Pfizer Reports Fourth-Quarter and Full-Year 2012 Results; Provides 2013 Financial Guidance

Tue Jan 29, 2013 7:00am EST

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* Fourth-Quarter 2012 Revenues of $15.1 Billion and Full-Year Revenues of $59.0
Billion, both excluding Discontinued Operations Revenues of $592 Million and
$2.3 Billion, Respectively, from the Nutrition(1) Business 
* Fourth-Quarter 2012 Adjusted Diluted EPS(2) of $0.47, Reported Diluted EPS(3)
of $0.85; Full-Year 2012 Adjusted Diluted EPS(2) of $2.19, Reported Diluted
EPS(3) of $1.94 
* Repurchased $3.4 Billion and $8.2 Billion of Common Stock in Fourth-Quarter
and Full-Year 2012, Respectively 
* Provides Initial 2013 Financial Guidance; Reflects the Benefit of a Full-Year
Contribution from Zoetis(4), Partially Offset by a $0.02 Unfavorable Impact on
Adjusted(2) and Reported(3) Diluted EPS Guidance for Zoetis(4)-Related Interest
Expense and Certain Duplicative and Other Costs Given its Potential Separation

NEW YORK--(Business Wire)--
Pfizer Inc. (NYSE: PFE):

 ($ in millions, except per share amounts)                                                                                                                
                                                                                                                                                          
                          Fourth-Quarter                                                                    Full-Year                                           
                                 2012                                2011(5)                Change             2012             2011(5)             Change      
 Reported Revenues        $      15,068                       $      16,141                 (7    %)        $  58,986        $  65,259              (10   %)    
 Adjusted Income(2)              3,512                               3,784                  (7    %)           16,476           17,839              (8    %)    
 Adjusted Diluted EPS(2)         0.47                                0.49                   (4    %)           2.19             2.27                (4    %)    
 Reported Net Income(3)          6,315                               1,439                  *                  14,570           10,009              46    %     
 Reported Diluted EPS(3)         0.85                                0.19                   *                  1.94             1.27                53    %     


See end of text prior to tables for notes. 

* Calculation not meaningful 

Pfizer Inc. (NYSE: PFE) today reported financial results for fourth-quarter and
full-year 2012. Fourth-quarter 2012 revenues were $15.1 billion, a decrease of
7% compared with $16.1 billion in the year-ago quarter, which reflects an
operational decline of $802 million, or 5%, and the unfavorable impact of
foreign exchange of $271 million, or 2%. 

For fourth-quarter 2012, U.S. revenues were $5.8 billion, a decrease of 9%
compared with the year-ago quarter. This decrease was primarily the result of
the loss of exclusivity of Lipitor in November 2011 and Geodon in March 2012.
International revenues were $9.3 billion, a decrease of 5% compared with the
prior-year quarter, mainly due to the losses of exclusivity of Lipitor in
developed Europe during second-quarter 2012 and the unfavorable impact of
foreign exchange. U.S. revenues represented 38% of total revenues in
fourth-quarter 2012 compared with 39% in the year-ago quarter, while
international revenues represented 62% of total revenues in fourth-quarter 2012
compared with 61% in the year-ago quarter. 

Full-year 2012 revenues were $59.0 billion, a decrease of 10% compared with
$65.3 billion in full-year 2011, which reflects an operational decline of $4.8
billion, or 8%, and the unfavorable impact of foreign exchange of $1.5 billion,
or 2%. 

For full-year 2012, U.S. revenues were $23.1 billion, a decrease of 14% compared
with full-year 2011. This decrease was primarily the result of the
aforementioned loss of exclusivity of Lipitor. International revenues were $35.9
billion, a decrease of 6% compared with the prior year, mainly due to the
previously mentioned losses of exclusivity of Lipitor and the unfavorable impact
of foreign exchange. U.S. revenues represented 39% of total revenues in
full-year 2012 compared with 41% in the previous year, while international
revenues represented 61% of total revenues in full-year 2012 compared with 59%
in full-year 2011.

 Fourth-Quarter Revenues(6)                                                                                     
                                                                                                                
 ($ in millions)             2012            2011            Change            Foreign          Operational     
 Favorable/(Unfavorable)                                                       
Exchange                        
                                                                                                                
 Primary Care                $    3,833      $    5,411      (29   %)          (1     %)        (28     %)      
 Specialty Care                   3,668           3,820      (4    %)          (2     %)        (2      %)      
 Emerging Markets                 2,652           2,264      17    %           (3     %)        20      %       
 Established Products             2,370           2,300      3     %           (2     %)        5       %       
 Oncology                         370             341        9     %           (2     %)        11      %       
 Biopharmaceutical                12,893          14,136     (9    %)          (2     %)        (7      %)      
                                                                                                                
 Animal Health                    1,171           1,106      6     %           (2     %)        8       %       
 Consumer Healthcare              936             810        16    %           (1     %)        17      %       
 Other(7)                         68              89         (24   %)          (1     %)        (23     %)      
                                                                                                                
 Total                       $    15,068     $    16,141     (7    %)          (2     %)        (5      %)      


See end of text prior to tables for notes. 

Business Commentary

Primary Care unit revenues decreased 28% operationally in comparison with
fourth-quarter 2011, primarily due to the losses of exclusivity of Lipitor in
most major markets, as well as the resulting shift in the reporting of U.S. and
Japan Lipitor revenues to the Established Products unit beginning January 1,
2012. This decline in revenues for Lipitor and for certain other Primary Care
unit products that lost exclusivity in various markets in 2012 and 2011 reduced
Primary Care unit revenues by approximately $1.8 billion, or 33%. The impact of
this decline was slightly offset by the continued strong operational growth of
Lyrica in developed markets as well as Celebrex and Viagra in the U.S. 

Specialty Care unit revenues declined 2% operationally in comparison with
fourth-quarter 2011. Revenues were positively impacted by growth of the
Prevnar/Prevenar franchise, primarily due to the timing of U.S. government
purchases, as well as growth of Enbrel and Rebif, mostly in the U.S., in
addition to Benefix, ReFacto/Xyntha and Zyvox. This increase was more than
offset by approximately $360 million, or 9%, due to product losses of
exclusivity. 

Emerging Markets unit revenues grew 20% operationally in comparison with
fourth-quarter 2011. This growth was primarily driven by strong volume growth in
China as a result of more targeted promotional efforts for key innovative and
established products, including Lipitor, Norvasc and Sulperazon, and overall
market growth, as well as the timing of government purchases of Enbrel in Brazil
and Prevenar 13 in Turkey in comparison with the year-ago period. 

Established Products unit revenues increased 5% operationally in comparison with
the prior-year period, primarily reflecting the inclusion of $200 million of
U.S. and Japan branded Lipitor revenues in fourth-quarter 2012. This increase
was partially offset by the decline of revenues of certain products that
recently lost exclusivity and the impact of ongoing pricing pressures, primarily
in developed Europe and South Korea. Total revenues from established products in
both the Established Products and Emerging Markets units were $3.5 billion, with
$1.1 billion generated in emerging markets. 

Oncology unit revenues increased 11% operationally in comparison with
fourth-quarter 2011. Revenues were positively impacted by the launches of Inlyta
and Xalkori in the U.S. and certain other developed markets. Revenues were
negatively impacted by approximately $44 million, or 13%, due to the shift in
the reporting of international Aromasin revenues to the Established Products
unit beginning January 1, 2012. 

Consumer Healthcare unit revenues increased 17% operationally in comparison with
fourth-quarter 2011, primarily due to the addition of products from the
acquisitions of Ferrosan Consumer Health in December 2011 and Alacer Corp. in
February 2012 as well as strong growth of Advil and Centrum in the U.S. 

Adjusted Expenses(2), Adjusted Income(2) and Adjusted Diluted EPS(2) Highlights

                              Fourth-Quarter Selected Costs and Expenses                                                            
 ($ in millions)              2012                  2011                   Change                Foreign            Operational     
 (Favorable)/Unfavorable                                                                         
Exchange                          
                                                                                                                                    
 Adjusted Cost of Sales(2)    $    3,106            $    3,083             1     %               8      %           (7      %)      
 As a Percent of Revenues          20.6   %              19.1    %         N/A                   N/A                N/A             
 Adjusted SI&A Expenses(2)         4,658                 5,173             (10   %)              (1     %)          (9      %)      
 Adjusted R&D Expenses(2)          2,000                 2,318             (14   %)              (1     %)          (13     %)      
                                                                                                                                    
 Total                        $    9,764            $    10,574            (8    %)              1      %           (9      %)      


See end of text prior to tables for notes. 

Adjusted cost of sales(2), adjusted SI&A expenses(2) and adjusted R&D
expenses(2) in the aggregate were $9.8 billion in fourth-quarter 2012, a
decrease of 8% compared with $10.6 billion in fourth-quarter 2011. Excluding the
unfavorable impact of foreign exchange of $161 million, or 1%, these costs
decreased 9%, primarily reflecting the benefits of cost-reduction and
productivity initiatives. 

Savings in adjusted R&D expenses(2) were generated in fourth-quarter 2012
primarily by the discontinuation of certain therapeutic areas and R&D programs
in connection with our previously announced initiatives. Lower adjusted SI&A
expenses(2) compared with the year-ago period primarily reflect a reduction in
the field force and a decrease in promotional spending, both partially in
response to product losses of exclusivity, and more streamlined corporate
support functions. Adjusted cost of sales(2) and adjusted cost of sales(2) as a
percent of revenues were favorably impacted by the benefits generated from the
ongoing cost-reduction and productivity initiatives to streamline the
manufacturing network, while unfavorably impacted by the decline in revenues
contributing to a shift in geographic, business and product mix as well as by
foreign exchange. Additionally, adjusted cost of sales(2) compared with the same
period last year reflects reduced manufacturing volumes given the aforementioned
products that lost exclusivity in various markets. 

In full-year 2012, adjusted cost of sales(2), adjusted SI&A expenses(2) and
adjusted R&D expenses(2) in the aggregate were $34.6 billion, a decrease of 12%
compared with $39.2 billion in full-year 2011. Excluding the favorable impact of
foreign exchange of $840 million, or 2%, these costs decreased 10%, primarily
reflecting the aforementioned items. 

The fourth-quarter 2012 effective tax rate on adjusted income(2) was 31.0%,
compared with 29.8% in fourth-quarter 2011. The 2012 full-year effective tax
rate on adjusted income(2) was 29.3%, compared with 29.6% for the full-year
2011. The rates for 2012 compared with the prior-year rates reflect the impact
of the change in the jurisdictional mix of earnings and the expiration of the
U.S. research and development tax credit. The full-year 2012 effective tax rate
compared to the prior-year rate also reflects the favorable impact of the
resolution of foreign audits pertaining to multiple tax years, recorded in
third-quarter 2012. 

The diluted weighted-average shares outstanding for fourth-quarter and full-year
2012 were 7.4 billion and 7.5 billion shares, respectively, a reduction of
approximately 292 million and 362 million shares, respectively, compared with
the same periods in 2011. These declines were primarily due to the Company`s
ongoing share-repurchase program. 

As a result of the aforementioned factors, fourth-quarter 2012 adjusted
income(2) was $3.5 billion, a decrease of 7% compared with $3.8 billion in the
year-ago quarter, and adjusted diluted EPS(2) was $0.47, a decrease of 4%
compared with $0.49 in fourth-quarter 2011. Full-year 2012 adjusted income(2)
was $16.5 billion, a decrease of 8% compared with $17.8 billion in full-year
2011, and adjusted diluted EPS(2) was $2.19, a decrease of 4% compared with
$2.27 in full-year 2011. 

Reported Net Income(3) and Reported Diluted EPS(3) Highlights

In addition to the aforementioned factors, fourth-quarter and full-year 2012
reported earnings in comparison with the same periods in 2011 were favorably
impacted by the gain on the sale of the Nutrition(1) business, lower purchase
accounting adjustments, lower acquisition-related costs and lower costs related
to cost-reduction and productivity initiatives, while unfavorably impacted by
highercosts associated with the potential separation of Zoetis(4). Full-year
2012 reported earnings in comparison with full-year 2011 were also unfavorably
impacted by certain legal charges, primarily associated with hormone-replacement
therapy, Rapamune, Celebrex and Chantix, and the non-recurrence of the gain on
the sale of Capsugel(5) recorded in third-quarter 2011. 

