Filed by Pfizer Inc.
pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant Rule 14a-12
of the Securities Exchange Act of 1934
Commission File No: 001-02516
Subject Company: Pharmacia Corp.
The following press release was issued today:
For immediate release: Contact: Andy McCormick
October 16, 2002 212-573-1226
PFIZER ANNOUNCES STRONG THIRD-QUARTER 2002 RESULTS,
REAFFIRMS POSITIVE OUTLOOK FOR FULL-YEAR 2002 AND BEYOND
THIRD-QUARTER NET INCOME UP 12 PERCENT TO $2.452 BILLION, DILUTED
EPS UP 15 PERCENT TO $.39, BOTH FROM CONTINUING OPERATIONS
EXCLUDING CERTAIN SIGNIFICANT ITEMS AND MERGER-RELATED COSTS
FULL-YEAR 2002 DILUTED EPS FORECAST OF $1.58 (21 PERCENT GROWTH),
ON SAME BASIS, IS RECONFIRMED
INTEGRATION PLANNING AND REGULATORY REVIEWS OF PHARMACIA
ACQUISITION PROCEEDING WELL; CLOSING BY YEAR-END STILL TARGETED
REPORTED THIRD-QUARTER NET INCOME INCREASED 13 PERCENT TO $2.350
BILLION AND REPORTED DILUTED EPS UP 15 PERCENT TO $.38
NEW YORK, October 16 - Pfizer Inc said today that third-quarter net income
increased by 12 percent to $2.452 billion and diluted earnings per share (EPS)
increased by 15 percent to $.39, both from continuing operations excluding
certain significant items and merger-related costs.
Reported net income in the quarter increased 13 percent to $2.350 billion, and
reported diluted EPS increased 15 percent to $.38. Included in these numbers are
certain significant items and merger-related costs, which are detailed in the
attached financial schedules and supplemental information.
"Pfizer continues to differentiate itself within the pharmaceutical industry by
the strength, quality, and consistency of our performance and by our solid
prospects for 2002 and beyond," said Hank McKinnell, chairman and chief
executive officer. "We are delivering strong current product growth, new product
introductions and enhancements, and increased operational efficiencies."
"Our capabilities will be expanded by the planned acquisition of Pharmacia
Corporation, which is targeted for completion by year-end," Dr. McKinnell
continued. "Teams from both companies have been working on transition planning,
including the identification of growth opportunities and cost synergies.
Regulatory reviews are proceeding well. Together, our operational and financial
strengths will offer expanded opportunities to improve the health of people
worldwide."
Revenues of $8.725 billion in the third quarter of 2002 were up 12 percent,
compared to the third quarter of 2001, paced by human pharmaceutical revenues of
$7.058 billion in the quarter, which grew 13 percent. Eleven products --
Lipitor, Norvasc, Neurontin, Viagra, Zoloft, Celebrex, Bextra, Geodon, Aricept,
Zyrtec, and Diflucan -- representing 82 percent of Pfizer's human pharmaceutical
revenues grew a combined 17 percent.
"The strong third-quarter growth of our pharmaceutical business was driven by
the breadth and depth of our product portfolio as well as the performance of our
operations within and across markets around the world," said Karen Katen,
executive vice president of the Company and president of the Pfizer
Pharmaceuticals Group.
"Today, the Pfizer logo appears on eight of the world's 30 largest-selling
medicines, more than any other company. Nine products are expected to contribute
more than $1 billion in 2002 Pfizer revenues, including four with more than $2
billion, two with more than $3 billion, and one with more than $7 billion.
The strong performance of these and other products generated the double-digit
operational revenue growth achieved in the U.S. and other major markets around
the world this quarter."
Human pharmaceutical product performance and regulatory highlights since the end
of the second quarter include the following:
- Last week, the independent steering committee of a major clinical
trial involving Lipitor announced its decision to stop the Lipitor
portion of the trial earlier than expected because initial results
showed patients receiving Lipitor had significantly fewer fatal and
non-fatal heart attacks as well as strokes.
- Celebrex and Bextra, Pfizer and Pharmacia's COX-2-specific inhibitors
for arthritis and pain, extended their lead over competitors. Celebrex
and Bextra together accounted for 24.3 percent of audited monthly new
prescriptions among U.S. non-steroidal anti-inflammatory drugs in
August. The rapid acceptance of Bextra by physicians and patients is
fueling this growth, with a 7.5 percent share of monthly new
prescriptions in August. In July, Bextra was recommended for approval
by the regulatory authorities in Europe.
- In August, the FDA approved enhanced labeling making Zoloft the only
selective serotonin reuptake inhibitor (SSRI) indicated for long-term
maintenance treatment (up to 25 months) of previously indicated anxiety
disorders, i.e., panic disorder and obsessive/compulsive disorder. With
its recent approval for the treatment of premenstrual dysphoric
disorder, Zoloft is the only SSRI in the U.S. indicated for six mood
and anxiety disorders, further underscoring the unsurpassed versatility
and effectiveness of this innovative medicine.
- Spiriva is the first once-a-day inhaled bronchodilator treatment for
chronic obstructive pulmonary disease. Spiriva was discovered and
developed by Boehringer Ingelheim (BI) and will be co-promoted
worldwide by BI and Pfizer. Spiriva has now been launched in ten
countries, including Germany and the U.K. In September, an FDA advisory
committee recommended U.S. approval of Spiriva.
- Viagra, for erectile dysfunction, achieved its highest U.S. monthly
total prescription level ever in August, with 1.38 million
prescriptions, a 13 percent increase over the same month last year.
Worldwide, 20 million men have received a Viagra prescription since its
launch in 1998.
- Geodon, Pfizer's novel antipsychotic therapy for the treatment of
schizophrenia, continued to demonstrate its efficacy and safety to
physicians worldwide. Pfizer has launched Geodon in 24 countries, with
additional launches of Geodon capsules or Geodon for injection expected
in 15 countries later this year or in early 2003. More than 250,000
patients worldwide have now received Geodon, which is the only atypical
antipsychotic medicine approved in the U.S. and seven European
countries for intramuscular use.
- Vfend was launched in the United States in August and in six European
countries in September. Vfend is an important new treatment for acute
invasive aspergillosis and other rare, but serious, fungal infections.
Currently, Pfizer is in the process of rolling out six new products that were
recently approved in the U.S. and/or the European Union: Vfend, Geodon, Bextra
(discovered and developed by Pharmacia), Spiriva (discovered and developed by
Boehringer Ingelheim), Relpax, and Rebif (discovered and developed by Serono).
Pfizer anticipates completing regulatory filings in 2002 for the dual therapy
agent combining Lipitor and Norvasc, the world's leading cholesterol-lowering
and antihypertensive medicines, and for the use of darifenacin in treating
overactive bladder. The Company expects to complete regulatory filings in 2003
for the use of pregabalin in neuropathic pain, epilepsy, and generalized anxiety
disorder. Advanced-stage clinical studies are continuing for several agents,
including capravirine for HIV/AIDS, lasofoxifene for osteoporosis and other
indications, and Exubera, an inhalable form of insulin under co-development,
co-manufacture, and co-marketing with Aventis, with the participation of Inhale
Therapeutic Systems.
Pfizer's strong flow of new human pharmaceutical products is supported by an R&D
pipeline that contains 64 major new product enhancements plus 87 new molecular
entities in development, for a total of 151 ongoing projects.
Animal Health sales in the third quarter increased 10 percent to $280 million,
compared to the same period in 2001. This solid performance was led by the
strong growth of our companion-animal products Revolution, Rimadyl, and
Clavamox/Synulox and of our livestock medicine RespiSure/Stellamune.
