PFIZER REPORTS FOURTH-QUARTER AND FULL-YEAR 2019 RESULTS
January 28, 2020PROVIDES 2020 FINANCIAL GUIDANCE
-
Full-Year 2019 Revenues of $51.8 Billion, Reflecting 1% Operational Decline; Excluding the Impact from Consumer Healthcare(1), Revenues Increased 2% Operationally
– 8% Operational Growth from Biopharma, Primarily Driven by Ibrance, Eliquis, Xeljanz and Vyndaqel as well as 14% Operational Growth in Emerging Markets
– 16% Operational Decline from Upjohn, Primarily Due to U.S. Loss of Exclusivity of Lyrica in 2019
-
Fourth-Quarter 2019 Revenues of $12.7 Billion, Reflecting 8% Operational Decline; Excluding the Impact from Consumer Healthcare(1), Revenues Declined 1% Operationally
– 9% Operational Growth from Biopharma; 32% Operational Decline from Upjohn
- Full-Year 2019 Reported Diluted EPS(2) of $2.87, Adjusted Diluted EPS(3) of $2.95; Fourth-Quarter 2019 Reported LPS(2) of $0.06, Adjusted Diluted EPS(3) of $0.55
-
Provides Full-Year 2020 Financial Guidance for Total Company(4), New Pfizer(5) and Upjohn(6)
– Total Company(4) Revenue Guidance of $48.5 to $50.5 Billion, Adjusted Diluted EPS(3) of $2.82 to $2.92 (Assumes Full-Year 2020 Contribution from Biopharma and Upjohn and No 2020 Share Repurchases)
– Midpoint of New Pfizer(5) Revenue Guidance Range Implies 8% Operational Growth Compared to 2019
NEW YORK–(BUSINESS WIRE)–Pfizer Inc. (NYSE: PFE) reported financial results for fourth-quarter and full-year 2019 and provided 2020 financial guidance.
Results for the fourth quarter and the full year of 2019 and 2018(7) are summarized below.
|
OVERALL RESULTS |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
|
($ in millions, except per share amounts) |
Fourth-Quarter |
|
|
Full-Year |
||||||||||||||
|
|
2019 |
|
2018 |
|
Change |
|
|
2019 |
|
2018 |
|
Change |
||||||
|
Revenues |
$ |
12,688 |
|
$ |
13,976 |
|
(9 |
%) |
|
|
$ |
51,750 |
|
$ |
53,647 |
|
(4 |
%) |
|
Reported Net Income/(Loss)(2) |
|
(337 |
) |
|
(394 |
) |
(14 |
%) |
|
|
|
16,273 |
|
|
11,153 |
|
46 |
% |
|
Reported Diluted EPS/(LPS)(2) |
|
(0.06 |
) |
|
(0.07 |
) |
(9 |
%) |
|
|
|
2.87 |
|
|
1.87 |
|
54 |
% |
|
Adjusted Income(3) |
|
3,108 |
|
|
3,749 |
|
(17 |
%) |
|
|
|
16,733 |
|
|
17,477 |
|
(4 |
%) |
|
Adjusted Diluted EPS(3) |
|
0.55 |
|
|
0.63 |
|
(13 |
%) |
|
|
|
2.95 |
|
|
2.92 |
|
1 |
% |
|
REVENUES |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
($ in millions) |
Fourth-Quarter |
|
|
Full-Year |
||||||||||||||||||
|
|
2019 |
|
2018 |
|
% Change |
|
|
2019 |
|
2018 |
|
% Change |
||||||||||
|
|
Total |
Oper. |
|
|
Total |
Oper. |
||||||||||||||||
|
Biopharma |
$ |
10,532 |
|
$ |
9,820 |
|
7 |
% |
9 |
% |
|
|
$ |
39,419 |
|
$ |
37,558 |
|
5 |
% |
8 |
% |
|
Upjohn |
|
2,156 |
|
|
3,182 |
|
(32 |
%) |
(32 |
%) |
|
|
|
10,233 |
|
|
12,484 |
|
(18 |
%) |
(16 |
%) |
|
Consumer Healthcare(1) |
— |
|
|
974 |
|
(100 |
%) |
(100 |
%) |
|
|
|
2,098 |
|
|
3,605 |
|
(42 |
%) |
(40 |
%) |
|
|
Total Company |
$ |
12,688 |
|
$ |
13,976 |
|
(9 |
%) |
(8 |
%) |
|
|
$ |
51,750 |
|
$ |
53,647 |
|
(4 |
%) |
(1 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
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Acquisitions and the contribution of Pfizer’s Consumer Healthcare business to the GSK Consumer Healthcare joint venture (JV) that were completed during 2019 impacted financial results in the periods presented(1). Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts. References to operational variances pertain to period-over-period growth rates that exclude the impact of foreign exchange(8).