The fourth-quarter 2012 effective tax rate on reported results was 31.3%,
compared with 34.4% in fourth-quarter 2011. The full-year 2012 effective tax
rate on reported results was 21.2%, compared with 31.8% for full-year 2011. The
lower rates for 2012 compared with the prior-year rates reflect the impact of
the change in the jurisdictional mix of earnings and the expiration of the U.S.
research and development tax credit. The full-year 2012 effective tax rate was
also favorably impacted by a settlement with the U.S. Internal Revenue Service
related to audits for multiple tax years and the aforementioned resolution of
foreign audits, partially offset by the unfavorable impact of the
non-deductibility of the aforementioned legal charge related to Rapamune, all
recorded in third-quarter 2012. 

As a result of all these factors, fourth-quarter 2012 reported net income(3) was
$6.3 billion, compared with $1.4 billion in the prior-year quarter, and reported
diluted EPS(3) was $0.85, compared with $0.19 in fourth-quarter 2011. Full-year
2012 reported net income(3) was $14.6 billion, an increase of 46% compared with
$10.0 billion in full-year 2011, and reported diluted EPS(3) was $1.94, an
increase of 53% compared with $1.27 in full-year 2011. 

Executive Commentary

Ian Read, Chairman and Chief Executive Officer, stated, "In 2012, we generated
attractive returns for our shareholders and made meaningful progress in
positioning Pfizer for anticipated sustained value creation. Notable
achievements during 2012 included approvals of five important new products in
key markets, realizing significant value through the sale of our Nutrition(1)
business, preparation for our potential initial public offering of up to a 19.8%
stake in Zoetis(4) in order to further unlock value, as well as returning almost
$15 billion to our shareholders through dividends and share repurchases. In
addition, many of our key innovative products reported solid operational growth,
and our Emerging Markets business generated strong growth. We continued to make
important advances in our mid-to-late stage pipeline, notably in the oncology
and vaccines areas, effectively managed our cost structure and progressed key
initiatives that I believe will drive future growth. These achievements reflect
the continued hard work and commitment of our colleagues in support of Pfizer`s
ability to realize long-term success." 

"During 2013, we will continue to foster our two distinct operating models in
order to best support our innovative and value-driven businesses and position
them to generate peak performance. We also look forward to successful launches
for Xeljanz for the treatment of moderate-to-severe rheumatoid arthritis and,
together with our partner Bristol-Myers Squibb, Eliquis for the prevention of
stroke and systemic embolism in patients with nonvalvular atrial fibrillation.
These opportunities represent important new therapies in high-need markets. In
addition, our mid-to-late stage pipeline continues to strengthen with key
potential opportunities, including palbociclib (PD-332991) for advanced breast
cancer, RN316 (PCSK9) for lowering LDL cholesterol, dacomitinib for advanced
non-small cell lung cancer, inotuzumab for aggressive non-Hodgkin's lymphoma and
acute lymphoblastic leukemia,Xeljanz for psoriasis, and the rLP2086 vaccine for
meningococcal B in adolescents and young adults. In addition, I expect that
`bolt-on` business development will continue to play an important role in
supplementing our internal efforts." 

"In summary, we remain intently focused on continued value creation for our
shareholders, driving meaningful innovation and pursuing the most attractive
opportunities for deployment of our shareholders` capital," concluded Mr. Read. 

Frank D`Amelio, Chief Financial Officer, stated, "Overall, I am pleased with our
2012 financial performance, our recent product approvals and our expense
reductions, as evidenced by the $4.5 billion decline in adjusted cost of sales,
SI&A expenses and R&D expenses(2) in the aggregate compared with 2011.
Additionally, we completed an important strategic initiative through the sale of
our Nutrition(1) business to Nestlé, and are ready to execute on another
important strategic initiative with the potential initial public offering of up
to a 19.8% stake in Zoetis(4), after having recently completed a related $3.65
billion debt offering. We continue to expect to allocate the proceeds from these
transactions to share repurchases while also considering other value-creating
opportunities, with the return on share repurchases remaining the case to beat."


"We are also providing our initial 2013 financial guidance, including a range
for revenues of $56.2 to $58.2 billion and for adjusted diluted EPS(2) of $2.20
to $2.30. Our guidance reflects the benefit of a full-year contribution from
Zoetis(4), partially offset by an unfavorable $0.02 adjusted(2) and reported(3)
diluted EPS impact for Zoetis(4)-related interest expense associated with the
$3.65 billion debt offering and certain duplicative and other costs given the
potential separation of Zoetis(4). Additionally, our revenue guidance reflects
the anticipated negative impact of approximately $4 billion due to product
losses of exclusivity and the near-term expiration of certain co-promotion
agreements. We expect adjusted SI&A expenses(2) to be between $15.6 billion and
$16.6 billion, with the mid-point below the 2012 level. Notably, we expect SI&A
expenses will include substantial expenses associated with the launches of
various key medicines, including Eliquis, Xeljanz and Prevnar/Prevenar 13 for
adults, but plan to essentially offset those incremental expenses through our
cost-reduction initiatives. Lastly, we expect to continue to deploy significant
capital to share repurchases during the year," concluded Mr. D`Amelio. 

2013 Financial Guidance

 Pfizer`s financial guidance is summarized below.                                         
                                                                                          
 Reported Revenues                                            $56.2 to $58.2 billion      
 Adjusted Cost of Sales(2) as a Percentage of Revenues        19.0% to 20.0%              
 Adjusted SI&A Expenses(2)                                    $15.6 to $16.6 billion      
 Adjusted R&D Expenses(2)                                     $6.5 to $7.0 billion        
 Adjusted Other (Income)/Deductions(2)                        Approximately $900 million  
 Effective Tax Rate on Adjusted Income(2)                     Approximately 28.0%         
 Reported Diluted EPS(3)                                      $1.50 to $1.65              
 Adjusted Diluted EPS(2)                                      $2.20 to $2.30              


The exchange rates assumed in connection with the 2013 financial guidance are as
of mid-January 2013. 

The 2013 financial guidance does not assume the completion of any business
development transactions not completed as of December 31, 2012, including any
one-time upfront payments associated with such transactions, and excludes the
potential effects of the resolution of litigation-related matters not
substantially resolved as of December 31, 2012. 

The 2013 financial guidance reflects the benefit of a full-year contribution
from Zoetis(4). Adjusted(2) and Reported(3) Diluted EPS guidance includes a
$0.02 unfavorable impact for Zoetis(4)-related interest expense and certain
duplicative and other costs given its potential separation. Reported Diluted
EPS(3) guidance includes an additional $0.02 unfavorable impact for costs
related to the establishment of Zoetis`(4) corporate and manufacturing support
functions, and certain other costs related to the potential separation of
Zoetis(4) from Pfizer, including new branding, creation of a standalone
infrastructure, site separation and certain legal registration and patent
assignment costs. 

For additional details, please see the attached financial schedules, product
revenue tables, supplemental information and disclosure notice.

 (1)    On November 30, 2012, Pfizer completed the sale of the Nutrition business to Nestlé. The operating results of the Nutrition business are reported as Discontinued         
        Operations - net of tax in the consolidated statements of income for all periods presented. The gain on the sale of the Nutrition business is reported as Discontinued    
        Operations - net of tax in the consolidated statements of income for fourth-quarter and full-year 2012.                                                                   
                                                                                                                                                                                  
 (2)    "Adjusted Income" and its components and "Adjusted Diluted Earnings Per Share (EPS)" are defined as reported U.S. generally accepted accounting principles (GAAP) net     
        income(3) and its components and reported diluted EPS(3) excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain        
        significant items. Adjusted Cost of Sales, Adjusted Selling, Informational and Administrative (SI&A) expenses, Adjusted Research and Development (R&D) expenses and       
        Adjusted Other (Income)/Deductions are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. As      
        described under Adjusted Income in the Management`s Discussion and Analysis of Financial Condition and Results of Operations section of Pfizer's Form 10-Q for the fiscal 
        quarter ended September 30, 2012, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. We 
        believe that investors' understanding of our performance is enhanced by disclosing this measure. Reconciliations of certain GAAP reported to non-GAAP adjusted information 
        for the fourth-quarter and full-year 2012 and 2011, as well as reconciliations of full-year 2013 guidance for adjusted income and adjusted diluted EPS to full-year 2013  
        guidance for reported net income(3) and reported diluted EPS(3), are provided in the materials accompanying this report. The adjusted income and its components and       
        adjusted diluted EPS measures are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.                              
                                                                                                                                                                                  
 (3)    "Reported Net Income" is defined as net income attributable to Pfizer Inc. in accordance with U.S. GAAP. "Reported Diluted EPS" is defined as reported diluted EPS        
        attributable to Pfizer Inc. common shareholders in accordance with U.S. GAAP.                                                                                             
                                                                                                                                                                                  
 (4)    Pfizer previously announced its intention to initiate a potential initial public offering of up to a 19.8% stake in Zoetis Inc. (Zoetis), a subsidiary of Pfizer, and     
        Zoetis has filed a registration statement with the Securities and Exchange Commission. Upon completion of the potential initial public offering, Pfizer will have         
        transferred substantially all of its animal health business assets and liabilities to Zoetis. The financial results of Zoetis differ from the financial results of the    
        Animal Health business unit as the components of this unit differ from Zoetis and, therefore, the financial results of the Animal Health business unit should not be      
        relied upon as indicative of the performance of Zoetis.                                                                                                                   
                                                                                                                                                                                  
 (5)    On August 1, 2011, Pfizer completed the sale of Capsugel to an affiliate of Kohlberg Kravis Roberts & Co. L.P. The operating results and the gain on the sale of Capsugel 
        are reported as Discontinued operations - net of tax in the consolidated statements of income for full-year 2011. Additionally, due to the acquisition of King            
        Pharmaceuticals, Inc. (King), legacy King operations are reflected in the results beginning January 31, 2011. Therefore, in accordance with Pfizer`s domestic and         
        international reporting periods, in full-year 2011 the operating results reflect approximately eleven months of King`s U.S. operations and approximately ten months of    
        King`s international operations.                                                                                                                                          
                                                                                                                                                                                  
 (6)    For a description of each business unit, see Note 13A to Pfizer`s condensed consolidated financial statements included in Pfizer`s Form 10-Q for the fiscal quarter ended 
        September 30, 2012.                                                                                                                                                       
                                                                                                                                                                                  
 (7)    Other includes revenues generated primarily from Pfizer CentreSource, Pfizer`s contract manufacturing and bulk pharmaceutical chemical sales organization.                


