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Form 8-K PFIZER INC For: Oct 28

October 28, 2014 9:03 AM EDT


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.��20549
FORM 8-K


CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): October 28, 2014


PFIZER INC.
(Exact name of registrant as specified in its charter)

Delaware
1-3619
13-5315170
(State or other
(Commission File
(I.R.S. Employer
jurisdiction of
(Number)
Identification No.)
incorporation)


235 East 42nd Street
10017
New York, New York
(Zip Code)
(Address of principal executive offices)


Registrant's telephone number, including area code:
(212) 733-2323

Not Applicable
(Former Name or Former Address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

[ ] Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))

[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))






Item 2.02 Results of Operations and Financial Condition

On October 28, 2014, Pfizer Inc. (Pfizer) issued a press release announcing its financial results for the third quarter of 2014. The information contained in the press release is deemed to be filed under the Securities Exchange Act of 1934 as Exhibit 99 to this report, and such press release is incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits

(d)��Exhibits
Exhibit 99��-
Press Release of Pfizer Inc. dated October 28, 2014, reporting
Pfizer's financial results for the third quarter of 2014.Exhibit 99
is deemed to be filed under the Securities Exchange Act of 1934
in this Current Report on Form 8-K.


SIGNATURE

Under the requirements of the Securities Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the authorized undersigned.
PFIZER INC.
By:
/s/ Atiba D. Adams
Atiba D. Adams
Vice President and Corporate Secretary
Dated: October 28, 2014





EXHIBIT INDEX

Exhibit No.
Description
99
Press Release of Pfizer Inc. dated
October 28, 2014, reporting Pfizer's financial
results for the third quarter of 2014.



Exhibit 99

PFIZER REPORTS THIRD-QUARTER 2014 RESULTS
Third-Quarter 2014 Reported Revenues(1) of $12.4 Billion
Third-Quarter 2014 Adjusted Diluted EPS(2) of $0.57, Reported Diluted EPS(1) of $0.42
Repurchased $4.2 Billion of Common Stock to Date in 2014
Updated Ranges for Certain 2014 Financial Guidance Components
NEW YORK, N.Y., Tuesday, October�28, 2014  Pfizer Inc. (NYSE: PFE) reported financial results for third-quarter 2014. At the beginning of fiscal year 2014, the company began managing its commercial operations through a new global commercial structure consisting of three operating segments: the�Global Innovative Pharmaceutical segment�(GIP)(3); the�Global Vaccines, Oncology and Consumer Healthcare segment�(VOC)(3); and the�Global Established Pharmaceutical segment�(GEP)(3). Financial results for each of these segments are presented in the Operating Segment Information section. As a result of the full disposition of Zoetis Inc. (Zoetis) on June24, 2013, the financial results of the Animal Health business are reported as a discontinued operationin the consolidated statements of income for the first nine months of 2013. Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts. Results are summarized below.
OVERALL RESULTS
($ in millions, except
per share amounts)
Third-Quarter
Nine Months
2014
2013
Change
2014
2013
Change
Reported Revenues(1)
$ 12,361

$ 12,643

(2%)
$ 36,487

$ 38,026

(4%)
Adjusted Income(2)
3,655

3,859

(5%)
11,088

11,602

(4%)
Adjusted Diluted EPS(2)
0.57

0.58

(2%)
1.72

1.65

4%
Reported Net Income(1)
2,666

2,590

3%
7,907

19,435

(59%)
Reported Diluted EPS(1)
0.42

0.39

8%
1.23

2.77

(56%)
REVENUES
($ in millions)
Favorable/(Unfavorable)
Third-Quarter
Nine Months
2014
2013
% Change
2014
2013
% Change
Total
Oper.
Total
Oper.
GEP(3)
$ 6,239

$ 6,675

(7%)
(6%)
$ 18,742

$ 20,458

(8%)
(7%)
GIP(3)
3,490

3,640

(4%)
(4%)
10,114

10,672

(5%)
(4%)
Global Vaccines(3)
1,140

954

19%
19%
3,161

2,847

11%
12%
Consumer Healthcare(3)
821

788

4%
4%
2,494

2,399

4%
5%
Global Oncology(3)
551

473

16%
17%
1,609

1,422

13%
14%
Other(4)
121

113

7%
7%
368

229

61%
61%
Total
$ 12,361

$ 12,643

(2%)
(2%)
$ 36,487

$ 38,026

(4%)
(3%)

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SELECTED TOTAL COMPANY ADJUSTED COSTS AND EXPENSES(2)
($ in millions)
(Favorable)/Unfavorable
Third-Quarter
Nine Months
2014
2013
% Change
2014
2013
% Change
Total
Oper.
Total
Oper.
Cost of Sales(2)
$ 2,244

$ 2,178

3%
3%
$ 6,550

$ 6,601

(1%)
1%
Percent of Revenues(2)
18.3
%
17.3
%
N/A
N/A
18.0
%
17.4
%
N/A
N/A
SI&A Expenses(2)
�3,299

�3,351

(2%)
(1%)
�9,804

�10,079

(3%)
(2%)
R&D Expenses(2)
�1,788

�1,625

10%
10%
�5,114

�4,764

7%
7%
Total
$ 7,330

$ 7,154

2%
2%
$ 21,468

$ 21,444


1%
Effective Tax Rate(2)
26.8
%
27.6
%
26.6
%
27.4
%
2014 FINANCIAL GUIDANCE(5)
The ranges for certain components of the financial guidance have been updated as set forth below.
Adjusted Revenues(2)
$48.7 to $49.7 billion
(previously $48.7 to $50.7 billion)
Adjusted Cost of Sales(2)�as a Percentage of Adjusted Revenues(2)
18.5% to 19.0%
(previously 19.0% to 20.0%)
Adjusted SI&A Expenses(2)
$13.5 to $14.0 billion
(previously $13.3 to $14.3 billion)
Adjusted R&D Expenses(2)
$6.9 to $7.2 billion
(previously $6.7 to $7.2 billion)
Adjusted Other (Income)/Deductions(2)
Approximately ($400 million) of income
(previously approx. ($200 million) of income)
Effective Tax Rate on Adjusted Income(2)
Approximately 27.0%
Reported Diluted EPS(1)
$1.50 to $1.59
(previously $1.47 to $1.62)
Adjusted Diluted EPS(2)
$2.23 to $2.27
(previously $2.20 to $2.30)
EXECUTIVE COMMENTARY
Ian Read, Chairman and Chief Executive Officer, stated, Our key in-line products continued to perform well with our most recent product launches exhibiting further momentum during the quarter. We also generated solid revenue growth in emerging markets and see these geographies as continuing to offer attractive growth opportunities for the company. Regarding our development pipeline, we were pleased that the U.S. Food and

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Drug Administration (FDA) accepted our breast cancer compound, palbociclib, for review and also granted it Priority Review status. We believe palbociclib may represent a significant advancement for the treatment of women with advanced breast cancer. Within our Vaccines business, we received a positive recommendation from the U.S. Centers for Disease Control and Preventions (CDC) Advisory Committee on Immunization Practices (ACIP) for the use of Prevnar 13 in adults aged 65 and over while our marketing application for our meningitis B vaccine candidate, to be branded Trumenba, is under regulatory review in the U.S. with Priority Review status. In addition, we announced that our vaccine candidate in development for C. difficile was granted Fast Track designation by the FDA.
We remain strategically focused on driving increased innovation and enhancing our global competitive position both in terms of operational and financial efficiencies and remain opportunistic regarding business development that can enhance or accelerate our strategy. Given our continued strong financial position, I see Pfizer as well positioned to potentially allocate capital for the benefit of shareholders across multiple financial and strategic opportunities, Mr. Read concluded.
Frank DAmelio, Chief Financial Officer, stated, Overall, I am pleased with our third-quarter 2014 financial results despite the continued negative impact from product losses of exclusivity and the termination of certain co-promotion collaborations. We updated certain components of our 2014 financial guidance to reflect our performance to date, recent changes in foreign exchange rates and our outlook for the remainder of the year, which continues to include the anticipated negative impact from multi-source generic competition for Celebrex in the U.S. beginning in December 2014.
Additionally, the board of directors last week authorized a new $11 billion share repurchase program, to be utilized over time, in addition to the $1.3 billion of authorization remaining under the companys current share repurchase program. We continue to expect to repurchase approximately $5 billion of our shares this year, with $4.2 billion repurchased through October 27. We continue to expect these 2014 repurchases and planned repurchases to reduce total shares outstanding by approximately 100 million shares by the end of the year after factoring in actual and projected dilution related to employee compensation programs, Mr. D'Amelio concluded.
QUARTERLY FINANCIAL HIGHLIGHTS (Third-Quarter 2014 vs. Third-Quarter 2013)
Reported revenues(1) decreased $281 million, or 2%, which reflects an operational decline of $270 million, or 2%, and the unfavorable impact of foreign exchange, which was negligible ($11 million).�The operational decline was primarily due to the expiration of the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada, the ongoing termination of the Spiriva collaboration in certain countries as well as the loss of exclusivity and subsequent multi-source generic competition for Detrol LA in the U.S. and other product losses of exclusivity in certain markets. Revenues in developed

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markets were favorably impacted by the growth of certain key products, including Lyrica, Prevnar, Eliquis, Xeljanz, Xalkori, Inlyta, as well as Nexium 24HR primarily in the U.S. as a result of its recent launch. Additionally, revenues in emerging markets increased 9% operationally, including strong operational growth from Prevenar as well as from Lipitor, primarily in China.
GEP(3) revenues decreased 6% operationally, primarily due to the loss of exclusivity and subsequent launch of multi-source generic competition for Detrol LA in the U.S. in January 2014, Viagra in most major European markets in June 2013 as well as Aricept in Canada in December 2013. Additionally, the co-promotion collaboration for Spiriva has terminated in most countries, including the U.S. in April 2014, or has entered its final year in other major markets, which, per the terms of the collaboration agreement, has resulted in a decline in Pfizers share of Spiriva revenues. These declines were partially offset by the strong performance of Lyrica in Europe, Lipitor in emerging markets, primarily in China, as well as various other branded products in emerging markets.
GIP(3) revenues declined 4% operationally, primarily due to the expiration of the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada on October 31, 2013; for a 36-month period thereafter, Pfizer is entitled to royalty payments that have been and are expected to continue to be significantly less than the share of Enbrel profits prior to the expiration of the co-promotion term, and those royalty payments are and will be included in Other (income)/deductionsnet rather than in Revenues. This decline was partially offset by strong operational growth from Lyrica, primarily in the U.S. and Japan, as well as the performance of recently launched products, including Eliquis and Xeljanz globally.
VOC(3) revenues increased 13% operationally, reflecting the following:

Global Vaccines(3) revenues grew 19% operationally. Prevnar 13 revenue in the U.S. increased 26%, primarily driven by government purchasing patterns and increased demand. International sales of the Prevenar family were up 11% on an operational basis, primarily reflecting increased shipments associated with the Global Alliance for Vaccines and Immunization (GAVI) as well as the timing of government purchases in various emerging markets compared with the year-ago quarter.

Consumer Healthcare(3) revenues increased 4% operationally, primarily due to the launch of Nexium 24HR in the U.S. in late-May 2014 and growth of vitamin supplement products in emerging markets. This growth was partially offset primarily by a decline in sales of Advil in the U.S. due to the third-quarter 2013 launch of Advil Film-Coated, which triggered increased retailer purchases in the year-ago quarter.

