Pfizer 2Q12

2Q Revenues: $15.0 billion (-9%)

2Q Earnings: $3.5 billion (+25%)

YTD Revenues: $29.9 billion (-8%)

YTD Earnings: $5.0 billion (+4%)

Comments: U.S. revenues fell 15% to $5.7 billion, due primarily to the loss of patent protection for Lipitor. International revenues fell 5% to $9.3 billion, mainly due to currency exchange rates. Drug revenues fell 10% overall to $13.1 billion, including a 3% drop from exchange rates. The Primary Care segment, which includes Lipitor, took a 31% tumble to $4.0 billion. The Established Products business, which includes generics, posted growth of 16% to $2.7 billion, as Pfizer shifted $433 million of U.S. and Japan-branded Lipitor revenues to that segment. Emerging Markets growth of 8% (14% operationally, -6% from exchange rates) was driven mainly by increased volume in China and Russia, as well as government purchases of Prevnar 13 in Turkey and Enbrel in Brazil. Overall, the company suffered $1.8 billion in product losses from generic exposure, compared to 2Q11. Lyrica sales rose 14% to $1.0 billion, and non-U.S./Canada revenues for Enbrel were up 8% to $988 million. Prevnar 13 sales rose 12% to $916 million.