 PFIZER INC. AND SUBSIDIARY COMPANIES                                                                                                                                                       
 CONSOLIDATED STATEMENTS OF INCOME(a)                                                                                                                                                       
 (UNAUDITED)                                                                                                                                                                                
 (millions, except per common share data)                                                                                                                                                   
                                                                                                                                                                                            
                                                                                                     Fourth-Quarter                   % Incr. /    Full-Year                     % Incr. /  
                                                                                                          2012              2011      (Decr.)          2012            2011      (Decr.)    
   Revenues                                                                                          $    15,068       $    16,141    (7)          $   58,986      $   65,259    (10)       
   Costs and expenses:                                                                                                                                                                      
                                        Cost of sales(b)                                                  3,172             3,627     (13)             11,334          14,076    (19)       
                                        Selling, informational and administrative expenses(b)             4,815             5,197     (7)              16,616          18,832    (12)       
                                        Research and development expenses(b)                              2,136             2,587     (17)             7,870           9,074     (13)       
                                        Amortization of intangible assets(c)                              1,236             1,406     (12)             5,175           5,544     (7)        
                                        Restructuring charges and certain acquisition-related costs       791               472       68               1,880           2,930     (36)       
                                        Other deductions--net                                             748               697       7                4,031           2,499     61         
   Income from continuing operations before provision                                                                                                                                       
                                        for taxes on income                                               2,170             2,155     1                12,080          12,304    (2)        
   Provision for taxes on income                                                                          680               742       (8)              2,562           3,909     (34)       
   Income from continuing operations                                                                      1,490             1,413     5                9,518           8,395     13         
   Discontinued operations--net of tax                                                                    4,831             35        *                5,080           1,654     207        
   Net income before allocation to noncontrolling interests                                               6,321             1,448     *                14,598          10,049    45         
   Less: Net income attributable to noncontrolling interests                                              6                 9         (33)             28              40        (30)       
   Net income attributable to Pfizer Inc.                                                            $    6,315        $    1,439     *            $   14,570      $   10,009    46         
   Earnings per common share--basic:(d)                                                                                                                                                     
                                        Income from continuing operations attributable to                                                                                                   
                                        Pfizer Inc. common shareholders                              $    0.20         $    0.18      11           $   1.27        $   1.07      19         
                                        Discontinued operations--net of tax                               0.66              -         *                0.68            0.21      224        
                                        Net income attributable to Pfizer Inc. common shareholders   $    0.86         $    0.19      *            $   1.96        $   1.28      53         
   Earnings per common share--diluted:(d)                                                                                                                                                   
                                        Income from continuing operations attributable to                                                                                                   
                                        Pfizer Inc. common shareholders                              $    0.20         $    0.18      11           $   1.26        $   1.06      19         
                                        Discontinued operations--net of tax                               0.65              -         *                0.68            0.21      224        
                                        Net income attributable to Pfizer Inc. common shareholders   $    0.85         $    0.19      *            $   1.94        $   1.27      53         
   Weighted-average shares used to calculate earnings per common share:                                                                                                                     
                                        Basic                                                             7,319             7,635                      7,442           7,817                
                                        Diluted                                                           7,395             7,687                      7,508           7,870                


 (a)  The above financial statements present the three and twelve months ended December 31, 2012 and 2011. Subsidiaries operating outside the United States are included for the three and twelve months ended November 30, 2012 and 2011.                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
      On November 30, 2012, we completed the sale of our Nutrition business and recognized a gain of approximately $4.8 billion related to the sale of this business in Discontinued operations--net of tax for the three and twelve months ended December 31, 2012. The operating results of this business are reported as Discontinued operations--net of tax for all periods presented.                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
      On August 1, 2011, we completed the sale of our Capsugel business and recognized a gain of approximately $1.3 billion related to the sale of this business.The gain and the operating results of this business are reported as Discontinued operations--net of tax for the twelve months ended December 31, 2011.                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
      On January 31, 2011, we completed a tender offer for the outstanding shares of common stock of King Pharmaceuticals, Inc. (King) and, commencing from that date, our financial statements include the assets, liabilities, operating results and cash flows of King. As a result, and in accordance with our domestic and international reporting periods, our operating results for the twelve months ended December 31, 2011 reflect approximately eleven months of King`s U.S. operations and approximately ten months of    
      King`s international operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
      * Calculation not meaningful.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
      Certain amounts and percentages may reflect rounding adjustments.                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
      See Supplemental Information that accompanies these materials for additional details.                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 (b)  Exclusive of amortization of intangible assets, except as discussed in footnote (c) below.                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 (c)  Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, informational and administrative expenses or Research and           
      development expenses, as appropriate.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 (d)  EPS amounts may not add due to rounding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        


 PFIZER INC. AND SUBSIDIARY COMPANIES                                                                                                                                                                                   
 RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION                                                                                                                                                       
 CERTAIN LINE ITEMS                                                                                                                                                                                                     
 (UNAUDITED)                                                                                                                                                                                                            
 (millions of dollars, except per common share data)                                                                                                                                                                    
                                                                                                                                                                                                                        
                                                                                  Quarter Ended December 31, 2012                                                                                                       
                                                                                  GAAP                    Purchase                Acquisition-            Discontinued            Certain                 Non-GAAP      
                                                                                  
                       Accounting              Related                 Operations              Significant             Adjusted(a)   
                                                                                  Reported(1)             Adjustments             Costs(2)                                        Items(3)                              
   Revenues                                                                    $  15,068             $    -                  $    -                  $    -                  $    -                  $    15,068        
   Cost of sales(b)                                                               3,172                   4                       (53)                    -                       (17)                    3,106         
   Selling, informational and administrative expenses(b)                          4,815                   9                       (1)                     -                       (165)                   4,658         
   Research and development expenses(b)                                           2,136                   -                       (1)                     -                       (135)                   2,000         
   Amortization of intangible assets(c)                                           1,236                   (1,210)                 -                       -                       -                       26            
   Restructuring charges and certain acquisition-related costs                    791                     -                       (262)                   -                       (529)                   -             
   Other deductions--net                                                          748                     (10)                    -                       -                       (557)                   181           
   Income from continuing operations before provision for taxes on income         2,170                   1,207                   317                     -                       1,403                   5,097         
   Provision for taxes on income                                                  680                     334                     50                      -                       515                     1,579         
   Income from continuing operations                                              1,490                   873                     267                     -                       888                     3,518         
   Discontinued operations--net of tax                                            4,831                   -                       -                       (4,831)                 -                       -             
   Net income attributable to noncontrolling interests                            6                       -                       -                       -                       -                       6             
   Net income attributable to Pfizer Inc.                                         6,315                   873                     267                     (4,831)                 888                     3,512         
   Earnings per common share attributable to Pfizer Inc.--diluted(d)              0.85                    0.12                    0.04                    (0.65)                  0.12                    0.47          
                                                                                                                                                                                                                        
                                                                                                                                                                                                                        
                                                                                                                                                                                                                        
                                                                                                                                                                                                                        
                                                                                  Twelve Months Ended December 31, 2012                                                                                                 
                                                                                  GAAP                    Purchase                Acquisition-            Discontinued            Certain                 Non-GAAP      
                                                                                  Reported(1)             Accounting              Related                 Operations              Significant             Adjusted(a)   
                                                                                                          Adjustments             Costs(2)                                        Items(3)                              
   Revenues                                                                    $  58,986             $    -                  $    -                  $    -                  $    -                  $    58,986        
   Cost of sales(b)                                                               11,334                  (5)                     (267)                   -                       (68)                    10,994        
   Selling, informational and administrative expenses(b)                          16,616                  13                      (9)                     -                       (339)                   16,281        
   Research and development expenses(b)                                           7,870                   3                       (6)                     -                       (521)                   7,346         
   Amortization of intangible assets(c)                                           5,175                   (4,973)                 -                       -                       -                       202           
   Restructuring charges and certain acquisition-related costs                    1,880                   -                       (685)                   -                       (1,195)                 -             
   Other deductions--net                                                          4,031                   5                       -                       -                       (3,201)                 835           
   Income from continuing operations before provision for taxes on income         12,080                  4,957                   967                     -                       5,324                   23,328        
   Provision for taxes on income                                                  2,562                   1,359                   211                     -                       2,692                   6,824         
   Income from continuing operations                                              9,518                   3,598                   756                     -                       2,632                   16,504        
   Discontinued operations--net of tax                                            5,080                   -                       -                       (5,080)                 -                       -             
   Net income attributable to noncontrolling interests                            28                      -                       -                       -                       -                       28            
   Net income attributable to Pfizer Inc.                                         14,570                  3,598                   756                     (5,080)                 2,632                   16,476        
   Earnings per common share attributable to Pfizer Inc.--diluted(d)              1.94                    0.48                    0.10                    (0.68)                  0.35                    2.19          


   (a)                        Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its          
                              components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, Non-GAAP Adjusted income and its          
                              components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in     
                              their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S.    
                              GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP Adjusted income and its     
                              components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.                       
                                                                                                                                                                                                        
   (b)                        Exclusive of amortization of intangible assets, except as discussed in footnote (c) below.                                                                                
                                                                                                                                                                                                        
   (c)                        Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and   
                              intellectual property is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to    
                              acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, informational and administrative expensesor Research and     
                              development expenses, as appropriate.                                                                                                                                     
                                                                                                                                                                                                        
   (d)                        EPS amounts may not add due to rounding.                                                                                                                                  
                                                                                                                                                                                                        
   See end of tables for notes (1), (2) and (3).                                                                                                                                                        
                                                                                                                                                                                                        
   Certain amounts may reflect rounding adjustments.                                                                                                                                                    


 PFIZER INC. AND SUBSIDIARY COMPANIES                                                                                                                                                                                         
 RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION                                                                                                                                                             
 CERTAIN LINE ITEMS                                                                                                                                                                                                           
 (UNAUDITED)                                                                                                                                                                                                                  
 (millions of dollars, except per common share data)                                                                                                                                                                          
                                                                                                                                                                                                                              
                                                                               Quarter Ended December 31, 2011                                                                                                                
                                                                                   GAAP                         Purchase                Acquisition-            Discontinued            Certain                 Non-GAAP      
                                                                                   Reported(1)                  Accounting              Related                 Operations              
                       Adjusted(a)   
                                                                                                                Adjustments             Costs(2)                                        Significant                           
                                                                                                                                                                                        Items(3)                              
   Revenues                                                                    $   16,141                  $    -                  $    -                  $    -                  $    -                  $    16,141        
   Cost of sales(b)                                                                3,627                        (149)                   (145)                   -                       (250)                   3,083         
   Selling, informational and administrative expenses(b)                           5,197                        (5)                     (4)                     -                       (15)                    5,173         
   Research and development expenses(b)                                            2,587                        2                       (14)                    -                       (257)                   2,318         
   Amortization of intangible assets(c)                                            1,406                        (1,353)                 -                       -                       -                       53            
   Restructuring charges and certain acquisition-related costs                     472                          -                       (360)                   -                       (112)                   -             
   Other deductions--net                                                           697                          (51)                    -                       -                       (538)                   108           
   Income from continuing operations before provision for taxes on income          2,155                        1,556                   523                     -                       1,172                   5,406         
   Provision for taxes on income                                                   742                          408                     202                     -                       261                     1,613         
   Income from continuing operations                                               1,413                        1,148                   321                     -                       911                     3,793         
   Discontinued operations--net of tax                                             35                           -                       -                       (35)                    -                       -             
   Net income attributable to noncontrolling interests                             9                            -                       -                       -                       -                       9             
   Net income attributable to Pfizer Inc.                                          1,439                        1,148                   321                     (35)                    911                     3,784         
   Earnings per common share attributable to Pfizer Inc.--diluted(d)               0.19                         0.15                    0.04                    -                       0.12                    0.49          
                                                                                                                                                                                                                              
                                                                                                                                                                                                                              
                                                                                                                                                                                                                              
                                                                                                                                                                                                                              
                                                                                   Twelve Months Ended December 31, 2011                                                                                                      
                                                                                   GAAP                         Purchase                Acquisition-            Discontinued            Certain                 Non-GAAP      
                                                                                   Reported(1)                  Accounting              Related                 Operations              Significant             Adjusted(a)   
                                                                                                                Adjustments             
                                               Items(3)                              
                                                                                                                                        Costs(2)                                                                              
   Revenues                                                                    $   65,259                  $    -                  $    -                  $    -                  $    -                  $    65,259        
   Cost of sales(b)                                                                14,076                       (1,230)                 (555)                   -                       (257)                   12,034        
   Selling, informational and administrative expenses(b)                           18,832                       (11)                    (45)                    -                       (54)                    18,722        
   Research and development expenses(b)                                            9,074                        2                       (23)                    -                       (655)                   8,398         
   Amortization of intangible assets(c)                                            5,544                        (5,392)                 -                       -                       -                       152           
   Restructuring charges and certain acquisition-related costs                     2,930                        -                       (1,356)                 -                       (1,574)                 -             
   Other deductions--net                                                           2,499                        (122)                   -                       -                       (1,807)                 570           
   Income from continuing operations before provision for taxes on income          12,304                       6,753                   1,979                   -                       4,347                   25,383        
   Provision for taxes on income                                                   3,909                        1,753                   522                     -                       1,320                   7,504         
   Income from continuing operations                                               8,395                        5,000                   1,457                   -                       3,027                   17,879        
   Discontinued operations--net of tax                                             1,654                        -                       -                       (1,654)                 -                       -             
   Net income attributable to noncontrolling interests                             40                           -                       -                       -                       -                       40            
   Net income attributable to Pfizer Inc.                                          10,009                       5,000                   1,457                   (1,654)                 3,027                   17,839        
   Earnings per common share attributable to Pfizer Inc.--diluted(d)               1.27                         0.64                    0.19                    (0.21)                  0.38                    2.27          