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Global Oncology(3) revenues increased 17% operationally, primarily driven by the continued strong underlying demand for Xalkori and Inlyta globally as well as growth from Bosulif, primarily in the U.S., and Sutent, primarily in emerging markets.
Adjusted cost of sales, adjusted SI&A expenses and adjusted R&D expenses(2) in the aggregate increased $166 million operationally, or 2%, primarily reflecting:

higher adjusted cost of sales(2), primarily reflecting an unfavorable change in product mix;

lower adjusted SI&A expense(2) as a result of continued benefits from cost-reduction and productivity initiatives partially offset by investments to support several recent product launches; and

higher adjusted R&D expense(2), primarily due to upfront payments to Cellectis SA and MedGenesis Therapeutix Inc. associated with recently announced agreements as well as the ongoing Phase 3 programs for bococizumab, ertugliflozin, palbociclib and certain other new drug candidates.
The effective tax rate on adjusted income(2) declined 0.8 percentage points to 26.8% from 27.6%. This decline was primarily due to a favorable change in the jurisdictional mix of earnings.
The diluted weighted-average shares outstanding declined by 253 million shares compared to the prior-year quarter, due to the companys ongoing share repurchase program.
In addition to the aforementioned factors, third-quarter 2014 reported earnings were primarily impacted by the following:
Favorable impacts:

lower restructuring charges, expenses associated with cost-reduction and productivity initiatives, and purchase accounting adjustments compared to the prior-year quarter;

the non-recurrence of a loss in third-quarter 2013 related to an option to acquire the remaining interest in a�40%-owned generics company in Brazil, and the income recorded in third-quarter 2014 as a result of a decline in the loss from the option; and

a lower effective tax rate, primarily due to a favorable change in the jurisdictional mix of earnings as well as the non-recurrence of the aforementioned loss related to the option in third-quarter 2013 and the aforementioned income related to the decline in the loss from the option recorded in third-quarter 2014, both of which are not taxable. These favorable impacts were partially offset by a non-tax deductible charge to account for an additional year of the Branded Prescription Drug Fee in accordance with final regulations issued in third-quarter 2014 by the�Internal Revenue Service (IRS).

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Unfavorable impact:

the charge to account for an additional year of the Branded Prescription Drug Fee in accordance with final regulations issued in third-quarter 2014 by the�IRS.
RECENT NOTABLE DEVELOPMENTS
Product Developments
Prevnar 13/Prevenar 13

Pfizer announced on August 13 that the CDC's ACIP voted to recommend Prevnar 13�(Pneumococcal 13-valent Conjugate Vaccine) for routine use to help protect adults aged 65 years and older against pneumococcal disease, which includes pneumonia caused by the 13 pneumococcal serotypes included in the vaccine. The recommendations were subsequently approved by the directors of the CDC and the U.S. Department of Health and Human Services. On September 19, the recommendations were published in the Morbidity and Mortality Weekly Report. The recommendations for routine use among adults aged 65 years and older will be reevaluated in 2018 and revised as needed.

Pfizer announced in August that the European Medicines Agency validated Pfizers marketing authorization application seeking to expand the indication for Prevenar 13 in adults to include the prevention of pneumonia caused by the 13 pneumococcal serotypes contained in the vaccine. This application is based on the positive results of the Community-Acquired Pneumonia Immunization Trial in Adults (CAPiTA) clinical trial. Prevenar 13 is currently approved for adults in Europe for the prevention of invasive pneumococcal disease.

Pfizer also submitted and the FDA accepted a supplemental Biologics License Application (sBLA) seeking to add efficacy data regarding the use of Prevnar 13 in older adults to the prescribing information and to meet Pfizer's commitment under the FDA's accelerated approval program. The Prescription Drug User Fee Act (PDUFA) date for this sBLA is in May 2015.
Eliquis

The European Commission in July approved Eliquis for the treatment of deep vein thrombosis (DVT) and pulmonary embolism (PE), and the prevention of recurrent DVT and PE in adults. Eliquis was previously approved in the EU for the prevention of venous thromboembolism in adults who have undergone elective total hip or knee replacement surgery, and for the prevention of stroke and systemic embolism in adult patients with nonvalvular atrial fibrillation (NVAF) with one or more risk factors.

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The FDA in August approved a supplemental New Drug Application (sNDA) for�Eliquis�for the treatment of DVT and PE, and for the reduction in the risk of recurrent DVT and PE following initial therapy. Bristol-Myers Squibb and Pfizer in October began sales force activities in the U.S. for these indications. Eliquis was previously approved by the FDA to reduce the risk of stroke and systemic embolism in patients with NVAF and for the prophylaxis of DVT, which may lead to PE, in patients who have undergone hip or knee replacement surgery.
Embeda -- Pfizer announced in October that the FDA approved an updated label for Embeda (morphine sulfate and naltrexone hydrochloride) extended-release capsules, for oral use, to include abuse-deterrence studies. Embeda is indicated for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment and for which alternative treatment options are inadequate. Pfizer expects Embeda will be available in the U.S. in early 2015.
Xalkori (crizotinib) -- Pfizer and Merck & Co. Inc., known as MSD outside the U.S. and Canada, through a subsidiary, announced that they have entered into an agreement to explore the therapeutic potential of the combination of Pfizers crizotinib with Mercks anti-PD-1 antibody pembrolizumab (Keytruda), in a Phase 1b clinical study evaluating the safety and tolerability of the combination in patients with ALK-positive advanced or metastatic non-small cell lung cancer (NSCLC). A multi-center, open-label clinical study, to be conducted by Pfizer, is expected to begin in 2015.
Pipeline Developments
Palbociclib (PD-0332991) -- Pfizer announced in October that the FDA accepted for filing Pfizer's New Drug Application (NDA) with Priority Review seeking approval for palbociclib, in combination with letrozole, as a first-line treatment for postmenopausal women with estrogen receptor positive (ER+), human epidermal growth factor receptor 2 negative (HER2-) advanced breast cancer who have not received previous systemic treatment for their advanced disease.�The NDA is based on the final results of PALOMA-1, a randomized, Phase 2 clinical trial comparing the combination of palbociclib plus letrozole versus letrozole alone in this population of patients.�The FDAs Priority Review designation accelerates the review time from 10 months to a goal of six months from the day of filing acceptance and is given to drugs that may offer major advances in treatment or may provide a treatment where no adequate therapy exists. The PDUFA date for this NDA is April 13, 2015.
rLP2086 (Meningococcal Serogroup B Bivalent Recombinant Lipoprotein vaccine candidate)

Pfizer announced in August that the FDA accepted Pfizer's Biologics License Application (BLA) for rLP2086 with Priority Review. The BLA seeks approval for the prevention of invasive meningococcal disease caused by�Neisseria meningitidis�serogroup B in adolescents and young adults (ages 10-25). The PDUFA date for this BLA is February 14, 2015.

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In October, Pfizer presented results of a Phase 2 study that evaluated co-administration of rLP2086 with a licensed quadrivalent human papillomavirus vaccine (HPV4), at IDWeek 2014TM in Philadelphia. Data from the study demonstrated immune responses to both vaccines were generated after concomitant administration of rLP2086 and HPV4. Prespecified noninferiority criteria were met for the bivalent rLP2086 antigens studied and three of the four antigens for HPV4.
Bococizumab (PF-04950615, proprotein convertase subtilisin/kexin type 9�(PCSK9) inhibitor) -- Pfizer increased the target number of patients to be enrolled into its two cardiovascular outcomes trials for bococizumab from 18,300 to approximately 26,000. This expansion was undertaken to help ensure timely completion of these trials. While difficult to predict the exact timing for the completion of these event-driven trials, Pfizer believes primary completion of its studies will be in line with other PCSK9 cardiovascular outcome trials being conducted by certain other companies.
PF-05082566 (4-1BB / CD-137 antibody candidate) -- Pfizer and Kyowa Hakko Kirin announced in September that they have entered into an agreement to explore the therapeutic potential of the combination of Pfizers PF-05082566, an investigational, fully humanized monoclonal antibody that stimulates signaling through 4-1BB (CD-137), a protein involved in regulation of immune cell activation, proliferation and survival, with Kyowa Hakko Kirins anti-CCR4 antibody mogamulizumab, which suppresses some of the immune cells that shield the tumor from the immune system, in a Phase 1b clinical study evaluating the safety and tolerability of the combination in patients with solid tumors. Under the terms of the agreement, Pfizer and Kyowa Hakko Kirin will co-fund the clinical study, which will be conducted by Pfizer. This study is expected to establish a recommended dose regimen and assess the safety and preliminary efficacy of the combination. This study is expected to begin in 2015 and the results will determine the future clinical development of the combination.
PF-06425090 (Clostridium difficile (C. difficile)�vaccine candidate) -- Pfizer announced in August that the FDA granted Fast Track designation to the companys investigational�C. difficile�vaccine candidate.�Currently in Phase 2 clinical development, the vaccine candidate is designed to prevent�C. difficile-associated disease,�which can include life-threatening diarrhea and pseudomembranous colitis. The FDAs Fast Track approach is a process designed to facilitate the development and expedite the review of new drugs and vaccines intended to treat or prevent serious conditions and address an unmet medical need.
PF-06290510 (Staphylococcus aureus (S. aureus) vaccine candidate) -- In October, Pfizer presented data from a Phase 1/Phase 2 study evaluating the safety, tolerability and immunogenicity of a single-dose of its investigational 4-antigen S. aureus vaccine candidate in healthy adults. The study results demonstrated that PF-06290510 was well tolerated in the 456 healthy adults 18 to 64 years old who randomly received a

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single intramuscular injection of PF-06290510 or placebo. The study also showed rapid rises in functional antibody titers against S. aureus that were maintained through at least 12 months. PF-06290510, currently in Phase 2 clinical trials, was granted Fast Track designation by the FDA in February 2014.
Remoxy (oxycodone extended-release capsules CII) -- Pfizer in October notified Pain Therapeutics, Inc. that Pfizer has decided to discontinue its agreement to develop and commercialize Remoxy, an investigational extended-release oral formulation of oxycodone. Pfizer will return all rights, including responsibility for regulatory activities, to Pain Therapeutics, Inc. Pfizer and Pain Therapeutics, Inc. will work together for an orderly transition of Remoxy to Pain Therapeutics, Inc. Pfizer will continue ongoing activities under the agreement for the next six months until the scheduled termination date.
Corporate Developments
Pfizer announced in July that it has entered into a definitive agreement to acquire Baxter International Inc.'s (Baxter) portfolio of marketed vaccines for $635 million. As part of the transaction, Pfizer will also acquire a portion of Baxters facility in Orth, Austria, where these vaccines are manufactured. Baxters portfolio of marketed vaccines consists of NeisVac-C and FSME-Immun/TicoVac. NeisVac-C is a vaccine that helps protect against meningitis caused by group C meningococcal meningitis and FSME-Immun/TicoVac is a vaccine that helps protect against tick-borne encephalitis. The transaction is subject to customary closing conditions as well as regulatory approvals in several markets, including some countries in the European Union, and is expected to be completed by the end of 2014.
In September, Pfizer completed its acquisition of the pharmaceutical development company, InnoPharma, Inc. for an upfront cash payment of $225 million and up to $135 million of contingent milestone payments.

