This is a summary of the second quarter fiscal 2008 earnings call conducted by Pfizer Inc. (PFE) on July 23, 2008
Management:
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Chief Executive Officer and Chairman of the Board: Jeffrey Kindler
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Chief Financial Officer: Frank D''Amelio
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President, Pfizer Global Research & Development: Martin Mackay
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President, Worldwide Pharmaceutical Operations: Ian Read
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Sr. VP, IR: Charles E. Triano
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Sr. VP and General Counsel: Amy Schulman
Key Investors Issues:
- Revenues were $12.1 billion, an increase of 9% compared with $11.1 billion in the year-ago quarter.
- Net income of $2.8 billion or 41 cents a share, an increase of 119% compared with $1.3 billion or 18 cents a share in 2007.
- The company repurchased $500 million, or 26.4 million shares of its common stock.
Half Year Highlights:
- Revenues of $24 billion, increased 2% compared with $23.6. billion in the year-ago quarter.
- Net income was $5.56 billion or 82 cents a share compared with $4.7 billion or 66 cents a share in 2007, up 19%.
Second Quarter Highlights:
Revenues were $12.1 billion, an increase of 9% compared with $11.1 billion in the year-ago quarter reflecting the positive impact of foreign exchange.
- Pharmaceutical revenues were $11.1 billion, an increase of 9% compared with the prior-year quarter.
- Animal Health revenues were $715 million, an increase of 13% compared with $632 million in the year-ago quarter.
- Revenue from other products was $361 million compared to the $347 million of the prior year same quarter.
- Adjusted cost of sales as a percentage of revenues was 16.9% compared with 17% in the second-quarter 2007.
Net income was $2.78 billion or 41 cents a share, up 119% from $1.27 billion or 18 cents a share in the prior year due to lower restructuring charges from cost-reduction initiatives and savings generated by those initiatives.
- Results were also positively impacted by foreign exchange and favorable income tax adjustments.
- These positive factors were partially offset by increased in-process research and development expenses associated with the acquisitions of Serenex, Inc. and Encysive Pharmaceuticals Inc., which closed in the second-quarter 2008.
-Adjusted selling, informational and administrative (SI&A) expenses were $7.105 billion in the first half 2008.
-Adjusted research and development (R&D) expenses were $3.507 billion in the first half 2008.
Product performance:
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Pharmaceutical revenues were $11.1 billion, an increase of 9% compared with the prior-year quarter, including the favorable impact of foreign exchange, which increased revenues by approximately $730 million or 7%.
- Revenues from in-line and new products increased 16% compared with the year-ago quarter.
- This excludes the impact of the loss of U.S. exclusivity of Norvasc, Zyrtec and Camptosar, which collectively resulted in a revenue decline of $496 million or 39% compared with the year-ago quarter.
Lipitor revenues were $3.0 billion, an increase of 9% compared with the prior-year quarter reflecting the favorable impact of foreign exchange, which increased revenues by approximately $170 million or 6%.
- In the U.S., Lipitor revenues increased 1% compared with the prior-year quarter, while revenues from international markets rose 18%, due to the favorable impact of foreign exchange of 13% and operational growth of 5%.
- Lipitor’s strong clinical profile demonstrated in over 400 completed or ongoing clinical trials including more than 80,000 patients and in more than 151 million patient years of experience over 15 years.
Lyrica revenues were $614 million, an increase of 52% driven by strong efficacy and high patient and physician satisfaction.
- In the U.S., Lyrica revenues rose to $335 million, an increase of 55% compared to the prior-year quarter, while international revenues grew to $279 million, an increase of 48%.
- Celebrex revenues were $589 million, an increase of 23% compared with the year-ago quarter driven by the continued educational and promotional efforts supporting the risk-benefit proposition of this medicine, as well as the favorable impact of foreign exchange.
- In the U.S., Celebrex revenues rose to $416 million, an increase of 22% compared with the prior-year quarter, while international revenues grew to $173 million, an increase of 27%.
Sutent revenues were $211 million, an increase of 45% compared with the year-ago quarter.
- In the U.S., Sutent revenues were $60 million, a decrease of 2% compared with the prior-year quarter, while international revenues grew to $151 million, an increase of 80%.
- Sutent has launched in 61 countries, with four in the second-quarter 2008 including Japan, China and Russia, and six planned in the next 12 months.
Chantix revenues were $207 million, an increase of 3% compared with the second-quarter 2007.
- In the U.S., Chantix revenues declined to $109 million, a decrease of 35% compared with the prior-year quarter, while international revenues grew to $98 million, an increase of 197%.
- Chantix/Champix has been approved in 76 countries and has been used by more than six million patients, an increasing number of whom are covered by third-party payers.
- Champix launched in Japan, which has more than 30 million smokers, as well as Malaysia and Singapore, with nine launches planned in the next 12 months, including Russia, Turkey and China.