   (a)                        Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its          
                              components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, Non-GAAP Adjusted income and its          
                              components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in     
                              their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S.    
                              GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP Adjusted income and its     
                              components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.                       
                                                                                                                                                                                                        
   (b)                        Exclusive of amortization of intangible assets, except as discussed in footnote (c) below.                                                                                
                                                                                                                                                                                                        
   (c)                        Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and   
                              intellectual property is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to    
                              acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, informational and administrative expenses or Research and    
                              development expenses, as appropriate.                                                                                                                                     
                                                                                                                                                                                                        
   (d)                        EPS amounts may not add due to rounding.                                                                                                                                  
                                                                                                                                                                                                        
   See end of tables for notes (1), (2) and (3).                                                                                                                                                        
                                                                                                                                                                                                        
   Certain amounts may reflect rounding adjustments.                                                                                                                                                    


 PFIZER INC. AND SUBSIDIARY COMPANIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 CERTAIN LINE ITEMS*                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
 (UNAUDITED)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 (1)    The financial statements present the three and twelve months ended December 31, 2012 and 2011. Subsidiaries operating outside the United States are included for the three and twelve months ended November 30, 2012 and 2011.                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
        On November 30, 2012, we completed the sale of our Nutrition business and recognized a gain of approximately $4.8 billion related to the sale of this business in Discontinued operations--net of tax for the three and twelve months ended December 31, 2012. The operating results of this business are reported as Discontinued operations--net of tax for all periods presented.                                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
        On August 1, 2011, we completed the sale of our Capsugel business and recognized a gain of approximately $1.3 billion related to the sale of this business.The gain and the operating results of this business are reported as Discontinued operations--net of tax for the twelve months ended December 31, 2011.                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
        On January 31, 2011, we completed a tender offer for the outstanding shares of common stock of King Pharmaceuticals, Inc. (King) and, commencing from that date, our financial statements include the assets, liabilities, operating results and cash flows of King. As a result, and in accordance with our domestic and international reporting periods, our operating results for the twelve months ended December 31, 2011 reflect approximately eleven months of King`s U.S. operations and approximately ten months of  
        King`s international operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 (2)    Acquisition-related costs include the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                              


                                                                     Fourth-Quarter                         Full-Year                        
     (millions of dollars)                                                2012                 2011             2012              2011       
                                                                                                                                             
     Transaction costs(a)                                            $    -               $    2            $   1             $   30         
     Integration costs(a)                                                 110                  163              405               725        
     Restructuring charges(a)                                             152                  195              279               601        
     Additional depreciation -- asset restructuring(b)                    55                   163              282               623        
     Total acquisition-related costs -- pre-tax                           317                  523              967               1,979      
     Income taxes(c)                                                      (50   )              (202  )          (211  )           (522   )   
     Total acquisition-related costs -- net of tax                   $    267             $    321          $   756           $   1,457      


        (a)                        Transaction costs represent external costs directly related to acquired businesses and primarily include expenditures for       
                                   banking, legal, accounting and other similar services. Integration costs represent external, incremental costs directly related 
                                   to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and        
                                   processes. Restructuring charges include employee termination costs, asset impairments and other exit costs associated with     
                                   business combinations. All of these costs and charges are included in Restructuring charges and certain acquisition-related     
                                   costs.                                                                                                                          
                                                                                                                                                                   
        (b)                        Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions related to           
                                   acquisitions. Included in Cost of sales ($53 million), Selling, informational and administrative expenses ($1 million), and     
                                   Research and development expenses ($1 million) for the three months ended December 31, 2012. Included in Cost of sales ($267    
                                   million), Selling, informational and administrative expenses ($9 million) and Research and development expenses ($6 million) for 
                                   the twelve months ended December 31, 2012. Included in Cost of sales ($145 million), Selling, informational and administrative  
                                   expenses ($4 million) and Research and development expenses ($14 million) for the three months ended December 31, 2011. Included 
                                   in Cost of sales ($555 million), Selling, informational and administrative expenses ($45 million) and Research and development  
                                   expenses ($23 million) for the twelve months ended December 31, 2011.                                                           
                                                                                                                                                                   
        (c)                        Included in Provision for taxes on income.                                                                                      
                                                                                                                                                                   
 (3)    Certain significant items include the following:                                                                                                           


                                                                                               Fourth-Quarter                           Full-Year                           
     (millions of dollars)                                                                          2012                  2011              2012                2011        
                                                                                                                                                                            
     Restructuring charges(a)                                                                  $    529              $    112           $   1,195           $   1,574       
     Implementation costs and additional depreciation -- asset restructuring(b)                     207                   522               693                 959         
     Certain legal matters(c)                                                                       208                   165               2,191               822         
     Certain asset impairment charges(d)                                                            369                   261               912                 856         
     Costs associated with the potential separation of Zoetis(e)                                    134                   27                325                 35          
     Other                                                                                          (44    )              85                8                   101         
     Total certain significant items -- pre-tax                                                     1,403                 1,172             5,324               4,347       
     Income taxes(f)                                                                                (515   )              (261   )          (2,692  )           (1,320  )   
     Total certain significant items -- net of tax                                             $    888              $    911           $   2,632           $   3,027       


      (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Primarily related to our cost-reduction and productivity initiatives, included in Restructuring charges and certain acquisition 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             -related costs.                                                                                                                 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
      (b)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Primarily related to our cost-reduction and productivity initiatives. Included in Cost of sales ($8 million), Selling,          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             informational and administrativeexpenses ($64 million) and Research and development expenses ($135 million) for the three months 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             ended December 31, 2012. Included in Cost of sales ($31 million), Selling, informational and administrative expenses ($141      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             million) and Research and development expenses ($521 million) for the twelve months ended December 31, 2012. Included in Cost of 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             sales ($250 million), Selling, informational and administrative expenses ($15 million) and Research and development expenses    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             ($257 million) for the three months ended December 31, 2011. Included in Cost of sales ($250 million), Selling, informational   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             and administrative expenses ($54 million) and Research and development expenses ($655 million) for the twelve months ended      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             December 31, 2011.                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
      (c)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Included in Other deductions--net. In fourth-quarter 2012, primarily includes charges related to Chantix litigation. In full    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             -year 2012, primarily includes a $491 million charge resulting from an agreement-in-principle with the U.S. Department of       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Justice to resolve an investigation into Wyeth`s historical promotional practices in connection with Rapamune, a $450 million   
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             settlement of a lawsuit by Brigham Young University related to Celebrex, and charges related to hormone-replacement therapy     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             litigation and Chantix litigation. In 2011, primarily includes charges for hormone-replacement therapy litigation.              
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
      (d)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Primarily included in Other deductions--net. In fourth-quarter and full-year 2012, primarily relates to certain intangible      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             assets acquired in connection with our acquisitions of Wyeth and King, including in-process research and development (IPR&D)    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             intangible assets. In fourth-quarter 2011, primarily relates to our indefinite-lived brand asset, Xanax, as a result of an      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             increased competitive environment. In full-year 2011, substantially all relates to certain intangible assets acquired in        
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             connection with our acquisition of Wyeth, including IPR&D intangible assets, and our indefinite-lived brand asset, Xanax, as    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             mentioned in the previous sentence.                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
      (e)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Costs incurred in connection with the potential initial public offering of up to a 19.8% ownership stake in Zoetis. Includes    
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             expenditures for banking, legal, accounting and similar services related to the potential transaction, as well as costs incurred 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             associated with the potential separation of Zoetis employees, net assets and operations from Pfizer, such as consulting and     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             systems costs. Included in Cost of sales ($6 million), Selling, informational and administrative expenses ($96 million) and     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Other deductions--net ($32 million) for the three months ended December 31, 2012. Included in Cost of sales ($6 million),       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Selling, informational and administrative expenses ($194 million) and Other deductions--net ($125 million) for the twelve months 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             ended December 31, 2012. For the three and twelve months ended December 31, 2011, substantially all included in Other deductions 
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             --net.                                                                                                                          
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
      (f)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Included in Provision for taxes on income. Includes a settlement with the U.S. IRS related to audits for multiple tax years of  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             $1.1 billion, representing tax and interest, for the twelve months ended December 31, 2012.                                     
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
 *    Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors. Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non 
      -GAAP Adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies. Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.                                                                                                                                                                                                                                                                      


 PFIZER INC.                                                                                   
 BUSINESS REVENUES(1)                                                                          
 TWELVE MONTHS 2012 AND 2011                                                                   
 (UNAUDITED)                                                                                   
 (millions of dollars)                                                                         
                                                                                               
                                                                                               
                                                                                               
                            2012       2011    Change            Foreign       Operational     
                                                                 
Exchange                     
 Primary Care            $  15,558  $  22,670  (31   %)          (1     %)     (30     %)      
 Specialty Care             14,151     15,245  (7    %)          (2     %)     (5      %)      
 Established Products       10,235     9,214   11    %           (2     %)     13      %       
 Emerging Markets           9,960      9,295   7     %           (5     %)     12      %       
 Oncology                   1,310      1,323   (1    %)          (3     %)     2       %       
 Biopharmaceutical          51,214     57,747  (11   %)          (2     %)     (9      %)      
                                                                                               
 Animal Health              4,299      4,184   3     %           (3     %)     6       %       
 Consumer Healthcare        3,212      3,028   6     %           (2     %)     8       %       
 Other                      261        300     (13   %)          (1     %)     (12     %)      
                                                                                               
 Total                   $  58,986  $  65,259  (10   %)          (2     %)     (8      %)      
                                                                                               
 (1) For a description of each business unit, see Note 13A to Pfizer's condensed consolidated  
 financial statements included in Pfizer's Form 10-Q for the fiscal quarter ended September 30, 2012. 


 PFIZER INC.                                                                                                  
 ADJUSTED SELECTED COSTS AND EXPENSES                                                                         
 TWELVE MONTHS 2012 AND 2011                                                                                  
 (UNAUDITED)                                                                                                  
                                                                                                              
                                                                                                              
                                                                                                              
 ($ in millions)                                                                Foreign                       
 (Favorable)/Unfavorable      2012            2011            Change            Exchange      Operational     
 Adjusted Cost of Sales(1)    $   10,994      $   12,034      (9    %)          (4     %)     (5      %)      
 As a Percent of Revenues         18.6    %       18.4    %   N/A               N/A           N/A             
 Adjusted SI&A Expenses(1)        16,281          18,722      (13   %)          (2     %)     (11     %)      
 Adjusted R&D Expenses(1)         7,346           8,398       (13   %)          (1     %)     (12     %)      
                                                                                                              
 Total                        $   34,621      $   39,154      (12   %)          (2     %)     (10     %)      
                                                                                                              
                                                                                                              
 (1) Adjusted cost of sales, Adjusted selling, informational and administrative (SI&A)                        
 expenses and Adjusted research and development (R&D) expenses are defined as the corresponding               
 reported U.S. generally accepted accounting principles (GAAP) income statement line items excluding          
 purchase accounting adjustments, acquisition-related costs, discontinued operations and certain              
 significant items. Reconciliations of certain GAAP reported to non-GAAP adjusted information for             
 the three and twelve months ended December 31, 2012 and 2011 are provided in the materials                   
 accompanying this report. These adjusted income statement line item measures are not, and should             
 not be viewed as, substitutes for the corresponding U.S. GAAP line items.                                    