Sales of Pfizer's Consumer businesses in the third quarter grew 3 percent to
$1.278 billion, compared to the same period in 2001. Sales of Consumer
Healthcare products grew 6 percent to $609 million. This growth reflects strong
acceptance of Listerine mouthwash as well as the continued success of Listerine
PocketPaks. In the Adams confectionery business, sales in the quarter remained
unchanged at $457 million. Shaving product sales increased 1 percent to $164
million. Sales of Tetra products were up 5 percent to $48 million. As previously
announced, the Company is exploring strategic options, including possible sale,
for Tetra, Adams, and the Schick-Wilkinson Sword shaving products businesses.
"In the third quarter, Pfizer's operating results were strong and balanced --
with total revenues up 12 percent and diluted EPS from continuing operations,
excluding certain significant items and merger-related costs, up 15 percent,"
said David Shedlarz, executive vice president and chief financial officer of the
Company. "We are especially pleased with the quality of earnings growth given
the impact associated with the unusually low level of operating expenses in the
third quarter of last year and the negative impact of foreign exchange. Although
changes in foreign currency rates favorably impacted third-quarter total revenue
growth by 2 percent, or $133 million, the effect on earnings was unfavorable,
due principally to its significant negative impact on cost of sales.
"Looking forward, we expect strong fourth-quarter diluted EPS of $.47, up 38
percent, from continuing operations excluding certain significant items and
merger-related costs. This growth reflects continuing double-digit revenue
growth, at current exchange rates, as well as a favorable comparison with the
unusually high expense level of the fourth quarter of 2001.
"As a result, for full-year 2002, we continue to expect diluted EPS -- from
continuing operations excluding the cumulative effect of a change in accounting
principle, certain significant items, and merger-related costs -- of $1.58, up
21 percent," Mr. Shedlarz noted. "Moreover, we anticipate double-digit full-year
2002 revenue growth at current exchange rates, margin improvements, and
continuing investments in product support and in R&D, which is expected to be
about $5.2 billion for the year.
"We also continue to expect that the Pfizer-Pharmacia combination will be
non-dilutive to Adjusted Diluted Earnings Per Share in 2003 and $0.06 accretive
in 2004," Mr. Shedlarz concluded.
(Adjusted Diluted Earnings Per Share, which is defined more completely in the
attached supplemental information, excludes the cumulative effect of a change in
accounting principle, certain significant items, the effects of purchase-price
accounting allocations on assets, and merger-related costs.)
"Our strong quarter reflects Pfizer's sustained leadership in the global
pharmaceutical industry," said Dr. McKinnell. "It also attests to our potential
to do more good for more people than any other company.
"We remain committed to meeting the needs of patients worldwide through our
current pharmaceutical products and an R&D pipeline of unprecedented breadth and
depth. Working with partners such as the United Nations, the World Health
Organization, and the National Governors Association, we have developed
innovative outreach programs that make Pfizer medicines available to millions of
needy people at either low or no cost.
"We work tirelessly to find cures for the most debilitating diseases. Saving
lives is our business, and we at Pfizer are proud of it. By continuing to do so,
we advance our mission of becoming the world's most valued company to patients,
customers, colleagues, investors, business partners, and the communities where
we work and live."
DISCLOSURE NOTICE: The information contained in this document is as of October
16, 2002. The Company assumes no obligation to update any forward-looking
statements contained in this document as a result of new information or future
events or developments.
This document and the attachments contain forward-looking information about the
Company's financial results and estimates, business prospects, and products in
research that involve substantial risks and uncertainties. You can identify
these statements by the fact that they use words such as "anticipate,"
"estimate," "expect," "project," "intend," "plan," "believe," and other words
and terms of similar meaning in connection with any discussion of future
operating or financial performance. Among the factors that could cause actual
results to differ materially are the following: the success of research and
development activities and the speed with which regulatory authorizations and
product launches may be achieved; competitive developments affecting our current
growth products; the ability to successfully market both new and existing
products domestically and internationally; difficulties or delays in
manufacturing; trade buying patterns; ability to meet generic and branded
competition after the expiration of the Company's patents; trends toward managed
care and health-care cost containment; possible U.S. legislation affecting
pharmaceutical pricing and reimbursement or Medicare; exposure to product
liability and other types of lawsuits; contingencies related to actual or
alleged environmental contamination; the Company's ability to protect its
intellectual property both domestically and internationally; interest rate and
foreign currency exchange rate fluctuations; governmental laws and regulations
affecting domestic and foreign operations, including tax obligations; changes in
generally accepted accounting principles; any changes in business, political,
and economic conditions due to the threat of future 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 mix; and the impact of
acquisitions, divestitures, restructurings, product withdrawals, and other
unusual items, including our ability to obtain the anticipated results and
synergies from our announced proposed acquisition of Pharmacia and the increased
uncertainty created by the integration of the two businesses, as well as the
timing and success of the announced exploration of strategic options of the
Adams, Schick-Wilkinson Sword, and Tetra businesses. A further list and
description of these risks, uncertainties, and other matters can be found in the
Company's Annual Report on Form 10-K for the fiscal year ended December 31,
2001, and in its periodic reports on Forms 10-Q and 8-K (if any).
PFIZER INC
SUPPLEMENTAL INFORMATION
SHARES OUTSTANDING AND REPORTED EPS INFORMATION: YTD02 YTD01
----- -----
Shares Outstanding (millions) - Basic EPS 6,172.3 6,246.1
Basic EPS $ 1.02 $ .93
Basic EPS From Continuing Operations Excluding the Cumulative Effect
of a Change in Accounting Principle, Certain Significant Items, and
Merger-Related Costs $ 1.13 $ .99
Shares Outstanding (millions) - Diluted EPS 6,262.2 6,372.0
Diluted EPS $ 1.00 $ .92
Diluted EPS From Continuing Operations Excluding the Cumulative Effect
of a Change in Accounting Principle, Certain Significant Items, and
Merger-Related Costs $ 1.11 $ .97
QUESTIONS:
Q1) WHAT IS PFIZER'S FINANCIAL OUTLOOK FOR THE REMAINDER OF 2002 AND FOR 2003
AND 2004?
A1) Looking forward, we expect strong fourth-quarter diluted EPS from
continuing operations, excluding certain significant items and
merger-related costs, of $.47, up 38%. This growth reflects continuing
double-digit revenue growth, at current exchange rates, as well as a
favorable comparison with the unusually high expense level of the fourth
quarter of 2001.
As a result, for full-year 2002 we continue to expect diluted EPS from
continuing operations, excluding the cumulative effect of a change in
accounting principle, certain significant items, and merger-related costs,
of $1.58, up 21%. Moreover, we anticipate double-digit full-year 2002
revenue growth at current exchange rates, margin improvements, and
continuing investments in product support and in R&D, which is expected to
be about $5.2 billion for the year.
We also continue to expect that, as described and defined in A2 below, the
Pfizer-Pharmacia combination will be non-dilutive to Adjusted Diluted
Earnings Per Share in 2003 and $0.06 accretive in 2004.
Q2) HOW WILL PFIZER COMPUTE ADJUSTED EARNINGS AND EPS FOR THE COMBINED
PFIZER-PHARMACIA ENTITY?