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For additional details, see the attached financial schedules, product revenue tables and disclosure notice.
(1)
Reported Revenues is defined as revenues in accordance with U.S. generally accepted accounting principles (GAAP).�Reported Net Income is defined as net income attributable to Pfizer Inc. in accordance with U.S. GAAP.�Reported Diluted EPS is defined as reported diluted EPS attributable to Pfizer Inc. common shareholders in accordance with U.S. GAAP.
(2)
Adjusted Income and its components and Adjusted Diluted Earnings Per Share (EPS) are defined as reported U.S. GAAP net income(1) and its components and reported diluted EPS(1) excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items.�Adjusted Revenues, Adjusted Cost of Sales, Adjusted Selling, Informational and Administrative (SI&A) expenses, Adjusted Research and Development (R&D) expenses and Adjusted Other (Income)/Deductions are income statement line items prepared on the same basis as, and therefore components of, the overall Adjusted income measure.�As described under Adjusted Income in the Managements Discussion and Analysis of Financial Condition and Results of Operations section of Pfizers Quarterly Report on Form 10-Q for the fiscal quarter ended�June�29, 2014, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company.�We believe that investors understanding of our performance is enhanced by disclosing this measure.�See the accompanying reconciliations of certain GAAP reported to non-GAAP adjusted information for the third quarter and first nine months of 2014 and 2013, as well as reconciliations of full-year 2014 guidance for adjusted income and adjusted diluted EPS to full-year 2014 guidance for reported net income(1) and reported diluted EPS(1). The adjusted income and its components and adjusted diluted EPS measures are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.
(3)
For a description of the revenues in each business, see the Our StrategyCommercial Operations sub-section in the Overview of Our Performance, Operating Environment, Strategy and Outlook section of Pfizer's Quarterly Report on Form 10-Q for the fiscal quarter ended June�29, 2014.
(4)
Other includes revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and also includes revenues related to our transitional manufacturing and supply agreements with Zoetis.
(5)
The 2014 financial guidance reflects the following:
Does not assume the completion of any business development transactions�not completed as of September�28, 2014, including any one-time upfront payments associated with such transactions.
Excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of September�28, 2014.
Exchange rates assumed are a blend of the actual exchange rates in effect through September 28, 2014 and the mid-October 2014 exchange rates for the remainder of the year. Does not include the impact of a potential devaluation of the Venezuelan bolivar or any other currency.
Guidance for the effective tax rate on adjusted income(2) does not assume renewal of the U.S. research and development (R&D) tax credit. The renewal of the R&D tax credit is not anticipated to have a material impact on the effective tax rate on adjusted income(2).
Assumes diluted weighted-average shares outstanding of approximately 6.4 billion shares.
Revenues and cost of sales from the transitional manufacturing and supply agreements with Zoetis have been excluded from the applicable Adjusted components of the financial guidance.

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Reconciliation of the 2014 Adjusted Income(2) and Adjusted Diluted EPS(2) guidance to the 2014 Reported Net Income Attributable to Pfizer Inc. and Reported Diluted EPS Attributable to Pfizer Inc. common shareholders guidance:
($ in billions, except per share amounts)
Income/(Expense)
Net Income
Diluted EPS
Adjusted income/diluted EPS(2)�guidance
$14.3 - $14.6
$2.23 - $2.27
Purchase accounting impacts of transactions completed as of September 28, 2014
(2.7)
(0.42)
Restructuring and implementation costs
(0.8) - (1.1)
(0.12) - (0.17)
Certain other items incurred through September 28, 2014
(1.0)
(0.15)
Discontinued operations
0.1
0.01
Reported net income attributable to Pfizer Inc./diluted EPS(1)�guidance
$9.6 - $10.2
$1.50 - $1.59
Contacts:
Media
Investors
Joan Campion
212.733.2798
Chuck Triano
212.733.3901
Ryan Crowe
212.733.8160
Bryan Dunn
212.733.8917


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PFIZER INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME(1)
(UNAUDITED)
(millions, except per common share data)


Third-Quarter
% Incr. /
Nine Months
% Incr. /
2014
2013
(Decr.)
2014
2013
(Decr.)
Revenues
$
12,361

$
12,643

(2)
$
36,487

$
38,026

(4)
Costs and expenses:
Cost of sales(2)
2,368

2,287

4
6,875

6,792

1
Selling, informational and administrative expenses(2)
3,556

3,395

5
10,116

10,203

(1)
Research and development expenses(2)
1,802

1,627

11
5,184

4,867

7
Amortization of intangible assets(3)
972

1,117

(13)
3,090

3,476

(11)
Restructuring charges and certain acquisition-related costs
(19
)
233

*
120

547

(78)
Other (income)/deductionsnet(4)
94

411

(77)
665

(514
)
*
Income from continuing operations before provision for taxes on income
3,587

3,573


10,437

12,655

(18)
Provision for taxes on income(5)
911

985

(7)
2,575

3,876

(34)
Income from continuing operations
2,676

2,588

3
7,862

8,779

(10)
Discontinued operationsnet of tax
(3
)
11

*
70

10,719

(99)
Net income before allocation to noncontrolling interests
2,672

2,599

3
7,932

19,498

(59)
Less: Net income attributable to noncontrolling interests
6

9

(32)
25

63

(61)
Net income attributable to Pfizer Inc.
$
2,666

$
2,590

3
$
7,907

$
19,435

(59)
Earnings per common sharebasic:

Income from continuing operations attributable to Pfizer Inc. common shareholders
$
0.42

$
0.39

8
$
1.23

$
1.26

(2)
Discontinued operationsnet of tax





0.01

1.54

(99)
Net income attributable to Pfizer Inc. common shareholders
$
0.42

$
0.39

8
$
1.24

$
2.80

(56)
Earnings per common sharediluted:
Income from continuing operations attributable to Pfizer Inc. common shareholders
$
0.42

$
0.39

8
$
1.22

$
1.25

(2)
Discontinued operationsnet of tax





0.01

1.52

(99)
Net income attributable to Pfizer Inc. common shareholders
$
0.42

$
0.39

8
$
1.23

$
2.77

(56)
Weighted-average shares used to calculate earnings per common share:
Basic
6,330

6,581

6,363

6,938

Diluted
6,403

6,656

6,441

7,016


*Calculation not meaningful.
See next pages for notes (1) through (5).
Amounts may not add due to rounding. All percentages have been calculated using unrounded amounts.



- 12 -


PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

(1)
The financial statements present the three and nine months ended September�28, 2014 and September�29, 2013. Subsidiaries operating outside the United States are included for the three and nine months ended August�24, 2014 and August�25, 2013.
On June 24, 2013, we completed the full disposition of our Animal Health business, Zoetis Inc. (Zoetis) and recognized a gain of approximately $10.4 billion, net of tax, related to this disposal in Discontinued operationsnet of tax for the nine months ended September�29, 2013. The operating results of this business are reported as Discontinued operationsnet of tax for the nine months ended September�29, 2013, through June 24, 2013, the date of disposal.
The financial results for the three and nine months ended September�28, 2014 are not necessarily indicative of the results which could ultimately be achieved for the full year.
Certain amounts in the consolidated statements of income and associated notes may not add due to rounding. All percentages have been calculated using unrounded amounts.
(2)
Exclusive of amortization of intangible assets, except as discussed in footnote (3) below. Selling, informational and administrative expenses in the third quarter and first nine months of 2014 includes a $215 million charge to account for an additional year of the non-tax deductible Branded Prescription Drug Fee in accordance with final regulations issued in the third quarter of 2014 by the Internal Revenue Service (IRS).
(3)
Amortization expense related to finite-lived acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to intangible assets that are associated with a single function is included in�Cost of sales, Selling, informational and administrative expenses or Research and development expenses, as appropriate.
(4)
Other (income)/deductionsnet includes the following:
Third-Quarter
Nine Months
(millions of dollars)
2014
2013
2014
2013
Interest income(a)
$
(108
)
$
(94
)
$
(303
)
$
(291
)
Interest expense(a)
343

340

1,007

1,067

Net interest expense
235

246

703

776

Royalty-related income(b)
(251
)
(122
)
(737
)
(305
)
Patent litigation settlement income(c)


9



(1,342
)
Other legal matters, net(d)
28

1

720

(94
)
Gain associated with the transfer of certain product rights(e)






(459
)
Net gains on asset disposals(f)
(53
)
(46
)
(267
)
(100
)
Certain asset impairments(g)
243

220

358

745

Costs associated with the Zoetis IPO(h)






18

Other, net(i)
(108
)
104

(113
)
247

Other (income)/deductionsnet
$
94

$
411

$
665

$
(514
)
(a)
Interest income increased in the third quarter and first nine months of 2014 due to higher cash equivalents and investment balances. Interest expense increased in the third quarter of 2014 due to the addition of new fixed rate debt in the second quarter of 2014 and, interest expense decreased during the first nine months of 2014, primarily due to the benefit of the effective conversion of some fixed-rate liabilities to floating-rate liabilities.
(b)
Royalty-related income increased in the third quarter and first nine months of 2014 primarily due to royalties earned on sales of Enbrel in the U.S. and Canada after October 31, 2013. On that date, the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada expired, and Pfizer became entitled to royalties for a 36-month period thereafter.
(c)
In the first nine months of 2013, reflects income from a litigation settlement with Teva Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries Ltd. for patent-infringement damages resulting from their "at-risk" launches of generic Protonix in the U.S.

- 13 -


PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)

(d)
In the first nine months of 2014, primarily includes approximately $610 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $55 million for an Effexor-related matter. In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter.
(e)
In the first nine months of 2013, represents the gain associated with the transfer of certain product rights to Pfizer's 49%-owned equity-method investment with Zhejiang Hisun Pharmaceuticals Co., Ltd. (Hisun) in China.
(f)
In the first nine months of 2014, primarily includes gains on sales/out-licensing of product and compound rights (approximately $128 million) and gains on sales of investments in equity securities (approximately $114 million).
(g)
In the third quarter and first nine months of 2014, primarily includes impairment charges related to an in-process research and development (IPR&D) compound for the treatment of skin fibrosis and to developed technology rights. In the third quarter of 2013, primarily includes an impairment charge related to an IPR&D compound. In the first nine months of 2013, also includes impairment charges related to developed technology (for use in the development of bone and cartilage) acquired in connection with our acquisition of Wyeth and two additional IPR&D compounds.
(h)
Represents costs incurred in connection with the initial public offering of an approximate 19.8% ownership interest in Zoetis.�Includes expenditures for banking, legal, accounting and similar services.
(i)
In the third quarter and first nine months of 2013, includes a loss on an option to acquire the remaining interest in Laborat�rio Teuto Brasileiro S.A. (Teuto), a 40%-owned generics company in Brazil (approximately $223 million). In the third quarter and first nine months of 2014, includes income resulting from a decline in the loss from the aforementioned option (approximately $90 million).
(5)
The Provision for taxes on income for the third quarter and first nine months of 2014 was favorably impacted by the change in the jurisdictional mix of earnings as a result of operating fluctuations in the normal course of business, and a decline in the non-tax deductible loss recorded in the third quarter of 2013 related to an option to acquire the remaining interest in Teuto, a 40%-owned generics company in Brazil, since we expect to retain the investment indefinitely, and unfavorably impacted by a non-tax deductible charge to account for an additional year of the Branded Prescription Drug Fee in accordance with final regulations issued in the third quarter of 2014 by the IRS. The Provision for taxes on income in the first nine months of 2014 was favorably impacted by the resolution of certain tax positions, pertaining to prior years, primarily with various foreign tax authorities, and from the expiration of certain statutes of limitations, and was unfavorably impacted by the expiration of the U.S. research and development (R&D) tax credit on December 31, 2013.
The Provision for taxes on income for the third quarter and first nine months of 2013 was unfavorably impacted by the aforementioned non-tax deductible loss related to the Teuto option, since we expect to retain the investment indefinitely. The Provision for taxes on income for the first nine months of 2013 was unfavorably impacted by (i) the non-deductibility of the goodwill derecognized and the jurisdictional mix of the other intangible assets divested as part of the transfer of certain product rights to our 49%-owned equity-method investment with Hisun in China and (ii) the tax rate associated with the patent litigation settlement income, partially offset by (i) the change in the jurisdictional mix of earnings as a result of operating fluctuations in the normal course of business and (ii) the extension of the U.S. R&D tax credit, which was signed into law in January 2013, resulting in the full-year benefit of the 2012 U.S. R&D tax credit and a portion of the 2013 U.S. R&D tax credit being recorded in the first nine months of 2013.