 PFIZER INC.                                                                                                                                                                                                                    
 
REVENUES                                                                                                                                                                                                                      
 
FOURTH-QUARTER 2012 and 2011                                                                                                                                                                                                  
 
(UNAUDITED)                                                                                                                                                                                                                   
 
(millions of dollars)                                                                                                                                                                                                         
                                                                                                                                                                                                                                
                                                                                                                                                                                                                                
                                                   WORLDWIDE                                                         UNITED STATES                                   TOTAL INTERNATIONAL(a)                                     
                                                                                           % Change                                                  % Change                                          % Change                 
                                                   2012                  2011              Total         Oper.       2012            2011            Total           2012             2011             Total          Oper.     
 TOTAL REVENUES                                    $      15,068         $      16,141     (7   %)       (5   %)     $    5,783      $    6,328      (9     %)       $    9,285       $    9,813       (5   %)        (3   %)   
 REVENUES FROM BIOPHARMACEUTICAL PRODUCTS:         $      12,893         $      14,136     (9   %)       (7   %)     $    4,809      $    5,459      (12    %)       $    8,084       $    8,677       (7   %)        (4   %)   
 Lyrica                                                   1,132                 998        13   %        16   %           443             398        11     %             689              600         15   %         18   %    
 Lipitor(b)                                               584                   1,999      (71  %)       (70  %)          61              816        (93    %)            523              1,183       (56  %)        (55  %)   
 Enbrel (Outside the U.S. and Canada)                     957                   925        3    %        8    %           -               -          -                    957              925         3    %         8    %    
 Prevnar 13/Prevenar 13                                   993                   834        19   %        22   %           464             395        17     %             529              439         21   %         25   %    
 Celebrex                                                 750                   667        12   %        13   %           479             418        15     %             271              249         9    %         11   %    
 Viagra                                                   553                   523        6    %        6    %           313             271        15     %             240              252         (5   %)        (3   %)   
 Norvasc                                                  348                   364        (4   %)       (3   %)          10              -          100    %             338              364         (7   %)        (7   %)   
 Zyvox                                                    349                   318        10   %        12   %           175             154        14     %             174              164         6    %         11   %    
 Sutent                                                   323                   317        2    %        5    %           82              89         (8     %)            241              228         6    %         10   %    
 Premarin family                                          276                   256        8    %        8    %           253             232        9      %             23               24          (4   %)        1    %    
 Genotropin                                               213                   235        (9   %)       (7   %)          54              61         (11    %)            159              174         (9   %)        (5   %)   
 Xalatan/Xalacom                                          189                   290        (35  %)       (33  %)          8               17         (53    %)            181              273         (34  %)        (31  %)   
 BeneFIX                                                  198                   175        13   %        15   %           86              78         10     %             112              97          15   %         19   %    
 Detrol/Detrol LA                                         185                   215        (14  %)       (13  %)          124             135        (8     %)            61               80          (24  %)        (22  %)   
 Vfend                                                    211                   189        12   %        16   %           25              22         14     %             186              167         11   %         18   %    
 Chantix/Champix                                          174                   175        (1   %)       -                79              78         1      %             95               97          (2   %)        (2   %)   
 Pristiq                                                  169                   155        9    %        9    %           128             126        2      %             41               29          41   %         37   %    
 Refacto AF/Xyntha                                        164                   126        30   %        33   %           27              22         23     %             137              104         32   %         34   %    
 Zoloft                                                   143                   153        (7   %)       (4   %)          19              17         12     %             124              136         (9   %)        (6   %)   
 Revatio                                                  120                   142        (15  %)       (14  %)          62              83         (25    %)            58               59          (2   %)        1    %    
 Medrol                                                   135                   127        6    %        8    %           35              36         (3     %)            100              91          10   %         13   %    
 Zosyn/Tazocin                                            106                   146        (27  %)       (26  %)          42              77         (45    %)            64               69          (7   %)        (4   %)   
 Zithromax/Zmax                                           117                   118        (1   %)       1    %           3               3          -                    114              115         (1   %)        1    %    
 Effexor                                                  83                    141        (41  %)       (40  %)          7               35         (80    %)            76               106         (28  %)        (27  %)   
 Prevnar/Prevenar (7-valent)                              96                    82         17   %        13   %           -               -          -                    96               82          17   %         13   %    
 Fragmin                                                  98                    99         (1   %)       -                6               11         (45    %)            92               88          5    %         6    %    
 Relpax                                                   102                   91         12   %        14   %           59              51         16     %             43               40          8    %         9    %    
 Rapamune                                                 87                    87         -             3    %           45              49         (8     %)            42               38          11   %         16   %    
 Cardura                                                  84                    91         (8   %)       (6   %)          1               1          -                    83               90          (8   %)        (7   %)   
 Tygacil                                                  86                    74         16   %        17   %           37              36         3      %             49               38          29   %         33   %    
 Aricept(c)                                               77                    115        (33  %)       (33  %)          -               -          -                    77               115         (33  %)        (33  %)   
 Xanax XR                                                 71                    74         (4   %)       -                12              11         9      %             59               63          (6   %)        (2   %)   
 BMP2                                                     71                    63         13   %        12   %           71              63         13     %             -                -           -              -         
 Sulperazon                                               71                    63         13   %        11   %           -               -          -                    71               63          13   %         11   %    
 Diflucan                                                 74                    64         16   %        17   %           -               2          (100   %)            74               62          19   %         19   %    
 Caduet                                                   67                    103        (35  %)       (35  %)          7               37         (81    %)            60               66          (9   %)        (9   %)   
 Neurontin                                                63                    67         (6   %)       (5   %)          11              12         (8     %)            52               55          (5   %)        (6   %)   
 Dalacin/Cleocin                                          56                    53         6    %        8    %           18              14         29     %             38               39          (3   %)        4    %    
 Unasyn                                                   63                    59         7    %        8    %           -               2          (100   %)            63               57          11   %         11   %    
 Metaxalone/Skelaxin                                      74                    58         28   %        29   %           74              58         28     %             -                -           -              -         
 Inspra                                                   58                    53         9    %        12   %           1               1          -                    57               52          10   %         12   %    
 Toviaz                                                   57                    50         14   %        16   %           31              27         15     %             26               23          13   %         17   %    
 Somavert                                                 55                    50         10   %        14   %           13              12         8      %             42               38          11   %         15   %    
 Alliance revenues(d)                                     915                   952        (4   %)       (3   %)          712             599        19     %             203              353         (42  %)        (42  %)   
 All other biopharmaceutical products(e)                  2,096                 2,200      (5   %)       (2   %)          732             910        (20    %)            1,364            1,290       6    %         11   %    
 All other established products(e)                        1,565                 1,464      7    %        9    %           532             496        7      %             1,033            968         7    %         11   %    
 REVENUES FROM OTHER PRODUCTS:                                                                                                                                                                                                  
 ANIMAL HEALTH                                     $      1,171          $      1,106      6    %        8    %      $    482        $    443        9      %        $    689         $    663         4    %         8    %    
 CONSUMER HEALTHCARE                               $      936            $      810        16   %        17   %      $    472        $    403        17     %        $    464         $    407         14   %         16   %    
 OTHER(f)                                          $      68             $      89         (24  %)       (23  %)     $    20         $    23         (13    %)       $    48          $    66          (27  %)        (28  %)   
                                                                                                                                                                                                                                


 (a)    Total International represents Developed Europe region + Developed Rest of World region + Emerging Markets region. Details for these regions are located on the following page.                                                                                    
 (b)    Lipitor lost exclusivity in the U.S. in November 2011 and various other major markets in 2011 and 2012. This loss of exclusivity reduced branded worldwide revenues by $1.4 billion in the fourth quarter of 2012, in comparison with the fourth quarter of 2011.  
 (c)    Represents direct sales under license agreement with Eisai Co., Ltd.                                                                                                                                                                                               
 (d)    Includes Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.                                                                                                                                                                                     
 (e)    Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.                                                                                                                                        
 (f)    Includes revenues generated primarily from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization.                                                                                                                    
                                                                                                                                                                                                                                                                           
 Certain amounts and percentages may reflect rounding adjustments.                                                                                                                                                                                                         


 PFIZER INC.                                                                                                                                                                                                                                    
 
REVENUES                                                                                                                                                                                                                                      
 
DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION                                                                                                                                                                                         
 
FOURTH-QUARTER 2012 and 2011                                                                                                                                                                                                                  
 
(UNAUDITED)                                                                                                                                                                                                                                   
 
(millions of dollars)                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                
                                                              DEVELOPED EUROPE(a)                                         DEVELOPED REST OF WORLD(b)                                   EMERGING MARKETS(c)                                      
                                                                                              % Change                                                      % Change                                                   % Change                 
                                                              2012            2011            Total           Oper.       2012             2011             Total          Oper.       2012            2011            Total          Oper.     
 TOTAL INTERNATIONAL REVENUES                                 $    3,350      $    4,022      (17   %)        (13  %)     $    2,724       $    3,002       (9   %)        (9   %)     $    3,211      $    2,789      15   %         18   %    
 REVENUES FROM BIOPHARMACEUTICAL PRODUCTS - INTERNATIONAL:    $    2,984      $    3,674      (19   %)        (15  %)     $    2,448       $    2,739       (11  %)        (10  %)     $    2,652      $    2,264      17   %         20   %    
 Lyrica                                                            364             324        12    %         18   %           217              188         15   %         16   %           108             88         23   %         25   %    
 Lipitor(d)                                                        107             596        (82   %)        (81  %)          201              360         (44  %)        (44  %)          215             227        (5   %)        (4   %)   
 Enbrel (Outside Canada)                                           627             629        -               4    %           104              133         (22  %)        (21  %)          226             163        39   %         45   %    
 Prevnar 13/Prevenar 13                                            208             199        5     %         9    %           65               70          (7   %)        (7   %)          256             170        51   %         58   %    
 Celebrex                                                          40              48         (17   %)        (10  %)          138              124         11   %         11   %           93              77         21   %         23   %    
 Viagra                                                            103             104        (1    %)        2    %           49               54          (9   %)        (9   %)          88              94         (6   %)        (5   %)   
 Norvasc                                                           28              38         (26   %)        (21  %)          171              198         (14  %)        (13  %)          139             128        9    %         8    %    
 Zyvox                                                             78              77         1     %         6    %           39               41          (5   %)        -                57              46         24   %         28   %    
 Sutent                                                            114             115        (1    %)        4    %           48               47          2    %         2    %           79              66         20   %         24   %    
 Premarin family                                                   3               2          50    %         -                9                10          (10  %)        11   %           11              12         (8   %)        -         
 Genotropin                                                        71              89         (20   %)        (17  %)          58               59          (2   %)        -                30              26         15   %         23   %    
 Xalatan/Xalacom                                                   55              124        (56   %)        (52  %)          79               99          (20  %)        (19  %)          47              50         (6   %)        (2   %)   
 BeneFIX                                                           66              62         6     %         10   %           39               31          26   %         33   %           7               4          75   %         50   %    
 Detrol/Detrol LA                                                  22              38         (42   %)        (39  %)          28               27          4    %         -                11              15         (27  %)        (14  %)   
 Vfend                                                             78              78         -               5    %           44               45          (2   %)        10   %           64              44         45   %         51   %    
 Chantix/Champix                                                   35              41         (15   %)        (12  %)          47               46          2    %         -                13              10         30   %         18   %    
 Pristiq                                                           -               -          -               -                28               19          47   %         30   %           13              10         30   %         40   %    
 Refacto AF/Xyntha                                                 99              95         4     %         7    %           20               8           150  %         122  %           18              1          *              *         
 Zoloft                                                            15              20         (25   %)        (20  %)          71               84          (15  %)        (13  %)          38              32         19   %         19   %    
 Revatio                                                           33              36         (8    %)        (3   %)          16               13          23   %         15   %           9               10         (10  %)        -         
 Medrol                                                            24              25         (4    %)        4    %           12               13          (8   %)        -                64              53         21   %         23   %    
 Zosyn/Tazocin                                                     11              14         (21   %)        (14  %)          2                3           (33  %)        -                51              52         (2   %)        -         
 Zithromax/Zmax                                                    14              19         (26   %)        (22  %)          52               53          (2   %)        (2   %)          48              43         12   %         14   %    
 Effexor                                                           26              40         (35   %)        (32  %)          22               41          (46  %)        (46  %)          28              25         12   %         16   %    
 Prevnar/Prevenar (7-valent)                                       -               1          (100  %)        -                88               81          9    %         12   %           8               -          100  %         60   %    
 Fragmin                                                           47              46         2     %         7    %           26               20          30   %         10   %           19              22         (14  %)        (5   %)   
 Relpax                                                            20              20         -               11   %           17               16          6    %         6    %           6               4          50   %         50   %    
 Rapamune                                                          15              15         -               7    %           5                5           -              -                22              18         22   %         26   %    
 Cardura                                                           25              25         -               -                32               39          (18  %)        (18  %)          26              26         -              -         
 Tygacil                                                           17              15         13    %         20   %           2                2           -              -                30              21         43   %         36   %    
 Aricept(e)                                                        17              58         (71   %)        (67  %)          51               45          13   %         9    %           9               12         (25  %)        (18  %)   
 Xanax XR                                                          24              27         (11   %)        (7   %)          11               14          (21  %)        (8   %)          24              22         9    %         9    %    
 BMP2                                                              -               -          -               -                -                -           -              -                -               -          -              -         
 Sulperazon                                                        -               -          -               -                9                10          (10  %)        (9   %)          62              53         17   %         15   %    
 Diflucan                                                          13              21         (38   %)        (33  %)          11               12          (8   %)        (15  %)          50              29         72   %         72   %    
 Caduet                                                            4               5          (20   %)        (20  %)          41               46          (11  %)        (11  %)          15              15         -              7    %    
 Neurontin                                                         13              18         (28   %)        (26  %)          14               15          (7   %)        (20  %)          25              22         14   %         14   %    
 Dalacin/Cleocin                                                   9               9          -               -                5                8           (38  %)        (14  %)          24              22         9    %         9    %    
 Unasyn                                                            12              8          50    %         63   %           21               20          5    %         -                30              29         3    %         7    %    
 Metaxalone/Skelaxin                                               -               -          -               -                -                -           -              -                -               -          -              -         
 Inspra                                                            35              34         3     %         9    %           17               14          21   %         13   %           5               4          25   %         25   %    
 Toviaz                                                            22              19         16    %         21   %           1                1           -              -                3               3          -              50   %    
 Somavert                                                          34              32         6     %         13   %           5                3           67   %         25   %           3               3          -              -         
 Alliance revenues(f)                                              38              103        (63   %)        (60  %)          151              228         (34  %)        (34  %)          14              22         (36  %)        (29  %)   
 All other biopharmaceutical products(g)                           418             405        3     %         9    %           382              394         (3   %)        2    %           564             491        15   %         19   %    
 All other established products(g)                                 281             290        (3    %)        2    %           265              288         (8   %)        (7   %)          487             390        25   %         30   %    
 REVENUES FROM OTHER PRODUCTS - INTERNATIONAL:                $    366        $    348        5     %         9    %      $    276         $    263         5    %         3    %      $    559        $    525        6    %         11   %    
                                                                                                                                                                                                                                                


