Summary
Pfizer Inc. reported its third-quarter and nine-month results for the period ending September 27, 2009. For the quarter, revenues were $11.621 billion, a decrease of 3% from the prior year, while net income attributable to Pfizer Inc. rose 26% to $2.878 billion. For the first nine months, revenues decreased 7% to $33.472 billion, and net income remained relatively flat at $7.868 billion. The company finalized its acquisition of Wyeth for approximately $68 billion on October 15, 2009, a significant event not yet reflected in these interim financial statements but which will materially impact future results and the company's structure. Significant costs associated with this acquisition and ongoing cost-reduction initiatives were noted. The company's financial position was strengthened by substantial debt issuances to fund the Wyeth acquisition, leading to a significant increase in cash and investments. However, revenue declines were observed across major pharmaceutical products like Lipitor and Norvasc due to patent expirations and generic competition, further impacted by foreign exchange headwinds. Despite these challenges, Pfizer is actively managing its costs and strategically positioning itself for future growth through acquisitions and pipeline development.
Financial Highlights
53 data points| Revenue | $11.62B |
| Cost of Revenue | $1.79B |
| Gross Profit | $9.83B |
| SG&A Expenses | $3.28B |
| Operating Income | $7.86B |
| Interest Expense | $369.00M |
| Net Income | $2.88B |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.43 |
| Shares Outstanding (Basic) | 6.73B |
| Shares Outstanding (Diluted) | 6.76B |
Key Highlights
- 1Revenues for the third quarter decreased by 3% to $11.621 billion compared to the prior year, with nine-month revenues down 7% to $33.472 billion, primarily impacted by foreign exchange and generic competition.
- 2Net income attributable to Pfizer Inc. for the third quarter increased by 26% to $2.878 billion, while nine-month net income was relatively flat at $7.868 billion.
- 3Pfizer completed the significant acquisition of Wyeth for approximately $68 billion on October 15, 2009. The financial impact of Wyeth's operations is not yet included in these statements.
- 4The company issued approximately $24 billion in senior unsecured notes in the first half of 2009 to partially finance the Wyeth acquisition, significantly increasing its long-term debt and cash reserves.
- 5Key pharmaceutical products such as Lipitor and Norvasc experienced revenue declines due to patent expirations and increased generic competition.
- 6Ongoing cost-reduction initiatives are underway, with significant expected annual savings of $6 billion by the end of 2012, including synergies from the Wyeth integration.
- 7The effective tax rate increased significantly in the third quarter and first nine months of 2009 compared to the prior year, partly due to financing costs for the Wyeth acquisition.