- 14 -

PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION(1)
CERTAIN LINE ITEMS
(UNAUDITED)
(millions of dollars, except per common share data)

Quarter Ended September�28, 2014
GAAP Reported(2)
Purchase Accounting Adjustments
Acquisition-Related Costs(3)
Discontinued Operations
Certain Significant Items(4)
Non-GAAP Adjusted(5)
Revenues
$
12,361

$


$


$


$
(65
)
$
12,296

Cost of sales(6)
2,368

9

(13
)


(120
)
2,244

Selling, informational and administrative expenses(6)
3,556

(3
)




(254
)
3,299

Research and development expenses(6)
1,802

(1
)




(13
)
1,788

Amortization of intangible assets(7)
972

(928
)






44

Restructuring charges and certain acquisition-related costs
(19
)


(41
)


59



Other (income)/deductionsnet
94

112





(286
)
(80
)
Income from continuing operations before provision for taxes on income
3,587

812

54



548

5,001

Provision for taxes on income
911

255

19



155

1,340

Income from continuing operations
2,676

557

36



393

3,661

Discontinued operationsnet of tax
(3
)




3





Net income attributable to noncontrolling interests
6









6

Net income attributable to Pfizer Inc.
2,666

557

36

3

393

3,655

Earnings per common share attributable to Pfizer Inc.diluted
0.42

0.09

0.01



0.06

0.57


Nine Months Ended September 28, 2014
GAAP Reported(2)
Purchase Accounting Adjustments
Acquisition-Related Costs(3)
Discontinued Operations
Certain Significant Items(4)
Non-GAAP Adjusted(5)
Revenues
$
36,487

$


$


$


$
(193
)
$
36,294

Cost of sales(6)
6,875

92

(36
)


(381
)
6,550

Selling, informational and administrative expenses(6)
10,116

1





(312
)
9,804

Research and development expenses(6)
5,184

(1
)




(70
)
5,114

Amortization of intangible assets(7)
3,090

(2,965
)






125

Restructuring charges and certain acquisition-related costs
120



(96
)


(25
)


Other (income)/deductionsnet
665

105





(1,208
)
(437
)
Income from continuing operations before provision for taxes on income
10,437

2,768

131



1,803

15,139

Provision for taxes on income
2,575

797

76



578

4,026

Income from continuing operations
7,862

1,970

55



1,225

11,113

Discontinued operationsnet of tax
70





(70
)




Net income attributable to noncontrolling interests
25









25

Net income attributable to Pfizer Inc.
7,907

1,970

55

(70
)
1,225

11,088

Earnings per common share attributable to Pfizer Inc.diluted
1.23

0.31

0.01

(0.01
)
0.19

1.72

See end of tables for notes (1) through (7).
Amounts may not add due to rounding.


- 15 -

PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION(1)
CERTAIN LINE ITEMS
(UNAUDITED)
(millions of dollars, except per common share data)

Quarter Ended September�29, 2013
GAAP Reported(2)
Purchase Accounting Adjustments
Acquisition-Related Costs(3)
Discontinued Operations
Certain Significant Items(4)
Non-GAAP Adjusted(5)
Revenues
$
12,643

$


$


$


$
(67
)
$
12,576

Cost of sales(6)
2,287

(4
)
(18
)


(87
)
2,178

Selling, informational and administrative expenses(6)
3,395

(1
)




(43
)
3,351

Research and development expenses(6)
1,627

(1
)




(1
)
1,625

Amortization of intangible assets(7)
1,117

(1,075
)






42

Restructuring charges and certain acquisition-related costs
233



(43
)


(190
)


Other (income)/deductionsnet
411

121





(490
)
42

Income from continuing operations before provision for taxes on income
3,573

960

61



744

5,338

Provision for taxes on income
985

309

7



172

1,473

Income from continuing operations
2,588

651

54



572

3,865

Discontinued operationsnet of tax
11





(11
)




Net income attributable to noncontrolling interests
9





(3
)


6

Net income attributable to Pfizer Inc.
2,590

651

54

(8
)
572

3,859

Earnings per common share attributable to Pfizer Inc.diluted
0.39

0.10

0.01



0.09

0.58

Nine Months Ended September 29, 2013
GAAP Reported(2)
Purchase Accounting Adjustments
Acquisition-Related Costs(3)
Discontinued Operations
Certain Significant Items(4)
Non-GAAP Adjusted(5)
Revenues
$
38,026

$


$


$


$
(67
)
$
37,959

Cost of sales(6)
6,792

16

(101
)


(106
)
6,601

Selling, informational and administrative expenses(6)
10,203

5

(8
)


(121
)
10,079

Research and development expenses(6)
4,867

1





(104
)
4,764

Amortization of intangible assets(7)
3,476

(3,352
)






124

Restructuring charges and certain acquisition-related costs
547



(155
)


(392
)


Other (income)/deductionsnet
(514
)
43





836

365

Income from continuing operations before provision for taxes on income
12,655

3,287

264



(180
)
16,026

Provision for taxes on income
3,876

941

(42
)


(376
)
4,399

Income from continuing operations
8,779

2,346

306



196

11,627

Discontinued operationsnet of tax
10,719





(10,719
)




Net income attributable to noncontrolling interests
63





(38
)


25

Net income attributable to Pfizer Inc.
19,435

2,346

306

(10,681
)
196

11,602

Earnings per common share attributable to Pfizer Inc.diluted
2.77

0.33

0.04

(1.52
)
0.03

1.65

See end of tables for notes (1) through (7).
Amounts may not add due to rounding.




- 16 -


PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)

(1)
Certain amounts in the reconciliation of GAAP reported to Non-GAAP adjusted information and associated notes may not add due to rounding.
(2)
The financial statements present the three and nine months ended September�28, 2014 and September�29, 2013. Subsidiaries operating outside the United States are included for the three and nine months ended August�24, 2014 and August�25, 2013.
On June 24, 2013, we completed the full disposition of our Animal Health business, Zoetis Inc. (Zoetis) and recognized a gain of approximately $10.4 billion, net of tax, related to this disposal in Discontinued operationsnet of tax for the nine months ended September�29, 2013. The operating results of this business are reported as Discontinued operationsnet of tax for the nine months ended September�29, 2013, through June 24, 2013, the date of disposal.
(3)
Acquisition-related costs include the following:
Third-Quarter
Nine Months
(millions of dollars)
2014
2013
2014
2013
Restructuring charges(a)
$
22

$
5

$
43

$
48

Integration costs(a)
19

38

53

107

Additional depreciationasset restructuring(b)
13

18

36

109

Total acquisition-related costspre-tax
54

61

131

264

Income taxes(c)
(19
)
(7
)
(76
)
42

Total acquisition-related costsnet of tax
$
36

$
54

$
55

$
306

(a)
Restructuring charges include employee termination costs, asset impairments and other exit costs associated with business combinations. Integration costs represent external, incremental costs directly related to integrating acquired businesses, and primarily include expenditures for consulting and the integration of systems and processes. All of these costs and charges are included in Restructuring charges and certain acquisition-related costs.
(b)
Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions related to acquisitions. Included in Cost of sales for both the three months and the nine months ended September�28, 2014. Included in Cost of sales for the three months ended September�29, 2013. Included in Cost of sales ($101 million) and Selling, informational and administrative expenses ($8 million) for the nine months ended September�29, 2013.
(c)
Included in Provision for taxes on income. Income taxes includes the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdictions applicable tax rate. In the first nine months of 2014, also includes the favorable impact of the remeasurement of certain deferred tax liabilities resulting from plant network restructuring activities. In the first nine months of 2013, also includes the unfavorable impact of the remeasurement of certain deferred tax liabilities resulting from plant network restructuring activities.

- 17 -


PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)

(4)
Certain significant items include the following:
Third-Quarter
Nine Months
(millions of dollars)
2014
2013
2014
2013
Restructuring charges(a)
$
(59
)
$
190

$
25

$
392

Implementation costs and additional depreciationasset restructuring(b)
113

72

375

270

Additional year of Branded Prescription Drug Fee(c)
215



215



Patent litigation settlement income(d)


9



(1,342
)
Other legal matters, net(e)
28

1

726

(99
)
Gain associated with the transfer of certain product rights(f)






(459
)
Certain asset impairments(g)
242

217

356

706

Costs associated with the Zoetis IPO(h)






18

Income associated with the transitional manufacturing and supply agreements with Zoetis(i)
(8
)
(10
)
(25
)
(10
)
Other(j)
18

265

130

344

Total certain significant itemspre-tax
548

744

1,803

(180
)
Income taxes(k)
(155
)
(172
)
(578
)
376

Total certain significant itemsnet of tax
$
393

$
572

$
1,225

$
196


(a)
Primarily related to our cost-reduction and productivity initiatives. Included in Restructuring charges and certain acquisition-related costs. For the three months ended September�28, 2014, includes a $62.5 million partial reversal of a reserve established in the fourth quarter of 2012, reflecting a change in estimate associated with our sales force restructuring plan in response to product loss of exclusivity.
(b)
Relates to our cost-reduction and productivity initiatives. Included in Cost of sales ($63 million), Selling, informational and administrative expenses ($37 million) and Research and development expenses ($13 million) for the three months ended September�28, 2014. Included in Cost of sales ($215 million), Selling, informational and administrative expenses ($90 million) and Research and development expenses ($70 million) for the nine months ended September�28, 2014. Included in Cost of sales ($41 million), Selling, informational and administrative expenses ($30 million) and Research and development expenses ($1 million) for the three months ended September�29, 2013. Included in Cost of sales ($60 million), Selling, informational and administrative expenses ($106 million) and Research and development expenses ($104 million) for the nine months ended September�29, 2013.
(c)
Included in Selling, informational and administrative expenses. Represents a charge to account for an additional year of the non-tax deductible Branded Prescription Drug Fee in accordance with final regulations issued in the third quarter of 2014 by the�Internal Revenue Service (IRS).
(d)
Included in Other (income)/deductionsnet. In the first nine months of 2013, reflects income from a litigation settlement with Teva Pharmaceutical Industries Ltd. and Sun Pharmaceutical Industries Ltd. for patent-infringement damages resulting from their "at-risk" launches of generic Protonix in the U.S.
(e)
Included in Other (income)/deductionsnet. In the first nine months of 2014, primarily includes approximately $610 million for Neurontin-related matters (including off-label promotion actions and antitrust actions) and approximately $55 million for an Effexor-related matter. In the first nine months of 2013, primarily includes an $80 million insurance recovery related to a certain litigation matter.
(f)
Included in Other (income)/deductionsnet. In 2013, represents the gain associated with the transfer of certain product rights to Pfizer's 49%-owned equity-method investment with Zhejiang Hisun Pharmaceuticals Co., Ltd. (Hisun) in China.

- 18 -


PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)

(g)
Included in Other (income)/deductionsnet. In the third quarter and first nine months of 2014, primarily includes impairment charges related to an in-process research and development (IPR&D) compound for the treatment of skin fibrosis. and to developed technology rights. In the third quarter of 2013, primarily includes an impairment charge related to an IPR&D compound. In the first nine months of 2013, also includes impairment charges related to developed technology (for use in the development of bone and cartilage) acquired in connection with our acquisition of Wyeth and two additional IPR&D compounds.
(h)
Included in Other (income)/deductionsnet. Represents costs incurred in connection with the initial public offering of an approximate 19.8% ownership interest in Zoetis.�Includes expenditures for banking, legal, accounting and similar services.
(i)
Included in Revenues ($65 million) and Cost of sales ($57 million) for the three months ended September�28, 2014 and primarily included in Revenues ($193 million) and Cost of sales ($167 million) for the nine months ended September�28, 2014. Included in Revenues ($67 million) and in Cost of sales ($57 million) for the three and nine months ended September 29, 2013.
(j)
Primarily included in Other (income)/deductionsnet. In the third quarter and first nine months of 2013, includes a loss on an option to acquire the remaining interest in Laborat�rio Teuto Brasileiro S.A. (Teuto), a 40%-owned generics company in Brazil (approximately $223 million). In the third quarter and first nine months of 2014, includes income resulting from a decline in the loss from the aforementioned option (approximately $90 million).
(k)
Included in Provision for taxes on income. Income taxes includes the tax effect of the associated pre-tax amounts, calculated by determining the jurisdictional location of the pre-tax amounts and applying that jurisdictions applicable tax rate. The third quarter and first nine months of 2014 were favorably impacted by the decline in the non-tax deductible loss recorded in the third quarter of 2013 related to an option to acquire the remaining interest in Teuto, a 40%-owned generics company in Brazil, since we expect to retain the investment indefinitely, and unfavorably impacted by a non-tax deductible charge to account for an additional year of the Branded Prescription Drug Fee in accordance with final regulations issued in the third quarter of 2014 by the IRS. The third quarter and first nine months of 2013 were unfavorably impacted by the aforementioned non-tax deductible loss related to the Teuto option, since we expect to retain the investment indefinitely. The first nine months of 2013 were unfavorably impacted by the non-deductibility of goodwill derecognized and the jurisdictional mix of the other intangible assets divested as part of the transfer of certain product rights to our 49%-owned equity-method investment with Hisun in China and by the tax liability associated with the patent litigation settlement income.
(5)
Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS. Despite the importance of these measures to management in goal setting and performance measurement, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are Non-GAAP financial measures that have no standardized meaning prescribed by U.S. GAAP and, therefore, have limits in their usefulness to investors.�Because of the non-standardized definitions, Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS (unlike U.S. GAAP net income and its components and diluted EPS) may not be comparable to the calculation of similar measures of other companies.�Non-GAAP Adjusted income and its components and Non-GAAP Adjusted diluted EPS are presented solely to permit investors to more fully understand how management assesses performance.
(6)
Exclusive of amortization of intangible assets, except as discussed in footnote (7) below.
(7)
Amortization expense related to finite-lived acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute products, compounds and intellectual property is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to intangible assets that are associated with a single function is included in�Cost of sales, Selling, informational and administrative expenses or Research and development expenses, as appropriate.