A2) Pfizer uses Adjusted Earnings to characterize the anticipated performance
of the Pfizer-Pharmacia entity. Forecasted Adjusted Earnings is reconciled
from net income under accounting principles generally accepted in the
United States as follows:
($ billions) 2002 2003 2004
---- ---- ----
Forecasted GAAP net income (loss) ($5.8) $10.5 $13.1
+ Discontinued operations - Monsanto (net of tax) 1.0
- Extraordinary item - gain on sale of investment (net of tax) (0.6)
+ Cumulative effect of change in accounting principle (net of tax) 1.9
+ Certain significant items
- Merger-related costs in connection with the Warner-
Lambert merger 0.3 0.1 ---
- Gain on transfer of Ambien to Sanofi-Synthelabo (0.4)
+ Effect of purchase-price allocations on assets
- Write-off of in-process research and development 13.0
- Amortization of identifiable intangibles 1.5 1.5 1.5
- Write-up of assets to fair market value 1.0
+ Merger-related costs in connection with Pharmacia merger
(net of tax)
- Integration expenses --- 0.7 0.4
- Restructuring charges --- 0.8 0.4
Cost savings less incremental interest on additional borrowings for share
buy-back and restructuring costs (net of tax) --- 0.8 1.3
----- ----- -----
= ADJUSTED EARNINGS WITH 2003/2004 COST SAVINGS
(NET OF TAX) $11.9 $14.4 $16.7
----- ----- -----
Adjusted Diluted Earnings Per Share is calculated by dividing Adjusted
Earnings by weighted average diluted common shares outstanding.
Q3) WHAT SIGNIFICANT ADVANCES WERE ACHIEVED BY PFIZER'S PRODUCT PORTFOLIO
SINCE THE SECOND QUARTER?
A3) Pfizer had several events that will enhance sales of existing products and
strengthen the future product portfolio:
- Favorable results from the ASCOT trial, which showed that Lipitor
provided a significant benefit in reducing fatal and non-fatal heart
attacks and strokes in hypertensive patients
- Continued market share growth of the COX-2 franchise, which
accounted for 24.3% of audited monthly new prescriptions among U.S.
NSAIDs in August
- Recommendation for approval of Bextra by the regulatory authorities
in Europe in July
- Approval of enhanced labeling for Zoloft in the U.S. for long-term
maintenance treatment (up to 25 months) of panic disorder and
obsessive/compulsive disorder
- Continued rollout of Spiriva in new markets, including the U.K. in
the third quarter, and recommendation for approval by an FDA
advisory committee in September
- A record total prescription level for Viagra in the U.S.
- Launch of the intramuscular form of Geodon in the U.S.
- Launch of Vfend in the U.S. and Europe
Q4) WHAT IS THE STATUS OF PFIZER'S PRODUCTS THAT WERE RECENTLY APPROVED OR ARE
UNDERGOING REGULATORY REVIEW?
A4) Pfizer is in the process of rolling out six new products that were
recently approved in the U.S. and/or the E.U.:
- Vfend, a new oral and intravenous antifungal, was launched in the
U.S. in August 2002 and in Europe in September 2002.
- Geodon, a new antipsychotic, was launched in the U.S. in the first
quarter of 2001. Geodon has been approved in several major European
countries and was launched in Germany in May 2002, with further
launches to occur throughout 2002. Geodon intramuscular (IM) form
was approved in June 2002 by the FDA, making it the first atypical
antipsychotic approved in the U.S. for intramuscular use. The U.S.
launch of Geodon IM in September 2002 provides the opportunity for
continuity of care, allowing patients to begin treatment on the
intramuscular form and to progress to the oral formulation.
- Bextra (discovered and developed by Pharmacia Corporation), a new
selective COX-2 inhibitor for osteoarthritis, rheumatoid arthritis,
and primary dysmenorrhea, was launched in April in the U.S. by over
6,000 Pfizer and Pharmacia sales representatives. Bextra achieved a
7.5% share of U.S. new prescriptions of NSAIDs in August. Bextra was
recommended for approval by the regulatory authorities in Europe in
July.
- Spiriva is a muscarinic M3 antagonist for chronic obstructive
pulmonary disease (COPD) discovered and developed by Boehringer
Ingelheim and co-promoted by Boehringer Ingelheim and Pfizer.
Spiriva was approved by regulatory authorities in Europe in April
2002. The product has now been launched in ten countries, including
Germany and the U.K. In September 2002, an advisory committee to the
FDA recommended that Spiriva be approved for the long-term,
once-daily maintenance treatment of bronchospasm associated with
COPD.
- Relpax, a triptan for migraine, has been launched in the U.K.,
Italy, Japan, and other markets. In the U.S., Pfizer completed a
cardiovascular physiology study requested by the FDA in their
approvable letter of December 2000 and submitted the data to the FDA
in June 2002. We anticipate FDA approval by year-end 2002 and U.S.
launch soon thereafter.
- Pfizer sales representatives in the U.S. have begun detailing the
multiple sclerosis drug Rebif (interferon beta 1-a). Pfizer is
co-promoting the product with Serono, the company that developed
Rebif.
Q5) WHAT FACTORS CONTRIBUTED TO PFIZER'S STRONG PERFORMANCE IN THE THIRD
QUARTER?
A5) In the quarter, Pfizer continued to distinguish itself within the
worldwide pharmaceutical industry by its strong financial performance.
The company achieved revenue growth of 12%, driven by strong demand for
both in-line and newly launched products across major businesses and
regions, as well as favorable exchange effects. Revenue growth in
Pfizer's human pharmaceutical, animal health, and consumer healthcare
businesses was 13%, 10%, and 6%, respectively. Double-digit revenue
growth was achieved in both U.S. (+10%) and overseas (+13%)
operations. Net income and diluted earnings per share increased 12%
and 15% (from continuing operations excluding certain significant items
and merger-related costs) despite negative impacts associated with the
pattern of operating expenses in 2001 and foreign exchange. Although
changes in foreign currency rates favorably impacted total revenues by
2%, or $133 million, the effect on earnings was unfavorable,
principally due to the significant negative impact on cost of sales.
Q6) WHAT FACTORS CONTRIBUTED TO THE STRONG PERFORMANCE OF PFIZER'S
PHARMACEUTICAL BUSINESS IN THE THIRD QUARTER?
A6) Pfizer's human pharmaceutical business grew 13% in the third quarter,
strong growth that was broad-based and balanced between U.S. (+12%) and
overseas (+16%) operations. Pfizer's sales grew faster than the
overall market in nine of the ten largest countries. Eleven products
-- Lipitor, Norvasc, Neurontin, Viagra, Zoloft, Celebrex, Bextra,
Geodon, Aricept, Zyrtec, and Diflucan -- representing 82% of Pfizer's
human pharmaceutical revenues grew a combined 17%. Eight products are
worldwide category leaders. Nine products are expected to achieve more
than $1 billion in 2002 Pfizer revenues, including four with more than
$2 billion, two with more than $3 billion, and one with more than $7
billion.
Q7) WHAT IS THE STATUS OF THE PHARMACIA ACQUISITION?
A7) On September 3, 2002, Pfizer filed the required notification and report
forms under the Hart-Scott-Rodino Antitrust Improvements Act with the
Federal Trade Commission (FTC). As expected, on October 3, 2002,
Pfizer received a Request for Additional Information (Second Request)
from the FTC in connection with the Pharmacia transaction. We continue
to cooperate fully with the FTC and, given the nature of the inquiries,
we should be able to address their questions promptly. We intend to
seek regulatory approval for the merger from the European Commission
shortly. Pfizer has scheduled a shareholder meeting in Wilmington,
Delaware, on December 6 to discuss and vote on the proposed
acquisition. Pfizer continues to target regulatory approvals and
closing of the Pharmacia acquisition by year-end.
Pfizer has made significant progress in transition planning, with various
teams and more than 700 colleagues engaged in the process across all
business divisions and functions on a global basis. These teams include
both Pfizer and Pharmacia personnel.
Q8) WHAT WAS THE IMPACT ON PFIZER'S REVENUES FROM VOLUME, PRICE CHANGES, THE
EFFECTS OF FOREIGN EXCHANGE, AND THE 2001 ACCOUNTING HARMONIZATION?