2020 FINANCIAL GUIDANCE(9)
2020 financial guidance for Total Company(4) is presented below. Total Company(4) financial guidance reflects a full year of revenue and expense contributions from Biopharma and Upjohn.
|
Revenues |
$48.5 to $50.5 billion |
|
Adjusted Cost of Sales(3) as a Percentage of Revenues |
19.9% to 20.9% |
|
Adjusted SI&A Expenses(3) |
$12.0 to $13.0 billion |
|
Adjusted R&D Expenses(3) |
$8.1 to $8.5 billion |
|
Adjusted Other (Income)/Deductions(3) |
Approximately $800 million of income |
|
Effective Tax Rate on Adjusted Income(3) |
Approximately 15.0% |
|
Adjusted Diluted EPS(3) |
$2.82 to $2.92 |
Financial guidance for Adjusted diluted EPS(3) assumes no share repurchases in 2020.
A reconciliation of Pfizer’s full-year 2019 revenues to 2019 revenues excluding the partial-year revenue contribution from the Consumer Healthcare(1) segment is presented below. Also presented below is a comparison of full-year 2019 results excluding the revenue contribution from the Consumer Healthcare(1) segment to Pfizer’s 2020 Total Company(4) financial guidance for revenues and Adjusted diluted EPS(3) at 2019 foreign exchange rates and at mid-January 2020 foreign exchange rates.
|
|
Full-Year |
2019 Revenues |
2019 Results |
2020 Financial |
Impact of Mid- |
2020 Total |
|
|
|
|
|
|
|
|
|
Revenues ($ in billions) |
$51.8 |
($2.1) |
$49.7 |
$48.7 to $50.7 |
($0.2) |
$48.5 to $50.5 |
|
Adjusted Diluted EPS(3) |
$2.95 |
— |
$2.95 |
$2.84 to $2.94 |
($0.01) |
$2.82 to $2.92 |
Upon the closing of the Consumer Healthcare JV transaction(1) in third-quarter 2019, Pfizer deconsolidated its Consumer Healthcare segment, which resulted in a shift from recording revenue and expense contributions from the Consumer Healthcare segment to Pfizer recording its pro rata share of the earnings generated by the Consumer Healthcare JV(1) in Adjusted other (income)/deductions(3) on a one-quarter lag. Therefore, full-year 2019 revenues reflect seven months of Consumer Healthcare segment domestic operations and eight months of Consumer Healthcare segment international operations. Full-year 2019 Adjusted diluted EPS(3) likewise reflects seven months of domestic segment operations and eight months of international segment operations as well as Pfizer’s pro rata share of two months of the Consumer Healthcare JV’s earnings generated in third-quarter 2019, which were recorded in Pfizer’s Adjusted other (income)/deductions(3) in fourth-quarter 2019.
2020 financial guidance for Total Company(4) Adjusted other (income)/deductions(3) and Adjusted diluted EPS(3) reflects Pfizer’s share of the JV’s earnings that were generated in fourth-quarter 2019 (to be recorded by Pfizer in first-quarter 2020) as well as Pfizer’s share of the JV’s projected earnings during the first three quarters of 2020.