- 19 -

PFIZER INC. AND SUBSIDIARY COMPANIES
OPERATING SEGMENT INFORMATION(1)
(UNAUDITED)
(millions of dollars)

Quarter Ended September 28, 2014
GIP(2)
VOC(2)
GEP(2)
Other(3)
Non-GAAP Adjusted(4)
Reconciling Items(5)
GAAP Reported
Revenues
$
3,490

$
2,511

$
6,239

$
56

$
12,296

$
65

$
12,361

Cost of sales
485

475

1,137

148

2,244

124

2,368

Selling, informational and administrative expenses
835

602

982

881

3,299

257

3,556

Research and development expenses
386

200

166

1,037

1,788

14

1,802

Amortization of intangible assets
11

7

25

1

44

928

972

Restructuring charges and certain acquisition related costs










(18
)
(19
)
Other (income)/deductionsnet
(289
)
(6
)
(64
)
279

(80
)
174

94

Income from continuing operations before provision for taxes on income
2,063

1,235

3,993

(2,290
)
5,001

(1,414
)
3,587

Nine Months Ended September 28, 2014
GIP(2)
VOC(2)
GEP(2)
Other(3)
Non-GAAP Adjusted(4)
Reconciling Items(5)
GAAP Reported
Revenues
$
10,114

$
7,264

$
18,742

$
175

$
36,294

$
193

$
36,487

Cost of sales
1,375

1,402

3,331

442

6,550

325

6,875

Selling, informational and administrative expenses
2,529

1,789

2,846

2,640

9,804

311

10,116

Research and development expenses
1,152

635

455

2,872

5,114

70

5,184

Amortization of intangible assets
34

16

75



125

2,965

3,090

Restructuring charges and certain acquisition related costs










120

120

Other (income)/deductionsnet
(814
)
(26
)
(184
)
586

(437
)
1,102

665

Income from continuing operations before provision for taxes on income
5,838

3,447

12,219

(6,365
)
15,139

(4,702
)
10,437

See end of tables for notes (1) through (5).
Amounts may not add due to rounding.


- 20 -

PFIZER INC. AND SUBSIDIARY COMPANIES
OPERATING SEGMENT INFORMATION(1)
(UNAUDITED)
(millions of dollars)

Quarter Ended September 29, 2013
GIP(2)(6)
VOC(2)(6)
GEP(2)(6)
Other(3)
Non-GAAP Adjusted(4)
Reconciling Items(5)
GAAP Reported
Revenues
$
3,640

$
2,215

$
6,675

$
46

$
12,576

$
67

$
12,643

Cost of sales
428

417

1,157

176

2,178

109

2,287

Selling, informational and administrative expenses
787

531

1,153

880

3,351

44

3,395

Research and development expenses
290

222

178

935

1,625

2

1,627

Amortization of intangible assets
10

3

26

2

42

1,075

1,117

Restructuring charges and certain acquisition-related costs


4



(4
)


233

233

Other (income)/deductionsnet
(125
)
(2
)
(11
)
180

42

369

411

Income from continuing operations before provision for taxes on income
2,250

1,039

4,173

(2,123
)
5,338

(1,765
)
3,573

Nine Months Ended September 29, 2013
GIP(2)(6)
VOC(2)(6)
GEP(2)(6)
Other(3)
Non-GA4P Adjusted(4)
Reconciling Items(5)
GAAP Reported
Revenues
$
10,672

$
6,668

$
20,458

$
162

$
37,959

$
67

$
38,026

Cost of sales
1,310

1,269

3,461

562

6,601

191

6,792

Selling, informational and administrative expenses
2,310

1,628

3,390

2,751

10,079

124

10,203

Research and development expenses
860

663

542

2,700

4,764

103

4,867

Amortization of intangible assets
33

10

74

7

124

3,352

3,476

Restructuring charges and certain acquisition-related costs


4



(4
)


547

547

Other (income)/deductionsnet
(304
)
(5
)
(43
)
716

365

(879
)
(514
)
Income from continuing operations before provision for taxes on income
6,464

3,099

13,034

(6,570
)
16,026

(3,371
)
12,655

See end of tables for notes (1) through (6).
Amounts may not add due to rounding.

- 21 -

PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO OPERATING SEGMENT INFORMATION
(UNAUDITED)



(1)
Certain amounts in the operating segment information and associated notes may not add due to rounding.
(2)
Amounts represent the revenues and costs managed by each of our operating segments: the Global Innovative Pharmaceutical segment (GIP); the Global Vaccines, Oncology and Consumer Healthcare segment (VOC); and the Global Established Pharmaceutical segment (GEP). The expenses generally include only those costs directly attributable to the operating segment. For a description of each operating segment, see the "Our StrategyCommercial Operations" sub-section in the Overview of Our Performance, Operating Environment, Strategy and Outlook section of Pfizer's Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2014.
The third quarter of 2014 reflects the following, as compared to the third quarter of 2013:
"
GIPThe increase in Cost of sales as a percentage of Revenues is due to the loss of Enbrel alliance revenue after October 31, 2013 when the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada expired as well as the change in product mix. The increase in Cost of Sales reflects a change in product mix. The increase in Selling, informational and administrative expenses reflects increased investment in recently launched brands and certain in-line products; the increase in Research and development expenses primarily reflects incremental investment in late-stage pipeline products; and the favorable change in Other (income)/deductionsnet primarily reflects an increase in royalty-related income, primarily due to royalties earned on sales of Enbrel in the U.S. and Canada after October 31, 2013. On that date, the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada expired, and we became entitled to royalties for a 36-month period thereafter.
"
VOCThe increase in Selling, informational and administrative expenses is primarily driven by Consumer Healthcare expenses incurred to support the launch of Nexium 24HR in the U.S. as well as palbociclib and meningitis B vaccine pre-launch marketing expenses; and the decrease in Research and development expenses reflects lower costs for certain oncology programs, partially offset by increased investment in the palbociclib and meningitis B vaccine development programs.
"
GEP The decrease in Selling, informational and administrative expenses is primarily due to lower expenses for field force, marketing and administrative expenses, reflecting the benefits of cost-reduction and productivity initiatives; and the decrease in Research and development expenses is due to lower clinical trial expenses and the benefits from cost-reduction and productivity initiatives, partially offset by increased spending on biosimilars development programs.

The first nine months of 2014 reflect the following, as compared to the first nine months of 2013:
"
GIPThe increase in Cost of sales as a percentage of Revenues is due to the loss of Enbrel alliance revenue after October 31, 2013 when the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada expired as well as the change in product mix. The increase in Cost of Sales reflects a change in product mix. The increase in Selling, informational and administrative expenses reflects increased investment in recently launched brands and certain in-line products; the increase in Research and development expenses reflects incremental investment in late-stage pipeline products; and the favorable change in Other (income)/deductionsnet primarily reflects an increase in royalty-related income, primarily due to royalties earned on sales of Enbrel in the U.S. and Canada after October 31, 2013. On that date, the co-promotion term of the collaboration agreement for Enbrel in the U.S. and Canada expired, and we became entitled to royalties for a 36-month period thereafter.
"
VOCThe increase in Selling, informational and administrative expenses is primarily driven by Consumer Healthcare expenses incurred to support the launch of Nexium 24HR in the U.S. as well as palbociclib and meningitis B vaccine pre-launch marketing expenses; and the decrease in Research and development expenses reflects lower costs for certain oncology programs, partially offset by increased investment in the palbociclib and meningitis B vaccine development programs.
"
GEPThe decrease in Selling, informational and administrative expenses is primarily due to lower expenses for field force, marketing and administrative expenses, reflecting the benefits of cost-reduction and productivity initiatives; the decrease in Research and development expenses is due to lower clinical trial expenses and the benefits from cost-reduction and productivity initiatives, partially offset by increased spending on biosimilars development programs; and the favorable change in Other (income)/deductionsnet primarily reflects gains on sales of product rights.

(3)
Other comprises the revenues and costs included in our Adjusted income components(4) that are managed outside of our three operating segments and includes the following:

- 22 -

PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO OPERATING SEGMENT INFORMATION
(UNAUDITED)


Quarter Ended September 28, 2014
Other Business Activities
(IN MILLIONS)
PCS(a)
WRD(b)
Medical(c)
Corporate(d)
Other Unallocated(e)
Total
Revenues
$
56

$


$


$


$


$
56

Cost of sales
38





20

90

148

Selling, informational and administrative expenses
3



37

830

11

881

Research and development expenses
1

826

5

206

(1
)
1,037

Amortization of intangible assets








1

1

Restructuring charges and certain acquisition related costs












Other (income)/deductionsnet


(22
)


253

48

279

Income from continuing operations before provision for taxes on income
$
14

$
(804
)
$
(42
)
$
(1,308
)
$
(149
)
$
(2,290
)
Nine Months Ended September 28, 2014
Other Business Activities
(IN MILLIONS)
PCS(a)
WRD(b)
Medical(c)
Corporate(d)
Other Unallocated(e)
Total
Revenues
$
175

$


$


$


$


$
175

Cost of sales
115





70

257

442

Selling, informational and administrative expenses
10



89

2,513

28

2,640

Research and development expenses
2

2,208

19

631

12

2,872

Amortization of intangible assets












Restructuring charges and certain acquisition related costs












Other (income)/deductionsnet


(56
)


579

63

586

Income from continuing operations before provision for taxes on income
$
48

$
(2,152
)
$
(108
)
$
(3,794
)
$
(359
)
$
(6,365
)
Quarter Ended September 29, 2013
Other Business Activities
(IN MILLIONS)
PCS(a)
WRD(b)
Medical(c)
Corporate(d)
Other Unallocated(e)
Total
Revenues
$
47

$


$


$
(1
)
$


$
46

Cost of sales
31





30

115

176

Selling, informational and administrative expenses
4



34

831

11

880

Research and development expenses
1

705

4

219

6

935

Amortization of intangible assets








2

2

Restructuring charges and certain acquisition related costs








(4
)
(4
)
Other (income)/deductionsnet


(24
)


259

(55
)
180

Income from continuing operations before provision for taxes on income
$
12

$
(681
)
$
(39
)
$
(1,340
)
$
(75
)
$
(2,123
)
Nine Months Ended September 29, 2013
Other Business Activities
(IN MILLIONS)
PCS(a)
WRD(b)
Medical(c)
Corporate(d)
Other Unallocated(e)
Total
Revenues
$
163

$


$


$


$
(1
)
$
162

Cost of sales
99





101

363

562

Selling, informational and administrative expenses
10

1

86

2,599

55

2,751

Research and development expenses
2

2,022

17

637

22

2,700

Amortization of intangible assets


1





6

7

Restructuring charges and certain acquisition related costs








(4
)
(4
)
Other (income)/deductionsnet


(36
)
1

771

(20
)
716

Income from continuing operations before provision for taxes on income
$
52

$
(1,988
)
$
(104
)
$
(4,109
)
$
(422
)
$
(6,570
)
(a)
PCSthe revenues and costs of Pfizer CentreSource (PCS), our contract manufacturing and bulk pharmaceutical chemical sales operation.