A8) Third Quarter YTD
------------- ---
Volume 9.5% 9.3%
Price 0.3% 1.4%
---- ----
Revenue Growth Excluding Accounting Harmonization
and Foreign Exchange 9.8% 10.7%
Foreign Exchange 1.7% (0.6%)
---- ----
Revenue Growth Excluding Accounting Harmonization 11.5% 10.1%
Accounting Harmonization 0.0% (0.8%)
---- ----
Total Reported Revenue Growth 11.5% 9.3%
---- ----
Changes in foreign exchange rates had a positive effect on revenues in the
third quarter of $133 million, or 1.7%, primarily due to the weakening of
the dollar relative to the Japanese yen, the euro, and the British pound.
Q9) HOW HAVE SALES OF LIPITOR PROGRESSED?
A9) Worldwide sales of Lipitor increased to $2.020 billion in the third
quarter, growth of 22% compared to the same period in 2001. Lipitor is
the most widely prescribed statin for lowering cholesterol and the most
widely prescribed pharmaceutical product of any kind in the world.
Lipitor has gained wide physician and patient acceptance based on its
ability to bring the
vast majority of patients to target cholesterol goals across the full
dosing range. The safety profile and efficacy of Lipitor have been
demonstrated in more than 400 ongoing and completed clinical trials
involving over 80,000 patients and in more than 36 million patient years
of therapy.
Last week, Pfizer announced that initial results from the
Anglo-Scandinavian Cardiac Outcomes Trial (ASCOT) showed that Lipitor
provided a significant benefit in reducing fatal and non-fatal heart
attacks as well as strokes. The study, which involved nearly 20,000
patients with high blood pressure and at least three other cardiovascular
risk factors, was designed to compare the effects of newer
antihypertensive medicines with standard therapies in reducing cardiac
events. As a result of a significant benefit demonstrated by Lipitor, the
independent ASCOT steering committee decided to stop the Lipitor portion
of the study earlier than expected. Final results of the Lipitor portion
of the study will be made public when available. We will reinforce
Lipitor's already vast clinical database by studying this best-in-class
therapy in a large program of additional clinical trials.
Beyond Lipitor's current leadership, there is a significant opportunity
for further growth, primarily through expansion of the statin market. It
is estimated that 54 million Americans are in need of medical therapy for
high cholesterol, but less than one-third of these people are actually
receiving treatment. Up to 150 million people worldwide with high
cholesterol are either not diagnosed or not meeting their cholesterol
goals with treatment.
Q10) WHAT WAS THE REASON FOR THE CONTINUED SALES GROWTH OF NORVASC?
A10) Norvasc, the most-prescribed cardiovascular agent worldwide with nearly 27
billion patient days of therapy, showed global revenue growth of 9% in the
third quarter of 2002 to $963 million, compared to the same period in
2001. The global sales of Norvasc continued to grow at a rate higher than
the cardiovascular market (11% growth in sales for Norvasc versus 9% for
the market according to audited data for the most recent twelve-month
period). Its success has been driven by its outstanding efficacy,
once-daily dosing, consistent 24-hour control of hypertension and angina,
and excellent safety and tolerability.
Norvasc is one of the treatment arms in the Antihypertensive and
Lipid-Lowering Treatment to Prevent Heart Attack Trial (ALLHAT), an
NIH-sponsored landmark hypertension trial that compares the benefits of
newer versus older antihypertensive agents on fatal and nonfatal
myocardial infarction in more than 42,000 patients. The study is also
investigating a number of other outcomes, including stroke, all types of
death, and combined cardiovascular events, including heart failure. ALLHAT
was
completed in March 2002, and results are expected to be announced in
December 2002.
Q11) WHAT IS THE STATUS OF LIPITOR/NORVASC DUAL THERAPY?
A11) We expect the Lipitor/Norvasc dual therapy for patients with both high
cholesterol and high blood pressure to be filed by year-end 2002 and to be
available to patients by 2004.
Q12) HOW IS CELEBREX PERFORMING?
A12) Celebrex is the #1 branded NSAID and the #1 COX-2-specific inhibitor in
the world. Pfizer and Pharmacia Corporation, the company that discovered
and developed Celebrex, co-promote this product in more than 60 countries.
In the countries where Pfizer and Pharmacia co-promote Celebrex, Pharmacia
records sales and Pfizer records a portion of revenue as alliance revenue.
In certain other countries, Pfizer directly records sales of the product.
The product provides relief of a variety of painful conditions, including
the pain and inflammation of osteoarthritis (OA), adult rheumatoid
arthritis (RA), acute pain, and primary dysmenorrhea in adults. In
addition, Celebrex is approved to reduce the number of adenomatous
colorectal polyps in familial adenomatous polyposis (FAP) -- a rare and
devastating genetic disease that may result in colorectal cancer -- as an
adjunct to usual care. Celebrex provides strong efficacy, excellent
tolerability, and a proven safety profile. With the recent approval for
acute pain and primary dysmenorrhea in the U.S., Celebrex is now the
COX-2-specific inhibitor approved to treat the broadest range of
conditions.
The Celebrex launch remains the most successful of any drug in the history
of the pharmaceutical industry. Celebrex is currently receiving more than
2.1 million total prescriptions a month in the U.S., which makes it the #1
prescribed arthritis brand in that market. Year-to-date through August
2002, about 17.6 million U.S. total prescriptions had been written for
Celebrex, about 17% more than for Vioxx, another COX-2-specific inhibitor.
Since launch, more than 35 million patients have been prescribed Celebrex
globally. Outside the U.S., Celebrex continues to outpace the overall
anti-arthritic market. It is the #1 selective COX-2 inhibitor in Europe on
a unit basis.
Two articles appeared in the September 21 issue of the British Medical
Journal. In the first paper, "Efficacy, Tolerability, and Upper GI Safety
of Celecoxib for Treatment of OA and RA; Systematic Review of Randomised
Controlled Studies," the authors concluded, "the meta-analysis provides
strong, broad evidence of the effectiveness of Celebrex in treating OA
and RA, being equivalent to NSAIDs. However, the tolerability and GI
safety of Celebrex [are] substantially superior." In the second article,
"Observational Study of Upper GI Haemorrhage in Elderly Patients Given
Selective COX-2 Inhibitors or Conventional NSAIDs," the authors noted that
"this population-based observational study found a lower short-term risk
of upper GI haemorrhage for selective COX-2 inhibitors compared with
non-selective NSAIDs."
Q13) HOW IS BEXTRA PERFORMING?
A13) Bextra was launched in the U.S. in April 2002 for the relief of pain and
inflammation of osteoarthritis (OA), adult rheumatoid arthritis (RA), and
primary dysmenorrhea. Since the launch of Bextra earlier this year, U.S.
physicians have dispensed more than 2.3 million prescriptions to an
estimated 800,000 arthritis and dysmenorrhea patients. Bextra has already
achieved a 7.5% share of new prescriptions of the NSAID market, and
Celebrex and Bextra together achieved new prescription share of 24.3% as
of August. Pfizer and Pharmacia Corporation, the company that discovered
and developed Bextra, co-promote this product in most major world markets.
In the countries where Pfizer and Pharmacia co-promote Bextra, Pharmacia
records sales and Pfizer records a portion of revenue as alliance revenue.
In certain other countries, Pfizer directly records sales of the product.
Bextra offers once-daily dosing for OA and RA patients. The product has a
significantly lower incidence of endoscopically detected gastroduodenal
ulcers versus traditional NSAIDs (naproxen, ibuprofen, and diclofenac) and
significantly less dyspepsia versus naproxen. In controlled comparative
arthritis trials of up to 26 weeks, Bextra in daily doses of 10 mg or 20
mg demonstrated an incidence of edema and hypertension similar to
comparator NSAIDs.