Shift from Biopharma to Upjohn of Meridian Medical Technologies (Meridian) and the Pfizer-Mylan Strategic Collaboration in Japan (Mylan-Japan)(10)
Beginning in 2020, Upjohn began managing Pfizer’s Meridian subsidiary, the manufacturer of EpiPen and other auto-injector products, and the Mylan-Japan collaboration for generic drugs in Japan (established in 2012). As a result, revenues and expenses associated with Meridian and Mylan-Japan will be reported in Pfizer’s Upjohn business beginning in first-quarter 2020. In 2019, revenues from Meridian and Mylan-Japan were recorded in Pfizer’s Biopharma business and totaled $598 million, flat operationally, compared with full-year 2018.
2020 Financial Guidance for New Pfizer(5)
|
Revenues |
$40.7 to $42.3 billion |
|
Adjusted IBT Margin(11) |
Approximately 37.0% |
|
Adjusted Diluted EPS(3) |
$2.25 to $2.35 |
|
Operating Cash Flow |
$11.0 to $12.0 billion |
A reconciliation of the updated 2020 financial guidance for New Pfizer(5) to the 2020 preliminary financial targets provided in July 2019 is presented below (columns may not add due to rounding).
|
($ billions, except per share amounts and percentages) |
Financial |
Operational |
Guidance |
Impact of |
Guidance |
Impact of |
2020 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues |
Approx $40.0 |
$1.8 to $3.3 |
$41.8 to $43.3 |
($0.6) |
$41.2 to $42.7 |
($0.6) |
$40.7 to $42.3 |
|
Adjusted IBT Margin(11) |
Mid-30%s |
200 bps |
Approx 37.0% |
— |
Approx 37.0% |
— |
Approx 37.0% |
|
Adjusted Diluted EPS(3) |
— |
— |
$2.31 to $2.41 |
($0.02) |
$2.29 to $2.39 |
($0.05) |
$2.25 to $2.35 |
|
Operating Cash Flow |
$11.0 to $12.0 |
$0.4 |
$11.4 to $12.4 |
($0.2) |
$11.2 to $12.2 |
($0.2) |
$11.0 to $12.0 |
The midpoint of the revenue guidance range implies 8% volume-driven operational growth compared to full-year 2019 Biopharma revenues, adjusted to exclude the 2019 revenue contribution from Meridian and Mylan-Japan.
2020 Financial Guidance for Upjohn(6)
2020 financial guidance for Upjohn(6) now reflects the inclusion of revenues and expenses associated with Meridian and Mylan-Japan, which were previously recorded in Pfizer’s Biopharma business. Except for the shift of Meridian and Mylan-Japan from Biopharma to Upjohn, there are no operational changes to Upjohn’s 2020 financial guidance(6) compared with the preliminary financial targets that were provided in July 2019.
|
Revenues |
$8.0 to $8.5 billion |
|
Adjusted EBITDA(12) |
$3.8 to $4.2 billion |
A reconciliation of the updated 2020 financial guidance for Upjohn(6) to the 2020 preliminary financial targets provided in July 2019 is presented below (columns may not add due to rounding).
|
($ in billions) |
Financial |
Guidance |
Impact of Shift |
Guidance |
Impact of |
2020 Upjohn(6) |
|
|
|
|
|
|
|
|
|
Revenues |
$7.5 to $8.0 |
$7.5 to $8.0 |
$0.6 |
$8.1 to $8.6 |
($0.1) |
$8.0 to $8.5 |
|
Adjusted EBITDA(12) |
$3.8 to $4.1 |
$3.8 to $4.1 |
$0.1 |
$3.9 to $4.3 |
($0.1) |
$3.8 to $4.2 |
The midpoint of the revenue guidance range implies 23% operational decline compared to full-year 2019 Upjohn revenues, adjusted to include Meridian and Mylan-Japan.