- 23 -

PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO OPERATING SEGMENT INFORMATION
(UNAUDITED)


(b)
WRDthe research and development expenses managed by our Worldwide Research and Development organization (WRD), which is generally responsible for research projects until proof-of-concept is achieved and then for transitioning those projects to the appropriate operating segment for possible clinical and commercial development. This organization also has responsibility for certain science-based and other platform-services organizations, which provide technical expertise and other services to the various R&D projects. WRD is also responsible for facilitating all regulatory submissions and interactions with regulatory agencies, including all safety-event activities.
(c)
Medicalthe costs associated with our Pfizer Medical organization (Medical), which is responsible for the provision of medical information to healthcare providers, patients and other parties, transparency and disclosure activities, clinical trial results publication, grants for healthcare quality improvement and medical education, partnerships with global public health and medical associations, regulatory inspection readiness reviews, internal audits of Pfizer-sponsored clinical trials and internal regulatory compliance processes.
(d)
Corporatecosts associated with Corporate, representing platform functions (such as worldwide technology, global real estate operations, legal, finance, human resources, worldwide public affairs, compliance, and worldwide procurement) and certain compensation and other corporate costs, such as interest income and expense, and gains and losses on investments.
(e)
Other Unallocatedother unallocated costs, representing overhead expenses associated with our manufacturing and commercial operations not directly attributable to an operating segment.
For information purposes only, for the nine months ended September�28, 2014, we estimate that Other costs, in the aggregate and as described above, but excluding (i) the revenues and costs associated with PCS; (ii) net interest expense included in Corporate (approximately $748 million in Other (income)/deductionsnet); and (iii) net gains on investments not attributable to an operating segment and included in Corporate (approximately $158 million in Other (income)/deductionsnet), are generally associated with our operating segments, as follows:
(PERCENTAGES)
GIP
VOC
GEP
Total WRD/Medical costs
51% - 55%
30% - 33%
15% - 17%
Total Corporate/Other Unallocated costs
28% - 31%
21% - 24%
46% - 49%
Total WRD/Medical and Corporate/Other Unallocated costs
37% - 40%
25% - 28%
34% - 37%
Total WRD/Medical and Corporate/Other Unallocated costs, by line item:
Cost of sales
8% - 10%
13% - 15%
75% - 77%
Selling, informational and administrative expenses
27% - 29%
20% - 22%
49% - 53%
Research and development expenses
51% - 55%
30% - 33%
14% - 16%
Other (income)/deductionsnet
*
*
*
*Amounts not material. After excluding net interest expense included in Corporate and net gains on investments not attributable to an operating segment and included in Corporate, Other (income)/deductionsnet approximates $4 million of income.

The percentages provided in the table above do not purport to reflect additional amounts that each of our operating segments would have incurred had each segment operated as a standalone company during the period presented.
"
WRD/MedicalThe information provided in the table above for WRD and Medical was substantially all derived from our estimates of the costs incurred in connection with the research and development projects associated with each operating segment.
"
Corporate/Other UnallocatedThe information provided in the table above for Corporate and Other Unallocated was virtually all derived using proportional allocation methods based on global, regional or country revenues or global, regional or country headcount, as well as certain cost metrics, as appropriate, such as those derived from research and development and manufacturing costs. Management believes that the allocations of Corporate and Other Unallocated costs are reasonable.

(4)
These Adjusted Income components are defined as the corresponding reported U.S. GAAP components, excluding purchase accounting adjustments, acquisition-related costs and certain significant items.�Adjusted Revenues, Adjusted Cost of Sales, Adjusted Selling, Informational and Administrative (SI&A) expenses, Adjusted Research and Development (R&D) expenses, Adjusted Amortization of Intangible Assets and Adjusted Other (Income)/DeductionsNet are income statement line items prepared on the same basis as, and therefore components of, the overall adjusted income measure.�As described in the Managements Discussion and Analysis of Financial Condition and Results of OperationsAdjusted Income section of Pfizers Quarterly Report on Form 10-Q for the fiscal quarter ended June 29, 2014, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company.�We believe that investors

- 24 -

PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO OPERATING SEGMENT INFORMATION
(UNAUDITED)


understanding of our performance is enhanced by disclosing this measure.�See the accompanying reconciliations of certain GAAP reported to non-GAAP adjusted information for the third quarter and first nine months of 2014 and 2013.�The adjusted income component measures are not, and should not be viewed as, substitutes for the U.S. GAAP component measures.

(5)
Includes costs associated with (i) purchase accounting adjustments; (ii) acquisition-related costs; and (iii) certain significant items, which are substantive, unusual items that are evaluated on an individual basis by management. See the accompanying reconciliations of certain GAAP reported to non-GAAP adjusted information for the third quarter and first nine months of 2014 and 2013.�

(6)
As our operations were not managed under the new structure until the beginning of the first quarter of 2014, certain costs and expenses could not be directly attributed to one of the new operating segments. As a result, our operating segment results for the third quarter and first nine months of 2013 include allocations. The amounts subject to allocation methods in the third quarter of 2013 were approximately $520 million of SI&A expenses and approximately $230 million of R&D expenses, and the amounts subject to allocation methods in the first nine months of 2013 were approximately $1.5 billion of SI&A expenses and approximately $650 million of R&D expenses.
"
The SI&A expenses were allocated using proportional allocation methods based on associated selling costs, revenues or product-specific costs, as applicable.
"
The R&D expenses were allocated based on product-specific R&D costs or revenue metrics, as applicable.
Management believes that these allocations are reasonable.

- 25 -


PFIZER INC.
REVENUES
THIRD QUARTER 2014 and 2013
(UNAUDITED)
(millions of dollars)
WORLDWIDE
UNITED STATES
TOTAL INTERNATIONAL(a)
2014
2013
% Change
2014
2013
% Change
2014
2013
% Change
BUSINESS(b)
Total
Oper.
Total
Total
Oper.
TOTAL REVENUES
ALL
$
12,361

$
12,643

(2%)
(2%)
$
4,842

$
5,186

(7%)
$
7,519

$
7,457

1%
1%
BIOPHARMACEUTICAL REVENUES:
GEP/GIP/V/O
$
11,419

$
11,742

(3%)
(3%)
$
4,384

$
4,747

(8%)
$
7,036

$
6,995

1%
1%
Lyrica(c)
GEP/GIP
1,317

1,135

16%
16%
585

509

15%
732

626

17%
16%
Prevnar family
V
1,139

959

19%
18%
592

469

26%
546

490

12%
11%
Enbrel (Outside the U.S. and Canada)
GIP
955

932

3%
2%





955

932

3%
2%
Celebrex
GEP
764

752

2%
2%
517

508

2%
246

244

1%
2%
Lipitor
GEP
490

533

(8%)
(8%)
38

78

(51%)
452

455

(1%)

Viagra(d)
GEP/GIP
427

460

(7%)
(7%)
288

294

(2%)
139

166

(17%)
(16%)
Zyvox
GEP
339

319

6%
6%
171

165

4%
168

154

9%
8%
Sutent
O
287

278

3%
3%
87

85

3%
200

193

4%
4%
Norvasc
GEP
270

303

(11%)
(10%)
8

11

(23%)
262

292

(10%)
(9%)
Premarin family
GEP
264

276

(4%)
(4%)
244

254

(4%)
20

22

(9%)
(7%)
BeneFIX
GIP
212

213


(2%)
91

101

(10%)
122

112

9%
6%
Vfend
GEP
174

193

(10%)
(10%)
7

18

(58%)
167

175

(5%)
(5%)
Pristiq
GEP
178

173

3%
3%
131

134

(3%)
47

39

22%
23%
Genotropin
GIP
173

183

(5%)
(5%)
37

45

(16%)
136

138

(2%)
(2%)
Refacto AF/Xyntha
GIP
160

148

8%
6%
35

29

25%
125

119

4%
1%
Chantix/Champix
GIP
158

154

3%
2%
93

82

13%
65

72

(10%)
(10%)
Xalatan/Xalacom
GEP
124

140

(12%)
(11%)
5

8

(36%)
119

132

(10%)
(9%)
Medrol
GEP
101

107

(6%)
(6%)
35

31

13%
66

76

(14%)
(14%)
Zoloft
GEP
104

116

(10%)
(8%)
14

14

(3%)
91

102

(11%)
(8%)
Xalkori
O
112

73

56%
55%
47

35

33%
66

38

77%
77%
Inlyta
O
102

83

22%
23%
46

42

9%
56

41

36%
38%
Relpax
GEP
92

83

11%
11%
57

49

18%
35

34

2%
2%
Rapamune
GIP
96

91

7%
10%
61

55

10%
36

36

2%
9%
Sulperazon
GEP
90

78

15%
17%





90

78

15%
17%
Fragmin
GEP
90

83

8%
6%
1

2

(45%)
88

81

10%
8%
Effexor
GEP
86

96

(10%)
(10%)
26

36

(27%)
60

60



Tygacil
GEP
85

92

(9%)
(9%)
27

38

(29%)
58

54

5%
5%
Zithromax/Zmax
GEP
67

84

(20%)
(19%)
3

3

(18%)
65

81

(20%)
(19%)
EpiPen
GEP
79

85

(7%)
(6%)
60

67

(11%)
19

18

7%
12%
Zosyn/Tazocin
GEP
80

104

(23%)
(23%)
44

47

(7%)
36

57

(37%)
(36%)
Toviaz
GIP
69

57

22%
22%
30

31


39

26

48%
47%
Revatio
GEP
64

75

(14%)
(15%)
12

18

(31%)
52

57

(9%)
(9%)
Xeljanz
GIP
85

35

142%
143%
79

34

128%
6

1

*
*
Cardura
GEP
64

70

(9%)
(8%)
1

1

(10%)
63

69

(9%)
(8%)
Xanax/Xanax XR
GEP
63

69

(9%)
(10%)
10

13

(21%)
52

56

(6%)
(7%)
Inspra
GEP
57

53

7%
6%
1

1

(59%)
56

52

9%
7%
Somavert
GIP
59

56

6%
5%
15

13

14%
44

43

4%
2%
Neurontin
GEP
51

50

3%
3%
12

12

1%
39

38

3%
3%
Protonix/Pantoprazole
GEP
55

42

32%
32%
55

42

32%






Unasyn
GEP
52

49

6%
7%
1



40%
52

49

6%
7%
Detrol/Detrol LA
GEP
54

131

(59%)
(58%)
21

89

(77%)
34

42

(21%)
(20%)
Depo-Provera
GEP
54

50

8%
8%
20

20

2%
34

30

12%
11%
BMP2
GIP
56

48

16%
16%
56

48

16%






Diflucan
GEP
42

59

(29%)
(29%)
2

1

29%
40

58

(31%)
(30%)
Dalacin/Cleocin
GEP
50

50



11

15

(27%)
39

35

12%
13%
Alliance revenues(e)
GEP/GIP
233

684

(66%)
(66%)
165

605

(73%)
68

79

(14%)
(15%)
All other biopharmaceutical(f)
GIP/GEP/V/O
1,695

1,838

(8%)
(7%)
542

595

(9%)
1,153

1,243

(7%)
(6%)
All other GIP(f)
GIP
105

128

(20%)
(17%)
42

46

(13%)
63

82

(24%)
(20%)
All other GEP(f)
GEP
1,540

1,675

(8%)
(7%)
468

526

(11%)
1,072

1,149

(7%)
(6%)
All other V/O(f)
V/O
50

35

46%
45%
32

23

40%
18

12

57%
56%
OTHER REVENUES:
CONSUMER HEALTHCARE
C
$
821

$
788

4%
4%
$
413

$
396

4%
$
408

$
392

4%
5%
OTHER(g)

$
121

$
113

7%
7%
$
46

$
43

11%
$
76

$
70

5%
5%
See end of tables for notes (a) through (g).
* Indicates calculation not meaningful.
Amounts may not add due to rounding. All percentages have been calculated using unrounded amounts.


