135 Income taxes (160) (574) (1,007) (1,469) Total purchase accounting adjustments--net of tax 831 1,573 3,389 8,666 Merger-related costs, pre-tax: Integration costs -- Pharmacia (e) 127 286 475 838 Integration costs -- Other (e) 2 10 21 33 Restructuring charges -- Pharmacia (e) 350 71 704 177 Restructuring charges -- Other (e) (12) 11 (7) 10 Total merger-related costs, pre-tax 467 378 1,193 1,058 Income taxes (144) (139) (407) (399) Total merger-related costs--net of tax 323 239 786 659 Certain significant items, pre-tax Various litigation charges (f) - 1,402 369 1,402 Impairment of Depo-Provera intangible asset (f) 691 - 691 - Other legacy Pharmacia intangible asset impairments (f) 11 - 11 - Contingent income earned from prior year sale of product-in- development (f) (100) - (100) - Operating results of divested legacy Pharmacia research facility (g) - - 64 - Total certain significant items, pre-tax 602 1,402 1,035 1,402 Income taxes (242) (44) (406) (44) Total certain significant items--net of tax 360 1,358 629 1,358 Total discontinued operations, cumulative effect of change in accounting principle, purchase accounting adjustments, merger-related costs and certain significant items--net of tax $1,560 $3,180 $4,775 $8,402 (a) Included in Discontinued operations--net of tax (b) Included in Merger-related in-process research and development charges (c) Included primarily in Amortization of intangible assets (d) Included in Cost of sales (e) Included in Merger-related costs (f) Included in Other (income)/deductions--net (g) Included in Research and development expenses PFIZER INC SEGMENT/PRODUCT REVENUES FOURTH QUARTER 2004 (UNAUDITED) (millions of dollars) QUARTER-TO-DATE WORLDWIDE U.S. INTERNATIONAL % % % 2004 2003 Chg 2004 2003 Chg 2004 2003 Chg TOTAL REVENUES 14,924 13,981 7 8,417 8,319 1 6,507 5,662 15 HUMAN HEALTH 13,101 12,351 6 7,616 7,569 1 5,485 4,782 15 -CARDIOVASCULAR AND METABOLIC DISEASES 5,150 4,644 11 2,830 2,590 9 2,320 2,054 13 LIPITOR 3,264 2,648 23 2,023 1,684 20 1,241 964 29 NORVASC 1,253 1,245 1 619 585 6 634 660 (4) ACCUPRIL/ ACCURETIC 165 208 (21) 90 133 (32) 75 75 - CARDURA 168 167 1 1 5 (76) 167 162 3 CADUET 15 0 - 15 0 - 0 0 - -CENTRAL NERVOUS SYSTEM DISORDERS 2,020 2,197 (8) 1,364 1,603 (15) 656 594 10 ZOLOFT 959 898 7 768 726 6 191 172 11 NEURONTIN 481 788 (39) 352 642 (45) 129 146 (12) GEODON 143 105 36 118 89 32 25 16 58 XANAX / XR 106 96 10 37 35 6 69 61 12 ARICEPT* 87 74 17 0 0 - 87 74 17 RELPAX 54 28 91 33 14 131 21 14 50 -ARTHRITIS AND PAIN 1,607 1,231 31 1,108 858 29 499 373 34 CELEBREX 1,008 810 24 719 587 22 289 223 30 BEXTRA 417 266 57 346 242 43 71 24 196 -INFECTIOUS AND RESPIRATORY DISEASES 1,339 1,594 (16) 776 1,091 (29) 563 503 12 ZITHROMAX 675 791 (15) 545 665 (18) 130 126 3 DIFLUCAN 139 319 (56) 1 188 (99) 138 131 5 ZYVOX 135 78 73 99 57 74 36 21 72 VFEND 83 62 35 33 28 18 50 34 49 -UROLOGY 769 757 1 461 483 (5) 308 274 12 VIAGRA 469 509 (8) 248 301 (18) 221 208 6 DETROL/ DETROL LA 285 234 22 207 176 17 78 58 35 -ONCOLOGY 380 252 51 162 100 62 218 152 43 CAMPTOSAR 189 83 129 123 69 78 66 14 377 ELLENCE 90 94 (4) 18 26 (32) 72 68 6 -OPHTHALMOLOGY 353 286 23 123 110 12 230 176 31 XALATAN / XALCOM 353 286 23 123 110 12 230 176 31 -ENDOCRINE DISORDERS 257 227 13 84 69 22 173 158 9 GENOTROPIN 200 205 (2) 57 67 (15) 143 138 4 -ALL OTHER 981 1,030 (5) 554 597 (7) 427 433 (2) ZYRTEC 349 358 (3) 349 358 (2) 0 0 - -ALLIANCE REVENUE (Aricept, Mirapex, Rebif and Spiriva) 245 133 85 154 68 126 91 65 42 CONSUMER HEALTHCARE 992 878 13 490 442 11 502 436 15 ANIMAL HEALTH 566 508 11 231 211 9 335 297 13 OTHER ** 265 244 9 80 97 (17) 185 147 26 * - Represents direct sales under license agreement with Eisai Co., Ltd. ** - Includes Capsugel and PCS. Certain amounts and percentages may reflect rounding adjustments. Certain