 * Calculation not meaningful.                                                                                                                                                                                                                     
 (a)    Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.                                                                                                                            
 (b)    Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea.                                                                                                                      
 (c)    Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.                                         
 (d)    Lipitor lost exclusivity in various international markets in 2011 and 2012. This loss of exclusivity reduced branded international revenues by $636 million in the fourth quarter of 2012, in comparison with the fourth quarter of 2011.  
 (e)    Represents direct sales under license agreement with Eisai Co., Ltd.                                                                                                                                                                       
 (f)    Includes Enbrel (in Canada), Aricept, Exforge, Rebif and Spiriva.                                                                                                                                                                          
 (g)    Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.                                                                                                                
                                                                                                                                                                                                                                                   
 Certain amounts and percentages may reflect rounding adjustments.                                                                                                                                                                                 


 PFIZER INC.                                                                                                                                                                                                                       
 
REVENUES                                                                                                                                                                                                                         
 
TWELVE MONTHS 2012 and 2011                                                                                                                                                                                                      
 
(UNAUDITED)                                                                                                                                                                                                                      
 
(millions of dollars)                                                                                                                                                                                                            
                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                   
                                                   WORLDWIDE                                                        UNITED STATES                                    TOTAL INTERNATIONAL(a)                                        
                                                                                          % Change                                                   % Change                                            % Change                  
                                                   2012                         2011      Total         Oper.       2012                 2011        Total           2012                   2011         Total           Oper.     
 TOTAL REVENUES                                    $      58,986         $      65,259    (10  %)       (8   %)     $    23,086      $   26,933      (14    %)       $    35,900       $    38,326       (6    %)        (2   %)   
 REVENUES FROM BIOPHARMACEUTICAL PRODUCTS:         $      51,214         $      57,747    (11  %)       (9   %)     $    19,708      $   23,707      (17    %)       $    31,506       $    34,040       (7    %)        (4   %)   
 Lyrica                                                   4,158                 3,693     13   %        16   %           1,672           1,514       10     %             2,486             2,179        14    %         19   %    
 Lipitor(b)                                               3,948                 9,577     (59  %)       (58  %)          932             5,003       (81    %)            3,016             4,574        (34   %)        (33  %)   
 Enbrel (Outside the U.S. and Canada)                     3,737                 3,666     2    %        8    %           -               -           -                    3,737             3,666        2     %         8    %    
 Prevnar 13/Prevenar 13                                   3,718                 3,657     2    %        4    %           1,887           1,928       (2     %)            1,831             1,729        6     %         10   %    
 Celebrex                                                 2,719                 2,523     8    %        9    %           1,745           1,597       9      %             974               926          5     %         8    %    
 Viagra                                                   2,051                 1,981     4    %        5    %           1,135           1,003       13     %             916               978          (6    %)        (3   %)   
 Norvasc                                                  1,349                 1,445     (7   %)       (6   %)          48              23          109    %             1,301             1,422        (9    %)        (8   %)   
 Zyvox                                                    1,345                 1,283     5    %        8    %           665             640         4      %             680               643          6     %         11   %    
 Sutent                                                   1,236                 1,187     4    %        9    %           337             307         10     %             899               880          2     %         8    %    
 Premarin family                                          1,073                 1,013     6    %        7    %           977             915         7      %             96                98           (2    %)        5    %    
 Genotropin                                               832                   889       (6   %)       (4   %)          204             205         -                    628               684          (8    %)        (4   %)   
 Xalatan/Xalacom                                          806                   1,250     (36  %)       (33  %)          38              176         (78    %)            768               1,074        (28   %)        (26  %)   
 BeneFIX                                                  775                   693       12   %        14   %           358             301         19     %             417               392          6     %         11   %    
 Detrol/Detrol LA                                         761                   883       (14  %)       (13  %)          486             557         (13    %)            275               326          (16   %)        (13  %)   
 Vfend                                                    754                   747       1    %        5    %           89              86          3      %             665               661          1     %         5    %    
 Chantix/Champix                                          670                   720       (7   %)       (6   %)          313             326         (4     %)            357               394          (9    %)        (7   %)   
 Pristiq                                                  630                   577       9    %        10   %           493             474         4      %             137               103          33    %         37   %    
 Refacto AF/Xyntha                                        584                   506       15   %        20   %           106             97          9      %             478               409          17    %         23   %    
 Zoloft                                                   541                   573       (6   %)       (4   %)          68              63          8      %             473               510          (7    %)        (5   %)   
 Revatio                                                  534                   535       -             2    %           312             312         -                    222               223          -               5    %    
 Medrol                                                   523                   510       3    %        5    %           140             152         (8     %)            383               358          7     %         10   %    
 Zosyn/Tazocin                                            484                   636       (24  %)       (22  %)          217             344         (37    %)            267               292          (9    %)        (5   %)   
 Zithromax/Zmax                                           435                   453       (4   %)       (3   %)          12              20          (40    %)            423               433          (2    %)        (1   %)   
 Effexor                                                  425                   678       (37  %)       (35  %)          109             242         (55    %)            316               436          (28   %)        (24  %)   
 Prevnar/Prevenar (7-valent)                              399                   488       (18  %)       (16  %)          -               -           -                    399               488          (18   %)        (16  %)   
 Fragmin                                                  381                   382       -             4    %           42              43          (2     %)            339               339          -               5    %    
 Relpax                                                   368                   341       8    %        10   %           219             193         13     %             149               148          1     %         5    %    
 Rapamune                                                 346                   372       (7   %)       (4   %)          185             188         (2     %)            161               184          (13   %)        (7   %)   
 Cardura                                                  338                   380       (11  %)       (9   %)          5               5           -                    333               375          (11   %)        (9   %)   
 Tygacil                                                  335                   298       12   %        16   %           152             148         3      %             183               150          22    %         30   %    
 Aricept(c)                                               326                   450       (28  %)       (25  %)          -               -           -                    326               450          (28   %)        (25  %)   
 Xanax XR                                                 274                   306       (10  %)       (5   %)          50              52          (4     %)            224               254          (12   %)        (6   %)   
 BMP2                                                     263                   340       (23  %)       (23  %)          263             323         (19    %)            -                 17           (100  %)        (98  %)   
 Sulperazon                                               262                   218       20   %        19   %           -               -           -                    262               218          20    %         19   %    
 Diflucan                                                 259                   265       (2   %)       1    %           4               5           (20    %)            255               260          (2    %)        1    %    
 Caduet                                                   258                   538       (52  %)       (52  %)          33              272         (88    %)            225               266          (15   %)        (14  %)   
 Neurontin                                                235                   289       (19  %)       (16  %)          48              63          (24    %)            187               226          (17   %)        (14  %)   
 Dalacin/Cleocin                                          232                   192       21   %        24   %           90              49          84     %             142               143          (1    %)        4    %    
 Unasyn                                                   228                   231       (1   %)       -                2               6           (67    %)            226               225          -               2    %    
 Metaxalone/Skelaxin(d)                                   223                   203       10   %        10   %           223             203         10     %             -                 -            -               -         
 Inspra                                                   214                   195       10   %        15   %           5               4           25     %             209               191          9     %         15   %    
 Toviaz                                                   207                   187       11   %        14   %           113             99          14     %             94                88           7     %         13   %    
 Somavert                                                 197                   183       8    %        14   %           46              39          18     %             151               144          5     %         13   %    
 Alliance revenues(e)                                     3,492                 3,630     (4   %)       (3   %)          2,620           2,227       18     %             872               1,403        (38   %)        (37  %)   
 All other biopharmaceutical products(f)                  8,289                 8,584     (3   %)       (1   %)          3,265           3,503       (7     %)            5,024             5,081        (1    %)        4    %    
 All other established products(f)                        6,074                 5,671     7    %        10   %           2,165           1,783       21     %             3,909             3,888        1     %         5    %    
 REVENUES FROM OTHER PRODUCTS:                                                                                                                                                                                                     
 ANIMAL HEALTH                                     $      4,299          $      4,184     3    %        6    %      $    1,771       $   1,648       7      %        $    2,528        $    2,536        -               5    %    
 CONSUMER HEALTHCARE                               $      3,212          $      3,028     6    %        8    %      $    1,526       $   1,490       2      %        $    1,686        $    1,538        10    %         13   %    
 OTHER(g)                                          $      261            $      300       (13  %)       (12  %)     $    81          $   88          (8     %)       $    180          $    212          (15   %)        (13  %)   
                                                                                                                                                                                                                                   
                                                                                                                                                                                                                                   


 (a)    Total International represents Developed Europe region + Developed Rest of World region + Emerging Markets region. Details for these regions are located on the following page.                                        
 (b)    Lipitor lost exclusivity in the U.S. in November 2011 and various other major markets in 2011 and 2012. This loss of exclusivity reduced branded worldwide revenues by $5.6 billion in 2012, in comparison with 2011.  
 (c)    Represents direct sales under license agreement with Eisai Co., Ltd.                                                                                                                                                   
 (d)    Legacy King product. King's operations are included in our financial statements commencing from the acquisition date of January 31, 2011.                                                                              
 (e)    Includes Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.                                                                                                                                         
 (f)    Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.                                                                                            
 (g)    Includes revenues generated primarily from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization.                                                                        
                                                                                                                                                                                                                               
 Certain amounts and percentages may reflect rounding adjustments.                                                                                                                                                             


 PFIZER INC.                                                                                                                                                                                                                                         
 
REVENUES                                                                                                                                                                                                                                           
 
DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION                                                                                                                                                                                              
 
TWELVE MONTHS 2012 and 2011                                                                                                                                                                                                                        
 
(UNAUDITED)                                                                                                                                                                                                                                        
 
(millions of dollars)                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                     
                                                                                                                                                                                                                                                     
