PFIZER INC Quarterly Report for Q1 Ended Mar 29, 2015

Summary

Pfizer Inc. reported revenues of $10.9 billion for the first quarter of 2015, a 4% decrease compared to the same period in 2014, primarily due to unfavorable foreign exchange impacts. Operationally, revenues saw a 2% increase, driven by strong performance of key products like Prevnar 13 and Eliquis, along with growth in emerging markets. However, this growth was offset by the loss of exclusivity for Celebrex and other products. Net income attributable to Pfizer Inc. was $2.38 billion, a slight increase from $2.33 billion in the prior year. The company highlighted a significant reduction in legal charges, which positively impacted earnings, but this was partially offset by higher research and development expenses and an increased effective tax rate. Pfizer also announced its intention to acquire Hospira for approximately $17 billion, expected to close in the second half of 2015, signaling a strategic move to expand its portfolio.

Key Highlights

• 1Revenues decreased by 4% to $10.9 billion in Q1 2015 compared to Q1 2014, primarily due to a 7% unfavorable foreign exchange impact, although operational revenue increased by 2%.
• 2Net income attributable to Pfizer Inc. increased by 2% to $2.38 billion in Q1 2015.
• 3Earnings per share (EPS) on a diluted basis were $0.38, an increase from $0.36 in the prior year.
• 4Research and Development (R&D) expenses increased by 16% to $1.89 billion, largely due to an upfront payment for a collaboration agreement.
• 5The company announced a definitive agreement to acquire Hospira, Inc. for approximately $17 billion, expected to close in the second half of 2015.
• 6Pfizer repurchased $6.0 billion of its common stock in the first quarter of 2015, demonstrating a commitment to returning capital to shareholders.
• 7The company's cash dividend paid per common share increased by 8% to $0.28.

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