prior year data have been reclassified to conform to the current year presentation. PFIZER INC SEGMENT/PRODUCT REVENUES TWELVE MONTHS 2004 (UNAUDITED) (millions of dollars) YEAR-TO-DATE WORLDWIDE U.S. INTERNATIONAL % % % 2004 2003 Chg 2004 2003 Chg 2004 2003 Chg TOTAL REVENUES 52,516 44,736 17 29,539 26,795 10 22,977 17,941 28 HUMAN HEALTH 46,133 39,425 17 26,583 24,100 10 19,550 15,325 28 -CARDIOVASCULAR AND METABOLIC DISEASES 17,682 16,008 10 9,331 8,835 6 8,351 7,173 16 LIPITOR 10,862 9,231 18 6,634 5,826 14 4,228 3,405 24 NORVASC 4,463 4,336 3 1,991 1,934 3 2,472 2,402 3 ACCUPRIL/ ACCURETIC 665 706 (6) 387 444 (13) 278 262 7 CARDURA 628 594 6 6 18 (64) 622 576 8 CADUET 50 0 - 49 0 - 1 0 - -CENTRAL NERVOUS SYSTEM DISORDERS 8,092 7,378 10 5,668 5,485 3 2,424 1,893 28 ZOLOFT 3,361 3,118 8 2,657 2,502 6 704 616 14 NEURONTIN 2,723 2,702 1 2,198 2,204 - 525 498 5 GEODON 467 353 32 385 303 27 82 50 65 XANAX / XR 378 238 59 123 94 30 255 144 78 ARICEPT* 308 254 22 0 0 - 308 254 22 RELPAX 169 85 99 100 43 134 69 42 63 -ARTHRITIS AND PAIN 5,203 3,046 71 3,608 2,037 77 1,595 1,009 58 CELEBREX** 3,302 1,883 75 2,363 1,323 79 939 560 68 BEXTRA** 1,286 687 87 1,116 641 74 170 46 271 -INFECTIOUS AND RESPIRATORY DISEASES 4,715 4,677 1 2,664 2,942 (9) 2,051 1,735 18 ZITHROMAX 1,851 2,010 (8) 1,393 1,577 (12) 458 433 6 DIFLUCAN 945 1,176 (20) 417 662 (37) 528 514 3 ZYVOX 463 181 156 339 130 160 124 51 145 VFEND 287 200 44 118 93 28 169 107 57 -UROLOGY 2,634 2,457 7 1,539 1,533 - 1,095 924 18 VIAGRA 1,678 1,879 (11) 886 1,103 (20) 792 776 2 DETROL/ DETROL LA 904 544 66 633 413 53 271 131 108 -ONCOLOGY 1,232 713 73 554 355 56 678 358 89 CAMPTOSAR 554 299 86 449 268 67 105 31 247 ELLENCE 344 216 59 66 56 18 278 160 74 -OPHTHALMOLOGY 1,227 668 84 419 258 63 808 410 97 XALATAN / XALCOM 1,227 668 84 419 258 63 808 410 97 -ENDOCRINE DISORDERS 925 550 68 298 187 59 627 363 72 GENOTROPIN 736 481 53 208 162 29 528 319 65 -ALL OTHER 3,702 3,169 17 2,090 1,983 5 1,612 1,186 36 ZYRTEC 1,287 1,338 (4) 1,287 1,338 (4) 0 0 - -ALLIANCE REVENUE*** (Aricept, Bextra, Celebrex, Mirapex, Rebif and Spiriva) 721 759 (5) 412 485 (15) 309 274 13 CONSUMER HEALTHCARE 3,516 2,949 19 1,780 1,649 8 1,736 1,300 34 ANIMAL HEALTH 1,953 1,598 22 878 738 19 1,075 860 25 OTHER **** 914 764 20 298 308 (3) 616 456 35 On April 16, 2003, Pfizer completed its acquisition of Pharmacia Corporation ("Pharmacia") and Pfizer and Pharmacia combined operations. The acquisition has been accounted for as a purchase under accounting principles generally accepted in the United States of America. Reported results of operations of Pfizer issued after completion of the acquisition have not been restated retroactively to reflect the historical results of operations of Pharmacia. * - Represents direct sales under license agreement with Eisai Co., Ltd. ** - Includes direct sales under license agreement with Pharmacia in 2003 prior to merger. *** - Includes alliance revenue for Bextra and Celebrex under copromotion agreements with Pharmacia in 2003 prior to merger. **** - Includes Capsugel and PCS. Certain amounts and percentages may reflect rounding adjustments. Certain prior year data have been reclassified to conform to the current year presentation. FIRST ADD -- SUPPLEMENTAL INFORMATION -- TO FOLLOW Photo: A free corporate logo to accompany this story is available immediately via Wieck Photo Database to any media with telephoto receiver or electronic darkroom, PC or Macintosh, that can accept overhead transmissions. To retrieve a logo, please call 972-392-0888. Source: Pfizer Inc CONTACT: Andy McCormick +1-212-573-1226, or Paul Fitzhenry, +1-212-733-4637, both for Pfizer Inc Web site: http://www.pfizer.com/ Company News On-Call: http://www.prnewswire.com/comp/688250.html ------- Profile: International Entertainment