Pharmacia and Pfizer are currently in discussions with the FDA regarding
the receipt of some spontaneous adverse event reports involving serious
skin and hypersensitivity reactions among patients taking Bextra. Some of
these cases have occurred in patients with a history of allergic-type
reactions to sulfonamides. These reports were identified, reviewed, and
reported through the companies' post-marketing pharmacovigilance program.
A letter was sent to healthcare providers notifying them of the additional
information regarding these adverse events. We are currently discussing
with the FDA appropriate changes to the Bextra package insert.
Q14) HOW DID ZOLOFT PERFORM?
A14) Worldwide sales of Zoloft, a selective serotonin re-uptake inhibitor
(SSRI) for the treatment of depression, increased 9% to $653 million in
the third quarter, compared to the same period in 2001. Zoloft is the most
prescribed SSRI in the U.S. The product has sustained strong growth
globally notwithstanding the launch of generic SSRIs, including fluoxetine
in the U.S. and paroxetine and citalopram elsewhere. The product is
currently outpacing market growth in both sales and usage in the U.S. and
other key markets, and Zoloft's growth is expected to continue.
Zoloft has proven efficacy, safety, and tolerability across a broad range
of depression and anxiety disorders. This is important from a clinical
perspective, as there is significant co-morbidity between depression and
anxiety disorders: 50% of patients with depression also have an anxiety
disorder during a 12-month period. Data recently presented at the European
College of Neuropsychopharmacology annual meeting continue to demonstrate
Zoloft's utility across a wide range of depressed patient types, including
patients of diverse ages (the elderly, children, and adolescents) and
patients with medical illness (including stroke and recent myocardial
infarction). Depression affects approximately 20 million Americans.
Anxiety disorders for which Zoloft is approved include panic disorder,
obsessive-compulsive disorder (OCD) in adults and children, and
post-traumatic stress disorder in adults. In August, Zoloft received
labeling in the U.S. featuring the results of the first and only studies
assessing the utility of an SSRI in the maintenance treatment of panic
disorder and OCD. Zoloft is the only SSRI with labeling for long-term use
(up to 25 months) across these previously indicated anxiety disorders.
Zoloft is also the only SSRI indicated for both the acute and long-term
treatment of OCD in children and adolescents. With the recent approval for
the treatment of pre-menstrual dysphoric disorder, Zoloft is the
antidepressant in the U.S. market with the most approved indications
across mood and anxiety disorders.
Filings were submitted to the FDA for pediatric depression in December
2001 (which qualified Zoloft for a six-month patent extension) and for
social anxiety in January 2002. Social anxiety is a chronic anxiety
disorder affecting approximately 10 million Americans.
Q15) HOW DID NEURONTIN PERFORM?
A15) Sales of Neurontin increased 29% to $567 million in the third quarter,
compared to the same period in 2001. More than 8 million patients have
been prescribed Neurontin in the U.S. since its approval. Neurontin is the
num-
ber one acute epilepsy drug in the U.S. and worldwide and is available in
more than 100 countries.
Neurontin has also been approved in more than 60 markets for treatment of
a range of neuropathic pain conditions. Neurontin was approved by the FDA
in May for the management of post-herpetic neuralgia (PHN). PHN is most
commonly described as pain in the area affected by herpes zoster,
persisting at least three months after healing of the herpes zoster skin
rash. Herpes zoster is a painful viral infection also known as shingles.
In the U.S. alone, more than one million new cases of herpes zoster are
diagnosed each year. Approximately 10-15% of all patients with herpes
zoster develop PHN, which, once established, can persist for many years.
Neurontin is the first oral medication approved in the U.S. for this
condition.
Q16) HOW DID ZITHROMAX PERFORM?
A16) Zithromax sales increased 1% to $270 million in the third quarter,
compared to the same period in 2001. Zithromax is the most-prescribed
brand-name oral antibiotic in the U.S. and the second-largest-selling
antibiotic worldwide. The product is recognized by physicians for its
broad efficacy, compliance advantages, favorable side-effect profile, and
a good-tasting liquid formulation for children.
In September 2002, Pfizer launched the new Zithromax Tri-Pak dosage form,
the first and only three-day regimen for the treatment of acute bacterial
exacerbations of chronic obstructive pulmonary disease (COPD), with
Zithromax given at a dose of 500 mg once daily. COPD is the fifth-leading
cause of death worldwide and the fourth-leading cause of death in the U.S.
and is responsible for 500,000 hospitalizations in the U.S. per year.
Within 30 days of launch, Zithromax Tri-Pak had achieved more than 90%
managed care formulary acceptance.
Earlier in October, the Cystic Fibrosis (CF) Foundation Therapeutics
announced the results of a clinical trial that showed that patients who
took Zithromax experienced a 6% improvement in lung function, on average,
based on forced expiratory volume; a nearly 50% decrease in days spent in
the hospital for the treatment of pulmonary exacerbations; and weight
gain, a positive effect. CF is a serious life-threatening disease that
affects approximately 30,000 patients in the U.S. and 70,000 worldwide.
Pfizer has studies underway looking at use of Zithromax for the treatment
of sinusitis as well as malaria and other travel-related diseases.
Q17) WHAT FACTORS ACCOUNT FOR VIAGRA'S PERFORMANCE?
A17) Viagra is the world's most recognized pharmaceutical brand. Worldwide
sales of Viagra grew 17% to $437 million in the third quarter, compared to
the same period in 2001. The product is among the most widely prescribed
medications, with over 120 million prescriptions having been written since
launch by nearly 600,000 physicians for more than 20 million men
worldwide, including 12 million men in the U.S. In the U.S., Viagra
achieved its highest monthly total prescription level ever in August, with
1.38 million prescriptions, a 13% increase over the same month last year.
About half of American men aged 40 to 70 are affected with erectile
dysfunction (ED) to some degree.
Viagra allows many men with ED to achieve erections, leading to an
improvement in their sexual health. A growing body of medical evidence
from over 100 completed or ongoing clinical studies continues to
demonstrate the excellent efficacy and safety profile of Viagra including:
- A double-blind study of 144 patients with ED and chronic stable
angina limited by exercise, not receiving chronic oral nitrates,
were randomized to a single dose of placebo or Viagra 100 mg one
hour prior to exercise testing. The results demonstrated that the
effect of Viagra on the primary endpoint, time to limiting angina,
was no worse than placebo.
- Numerous anecdotal reports and small studies have suggested that
Viagra is effective and safe when used in the treatment of pulmonary
arterial hypertension in both children and in adults, a condition
that is generally fatal. A clinical development program is underway
to further investigate this as a potential use of Viagra.
Q18) HOW DID DIFLUCAN PERFORM?
A18) Diflucan remains the leading systemic antifungal in the world. Sales of
Diflucan increased 7% to $281 million in the third quarter, compared to
the same period in 2001. This sales growth, after 14 years on the market,
reflects the unique features and benefits of Diflucan and the medical need
that it continues to fulfill. It treats systemic fungal infections, often
present in critically ill hospitalized patients, as well as fungal
infections of the mouth (thrush), throat, and esophagus. Diflucan is also
effective as a single-dose oral treatment for vaginal candidiasis.
In June 2001, Pfizer announced that it would offer Diflucan at no charge
to HIV/AIDS patients in the 50 least-developed countries, as identified by
the United Nations, where HIV/AIDS is most prevalent. The Diflucan
Partnership was developed in cooperation with the United Nations and the
World Health Organization and expands upon the existing South African
Diflucan Partnership Program, a collaboration between Pfizer and the South
African Ministry of Health. Patient numbers and clinical sites con-
tinue to increase, with more than 2 million doses dispensed and more than
27,000 prescriptions processed. The program has now been launched in
Uganda, Swaziland, Botswana, Namibia, and Lesotho. An additional seven
countries will be receiving Diflucan by the end of 2002: the Democratic
Republic of Congo, Malawi, Mozambique, Tanzania, Rwanda, Zambia, and
Zimbabwe.
