8-KExhibits & Filings

PFIZER INC 8-K Report, Exhibit Filing (Sep 3, 2004)

Filed September 3, 2004For Securities:PFE

Summary

Pfizer Inc. announced on September 3, 2004, that it and its subsidiary Quigley Company, Inc. are taking steps to resolve all current and future asbestos-related personal injury claims stemming from Quigley's historical product sales. Quigley, acquired by Pfizer in 1968 and which sold asbestos-containing products until the early 1970s, will file for Chapter 11 bankruptcy protection. This move is intended to establish a trust for the payment of all claims. As a result of these actions, Pfizer will record a pre-tax charge of $369 million ($229 million after-tax) in the third quarter of 2004. The company has entered into settlement agreements totaling $430 million with legal representatives for over 80% of claimants. The proposed reorganization plan requires court approval and a 75% affirmative vote from claimants, and upon confirmation, will permanently enjoin all future claims related to Quigley products to the established trust.

Key Highlights

  • 1Pfizer and subsidiary Quigley Company, Inc. are resolving asbestos and silica-related personal injury claims.
  • 2Quigley Company, Inc., acquired in 1968, sold products containing asbestos until the early 1970s.
  • 3Quigley will file for Chapter 11 reorganization to establish a trust for claim payments.
  • 4Pfizer will incur a pre-tax charge of $369 million ($229 million after-tax) in Q3 2004 related to these settlements.
  • 5Settlement agreements totaling $430 million have been reached with legal representatives for over 80% of claimants.
  • 6The reorganization plan requires court approval and claimant vote (75%) for confirmation.
  • 7A confirmed plan will permanently direct all future claims to the established trust.

Frequently Asked Questions

The claims being resolved involve allegations of personal injury resulting from exposure to Quigley Company, Inc. products containing asbestos, silica, or mixed dust. Quigley was a subsidiary of Pfizer.

Pfizer will record a pre-tax charge of $369 million ($229 million after-tax) in the third quarter of 2004 in connection with these resolutions.

Upon court approval and confirmation of Quigley's Chapter 11 reorganization plan, a trust will be established to handle all remaining pending claims as well as any future claims alleging personal injury from exposure to Quigley products. This will result in a permanent injunction directing such claims to the Trust.

Pfizer has entered into settlement agreements totaling $430 million with lawyers representing over 80% of claimants. The reorganization plan will establish a trust to cover these and any future claims.