We now have 133 compounds in development, including 27 biologics and 6 vaccines, bringing our ratio of small molecules to biologics from 3 to 1, to 1.3 to 1. We are especially enthusiastic about our late phase portfolio. We now have 34 compounds in Phase 3 development across various indications. Among the most noteworthy of these are Dimebon for Alzheimer''s disease, Tazosunitib [ph], our JAK inhibitor for Rheumatoid Arthritis; Apixaban for cardiovascular indications; Tanezumab for pain; Axitinib for renal cell carcinoma; additional indications for Sutent; and studies of the Prevnar 13 vaccine in adults.
We know, of course, that it is very unlikely that every single trial we conduct will produce exactly the results that we all hope that is the nature of our business. But we are more enthusiastic about our late stage pipeline than we have been in years.
In sum, we are on the right course. We have the right strategy, the right leadership and the right culture to continue changing Pfizer in the right ways that will create value for our shareholders. With that, I will turn it over to Frank.
Frank A. D’Amelio
Thanks, Jeff. Good morning everyone. As always, the charts I am reviewing today are included in our webcast. Because the Wyeth acquisition was completed on October 15, 2009, we are incorporating Wyeth''s results from that point forward, which includes approximately 2.5 months of Wyeth domestic results and 1.5 months of Wyeth international results, as Pfizer''s international calendar ends on November 30. Now let me get to our financials.
Fourth-quarter 2009 reported revenues were $16.5 billion, a year-over-year increase of 34% or $4.2 billion due to $3.3 billion or 27% from the addition of legacy Wyeth products, $419 million or 3% operational growth from legacy Pfizer products and $469 million or about 4% from foreign exchange.
Fourth-quarter 2009 reported net income increased 188% to $767 million and reported diluted EPS increased 150% to $0.10 year-over-year, due to higher revenues, the non-recurrence of the pretax and after-tax charge of $2.3 billion in the prior-year quarter related to the resolution of certain investigations concerning Bextra and various other products, which were largely offset by higher acquisition-related costs, which include transaction and integration costs and restructuring charges associated with the Wyeth acquisition and significant purchase accounting adjustments. Additionally, the fourth-quarter of 2009 effective tax rate was favorably impacted by tax benefits related to the sale of Vicuron and the jurisdictional mix of certain expenses associated with the acquisition of Wyeth.
Fourth-quarter 2009 adjusted income of $3.8 billion and adjusted diluted EPS of $0.49 decreased year-over-year by 13% and 25%, respectively. These results were favorably affected by higher revenues, but negatively impacted by increases in the following areas. Expenses, primarily due to the addition of Wyeth operations and investments in high-growth and in-line product opportunities, net interest expense and the effective tax rate on adjusted income. Also, fourth-quarter and full-year ''09 reported and adjusted diluted EPS were adversely affected by the increase in the number of shares outstanding versus 2008, primarily due to the issuance of shares to partially fund the Wyeth acquisition.
Fourth-quarter 2009 adjusted cost of sales was $2.9 billion or 17.5% as a percentage of revenues, versus 11.7% or $1.4 billion in the year-ago quarter. Driven by, first, the overall change in mix of products and businesses due to the Wyeth acquisition.
Essentially, what you''re seeing is a blended gross margin now of both Pfizer and Wyeth and second, the unfavorable impact of foreign exchange. Excluding foreign exchange, adjusted fourth-quarter cost of sales was 14.4% of revenues.
It is important to note that fourth-quarter adjusted cost of sales included the full manufacturing network of both companies. That said we see opportunities to lower the combined company''s adjusted cost of sales going forward.
Fourth-quarter 2009 adjusted SI&A expenses increased 52% to $5.3 billion year-over-year, resulting from the addition of legacy Wyeth operations, increased investment in high-growth and in-line product opportunities and the negative impact of foreign exchange.
Fourth-quarter adjusted R&D expenses increased year-over-year to $2.8 billion or 27% due to the addition of legacy Wyeth operations, continued investment in the late stage development portfolio, costs associated with Established Products business development transactions and the negative impact of foreign exchange.
The fourth quarter ''09 effective tax rate on adjusted income increased to about 28% versus about 24% in the year-ago quarter, primarily due to the increased tax costs associated with certain business decisions executed to finance the Wyeth acquisition.
Because the adjusted diluted EPS calculation includes the additional shares issued to partially fund the Wyeth acquisition, there is a variance in the year-over-year percentage changes in adjusted diluted EPS compared with adjusted income.
Last quarter we updated our full-year ''09 guidance to reflect the inclusion of Wyeth from and after the closing date and we achieved full year ''09 revenue and adjusted EPS guidance. While our ''09 guidance range reported diluted EPS excluded estimates for acquisition-related costs, our actual results included these. Consequently, ''09 reported diluted EPS of $1.23 was lower than our previous guidance range of $1.45 to $1.50.
On an adjusted results basis, FX increased fourth-quarter revenues by approximately $469 million or 4% year-over-year. On the other hand, foreign-exchange negatively impacted total adjusted cost in the fourth quarter by $720 million or 10%, which resulted in a $0.02 net decrease in adjusted diluted EPS. Most notably, foreign-exchange had a $568 million or 39% negative impact on cost of sales.
Excluding the impact of foreign exchange, adjusted total cost increased operationally by 44% due to the inclusion of legacy Wyeth operations and the continued investment in high-growth areas. Now let''s move to the results of our commercial organizations.
As you can see from the chart, Biopharmaceutical revenues increased year-over-year, which included a $419 million or 4% favorable impact from foreign exchange. Operationally, Biopharmaceutical revenues increased $2.9 billion or 26% year-over-year due to $2.5 billion or 22% from the addition of Wyeth products and about $400 million or 4% from legacy Pfizer products.
Primary Care revenues increased 10% year-over-year, including a 4% favorable impact of foreign exchange. Operational growth of 6% was due to the addition of Premarin, a legacy Wyeth product and operational improvements in Lyrica and Alliance revenues.
Specialty Care revenues increased 84% year-over-year, including a 5% favorable impact of foreign exchange. Operational growth of 79% was due to the addition of Wyeth Specialty Care portfolio, particularly Enbrel and Prevnar and operational growth of Xalatan and Zyvox, among others.
Established Products revenues increased by 57% year-over-year, which included a 6% favorable impact of foreign exchange. Operational growth of 51% was due to the addition of legacy Wyeth products, primarily driven by Effexor, the launch of six products in the U.S, bringing the number of solid oral dose licensed products launched in the U.S. to 26, the launch of five end-licensed products in the newly created U.S. Sterile Injectables unit, higher antibiotic sales and the stabilization of the rate decline of some LOE products.
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