- 26 -


PFIZER INC.
INTERNATIONAL REVENUES BY GEOGRAPHIC REGION
THIRD QUARTER 2014 and 2013
(UNAUDITED)
(millions of dollars)
DEVELOPED EUROPE(h)
DEVELOPED REST OF WORLD(i)
EMERGING MARKETS(j)
2014
2013
% Change
2014
2013
% Change
2014
2013
% Change
BUSINESS(b)
Total
Oper.
Total
Oper.
Total
Oper.
TOTAL INTERNATIONAL REVENUES
ALL
$
2,837

$
2,785

2%
(2%)
$
1,816

$
1,992

(9%)
(7%)
$
2,866

$
2,680

7%
9%
BIOPHARMACEUTICAL REVENUES - INTERNATIONAL:
GEP/GIP/V/O
$
2,701

$
2,663

1%
(2%)
$
1,730

$
1,901

(9%)
(7%)
$
2,605

$
2,431

7%
10%
Lyrica(c)
GEP/GIP
415

361

15%
11%
195

152

28%
32%
122

113

9%
12%
Prevnar family
V
169

164

2%
(1%)
123

116

7%
7%
254

210

22%
23%
Enbrel (Outside Canada)
GIP
625

600

4%

120

127

(5%)
(4%)
210

205

3%
9%
Celebrex
GEP
36

36


(3%)
113

115

(2%)

97

93

5%
7%
Lipitor
GEP
57

71

(20%)
(22%)
87

122

(29%)
(29%)
308

262

18%
19%
Viagra(k)
GEP/GIP
20

54

(63%)
(64%)
25

36

(30%)
(29%)
94

76

23%
25%
Zyvox
GEP
86

81

5%
2%
30

35

(12%)
(9%)
52

38

36%
37%
Sutent
O
100

96

5%
1%
33

35

(5%)
(3%)
67

62

7%
11%
Norvasc
GEP
25

25

2%
(1%)
85

115

(26%)
(25%)
152

152


1%
Premarin family
GEP
2

3


(2%)
9

8


(3%)
9

11

(14%)
(12%)
BeneFIX
GIP
75

67

12%
7%
36

33

10%
10%
11

12

(11%)
(8%)
Vfend
GEP
74

74


(3%)
37

38

(4%)
(2%)
56

63

(11%)
(9%)
Pristiq
GEP
4



*
*
28

25

14%
16%
15

14

7%
10%
Genotropin
GIP
63

65

(3%)
(6%)
46

47

(5%)
(2%)
27

26

3%
8%
Refacto AF/Xyntha
GIP
99

96

3%
(1%)
13

16

(20%)
(21%)
13

7

63%
69%
Chantix/Champix
GIP
23

26

(15%)
(19%)
33

35

(2%)

9

11

(21%)
(17%)
Xalatan/Xalacom
GEP
31

40

(20%)
(23%)
49

56

(12%)
(10%)
38

36

4%
6%
Medrol
GEP
23

22

2%
(2%)
8

9

(11%)
(8%)
35

45

(22%)
(21%)
Zoloft
GEP
12

15

(22%)
(24%)
47

53

(12%)
(8%)
32

34

(5%)
(1%)
Xalkori
O
32

18

80%
74%
18

13

50%
55%
15

7

117%
120%
Inlyta
O
27

20

38%
32%
23

19

15%
20%
6

2

*
*
Relpax
GEP
18

17

8%
5%
12

13

(9%)
(5%)
5

4

9%
12%
Rapamune
GIP
13

13

6%
2%
4

4

9%
10%
18

19

(1%)
13%
Sulperazon
GEP






5

7

(21%)
(18%)
84

71

19%
20%
Fragmin
GEP
50

45

11%
6%
22

22

4%
8%
16

14

15%
14%
Effexor
GEP
22

22


(3%)
12

16

(20%)
(20%)
26

22

14%
16%
Tygacil
GEP
20

19

5%
2%
2

1

29%
22%
36

34

4%
7%
Zithromax/Zmax
GEP
12

12

1%
(2%)
15

25

(40%)
(38%)
38

44

(14%)
(13%)
EpiPen
GEP






19

18

7%
12%






Zosyn/Tazocin
GEP
4

8

(58%)
(59%)
1

4

(79%)
(80%)
32

45

(30%)
(29%)
Toviaz
GIP
22

21

7%
3%
14

3

*
*
3

2

18%
24%
Revatio
GEP
32

37

(15%)
(17%)
11

12

(10%)
(7%)
9

8

22%
24%
Xeljanz
GIP
2



*
*
3

1

*
*
2



*
*
Cardura
GEP
21

20


(5%)
17

23

(27%)
(25%)
26

26

2%
4%
Xanax/Xanax XR
GEP
26

23

9%
6%
7

9

(21%)
(20%)
20

24

(16%)
(16%)
Inspra
GEP
39

34

16%
11%
13

14

(5%)
(1%)
4

4


3%
Somavert
GIP
36

35

3%

4

4

2%
7%
4

4

14%
21%
Neurontin
GEP
13

11

15%
11%
9

9

(3%)
(6%)
17

18

(1%)
2%
Protonix/Pantoprazole
GEP


















Unasyn
GEP
10

10

2%
(1%)
15

15

(11%)
(8%)
27

23

20%
20%
Detrol/Detrol LA
GEP
7

11

(37%)
(39%)
15

19

(25%)
(23%)
12

12

1%
5%
Depo-Provera
GEP
7

8

1%
(6%)
3

2

(7%)
(5%)
24

21

18%
19%
BMP2
GIP


















Diflucan
GEP
13

13

4%
1%
7

8

(20%)
(18%)
20

37

(45%)
(44%)
Dalacin/Cleocin
GEP
8

8

3%

5

5

(9%)
(7%)
26

22

20%
22%
Alliance revenues(l)
GEP/GIP
36

26

41%
37%
25

44

(45%)
(43%)
7

9

(22%)
(23%)
All other biopharmaceutical(f)
GIP/GEP/V/O
292

336

(13%)
(15%)
336

418

(20%)
(18%)
524

489

7%
10%
All other GIP(f)
GIP
(15
)
(5
)
198%
176%
50

61

(18%)
(15%)
28

26

5%
6%
All other GEP(f)
GEP
296

331

(11%)
(13%)
282

357

(22%)
(20%)
494

461

7%
10%
All other V/O(f)
V/O
11

10

15%
11%
4



*
*
3

2

36%
41%
OTHER REVENUES - INTERNATIONAL

$
136

$
122

10%
8%
$
86

$
91

(6%)
(4%)
$
262

$
249

5%
6%
See end of tables for notes (b), (c), (f) and (h) through (l).
* Indicates calculation not meaningful.
Amounts may not add due to rounding. All percentages have been calculated using unrounded amounts.

- 27 -


PFIZER INC.
REVENUES
NINE MONTHS 2014 and 2013
(UNAUDITED)
(millions of dollars)
WORLDWIDE
UNITED STATES
TOTAL INTERNATIONAL(a)
2014
2013
% Change
2014
2013
% Change
2014
2013
% Change
BUSINESS(b)
Total
Oper.
Total
Total
Oper.
TOTAL REVENUES
ALL
$
36,487

$
38,026

(4%)
(3%)
$
14,023

$
15,190

(8%)
$
22,464

$
22,836

(2%)

BIOPHARMACEUTICAL REVENUES:
GEP/GIP/V/O
$
33,626

$
35,398

(5%)
(4%)
$
12,677

$
14,002

(9%)
$
20,949

$
21,396

(2%)

Lyrica(c)
GEP/GIP
3,783

3,335

13%
14%
1,701

1,438

18%
2,082

1,897

10%
10%
Prevnar family
V
3,163

2,855

11%
12%
1,533

1,336

15%
1,630

1,519

7%
9%
Enbrel (Outside the U.S. and Canada)
GIP
2,846

2,769

3%
3%





2,846

2,769

3%
3%
Celebrex
GEP
2,150

2,120

1%
3%
1,440

1,409

2%
710

711


4%
Lipitor
GEP
1,489

1,704

(13%)
(11%)
184

335

(45%)
1,306

1,369

(5%)
(3%)
Viagra(d)
GEP/GIP
1,227

1,405

(13%)
(12%)
816

819


411

586

(30%)
(27%)
Zyvox
GEP
1,008

1,007


1%
509

511


500

496

1%
2%
Sutent
O
865

892

(3%)
(2%)
258

261

(1%)
606

631

(4%)
(3%)
Norvasc
GEP
830

917

(9%)
(7%)
29

31

(6%)
801

886

(10%)
(7%)
Premarin family
GEP
786

793

(1%)

724

726


62

67

(8%)
(2%)
BeneFIX
GIP
640

619

3%
3%
297

298


343

321

7%
6%
Vfend
GEP
572

557

3%
4%
30

49

(37%)
542

508

7%
8%
Pristiq
GEP
547

516

6%
8%
414

402

3%
134

114

17%
25%
Genotropin
GIP
534

570

(6%)
(5%)
130

145

(10%)
403

425

(5%)
(3%)
Refacto AF/Xyntha
GIP
477

433

10%
8%
103

89

16%
374

344

8%
6%
Chantix/Champix
GIP
475

486

(2%)
(1%)
278

253

10%
197

233

(15%)
(13%)
Xalatan/Xalacom
GEP
371

434

(14%)
(11%)
17

23

(28%)
354

411

(14%)
(10%)
Medrol
GEP
322

343

(6%)
(5%)
121

110

10%
201

233

(14%)
(13%)
Zoloft
GEP
310

341

(9%)
(4%)
40

30

31%
270

311

(13%)
(8%)
Xalkori
O
308

193

60%
60%
134

98

36%
175

95

85%
85%
Inlyta
O
291

217

34%
36%
131

112

16%
160

105

53%
57%
Relpax
GEP
277

263

5%
6%
176

161

9%
101

102

(1%)
1%
Rapamune
GIP
270

261

4%
6%
171

152

12%
100

109

(8%)
(2%)
Sulperazon
GEP
270

222

21%
22%





270

222

21%
22%
Fragmin
GEP
266

263

1%
1%
5

21

(78%)
261

242

8%
8%
Effexor
GEP
263

326

(19%)
(18%)
88

128

(31%)
176

198

(11%)
(10%)
Tygacil
GEP
241

271

(11%)
(10%)
85

122

(31%)
156

149

4%
6%
Zithromax/Zmax
GEP
235

283

(17%)
(15%)
9

5

84%
226

278

(19%)
(16%)
EpiPen
GEP
231

230


1%
190

183

4%
40

47

(14%)
(8%)
Zosyn/Tazocin
GEP
229

293

(22%)
(20%)
117

127

(8%)
112

166

(32%)
(30%)
Toviaz
GIP
211

174

22%
21%
98

89

10%
113

85

34%
33%
Revatio
GEP
208

225

(7%)
(7%)
40

52

(22%)
168

173

(3%)
(3%)
Xeljanz
GIP
205

68

*
*
194

67

188%
11

1

*
*
Cardura
GEP
199

221

(10%)
(8%)
3

3

(1%)
196

218

(10%)
(8%)
Xanax/Xanax XR
GEP
189

204

(7%)
(7%)
31

36

(14%)
158

168

(6%)
(5%)
Inspra
GEP
179

164

9%
9%
2

4

(39%)
177

160

10%
10%
Somavert
GIP
168

159

6%
4%
40

38

5%
128

121

6%
4%
Neurontin
GEP
158

158


3%
35

33

5%
124

125

(1%)
2%
Protonix/Pantoprazole
GEP
153

137

11%
11%
153

137

11%






Unasyn
GEP
152

158

(4%)
1%
1

1

(35%)
151

157

(4%)
2%
Detrol/Detrol LA
GEP
149

437

(66%)
(65%)
38

297

(87%)
110

140

(22%)
(18%)
Depo-Provera
GEP
147

143

3%
3%
47

47


100

96

4%
5%
BMP2
GIP
147

159

(8%)
(8%)
147

159

(8%)






Diflucan
GEP
139

164

(15%)
(13%)
5

2

146%
134

162

(17%)
(15%)
Dalacin/Cleocin
GEP
137

149

(8%)
(6%)
29

45

(36%)
109

104

4%
7%
Alliance revenues(e)
GEP/GIP
681

2,187

(69%)
(69%)
510

1,901

(73%)
171

286

(40%)
(40%)
All other biopharmaceutical(f)
GIP/GEP/V/O
5,127

5,573

(8%)
(5%)
1,577

1,717

(8%)
3,551

3,856

(8%)
(4%)
All other GIP(f)
GIP
342

398

(14%)
(10%)
125

153

(19%)
218

245

(11%)
(5%)
All other GEP(f)
GEP
4,642

5,063

(8%)
(6%)
1,361

1,501

(9%)
3,281

3,562

(8%)
(4%)
All other V/O(f)
V/O
143

112

27%
28%
91

63

43%
52

49

7%
8%
OTHER REVENUES:
CONSUMER HEALTHCARE
C
$
2,494

$
2,399

4%
5%
$
1,207

$
1,111

9%
$
1,287

$
1,288


3%
OTHER(g)

$
368

$
229

61%
61%
$
139

$
77

85%
$
229

$
152

49%
49%
See end of tables for notes (a) through (g).
* Indicates calculation not meaningful.
Amounts may not add due to rounding. All percentages have been calculated using unrounded amounts.


