Pfizer Inc has achieved strong performance during the second quarter ended June 2008 and its net income increased by 119 per cent to US$2.8 billion from US$1.3 billion in the corresponding period of last year and reported diluted EPS of $0.41, an increase of 128 per cent compared with $0.18 in the prior-year quarter. These increases were primarily attributable to lower restructuring charges from cost-reduction initiatives, as well as savings generated by those initiatives, the positive impact of foreign exchange and favourable income tax adjustments.
The company recorded revenues of $12.1 billion, an increase of 9 per cent compared with $11.1 billion in the year-ago quarter. In the US, revenues were $4.8 billion, a decrease of 2 per cent while international revenues were $7.4 billion, an increase of 18 per cent. Revenues reflect the positive impact of foreign exchange, which increased revenues by approximately $800 million or 7 per cent, as well as the solid performance of many key products. These factors more than offset the revenue declines due to the loss of US exclusivity for Zyrtec, which Pfizer ceased selling in late January 2008 and for Camptosar in February 2008. Zyrtec and Camptosar second-quarter 2008 revenues decreased by $377 million and $104 million, respectively, compared with the year-ago quarter.
For the first-half 2008, Pfizer recorded revenues of $24.0 billion, an increase of 2 per cent compared with $23.6 billion in the same period in 2007, despite the loss of US exclusivity of Norvasc (March 2007), Zyrtec (January 2008) and Camptosar (February 2008), which collectively decreased revenues by $1.4 billion during the first-half 2008. The 2 per cent increase reflects the favourable impact of foreign exchange and the solid performance of many key products. In the US, revenues were $10.3 billion, a decrease of 12 per cent while international revenues were $13.7 billion, an increase of 15 per cent.
For the first-half 2008, the company reported net income of $5.6 billion, an increase of 19 per cent compared with $4.7 billion in the prior-year period, and reported diluted EPS of $0.82, an increase of 24 per cent compared with $0.66 in the prior-year period. These increases were primarily attributable to the favourable impact of foreign exchange and lower restructuring charges associated with cost-reduction initiatives, mainly employee-related costs, as well as the savings generated by those initiatives.
"We are pleased with the financial results we delivered this quarter, which were driven in part by the solid performance in our pharmaceutical and animal health businesses," stated chairman and chief executive officer Jeff Kindler. "Many of our key products continued to perform well both in the US and international markets, including Lyrica, Celebrex, Viagra and Geodon, as well as Lipitor in the face of a highly competitive statin market. The benefit of our broad-based portfolio of products, our geographic reach and our diverse strategies for growth was evident in this quarter's financial results, which clearly demonstrate our ability to continue to deliver solid performance in an increasingly challenging environment."
"During the quarter, we entered into an important agreement with Ranbaxy Laboratories Ltd. that provided substantial certainty to patients and our shareholders regarding the availability of a generic version of Lipitor in the US after November 30, 2011. We are pleased with the resolution of this issue with Ranbaxy, as it reaffirms the value and importance of intellectual property for Pfizer and the pharmaceutical industry as a whole," continued Kindler.
Frank D'Amelio, chief financial officer, commented, "Based on our year-to-date performance and outlook for the remainder of 2008, we are reaffirming our full-year 2008 revenue and adjusted diluted EPS guidance as well as our plan to reduce absolute adjusted total costs by at least $1.5 to $2.0 billion at the end of 2008 compared with 2006 on a constant currency basis. We expect the remainder of this reduction to gain momentum throughout the second half of the year, with much of the remaining savings to be realized in the fourth quarter."
"Given the continued strength of our balance sheet and significant operating cash flow, we remain confident that we have the financial wherewithal to successfully execute our strategies and continue to meet our financial objectives," D'Amelio continued. "During the second quarter, we repurchased approximately $500 million, or 26.4 million shares, of our common stock."