In the 50 least-developed countries with an HIV prevalence of greater than
one percent, roughly 12 million people are reported to be infected with
HIV/AIDS. Although Diflucan is not a treatment for HIV/AIDS, it has proven
highly effective in treating two opportunistic infections, cryptococcal
meningitis and esophageal candidiasis, that afflict large numbers of
people with AIDS. Cryptococcal meningitis is a life-threatening brain
infection caused by the yeast Cryptococcus neoformans. Of those suffering
from untreated meningitis, the mortality rate is more than 90%.
Q19) WHAT FACTORS DROVE ZYRTEC'S GROWTH?
A19) Sales of Zyrtec, a leading prescription antihistamine in the U.S., grew
11% to $278 million in the third quarter, compared to the same period in
2001. In August, the Zyrtec franchise recorded a market share of 23.1% of
new prescriptions. Among established prescription antihistamines, Zyrtec
continues to be the fastest-growing in new prescriptions in the U.S.
year-to-date, achieving growth at more than eight times the market rate.
This growth can be attributed to strong performances by Zyrtec syrup,
which continues to be the most-prescribed antihistamine syrup in the U.S.,
and Zyrtec-D 12 Hour, launched in the third quarter of 2001. Zyrtec-D 12
Hour is still the only prescription oral antihistamine/decongestant
combination medicine approved to treat both year-round indoor and outdoor
allergies as well as nasal congestion. With 30% of all allergy sufferers
also experiencing nasal congestion, and with decongestant combinations
accounting for about one fifth of total U.S. antihistamine prescriptions,
a significant opportunity exists for Zyrtec-D.
Most people with allergies have both indoor and outdoor allergies, but
indoor allergies are tougher to treat. Unlike some other prescription
allergy medications, Zyrtec has a proven history of treating both
year-round indoor and seasonal outdoor allergies. It is also indicated for
use in children as young as two years old, and can be safely used to treat
allergies in children six years or older with mild-to-moderate asthma. In
December 2001, Pfizer submitted a supplemental filing to the FDA with
additional safety and efficacy data for use of Zyrtec in children age six
months to two years. Based on this filing, Pfizer received a six-month
patent extension for Zyrtec.
Q20) WHAT ARE SOME OF THE KEY BENEFITS OF ARICEPT?
A20) Aricept continues to be the world's leading medicine for the
symptomatic treatment of Alzheimer's disease (AD). In the U.S., U.K.,
France, Germany, and Japan, Aricept is co-promoted by Pfizer and Eisai
Co., Ltd., the company that discovered and developed the compound, with
Eisai recording sales and Pfizer recording a portion of profit as
alliance revenue. In certain countries, Pfizer directly records sales
of the product.
In September 2002, Pfizer's co-marketing partner Eisai filed a
supplemental New Drug Application for the use of Aricept in the treatment
of vascular dementia (VaD). This submission is based on the results of two
large pivotal studies designed to evaluate the efficacy and safety of
Aricept in more than 1,200 VaD patients. The results of these studies were
recently presented at the International Conference on Alzheimer's Disease
and Related Disorders in Stockholm. VaD is second only to AD as the most
common form of dementia in most parts of the world. VaD, cognitive decline
most commonly caused by a single, localized stroke or series of strokes,
accounts for up to 20% of all diagnosed dementia cases in the U.S. and
generally begins after age 70. Currently, approximately 1.3 million
patients suffer from VaD. As the elderly population in the nation is
estimated to grow to 69.4 million people by 2030, VaD could become a
growing healthcare issue as the population ages.
About 10% of people over 65 suffer from AD, including 4 million Americans.
U.S. society spends as much as $100 billion a year for AD. By 2050, it is
estimated that nearly 14 million Americans will suffer from this disease.
Aricept has been taken for more than 710 million patient days by more than
1.7 million patients in the U.S. with mild-to-moderate AD to enhance or
maintain cognition and function by preserving levels of the
neurotransmitter acetylcholine in the brain. A study of patients from a
large Medicare managed care organization published in Managed Care
Interface found that annual healthcare costs of patients with AD treated
with Aricept for more than nine months averaged about $4,200 less than
patients not receiving treatment. Aricept is well tolerated, with a low
incidence of side effects, offers convenient, once-daily dosing, and can
be taken with or without food.
Q21) HOW IS GEODON PERFORMING?
A21) Sales of Geodon for the third quarter of 2002 totaled $57 million, up
147%, compared to the same period in 2001. Geodon has been prescribed for
over 250,000 patients worldwide. It has been launched in Sweden, Ger-
many, the U.S., and 21 other markets, with 15 launches of Geodon capsules
or Geodon for injection planned for late 2002 or early 2003. In the U.S.,
Geodon has become widely accepted on the formularies of all state Medicaid
programs, the Veterans Administration, and more than 1,200 hospitals.
Zeldox/Geodon was launched in Germany in May 2002 and has established its
position as the most successfully launched atypical antipsychotic.
The intramuscular (IM) formulation of Geodon was launched in September in
the U.S., where it is the first atypical antipsychotic medicine with an IM
formulation and approved for treating acute agitation in schizophrenia.
Acute agitation is one of the most common psychiatric emergencies and is
characterized by uncooperative or even violent behavior. IM medicines are
important in this setting because of their rapid onset of action. Geodon
for Injection has demonstrated superior efficacy and low movement
disorders compared to Haldol IM, currently the most widely used IM
antipsychotic. Geodon for Injection also allows for continuity of care, as
patients with acute agitation are rapidly controlled with the IM
formulation and then make a smooth transition to oral Geodon.
Movement disorders and significant weight gain, associated with many
currently available antipsychotic medicines, are distressing and
stigmatizing to patients and often result in non-compliance. Patients who
gain weight may also be at greater risk for cardiovascular complications
such as increased lipid levels and poor glycemic control. In clinical
trials, Geodon was as effective as Risperdal and Zyprexa in controlling
both positive and negative symptoms but with a lower incidence of
extra-pyramidal side effects than Risperdal and significantly less weight
gain and other metabolic indices (lipid levels, glucose control) than
Zyprexa. Studies where patients have been switched from other atypicals
show significant improvement after the switch, and other analyses in
institutional settings show significant cost savings for institutions
after the switch from Zyprexa.
Pfizer is also studying Geodon in mania and has recently submitted to the
FDA a filing for an oral suspension dosage form.
Q22) WHAT IS THE STATUS OF RELPAX?
A22) Relpax, an oral 5-HT 1b/1d agonist for the acute treatment of migraine,
has been launched in 24 countries worldwide, including most of Europe and
Japan. Sales to date total $10 million. Relpax has been approved in the
E.U. in dosage levels of 20 mg, 40 mg, and 80 mg. In the U.S., Pfizer
completed a cardiovascular physiology study requested by the FDA in their
approvable letter of December 2000. With resubmission of this data
to the FDA in June, Pfizer anticipates approval by year-end 2002, with a
U.S. launch to follow.
The efficacy, safety, and tolerability of Relpax were established in ten
randomized, double-blind, placebo-controlled studies involving more than
13,000 migraine sufferers and over 70,000 migraine attacks as part of a
global clinical program. Headache response, defined as a reduction in
headache severity from moderate or severe pain to mild or no pain, was
assessed up to two hours after dosing. Data from these trials demonstrate
that up to 77% of patients treated with an 80 mg dose and 65% of patients
treated with a 40 mg dose experienced headache relief at two hours. Later
in October, the medical journal Neurology will publish a second Relpax
Phase III clinical trial, again demonstrating the excellent efficacy of
Relpax 40 mg and 80 mg over Imitrex 50 mg and 100 mg.