CAPITAL ALLOCATION
-
During full-year 2019, Pfizer returned $16.9 billion directly to shareholders, through a combination of:
– $8.0 billion of dividends, composed of quarterly dividends of $0.36 per share of common stock; and
– $8.9 billion of share repurchases, composed of $2.1 billion of open-market share repurchases in first-quarter 2019 and a $6.8 billion accelerated share repurchase agreement executed in February 2019 and completed in August 2019.
- The full-year 2019 diluted weighted-average shares used to calculate earnings per common share was 5,675 million shares, a reduction of 302 million shares compared to full-year 2018.
-
As of January 28, 2020, Pfizer’s remaining share repurchase authorization was $5.3 billion. No share repurchases are currently planned in 2020.
EXECUTIVE COMMENTARY
Dr. Albert Bourla, Pfizer’s Chairman and Chief Executive Officer, stated, “2019 was a busy year, highlighted by solid financial performance, shareholder-friendly capital allocation, the strengthening of our pipeline as well as the formation of the Consumer Healthcare JV with GSK. We also announced a definitive agreement to combine Upjohn and Mylan to create a new global pharmaceutical company, Viatris, marking an important milestone in Pfizer’s evolution toward becoming a more focused, global leader in innovative medicines.
“2020 is expected to be an exciting year for Pfizer with the close of the Upjohn-Mylan transaction anticipated by mid-year, leaving New Pfizer positioned to deliver revenue and Adjusted diluted EPS(3) growth that is expected to be among the industry leaders. New Pfizer will be a smaller, science-based company with a singular focus on innovation while also continuing to allocate significant capital directly to shareholders, primarily through dividends.
“For New Pfizer, we expect important clinical data readouts across our early-, mid- and late-stage pipeline. In the first half of 2020, we expect to report pivotal top-line results for the JADE Compare study for abrocitinib (PF-04965842), our Janus kinase-1 (JAK1) inhibitor for moderate-to-severe atopic dermatitis (AD), for three Phase 3 trials of PF-06482077, our 20-valent pneumococcal conjugate vaccine candidate in adults aged 18 and older, and for Xeljanz in ankylosing spondylitis, in addition to the potentially registration-enabling Phase 2 ANCHOR study evaluating the combination of Braftovi, Mektovi and cetuximab for the first-line treatment of BRAFV600E-mutant metastatic colorectal cancer. We also expect data in the first half of 2020 for promising earlier-stage opportunities, including proof-of-concept readouts for PF-06939926, our mini-dystrophin gene therapy candidate for Duchenne muscular dystrophy, for PF-06928316, our prophylactic vaccine candidate for the prevention of respiratory syncytial virus infection, and for PF-06700841, an investigational topical TYK2/ JAK1 dual inhibitor for psoriasis and AD.
“In the second half of 2020, we look forward to top-line results for the Phase 3 PENELOPE-B study of Ibrance in early-stage breast cancer as well as for proof-of-concept readouts for PF-06651600, our dual JAK3/ TEC inhibitor as a potential treatment for vitiligo, for PF-06700841 for potential treatment of psoriatic arthritis (PsA), and for PF-06826647, our investigational TYK2 inhibitor for psoriasis. In addition, we now expect the Phase 3 PALLAS study of Ibrance in early-stage breast cancer to complete in early 2021. In 2020, we are focused on accelerating the pipeline and building on the business momentum that we generated in 2019,” Dr. Bourla concluded.
Frank D’Amelio, Chief Financial Officer and Executive Vice President, Business Operations and Global Supply, stated, “I am pleased with our 2019 financial results, which met or exceeded all components of our financial guidance. Our Biopharma business generated 8% operational revenue growth, driven by strong growth from Ibrance, Eliquis, Xeljanz and Vyndaqel/Vyndamax. As expected, the Upjohn business declined 16% operationally, primarily reflecting the U.S. loss of exclusivity of Lyrica in July 2019. Excluding Lyrica in the U.S. and the impact of other recent product losses of exclusivity, Upjohn revenues declined 3% operationally in 2019. We also returned $16.9 billion directly to shareholders through share repurchases and dividends, demonstrating our continued commitment to returning capital to our shareholders.