                                                              DEVELOPED EUROPE(a)                                           DEVELOPED REST OF WORLD(b)                                     EMERGING MARKETS(c)                                       
                                                                                               % Change                                                         % Change                                                    % Change                 
                                                              2012                 2011        Total           Oper.        2012                   2011         Total          Oper.       2012                 2011        Total          Oper.     
 TOTAL INTERNATIONAL REVENUES                                 $    13,375      $   16,099      (17   %)        (11   %)     $    10,554       $    10,975       (4   %)        (4   %)     $    11,971      $   11,252      6    %         12   %    
 REVENUES FROM BIOPHARMACEUTICAL PRODUCTS - INTERNATIONAL:    $    12,010      $   14,737      (19   %)        (13   %)     $    9,536        $    10,008       (5   %)        (5   %)     $    9,960       $   9,295       7    %         12   %    
 Lyrica                                                            1,319           1,255       5     %         12    %           743               569          31   %         31   %           424             355         19   %         26   %    
 Lipitor(d)                                                        1,149           2,400       (52   %)        (50   %)          978               1,315        (26  %)        (26  %)          889             859         3    %         5    %    
 Enbrel (Outside Canada)                                           2,318           2,387       (3    %)        4     %           555               524          6    %         5    %           864             755         14   %         23   %    
 Prevnar 13/Prevenar 13                                            704             744         (5    %)        1     %           266               241          10   %         11   %           861             744         16   %         18   %    
 Celebrex                                                          161             182         (12   %)        (4    %)          479               431          11   %         12   %           334             313         7    %         11   %    
 Viagra                                                            370             400         (8    %)        (3    %)          201               212          (5   %)        (4   %)          345             366         (6   %)        (2   %)   
 Norvasc                                                           119             165         (28   %)        (22   %)          659               773          (15  %)        (16  %)          523             484         8    %         9    %    
 Zyvox                                                             302             306         (1    %)        6     %           154               149          3    %         4    %           224             188         19   %         26   %    
 Sutent                                                            439             468         (6    %)        1     %           176               169          4    %         4    %           284             243         17   %         26   %    
 Premarin family                                                   10              10          -               -                 36                34           6    %         9    %           50              54          (7   %)        2    %    
 Genotropin                                                        295             356         (17   %)        (12   %)          224               221          1    %         -                109             107         2    %         8    %    
 Xalatan/Xalacom                                                   275             509         (46   %)        (42   %)          311               369          (16  %)        (16  %)          182             196         (7   %)        -         
 BeneFIX                                                           248             255         (3    %)        4     %           137               113          21   %         21   %           32              24          33   %         33   %    
 Detrol/Detrol LA                                                  119             157         (24   %)        (21   %)          102               109          (6   %)        (6   %)          54              60          (10  %)        (3   %)   
 Vfend                                                             281             304         (8    %)        (1    %)          162               153          6    %         5    %           222             204         9    %         14   %    
 Chantix/Champix                                                   129             175         (26   %)        (23   %)          179               170          5    %         5    %           49              49          -              8    %    
 Pristiq                                                           -               -           -               -                 90                67           34   %         32   %           47              36          31   %         42   %    
 Refacto AF/Xyntha                                                 373             374         -               6     %           64                33           94   %         94   %           41              2           *              *         
 Zoloft                                                            59              81          (27   %)        (22   %)          278               301          (8   %)        (8   %)          136             128         6    %         11   %    
 Revatio                                                           133             141         (6    %)        1     %           56                47           19   %         17   %           33              35          (6   %)        6    %    
 Medrol                                                            94              103         (9    %)        (2    %)          48                48           -              -                241             207         16   %         19   %    
 Zosyn/Tazocin                                                     48              63          (24   %)        (17   %)          13                14           (7   %)        (7   %)          206             215         (4   %)        (1   %)   
 Zithromax/Zmax                                                    59              80          (26   %)        (21   %)          186               184          1    %         (1   %)          178             169         5    %         7    %    
 Effexor                                                           110             181         (39   %)        (35   %)          102               155          (34  %)        (34  %)          104             100         4    %         9    %    
 Prevnar/Prevenar (7-valent)                                       -               23          (100  %)        (100  %)          346               358          (3   %)        (5   %)          53              107         (50  %)        (39  %)   
 Fragmin                                                           182             178         2     %         8     %           84                77           9    %         9    %           73              84          (13  %)        (6   %)   
 Relpax                                                            70              76          (8    %)        (1    %)          60                56           7    %         9    %           19              16          19   %         25   %    
 Rapamune                                                          54              60          (10   %)        (3    %)          18                18           -              -                89              106         (16  %)        (8   %)   
 Cardura                                                           97              119         (18   %)        (13   %)          134               155          (14  %)        (14  %)          102             101         1    %         6    %    
 Tygacil                                                           67              64          5     %         14    %           7                 6            17   %         17   %           109             80          36   %         44   %    
 Aricept(e)                                                        110             229         (52   %)        (49   %)          177               170          4    %         6    %           39              51          (24  %)        (18  %)   
 Xanax XR                                                          89              107         (17   %)        (10   %)          44                50           (12  %)        (10  %)          91              97          (6   %)        2    %    
 BMP2                                                              -               17          (100  %)        (100  %)          -                 -            -              -                -               -           -              -         
 Sulperazon                                                        -               -           -               -                 36                42           (14  %)        (16  %)          226             176         28   %         27   %    
 Diflucan                                                          60              80          (25   %)        (19   %)          41                47           (13  %)        (13  %)          154             133         16   %         18   %    
 Caduet                                                            14              18          (22   %)        (17   %)          149               189          (21  %)        (22  %)          62              59          5    %         8    %    
 Neurontin                                                         58              76          (24   %)        (18   %)          45                57           (21  %)        (23  %)          84              93          (10  %)        (5   %)   
 Dalacin/Cleocin                                                   32              35          (9    %)        (3    %)          26                27           (4   %)        -                84              81          4    %         10   %    
 Unasyn                                                            39              34          15    %         24    %           76                81           (6   %)        (9   %)          111             110         1    %         3    %    
 Metaxalone/Skelaxin(f)                                            -               -           -               -                 -                 -            -              -                -               -           -              -         
 Inspra                                                            131             126         4     %         12    %           61                51           20   %         18   %           17              14          21   %         29   %    
 Toviaz                                                            76              71          7     %         14    %           8                 8            -              13   %           10              9           11   %         11   %    
 Somavert                                                          123             121         2     %         10    %           17                14           21   %         23   %           11              9           22   %         33   %    
 Alliance revenues(g)                                              242             536         (55   %)        (52   %)          565               785          (28  %)        (29  %)          65              82          (21  %)        (12  %)   
 All other biopharmaceutical products(h)                           1,452           1,671       (13   %)        (7    %)          1,443             1,416        2    %         2    %           2,129           1,994       7    %         14   %    
 All other established products(h)                                 1,050           1,173       (10   %)        (4    %)          1,051             1,094        (4   %)        (4   %)          1,808           1,621       12   %         19   %    
 REVENUES FROM OTHER PRODUCTS - INTERNATIONAL:                $    1,365       $   1,362       -               7     %      $    1,018        $    967          5    %         6    %      $    2,011       $   1,957       3    %         8    %    
                                                                                                                                                                                                                                                     


 * Calculation not meaningful.                                                                                                                                                                              
 (a)    Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.                                                                                     
 (b)    Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea.                                                                               
 (c)    Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.  
 (d)    Lipitor lost exclusivity in various international markets in 2011 and 2012. This loss of exclusivity reduced branded international revenues by $1.6 billion in 2012, in comparison with 2011.       
 (e)    Represents direct sales under license agreement with Eisai Co., Ltd.                                                                                                                                
 (f)    Legacy King product. King's operations are included in our financial statements commencing from the acquisition date of January 31, 2011.                                                           
 (g)    Includes Enbrel (in Canada), Aricept, Exforge, Rebif and Spiriva.                                                                                                                                   
 (h)    Includes sales of generic atorvastatin. All other established products is a subset of All other biopharmaceutical products.                                                                         
                                                                                                                                                                                                            
 Certain amounts and percentages may reflect rounding adjustments.                                                                                                                                          


PFIZER INC.
SUPPLEMENTAL INFORMATION

1. Change in Reported Cost of Sales

Reported cost of sales decreased 13% in the fourth quarter and 19% in full-year
2012, compared to the same periods in 2011. The decreases were primarily due to
lower purchase accounting adjustments in 2012, lower costs related to our
cost-reduction and productivity initiatives and acquisition-related costs, as
well as the benefits generated from the ongoing productivity initiatives to
streamline the manufacturing network. Additionally, the decreases were due to
reduced manufacturing volumes related to products that lost exclusivity in
various markets. The decreases were partially offset by the unfavorable impact
of a shift in geographic, business and product mix for both periods. In
addition, reported cost of sales in fourth-quarter 2012 reflects the unfavorable
impact of foreign exchange of 7%, while reported cost of sales in full-year 2012
reflects the favorable impact of foreign exchange of 3%. 

Reported cost of sales as a percentage of revenues decreased 1.4 percentage
points to 21.1% in the fourth quarter of 2012, compared to the same period in
2011, reflecting the aforementioned factors. 

2. Change in Reported Selling, Informational & Administrative (SI&A) Expenses
and Reported Research & Development (R&D) Expenses

Reported SI&A expenses decreased 7% in fourth-quarter 2012 and 12% in full-year
2012, compared to the same periods in 2011. The decreases were primarily due to
savings generated from a reduction in the field force and a decrease in
promotional spending, both partially in response to product losses of
exclusivity and more streamlined corporate support functions, as well as the
favorable impact of foreign exchange of 1% in the fourth quarter of 2012 and 2%
in full-year 2012, partially offset by costs associated with the potential
separation of Zoetis employees, net assets and operations from Pfizer. 

Reported R&D expenses decreased 17% in fourth-quarter 2012 and 13% in full-year
2012, compared to the same periods in 2011, primarily due to savings generated
by the discontinuation of certain therapeutic areas and R&D programs in
connection with our previously announced cost-reduction and productivity
initiatives, which were partially offset in full-year 2012 by a $250 million
payment to AstraZeneca in the third quarter of 2012 to obtain the exclusive
global over-the-counter rights to Nexium. 

3. Other Deductions - Net

 ($ in millions)                                                 Fourth-Quarter                       Full-Year                     
                                                                 2012                 2011            2012               2011       
 Interest income(a)                                           $  (108  )         $    (125  )      $  (383   )       $   (456   )   
 Interest expense(a)                                             373                  396             1,524              1,681      
 Net interest expense                                            265                  271             1,141              1,225      
 Royalty-related income                                          (116  )              (122  )         (469   )           (569   )   
 Net (gain)/loss on asset disposals                              (7    )              32              (52    )           (15    )   
 Certain legal matters, net(b)                                   206                  165             2,220              784        
 Certain asset impairment charges(c)                             366                  277             927                902        
 Costs associated with the potential separation of Zoetis(d)     32                   33              125                33         
 Other, net                                                      2                    41              139                139        
 Other deductions--net                                        $  748             $    697          $  4,031          $   2,499      


(a) Interest income decreased in both periods in 2012 due to lower average cash
balances and lower interest rates earned on investments. Interest expense
decreased in both periods in 2012 due to lower debt balances and the effective
conversion of some fixed-rate liabilities to floating-rate liabilities. 

(b) In fourth-quarter 2012, primarily includes charges related to Chantix
litigation. In full-year 2012, primarily includes a $491 million charge
resulting from an agreement-in-principle with the U.S. Department of Justice to
resolve an investigation into Wyeth`s historical promotional practices in
connection with Rapamune, a $450 million settlement of a lawsuit by Brigham
Young University related to Celebrex, and charges related to hormone-replacement
therapy litigation and Chantix litigation. In 2011, primarily includes charges
for hormone-replacement therapy litigation. 

(c) In fourth-quarter and full-year 2012, primarily relates to certain
intangible assets acquired in connection with our acquisitions of Wyeth and
King, including in-process research and development (IPR&D) intangible assets.
In fourth-quarter 2011, primarily relates to our indefinite-lived brand asset,
Xanax, as a result of an increased competitive environment. In full-year 2011,
substantially all relates to certain intangible assets acquired in connection
with our acquisition of Wyeth, including IPR&D intangible assets, and our
indefinite-lived brand asset, Xanax, as mentioned in the previous sentence. 