Migraine is a common and debilitating medical disorder, experienced by
more than 28 million people in the U.S. alone (18% of women and 6% of
men). Despite the often chronic and disabling nature of migraines --
symptoms of which include severe headache pain, nausea, and sensitivity to
light or sound -- the vast majority of sufferers have never been diagnosed
or treated with prescription medication.
Q23) WHAT IS THE CURRENT STATUS OF PFIZER'S NEW ANTIFUNGAL VFEND?
A23) Vfend, a new antifungal, was launched in both oral and intravenous forms
in August in the U.S. and in September in Europe. Sales to date total $12
million. In the U.S., Vfend is indicated for primary treatment of acute
invasive aspergillosis and salvage therapy for rare but serious fungal
infections caused by the pathogens Scedosporium apiospermum and Fusarium
spp. In Europe, Vfend is also approved for the treatment of
fluconazole-resistant serious invasive Candida infections (including C.
krusei). In the largest prospective comparative clinical trial ever
conducted in invasive aspergillosis, a deadly fungal infection occurring
in immune-compromised patients, 53% of patients who received Vfend had a
successful response at 12 weeks of treatment, compared to 32% of those who
received amphotericin B. The survival rate of the Vfend-treated patients
was 71% versus 58% of those in the amphotericin B arm. The number of
hospitalized patients at risk for serious fungal infections is growing as
more patients undergo bone marrow/stem cell and solid organ transplants as
well as aggressive chemotherapy for cancer. Fungal infections in these
immune-compromised patients are associated with high morbidity and
mortality and require prompt and effective treatment.
Vfend can be administered both orally and intravenously, unlike most
currently available treatments, which are available in intravenous form
only. This allows for flexibility in patient care with Vfend, permitting
step-down therapy from intravenous to oral administration and potentially
allowing the patient to be discharged from the hospital sooner.
Q24) WHAT IS THE STATUS OF SPIRIVA?
A24) In September 2002, an advisory committee to the FDA recommended that
Spiriva be approved for the long-term, once-daily maintenance treatment of
bronchospasm associated with chronic obstructive pulmonary disease (COPD).
Spiriva was approved by regulatory authorities in Europe in April 2002.
The product has now been launched in ten countries, including Germany and
the U.K.
Spiriva, discovered and developed by Boehringer Ingelheim (BI), is the
first once-a-day inhaled bronchodilator treatment for COPD and a
significant advance over other treatment options. It will be co-promoted
worldwide by Pfizer and BI. COPD is a chronic respiratory disorder that
includes chronic bronchitis and emphysema and is characterized by limited
airflow accompanied by symptoms such as dyspnea (shortness of breath),
cough, wheezing, and increased sputum production. Data from clinical
trials involving more than 3,000 patients worldwide have demonstrated that
Spiriva is highly effective in providing sustained bronchodilation and is
well tolerated, with dry mouth as the main side effect. In the U.S. alone
there are approximately 17 million sufferers of COPD, although up to 50%
remain undiagnosed. Patients often suffer symptoms for many years before
being diagnosed and getting appropriate treatment. It is estimated that
one in five smokers will develop COPD, which is the fifth-leading cause of
death worldwide and the fourth-leading cause of death in the U.S.
Q25) WHAT IS THE STATUS OF PFIZER'S CO-PROMOTION OF REBIF WITH SERONO?
A25) In July 2002, Pfizer and Serono announced an agreement to co-promote
Serono's multiple sclerosis (MS) treatment Rebif (interferon beta 1-a) in
the U.S., and Pfizer sales representatives have begun promoting Rebif. MS
is a chronic inflammatory condition of the nervous system and is the most
common non-traumatic neurological disease in young adults. MS affects
approximately 350,000 Americans. While symptoms can vary, the most common
symptoms of MS include blurred vision, numbness or tingling in the limbs,
and problems with strength and coordination. The relapsing forms of the
disease are the most common forms of MS. Rebif has been shown to decrease
the frequency of clinical exacerbations and delay the accumulation of
physical disability associated with relapsing forms of MS.
Q26) WHAT IS THE STATUS OF THE PFIZER FOR LIVING SHARE CARD PROGRAM?
A26) On January 15, we launched an innovative prescription benefit program
called the Pfizer for Living Share Card. The program is designed to help a
targeted group of patients access tools to manage their health. The
program includes three elements: a membership card that enables patients
to receive up to a 30-day supply of a Pfizer medicine for $15, a help line
to assist low-income senior citizens in learning about other healthcare
services and benefits, and easy-to-read health information on 16 common
medical conditions.
The Pfizer Share Card is available to Medicare enrollees with annual gross
incomes of less than $18,000 ($24,000 for couples) who lack
prescription-drug coverage or who are not eligible for Medicaid or any
other publicly funded prescription benefit programs. The projected
financial impact of this program is included in Pfizer's current revenue
and earnings growth guidance for 2002 through 2004.
The response to the Share Card has been overwhelmingly positive. The
Pfizer Share Card can be used at more than 50,000 retail pharmacies
nationwide, representing 96% of all U.S. pharmacies. Since the program's
announcement, the Share Card call center has:
- Received more than 1.1 million inquiries
- Received more than 600,000 requests for applications
- Reviewed more than 300,000 completed applications
- Enrolled more than 200,000 members, and
- Filled more then 600,000 Pfizer prescriptions.
In September 2002, we announced the launch of a television advertising
campaign to increase enrollment in the Share Card program. The campaign
will air for six weeks on television network affiliates in 15 local
markets and select national cable stations. Through a comprehensive
strategy of grassroots community outreach, public-private partnerships and
television advertising, we are striving to enroll as many eligible
Medicare beneficiaries into the program as possible.
Q27) HOW DID THE ANIMAL HEALTH BUSINESS PERFORM?
A27) In the third quarter, Animal Health sales increased 10% to $280 million,
compared to the same period in 2001. Our companion-animal products
Revolution, Rimadyl, and Clavamox/Synulox and our livestock medicine
RespiSure/ Stellamune showed strong growth.
Q28) HOW DID PFIZER'S CONSUMER BUSINESSES PERFORM?
A28) Sales of Pfizer's consumer businesses, which include consumer healthcare
products, Adams confectionery products, Schick-Wilkinson Sword shaving
products, and Tetra fish-food products, grew 3% to $1.278 billion in the
third quarter, compared to the same period in 2001. Sales of Consumer
Healthcare products grew 6% to $609 million due to strong performances of
Listerine mouthwash and Listerine PocketPaks.
Q29) WHAT IS THE STATUS OF THE ADAMS, SCHICK-WILKINSON SWORD, AND TETRA
BUSINESSES?
A29) Earlier this year, Pfizer announced it was exploring strategic options for
the Adams confectionery business, the Schick-Wilkinson Sword shaving
products business, and the Tetra aquarium and pond supplies division.
Headquartered in Parsippany, New Jersey, Adams is one of the world's
largest providers of confectionery products. Adams conducts business in
over 70 countries and has approximately 12,000 employees worldwide.
Schick-Wilkinson Sword is the world's second-largest producer of shaving
products. Schick-Wilkinson Sword is headquartered in Milford, Connecticut,
conducts business in more than 80 countries, and has approximately 4,000
employees worldwide. The Tetra business has approximately 700 employees in
the U.S., Germany, the U.K., France, Italy, and Japan.
Q30) WHAT CAUSED THE 12% INCREASE IN COST OF SALES IN THE QUARTER?
A30) Growth in cost of sales of 12% in the quarter is almost entirely
attributable to the negative impact of foreign exchange. Pfizer continues
to realize gross margin expansion, excluding the negative impact of
foreign exchange, due to favorable business, geographic, and product mix.
Q31) WHAT ARE PFIZER'S COST-SAVINGS EXPECTATIONS FROM THE INTEGRATION OF PFIZER
AND WARNER-LAMBERT?