“Today we also provided 2020 financial guidance for Total Company(4), New Pfizer(5) and Upjohn(6). The midpoint of the revenue guidance range for New Pfizer(5) implies 8% operational growth and reflects anticipated continued strong growth from certain in-line brands such as Ibrance, Eliquis, Xeljanz, Xtandi and Inlyta, from recent and expected product launches such as Vyndaqel/Vyndamax, Braftovi, Mektovi and oncology biosimilars as well as from emerging markets. Since July 2019, several of the aforementioned products have performed better than we had anticipated and have generated strong momentum that we expect to continue in 2020. The midpoint of the revenue guidance range for Upjohn(6) implies a 23% operational decline, primarily reflecting expected declines for products that have recently lost marketing exclusivity and lower revenues from China due to the geographic expansion of the volume-based procurement (VBP) program to all Chinese provinces in 2020. Importantly, the financial guidance for Upjohn(6) remains unchanged on an operational basis from the preliminary financial targets that were provided in July 2019,” Mr. D’Amelio concluded.
QUARTERLY FINANCIAL HIGHLIGHTS (Fourth-Quarter 2019 vs. Fourth-Quarter 2018)
Fourth-quarter 2019 revenues totaled $12.7 billion, a decrease of $1.3 billion, or 9%, compared to the prior-year quarter, reflecting an operational decline of $1.1 billion, or 8%, as well as the unfavorable impact of foreign exchange of $158 million, or 1%.
Biopharma Revenue Highlights
Fourth-quarter 2019 Biopharma revenues totaled $10.5 billion, up 9% operationally, primarily driven by:
- Eliquis globally, up 22% operationally, primarily driven by continued increased adoption in non-valvular atrial fibrillation as well as oral anti-coagulant market share gains;
-
Vyndaqel/Vyndamax global revenues were $213 million, driven by:
– the U.S. launches of Vyndaqel in May 2019 and Vyndamax in September 2019 for the treatment of transthyretin amyloid cardiomyopathy (ATTR-CM); and
– 180% operational growth in international markets, primarily driven by the March 2019 launch of the ATTR-CM indication in Japan and continued uptake for the transthyretin amyloid polyneuropathy indication in developed Europe;
-
Ibrance globally, up 15% operationally, primarily driven by:
– 14% growth in the U.S., primarily driven by cyclin-dependent kinase (CDK) class market share growth and Ibrance’s continued CDK market share leadership in its approved metastatic breast cancer indications; and
– 17% operational growth in international markets, reflecting continued strong uptake following launches primarily in certain emerging markets;
- the Hospital business in the U.S. and emerging markets, collectively up 8% operationally, primarily driven by continued growth from anti-infective products in China as well as the November 2018 U.S. launch of Panzyga and U.S. revenue growth from Pfizer CentreOne, Pfizer’s contract manufacturing business;
- Prevenar 13 in emerging markets, up 27% operationally, primarily reflecting the overall favorable impact of timing associated with government purchases for the pediatric indication compared with the prior-year quarter, as well as continued pediatric uptake in China;
- Inlyta in the U.S., up 249%, primarily driven by increased uptake resulting from the second-quarter 2019 U.S. Food and Drug Administration (FDA) approvals for combinations of certain immune checkpoint inhibitors plus Inlyta for the first-line treatment of patients with advanced renal cell carcinoma (RCC);
-
Xeljanz globally, up 11% operationally, primarily driven by:
– 44% operational growth in international markets, reflecting continued uptake in the rheumatoid arthritis (RA) indication as well as from the recent launch of the ulcerative colitis (UC) indication in certain developed markets; and
– 1% growth in the U.S., reflecting continued volume growth from the 2018 launches of the UC and PsA offset by higher rebating from new commercial contracts; and
- Xtandi in the U.S., up 29%, primarily driven by continued uptake in the metastatic and non-metastatic castration-resistant prostate cancer indications,
partially offset primarily by lower revenues for:
- Enbrel internationally, down 18% operationally, primarily reflecting continued biosimilar competition in most developed Europe markets; and
- Prevnar 13 in the U.S., down 7%, reflecting the continued decline in revenues for the adult indication due to a declining “catch up” opportunity compared to the prior-year quarter.
