Summary
Pfizer Inc. (PFE) reported its financial results for the second quarter and the first six months ended June 28, 2009. Total revenues saw a decrease of 9% year-over-year for both periods, largely attributed to foreign exchange headwinds and the loss of exclusivity for key drugs. Net income attributable to Pfizer Inc. also declined by 19% for the quarter and 10% for the six-month period, reflecting decreased revenues and higher costs associated with the pending acquisition of Wyeth, as well as increased tax expenses. The company is actively managing its operations through significant cost-reduction initiatives, aiming for approximately $3 billion in adjusted cost reductions by the end of 2011. Financially, Pfizer has strengthened its liquidity position, notably through the issuance of substantial senior unsecured notes to partially fund the pending $68 billion acquisition of Wyeth, which is expected to close by the end of the year. Despite the revenue challenges and the significant investments in the Wyeth acquisition, Pfizer is strategically repositioning its R&D focus and managing its operational costs.
Financial Highlights
51 data points| Revenue | $10.98B |
| Cost of Revenue | $1.76B |
| Gross Profit | $9.23B |
| SG&A Expenses | $3.35B |
| Operating Income | $4.99B |
| Net Income | $2.26B |
| EPS (Basic) | $0.34 |
| EPS (Diluted) | $0.34 |
| Shares Outstanding (Basic) | 6.73B |
| Shares Outstanding (Diluted) | 6.75B |
Key Highlights
- 1Total revenues decreased by 9% for both the three and six months ended June 28, 2009, compared to the prior year periods, primarily due to unfavorable foreign exchange rates and patent expirations impacting key products.
- 2Net income attributable to Pfizer Inc. decreased by 19% in the second quarter and 10% in the first six months of 2009 compared to the same periods in 2008, impacted by lower revenues and increased acquisition-related costs.
- 3The company is executing a new cost-reduction initiative expected to achieve approximately $3 billion in adjusted cost reductions by the end of 2011.
- 4Pfizer issued approximately $24 billion in senior unsecured notes in the first half of 2009, primarily to partially finance the pending $68 billion acquisition of Wyeth.
- 5The acquisition of Wyeth remains on track, with expected closing by the end of the third or during the fourth quarter of 2009, and is expected to yield approximately $4 billion in annual cost savings by 2012.
- 6Research and development expenses decreased by 14% for the quarter and 9% for the six-month period, reflecting cost savings and a strategic prioritization of R&D focus areas.
- 7The company's liquidity remains strong, with cash and cash equivalents and short-term investments totaling over $50 billion as of June 28, 2009, despite increased borrowing to fund the Wyeth acquisition.