A31) By year-end 2002, we anticipate $1.8 billion in merger-related cost
savings. Savings stem from increased purchasing power of the combined
entity, the reduction of operating expenses, the closure of redundant
facilities, and the elimination of redundant positions in the work force.
Integration, restructuring, and transaction costs of $2.6 billion
(excluding costs associated with the termination of the failed
Warner-Lambert/American Home Products merger) have been recorded from the
close of the transaction through the end of the third quarter of 2002
($114 million recorded in the third quarter of 2002). We continue to
anticipate total merger-related costs through 2002 (excluding the AHP
break-up fee) of about $2.8 billion.
Q32) WHAT WERE THE PRINCIPAL FACTORS AFFECTING OTHER (INCOME)/DEDUCTIONS -- NET?
A32) ($ millions) Third Quarter Nine Months
------------- -----------
(Income)/Deductions 2002 2001 2002 2001
----- ----- ----- -----
Net Interest Income $ (22) $ (60) $ (93) $(212)
Co-Promotion Charges 10 70 32 206
Gains on the Sales of Research-
Related Equity Investments -- -- -- (17)
Write-down of Equity Investments 28 -- 28 --
Amortization of Goodwill and Other Intangibles 4 23 25 72
Gain on the Divestiture of a Minor Product Line -- -- (20) --
Various Litigation Matters 15 -- 15 --
Other 22 (38) (60) (98)
----- ----- ----- -----
Other (Income)/Deductions -- Net $ 57 $ (5) $ (73) $ (49)
----- ----- ----- -----
The reduction in interest income is primarily a factor of significantly
lower short-term interest rates in 2002 versus 2001. Amortization of
goodwill and intangibles is lower in 2002 versus 2001 as a result of the
adoption of SFAS No. 142 -- Goodwill and Other Intangible Assets.
Q33) WHAT IS THE STATUS OF PFIZER'S SHARE-PURCHASE PROGRAM?
A33) In May 2002, the company completed the share-purchase program authorized
in June 2001, under which it purchased 120 million shares at a cost of
$4.8 billion. In June 2002, the company announced a new authorization to
purchase up to $10 billion worth of the company's common stock. This
current program was increased to $16 billion after the Pharmacia
acquisition announcement and will be completed during 2003. During the
third quarter, approximately 93.4 million shares were purchased under the
new authorization, at a total cost of about $2.73 billion.
Q34) HOW DID CHANGES TO ACCOUNTING REGULATIONS IMPACT PFIZER'S 2002 RESULTS?
A34) On January 1, 2002, we adopted the provisions of Statement of Financial
Accounting Standards (SFAS) No. 142, Goodwill and Other Intangible Assets.
Under the provisions of SFAS No. 142, intangible assets with indefinite
lives and goodwill are no longer amortized but are subject to annual
impairment tests. Separable intangible assets with finite lives continue
to be
amortized over their useful lives. In the second quarter of 2002, we
determined and recorded, retroactive to the beginning of 2002 in
accordance with accounting principles generally accepted in the United
States of America, a non-cash pretax charge of $536 million for the
impairment provisions as they relate to goodwill in the Animal Health
business. In the first quarter of 2002, we had recorded a non-cash charge
of $29 million, for the impairment provisions as they relate to
identifiable intangible assets. The aggregate amount of these charges,
$565 million ($410 million after tax), is reported as the one-time
cumulative effect of a change in accounting principle.
Q35) WHAT IS THE STATUS OF LITIGATION REGARDING MYLAN'S FILING FOR A GENERIC
FORM OF NORVASC?
A35) Pfizer filed a suit against Mylan on September 20 in the U.S. District
Court for the Western District of Pennsylvania for patent infringement by
Mylan's ANDA for a generic version of Norvasc (amlodipine besylate). The
suit is under U.S. Patent No. 4,572,909, the basic product patent for
amlodipine, which (with pediatric exclusivity) expires in January 2007,
and U.S. Patent No. 4,879,303, claiming amlodipine besylate, which expires
in September 2007. This suit was filed more than 45 days after notice of
Mylan's Paragraph 4 certifications was delivered to Pfizer, apparently as
a result of an administrative error. Whether there is a basis for the FDA
to withhold approval of Mylan's ANDA for up to 30 months in these
circumstances is still under review. Pfizer will vigorously pursue the
patent suit against Mylan. Mylan's letter to Pfizer asserts that both
patents are invalid but does not rely on any new information or prior art
references that were not before the Patent Office when the Norvasc patent
was granted. The arguments advanced by Mylan were fully considered by the
Patent Office and decided in Pfizer's favor before the patent was issued.
Accordingly, Pfizer believes that Mylan's assertions are without merit and
remains confident of its position.
Pfizer will seek all appropriate injunctive relief. It will also seek
multiple damages in the event that the FDA should approve the Mylan
product and Mylan begins to market it before the litigation ends.
Q36) WILL PFIZER BE HOLDING A CONFERENCE CALL?
A36) Pfizer will be holding a conference call for analysts and investors to
discuss third-quarter earnings at 1:00PM today. To ensure universal
access, the conference call will be simultaneously broadcast over Pfizer's
corporate website -- www.pfizer.com -- and will be archived for five days
thereafter.
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Safe Harbor Statement
This release contains certain "forward-looking" statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements are based
on management's current expectation and are naturally subject to uncertainty and
changes in circumstances. Actual results may vary materially from the
expectations contained herein. The forward-looking statements contained herein
include statements about future financial operating results and benefits of the
pending merger between Pfizer Inc. and Pharmacia Corp. Factors that could cause
actual results to differ materially from those described herein include: the
inability to obtain shareholder or regulatory approvals; actions of the U.S.,
foreign and local governments; the inability to successfully integrate the
businesses of Pfizer Inc. and Pharmacia Corp.; costs related to the merger; the
inability to achieve cost-cutting synergies resulting from the merger; changing
consumer or marketplace trends: and the general economic environment. Neither
Pfizer Inc. nor Pharmacia Corp. is under any obligation to (and expressly
disclaims any such obligation to) update or alter its forward-looking
statements, whether as a result of new information, future events, or otherwise.
We urge investors to read the proxy statement/prospectus and any other relevant
documents that Pfizer Inc. and Pharmacia Corp. have filed and will file with the
Securities and Exchange Commission because they contain important information.
Pfizer and Pharmacia will file a proxy statement/prospectus and other relevant
documents concerning the proposed merger transaction with the SEC. INVESTORS ARE
URGED TO READ THE PROXY STATEMENT/PROSPECTUS WHEN IT BECOMES AVAILABLE AND ANY
OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. You will be able to obtain the documents free of charge at the
website maintained by the SEC at www.sec.gov. In addition, you may obtain
documents filed with the SEC by Pfizer free of charge by requesting them in
writing from Pfizer Inc., 235 East 42nd Street, New York, New York 10017,
Attention: Investor Relations, telephone: (212) 573-2668. You may obtain
documents filed with the SEC by Pharmacia free of charge by requesting
them in writing from Pharmacia Investor Relations, Route 206 North, Peapack, New
Jersey 07977, or by telephone at (908) 901-8000.
Pfizer and Pharmacia, and their respective directors and executive officers and
other members of their management and employees, may be deemed to be
participants in the solicitation of proxies from the stockholders of Pfizer and
Pharmacia in connection with the merger. Information about the directors and
executive officers of Pfizer and their ownership of Pfizer shares is set forth
in the proxy statement for Pfizer's 2002 annual meeting of shareholders.
Information about the directors and executive officers of Pharmacia and their
ownership of Pharmacia stock is set forth in the proxy statement for Pharmacia's
2002 annual meeting of stockholders. Investors may obtain additional information
regarding the interests of such participants by reading the proxy
statement/prospectus when its becomes available.