Upjohn Revenue Highlights
Fourth-quarter 2019 Upjohn revenues totaled $2.2 billion, down 32% operationally, primarily driven by the expected significant volume declines for Lyrica in the U.S. due to multi-source generic competition that began in July 2019. Excluding the unfavorable impact of Lyrica in the U.S. and other recent product losses of exclusivity, fourth-quarter 2019 revenues for Upjohn declined 6% operationally.
Fourth-quarter 2019 Upjohn revenues in China declined 1% operationally, primarily driven by declines for Lipitor and Norvasc in provinces where the VBP program has been implemented, partially offset by products not impacted by the VBP implementation, including Celebrex and Viagra, as well as operational growth from Lipitor and Norvasc in provinces were VBP had not been implemented.
GAAP Reported(2) Income Statement Highlights
|
SELECTED TOTAL COMPANY REPORTED COSTS AND EXPENSES(2) |
||||||||||||||||||
|
($ in millions) |
Fourth-Quarter |
|
|
Full-Year |
||||||||||||||
|
|
|
2019 |
|
|
2018 |
|
% Change |
|
|
|
2019 |
|
|
2018 |
|
% Change |
||
|
|
Total |
Oper. |
|
|
Total |
Oper. |
||||||||||||
|
Cost of Sales(2) |
$ |
2,608 |
|
$ |
3,075 |
|
(15%) |
(17%) |
|
|
$ |
10,219 |
|
$ |
11,248 |
|
(9%) |
(7%) |
|
Percent of Revenues |
|
20.6 |
% |
|
22.0 |
% |
N/A |
N/A |
|
|
|
19.7 |
% |
|
21.0 |
% |
N/A |
N/A |
|
SI&A Expenses(2) |
|
4,240 |
|
|
4,007 |
|
6% |
7% |
|
|
|
14,350 |
|
|
14,455 |
|
(1%) |
1% |
|
R&D Expenses(2) |
|
2,822 |
|
|
2,457 |
|
15% |
15% |
|
|
|
8,650 |
|
|
8,006 |
|
8% |
9% |
|
Total |
$ |
9,670 |
|
$ |
9,539 |
|
1% |
1% |
|
|
$ |
33,218 |
|
$ |
33,709 |
|
(1%) |
— |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
(Gain) on Completion of Consumer Healthcare JV Transaction(1) |
|
1 |
|
— |
|
* |
* |
|
|
|
($8,086 |
) |
— |
|
* |
* |
||
|
Other (Income)/Deductions––net(2) |
|
3,041 |
|
|
3,259 |
|
(7%) |
(6%) |
|
|
|
3,578 |
|
|
2,116 |
|
69% |
73% |
|
Effective Tax Rate on Reported Income(2) |
* |
* |
|
|
|
|
|
7.8 |
% |
|
5.9 |
% |
|
|
||||
* Indicates calculation not meaningful.
Fourth-quarter and full-year 2019 Cost of Sales(2), SI&A Expenses(2) and R&D Expenses(2) were favorably impacted by the July 31, 2019 completion of the Consumer Healthcare JV transaction with GSK(1).