(d) Costs incurred in connection with the potential initial public offering of
up to a 19.8% ownership stake in Zoetis. Includes expenditures for banking,
legal, accounting and similar services related to the potential transaction. 

4. Effective Tax Rate

Reported
The effective tax rate for continuing operations was 31.3% for the fourth
quarter of 2012 compared with 34.4% for the fourth quarter of 2011, and 21.2%
for full-year 2012 compared with 31.8% for full-year 2011. The lower rates for
2012 compared with the prior-year rates reflect the impact of the change in the
jurisdictional mix of earnings and the expiration of the U.S. research and
development tax credit. The full-year 2012 effective tax rate was also favorably
impacted by a settlement with the U.S. Internal Revenue Service related to
audits for multiple tax years and the resolution of foreign audits pertaining to
multiple tax years, partially offset by the unfavorable impact of the
non-deductibility of a legal charge related to Rapamune, all recorded in
third-quarter 2012. 

Adjusted
The effective tax rate on adjusted income(1) was 31.0% in fourth-quarter 2012
compared with 29.8% in fourth-quarter 2011, and 29.3% in full-year 2012 compared
with 29.6% in full-year 2011. The rates for 2012 compared with the prior-year
rates reflect the impact of the change in the jurisdictional mix of earnings and
the expiration of the U.S. research and development tax credit. The full-year
2012 effective tax rate compared to the prior-year rate also reflects the
favorable impact of the resolution of the aforementioned foreign audits recorded
in third-quarter 2012. 

5. Reconciliation of 2013 Adjusted Income(1) and Adjusted Diluted EPS(1)
Guidance to 2013 Reported Net Income Attributable to Pfizer Inc. and Reported
Diluted EPS Attributable to Pfizer Inc. Common Shareholders Guidance(a)

                                                                            Full-Year 2013 Guidance                              
 (Billions of dollars, except per share amounts)                            Net Income(b)                Diluted EPS(b)          
 Income/(Expense)                                                                                                                
 Adjusted Income/Diluted EPS(1) Guidance(c)                                 ~$15.4 - $16.1               ~$2.20 - $2.30          
 Purchase Accounting Impacts of Transactions Completed as of                (3.4        )                (0.49         )         
 12/31/12                                                                                                                        
 Acquisition-Related Costs                                                  (0.4 - 0.5  )                (0.06 - 0.07  )         
 Non-Acquisition-Related Restructuring Costs(d)                             (0.5 - 0.8  )                (0.08 - 0.12  )         
 Costs associated with the potential separation of Zoetis(c)                (0.2        )                (0.02         )         
 Reported Net Income Attributable to Pfizer Inc./Diluted EPS Guidance(c)    ~$10.5 - $11.6               ~$1.50 - $1.65          


(a) The exchange rates assumed in connection with the 2013 financial guidance
are as of mid-January 2013. 

(b) Does not assume the completion of any business development transactions not
completed as of December 31, 2012, including any one-time upfront payments
associated with such transactions, and excludes the potential effects of the
resolution of litigation-related matters not substantially resolved as of
December 31, 2012. 

(c) The 2013 financial guidance reflects the benefit of a full-year contribution
from Zoetis. Adjusted(1) and Reported Diluted EPS guidance includes a $0.02
unfavorable impact for Zoetis-related interest expense and certain duplicative
and other costs given its potential separation. Reported Diluted EPS guidance
includes an additional $0.02 unfavorable impact for costs related to the
establishment of Zoetis` corporate and manufacturing support functions, and
certain other costs related to the potential separation of Zoetis from Pfizer,
including new branding, creation of a standalone infrastructure, site separation
and certain legal registration and patent assignment costs. 

(d) Includes amounts related to our initiatives to reduce R&D spending,
including our realigned R&D footprint, and amounts related to other
cost-reduction and productivity initiatives. These amounts are included in
Certain Significant Items. 

______________________________________________ 

(1) "Adjusted income" and "adjusted diluted earnings per share (EPS)" are
defined as reported U.S. generally accepted accounting principles (GAAP) net
income attributable to Pfizer Inc. and reported diluted EPS attributable to
Pfizer Inc. common shareholders excluding purchase accounting adjustments,
acquisition-related costs, discontinued operations and certain significant
items. As described under Adjusted Income in the Management`s Discussion and
Analysis of Financial Condition and Results of Operations section of Pfizer`s
Form 10-Q for the fiscal quarter ended September 30, 2012, management uses
Adjusted income, among other factors, to set performance goals and to measure
the performance of the overall company. We believe that investors` understanding
of our performance is enhanced by disclosing this measure. The Adjusted income
and Adjusted diluted EPS measures are not, and should not be viewed as
substitutes for U.S. GAAP net income and diluted EPS. 

DISCLOSURE NOTICE: The information contained in this earnings release and the
attachments is as of January 29, 2013. We assume no obligation to update
forward-looking statements contained in this earnings release and the
attachments as a result of new information or future events or developments. 

This earnings release and the attachments contain forward-looking statements
about our future operating and financial performance, business plans and
prospects, in-line products and product candidates, strategic review, capital
allocation, business development plans, and share-repurchase and dividend-rate
plans that involve substantial risks and uncertainties. You can identify these
statements by the fact that they use future dates or use words such as "will,"
"anticipate," "estimate," "expect," "project," "intend," "plan," "believe,"
"target," "forecast," "goal," "objective," "aim" and other words and terms of
similar meaning. Among the factors that could cause actual results to differ
materially from past results and future plans and projected future results are
the following:

* the outcome of research and development activities, including, without
limitation, the ability to meet anticipated clinical trial commencement and
completion dates, regulatory submission and approval dates, and launch dates for
product candidates; 
* decisions by regulatory authorities regarding whether and when to approve our
drug applications, as well as their decisions regarding labeling, ingredients
and other matters that could affect the availability or commercial potential of
our products; 
* the speed with which regulatory authorizations, pricing approvals and product
launches may be achieved; 
* the outcome of post-approval clinical trials, which could result in the loss
of marketing approval for a product or changes in the labeling for, and/or
increased or new concerns about the safety or efficacy of, a product that could
affect its availability or commercial potential; 
* the success of external business-development activities; 
* competitive developments, including the impact on our competitive position of
new product entrants, in-line branded products, generic products, private label
products and product candidates that treat diseases and conditions similar to
those treated by our in-line drugs and drug candidates; 
* the implementation by the FDA of an abbreviated legal pathway to approve
biosimilar products, which could subject our biologic products to competition
from biosimilar products in the U.S., with attendant competitive pressures,
after the expiration of any applicable exclusivity period and patent rights; 
* the ability to meet generic and branded competition after the loss of patent
protection for our products or competitor products; 
* the ability to successfully market both new and existing products domestically
and internationally; 
* difficulties or delays in manufacturing; 
* trade buying patterns; 
* the impact of existing and future legislation and regulatory provisions on
product exclusivity; 
* trends toward managed care and healthcare cost containment; 
* the impact of the U.S. Budget Control Act of 2011 (the Budget Control Act) and
the deficit-reduction actions to be taken pursuant to the Budget Control Act in
order to achieve the deficit-reduction targets provided for therein, and the
impact of any broader deficit-reduction efforts; 
* the possible failure of the federal government to increase or suspend the
federal debt ceiling and any resulting inability of the federal government to
satisfy its financial obligations, including under Medicare, Medicaid and other
publicly funded or subsidized health programs; 
* the impact of U.S. healthcare legislation enacted in 2010 -- the Patient
Protection and Affordable Care Act, as amended by the Health Care and Education
Reconciliation Act -- and of any modification or repeal of any of the provisions
thereof; 
* U.S. legislation or regulatory action affecting, among other things:
pharmaceutical product pricing, reimbursement or access, including under
Medicaid, Medicare and other publicly funded or subsidized health programs; the
importation of prescription drugs from outside the U.S. at prices that are
regulated by governments of various foreign countries; direct-to-consumer
advertising and interactions with healthcare professionals; and the use of
comparative effectiveness methodologies that could be implemented in a manner
that focuses primarily on the cost differences and minimizes the therapeutic
differences among pharmaceutical products and restricts access to innovative
medicines; 
* legislation or regulatory action in markets outside the U.S. affecting
pharmaceutical product pricing, reimbursement or access, including, in
particular, continued government-mandated price reductions for certain
biopharmaceutical products in certain European and emerging market countries; 
* the exposure of our operations outside the U.S. to possible capital and
exchange controls, expropriation and other restrictive government actions,
changes in intellectual property legal protections and remedies, as well as
political unrest and unstable governments and legal systems; 
* contingencies related to actual or alleged environmental contamination; 
* claims and concerns that may arise regarding the safety or efficacy of in-line
products and product candidates; 
* any significant breakdown, infiltration, or interruption of our information
technology systems and infrastructure; 
* legal defense costs, insurance expenses, settlement costs, the risk of an
adverse decision or settlement and the adequacy of reserves related to product
liability, patent protection, government investigations, consumer, commercial,
securities, antitrust, environmental and tax issues, ongoing efforts to explore
various means for resolving asbestos litigation, and other legal proceedings; 
* our ability to protect our patents and other intellectual property, both
domestically and internationally; 
* interest rate and foreign currency exchange rate fluctuations; 
* governmental laws and regulations affecting domestic and foreign operations,
including, without limitation, tax obligations and changes affecting the tax
treatment by the U.S. of income earned outside of the U.S. that may result from
pending and possible future proposals; 
* any significant issues involving our largest wholesaler customers, which
account for a substantial portion of our revenues; 
* the possible impact of the increased presence of counterfeit medicines in the
pharmaceutical supply chain on our revenues and on patient confidence in the
integrity of our medicines; 
* any significant issues that may arise related to the outsourcing of certain
operational and staff functions to third parties, including with regard to
quality, timeliness and compliance with applicable legal requirements and
industry standards; 
* changes in U.S. generally accepted accounting principles; 
* uncertainties related to general economic, political, business, industry,
regulatory and market conditions including, without limitation, uncertainties
related to the impact on us, our customers, suppliers and lenders and
counterparties to our foreign-exchange and interest-rate agreements of
challenging global economic conditions and recent and possible future changes in
global financial markets; and the related risk that our allowance for doubtful
accounts may not be adequate; 
* any changes in business, political and economic conditions due to actual or
threatened terrorist activity in the U. S. and other parts of the world, and
related U. S. military action overseas; 
* growth in costs and expenses; 
* changes in our product, segment and geographic mix; 
* the possibility that the potential initial public offering (IPO) of up to a
19.8% ownership stake in Zoetis Inc., for which a registration statement has
been filed with the Securities and Exchange Commission, will not be consummated
at all or within the anticipated time period or at a price within the estimated
IPO range, including as the result of regulatory, market or other factors; and,
if the IPO is consummated, the impact of the strategic alternative that we
decide to pursue with regard to our remaining ownership stake in Zoetis Inc.;
and 
* the impact of acquisitions, divestitures, restructurings, product recalls and
withdrawals and other unusual items, including our ability to realize the
projected benefits of our cost-reduction and productivity initiatives, including
those related to our research and development organization.

A further list and description of risks, uncertainties and other matters can be
found in our Annual Report on Form 10-K for the fiscal year ended December 31,
2011 and in our reports on Form 10-Q, in each case including in the sections
thereof captioned "Forward-Looking Information and Factors That May Affect
Future Results" and "Item 1A. Risk Factors", and in our reports on Form 8-K. 

This earnings release may include discussion of certain clinical studies
relating to various in-line products and/or product candidates. These studies
typically are part of a larger body of clinical data relating to such products
or product candidates, and the discussion herein should be considered in the
context of the larger body of data. 

This earnings release does not constitute an offer to sell, or a solicitation of
an offer to buy, any securities, which will be made only by prospectus.

Pfizer Inc.
Media
Joan Campion, 212-733-2798
or
Investors
Suzanne Harnett, 212-733-8009
Jennifer Davis, 212-733-0717 



Copyright Business Wire 2013

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