Pfizer Inc has recorded revenues of $12.0 billion, consistent with the year-ago quarter, despite the negative impact of the loss of US exclusivity for Zyrtec, which Pfizer ceased selling in late January 2008, and for Camptosar in February 2008. Zyrtec and Camptosar third-quarter 2008 revenues decreased by $549 million ($428 million and $121 million, respectively), compared with the year-ago quarter. For third-quarter 2008, Pfizer posted net profit of $2.3 billion, compared with $761 million in the prior-year quarter, and reported diluted EPS of $0.34, compared with $0.11 in the prior-year quarter.
Pharmaceutical revenues for third-quarter 2008 were $11.0 billion, a decrease of 1 per cent compared with the prior-year quarter. Lipitor revenues in third-quarter 2008 were $3.1 billion, a decrease of 1 per cent compared with the prior-year quarter. In the US, Lipitor revenues were $1.6 billion, a decrease of 13 per cent compared with the prior-year quarter, while revenues from international markets were $1.6 billion, an increase of 16 per cent.
U.S. reported revenues accounted for 41 per cent of the total compared with 48 per cent in the year-ago quarter, while international reported revenues accounted for 59 per cent of the total compared with 52 per cent in the year-ago quarter. In the US, reported revenues were $4.9 billion, a decrease of 15 per cent, while international reported revenues were $7.1 billion, an increase of 13 per cent, compared to third-quarter 2007. The increase in international reported revenues reflects the favorable impact of foreign exchange of 10 per cent and operational growth of 3 per cent.
For the first nine months of 2008, Pfizer recorded revenues of $36.0 billion, an increase of 1 per cent compared with $35.5 billion in the same period in 2007, despite the loss of U.S. exclusivity of Norvasc (March 2007), Zyrtec (January 2008) and Camptosar (February 2008), which collectively decreased revenues by $2.1 billion. Foreign exchange favorably impacted revenues by approximately $2.0 billion or 6 per cent.
U.S. revenues accounted for 42 per cent of the total compared with 49 per cent in the year-ago period, while international reported revenues accounted for 58 per cent of the total compared with 51 per cent in the year-ago period. In the U.S., reported revenues were $15.2 billion, a decrease of 13 per cent, while international reported revenues were $20.8 billion, an increase of 15 per cent compared to the year-ago period. The increase in international reported revenues reflects the favourable impact of foreign exchange of 11 per cent and operational growth of 4 per cent.
For the first nine months of 2008, the company posted reported net income of $7.8 billion, compared with $5.4 billion in the prior-year period, and reported diluted EPS of $1.16, compared with $0.78 in the prior-year period. These increases were primarily attributable to the previously mentioned after-tax charges of $2.1 billion related to Exubera in the year-ago quarter, lower restructuring charges associated with cost-reduction initiatives, as well as savings generated by those initiatives.
"We remain on-track to meet our 2008 objectives, despite the turbulent global economy," said chairman and CEO Jeff Kindler. "We continued to deliver steady results this quarter, with many of our most important medicines performing well around the world, including Lyrica, Celebrex, Viagra, Sutent, Zyvox and Geodon, as well as Lipitor in a highly competitive market. Looking ahead, we are making progress on our growth strategies, including increasing the number of programs in our Phase 3 portfolio from 16 to 25 in the last six months. With the formation of the Primary Care, Specialty Care and Emerging Markets units, which join the existing Oncology and Established Products units, we continue to evolve our pharmaceutical operations into smaller, more focused units that can anticipate and respond more quickly to our customers' and patients' changing needs."
Frank D'Amelio, chief financial officer, commented, "Based on our year-to-date performance and outlook for the remainder of 2008, we are raising the lower end of our guidance range for full-year 2008 revenues to $48.0 to $49.0 billion from $47.0 to $49.0 billion. We are pleased with our progress and continue to look for new opportunities to further reduce and more effectively manage our costs. Finally, with our strong balance sheet and operating cash flow, we remain confident that we have the financial flexibility to successfully execute our strategies and meet our financial objectives in the face of the current macroeconomic environment."
Revenue guidance has been narrowed to a range of $48.0 to $49.0 billion from $47.0 to $49.0 billion, adjusted SI&A expenses guidance has been narrowed to a range of $14.4 to $14.7 billion from $14.4 to $14.9 billion, and adjusted diluted EPS guidance has been narrowed to a range of $2.36 to $2.41 from $2.35 to $2.45. Additionally, reported diluted EPS(10) guidance has been reduced to a range of $1.61 to $1.71 from $1.73 to $1.88, reflecting in part the charges associated with the previously mentioned resolution of certain NSAID litigation.