Pfizer recorded lower other deductions––net(2) in fourth-quarter 2019 compared with the prior-year quarter, primarily driven by:
- lower asset impairment charges of $2.7 billion in fourth-quarter 2019, primarily related to Eucrisa, which was acquired in connection with Pfizer’s 2016 acquisition of Anacor Pharmaceuticals, Inc., compared to asset impairment charges of $3.1 billion in fourth-quarter 2018, primarily associated with generic sterile injectable products acquired in connection with Pfizer’s 2015 acquisition of Hospira, Inc.;
- higher net gains on investments in equity securities;
- lower business and legal entity alignment costs; and
- lower net realized losses on sales of investments in debt securities,
partially offset primarily by:
- higher charges for certain legal matters;
- higher pension and other post-retirement benefit costs; and
- higher net interest expense.
Pfizer’s effective tax rate on Reported income(2) for fourth-quarter 2019 compared to the prior-year quarter was favorably impacted primarily by:
- benefits related to certain tax initiatives associated with the implementation of our new organizational structure; and
- a favorable change in the jurisdictional mix of earnings as a result of operating fluctuations in the normal course of business,
partially offset primarily by:
- a decrease in tax benefits associated with the resolution of certain tax positions pertaining to prior years primarily with various foreign tax authorities; and
- the non-recurrence of certain tax initiatives and favorable adjustments recorded in 2018 to the provisional estimate of the legislation in the U.S. commonly referred to as the Tax Cuts and Jobs Act.
In addition to the aforementioned factors impacting Pfizer’s effective tax rate on Reported income(2) for fourth-quarter 2019, Pfizer’s full-year 2019 effective tax rate on Reported income(2) compared to the prior year was impacted primarily by:
- a tax benefit related to the settlement of a U.S. Internal Revenue Service audit for multiple tax years,
partially offset primarily by:
- the tax expense associated with the $8.1 billion pre-tax gain recorded in third-quarter 2019 related to the completion of the Consumer Healthcare JV transaction with GSK(1).
Adjusted(3) Income Statement Highlights
|
SELECTED TOTAL COMPANY ADJUSTED COSTS AND EXPENSES(3) |
||||||||||||||
|
($ in millions) |
Fourth-Quarter |
|
|
Full-Year |
||||||||||
|
|
2019 |
2018 |
% Change |
|
|
2019 |
2018 |
% Change |
||||||
|
|
Total |
Oper. |
|
|
Total |
Oper. |
||||||||
|
Adjusted Cost of Sales(3) |
$ 2,600 |
|
$ 3,044 |
|
(15%) |
(17%) |
|
|
$ 10,030 |
|
$ 11,130 |
|
(10%) |
(7%) |
|
Percent of Revenues |
20.5 |
% |
21.8 |
% |
N/A |
N/A |
|
|
19.4 |
% |
20.7 |
% |
N/A |
N/A |
|
Adjusted SI&A Expenses(3) |
4,070 |
|
3,968 |
|
3% |
4% |
|
|
14,041 |
|
14,232 |
|
(1%) |
1% |
|
Adjusted R&D Expenses(3) |
2,530 |
|
2,436 |
|
4% |
4% |
|
|
7,988 |
|
7,962 |
|
— |
1% |
|
Total |
$ 9,200 |
|
$ 9,448 |
|
(3%) |
(3%) |
|
|
$ 32,059 |
|
$ 33,325 |
|
(4%) |
(2%) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Adjusted Other (Income)/Deductions––net(3) |
($97 |
) |
$15 |
|
* |
* |
|
|
($300 |
) |
($667 |
) |
(55%) |
(67%) |
|
Effective Tax Rate on Adjusted Income(3) |
11.3 |
% |
15.4 |
% |
|
|
|
|
15.0 |
% |
15.4 |
% |
|
|
Fourth-quarter 2019 diluted weighted-average shares outstanding used to calculate Adjusted(3) diluted EPS declined by 281 million shares compared to the prior-year quarter primarily due to Pfizer’s share repurchase program, reflecting the impact of share repurchases during 2018 and 2019, partially offset by dilution related to share-based employee compensation programs.
Contacts
Media
Patricia Kelly
212.733.3810
Investors
Chuck Triano
212.733.3901
Ryan Crowe
212.733.8160
Bryan Dunn
212.733.8917