- 28 -


PFIZER INC.
INTERNATIONAL REVENUES BY GEOGRAPHIC REGION
NINE MONTHS 2014 and 2013
(UNAUDITED)
(millions of dollars)
DEVELOPED EUROPE(h)
DEVELOPED REST OF WORLD(i)
EMERGING MARKETS(j)
2014
2013
% Change
2014
2013
% Change
2014
2013
% Change
BUSINESS(b)
Total
Oper.
Total
Oper.
Total
Oper.
TOTAL INTERNATIONAL REVENUES
ALL
$
8,641

$
8,502

2%
(2%)
$
5,404

$
6,139

(12%)
(6%)
$
8,419

$
8,195

3%
8%
BIOPHARMACEUTICAL REVENUES - INTERNATIONAL:
GEP/GIP/V/O
$
8,168

$
8,083

1%
(3%)
$
5,144

$
5,847

(12%)
(6%)
$
7,637

$
7,466

2%
7%
Lyrica(c)
GEP/GIP
1,200

1,045

15%
10%
536

497

8%
16%
346

355

(2%)
4%
Prevnar family
V
505

507


(5%)
367

385

(5%)
1%
758

627

21%
25%
Enbrel (Outside Canada)
GIP
1,866

1,754

6%
2%
355

379

(6%)
1%
626

636

(2%)
9%
Celebrex
GEP
107

110

(2%)
(6%)
328

334

(2%)
4%
275

267

3%
8%
Lipitor
GEP
209

227

(8%)
(12%)
266

381

(30%)
(26%)
831

761

9%
11%
Viagra(k)
GEP/GIP
66

228

(71%)
(72%)
91

113

(19%)
(13%)
255

245

4%
8%
Zyvox
GEP
255

238

7%
3%
90

101

(11%)
(4%)
154

157

(2%)
4%
Sutent
O
310

293

6%
2%
98

103

(5%)
2%
199

235

(16%)
(10%)
Norvasc
GEP
74

80

(7%)
(10%)
276

364

(24%)
(19%)
450

442

2%
4%
Premarin family
GEP
7

7

(1%)
(7%)
24

26

(8%)
(2%)
31

34

(9%)
(1%)
BeneFIX
GIP
211

186

13%
8%
106

101

5%
11%
26

34

(24%)
(19%)
Vfend
GEP
225

222

1%
(3%)
108

110

(3%)
5%
209

176

19%
24%
Pristiq
GEP
9



*
*
79

74

7%
15%
45

40

13%
22%
Genotropin
GIP
189

197

(4%)
(8%)
135

147

(8%)
(1%)
79

81

(3%)
5%
Refacto AF/Xyntha
GIP
290

278

4%

44

52

(16%)
(9%)
40

14

175%
183%
Chantix/Champix
GIP
70

88

(21%)
(25%)
98

109

(10%)
(3%)
29

36

(19%)
(12%)
Xalatan/Xalacom
GEP
97

117

(17%)
(21%)
148

172

(14%)
(7%)
110

122

(10%)
(5%)
Medrol
GEP
71

67

5%

25

29

(15%)
(8%)
105

137

(23%)
(20%)
Zoloft
GEP
40

47

(14%)
(17%)
137

163

(16%)
(8%)
92

101

(9%)
(3%)
Xalkori
O
81

41

97%
89%
48

33

47%
57%
45

21

120%
123%
Inlyta
O
77

46

69%
62%
68

56

21%
31%
15

3

*
*
Relpax
GEP
53

50

6%
2%
33

38

(11%)
(3%)
14

14


5%
Rapamune
GIP
38

38

1%
(3%)
12

13

(2%)
4%
49

58

(16%)
(2%)
Sulperazon
GEP






17

20

(19%)
(12%)
253

202

25%
26%
Fragmin
GEP
151

130

16%
12%
63

65

(2%)
4%
47

47

(1%)
1%
Effexor
GEP
69

70

(1%)
(5%)
35

51

(31%)
(27%)
72

77

(8%)
(3%)
Tygacil
GEP
56

53

6%
1%
5

5

1%
(1%)
95

91

4%
9%
Zithromax/Zmax
GEP
42

44

(3%)
(7%)
56

95

(41%)
(35%)
127

139

(9%)
(7%)
EpiPen
GEP






40

47

(14%)
(8%)






Zosyn/Tazocin
GEP
17

30

(43%)
(46%)
6

10

(33%)
(32%)
89

126

(30%)
(25%)
Toviaz
GIP
68

61

12%
7%
36

15

143%
154%
10

9

5%
14%
Revatio
GEP
111

112

(1%)
(5%)
35

37

(7%)
1%
23

24

(5%)
(2%)
Xeljanz
GIP
4



*
*
4

1

*
*
3



*
*
Cardura
GEP
62

64

(4%)
(8%)
58

76

(24%)
(18%)
76

78

(2%)
3%
Xanax/Xanax XR
GEP
76

73

4%

21

26

(21%)
(16%)
62

69

(10%)
(6%)
Inspra
GEP
124

104

20%
15%
40

42

(5%)
4%
12

14

(15%)
(11%)
Somavert
GIP
105

98

7%
3%
12

12


8%
11

11

5%
14%
Neurontin
GEP
41

37

11%
6%
26

28

(4%)
(3%)
56

60

(6%)
2%
Protonix/Pantoprazole
GEP


















Unasyn
GEP
30

29

1%
(3%)
45

51

(11%)
(3%)
76

77

(1%)
7%
Detrol/Detrol LA
GEP
25

41

(40%)
(43%)
48

63

(25%)
(18%)
38

36

5%
13%
Depo-Provera
GEP
20

20


(6%)
9

9

(3%)
4%
70

66

7%
8%
BMP2
GIP


















Diflucan
GEP
39

37

6%
2%
20

24

(17%)
(11%)
75

101

(26%)
(22%)
Dalacin/Cleocin
GEP
24

23

3%
(1%)
14

16

(11%)
(4%)
70

65

8%
12%
Alliance revenues(l)
GEP/GIP
94

89

6%
2%
56

164

(66%)
(64%)
21

33

(37%)
(37%)
All other biopharmaceutical(f)
GIP/GEP/V/O
961

1,101

(13%)
(16%)
1,024

1,211

(15%)
(9%)
1,566

1,543

2%
8%
All other GIP(f)
GIP
(13
)
18

(172%)
(163%)
144

156

(8%)

87

71

23%
27%
All other GEP(f)
GEP
942

1,048

(10%)
(13%)
870

1,051

(17%)
(11%)
1,469

1,463


7%
All other V/O(f)
V/O
32

35

(10%)
(14%)
11

4

147%
166%
10

9

8%
16%
OTHER REVENUES - INTERNATIONAL

$
473

$
419

13%
10%
$
260

$
292

(11%)
(6%)
$
782

$
729

7%
11%
See end of tables for notes (b), (c), (f) and (h) through (l).
* Indicates calculation not meaningful.
Amounts may not add due to rounding. All percentages have been calculated using unrounded amounts.


- 29 -


PFIZER INC.
NOTES TO REVENUES TABLE INFORMATION
(UNAUDITED)

(a)
Total International represents Developed Europe region + Developed Rest of World region + Emerging Markets region. Details for these regions are located on pages 27 and 29.
(b)
Indicates the business to which the revenues relate. GIP = the Global Innovative Pharmaceutical segment; V= the Global Vaccines business; O= the Global Oncology business; C = the Consumer Healthcare business; and GEP = the Global Established Pharmaceutical segment.
(c)
Lyrica revenues from all of Europe are included in GEP. All other Lyrica revenues are included in GIP.
(d)
Viagra revenues from the U.S. and Canada are included in GIP. All other Viagra revenues are included in GEP.
(e)
Includes Enbrel (GIP, in the U.S. and Canada through October 31, 2013), Spiriva (GEP), Rebif (GIP), Aricept (GEP) and Eliquis (GIP).
(f)
All other GIP, All other GEP and All other V/O are subsets of All other biopharmaceutical revenues.
(g)
Other includes revenues generated from Pfizer CentreSource, our contract manufacturing and bulk pharmaceutical chemical sales organization, and also includes the revenues related to our transitional manufacturing and supply agreements with Zoetis.
(h)
Developed Europe region includes the following markets: Western Europe, Finland and the Scandinavian countries.
(i)
Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand and South Korea.
(j)
Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, the Middle East, Eastern Europe, Africa, Turkey and Central Europe.
(k)
Viagra revenues from Canada are included in GIP. All other international Viagra revenues are included in GEP.
(l)
Includes Enbrel (GIP, in Canada through October 31, 2013), Spiriva (GEP), Aricept (GEP) and Eliquis (GIP).


- 30 -



DISCLOSURE NOTICE: The information contained in this earnings release and the attachments is as of October�28, 2014. We assume no obligation to update forward-looking statements contained in this earnings release and the attachments as a result of new information or future events or developments.
This earnings release and the attachments contain forward-looking statements about our future operating and financial performance, business plans and prospects, in-line products and product candidates, strategic reviews, capital allocation, business-development plans, and plans relating to share repurchases and dividends, among other things, that involve substantial risks and uncertainties.�You can identify these statements by the fact that they use future dates or use words such as will, anticipate, estimate, expect, project, intend, plan, believe, target, forecast, goal, objective, aim and other words and terms of similar meaning. Among the factors that could cause actual results to differ materially from past results and future plans and projected future results are the following:
the outcome of research and development activities, including, without limitation, the ability to meet anticipated clinical trial commencement and completion dates, regulatory submission and approval dates, and launch dates for product candidates, as well as the possibility of unfavorable clinical trial results, including unfavorable new clinical data and additional analyses of existing clinical data;
decisions by regulatory authorities regarding whether and when to approve our drug applications, which will depend on the assessment by such regulatory authorities of the benefit-risk profile suggested by the totality of the efficacy and safety information submitted; and decisions by regulatory authorities regarding labeling, ingredients and other matters that could affect the availability or commercial potential of our products;
the speed with which regulatory authorizations, pricing approvals and product launches may be achieved;
the outcome of post-approval clinical trials, which could result in the loss of marketing approval for a product or changes in the labeling for, and/or increased or new concerns about the safety or efficacy of, a product that could affect its availability or commercial potential;
the success of external business-development activities, including the ability to satisfy the conditions to closing of announced transactions in the anticipated timeframe or at all;
competitive developments, including the impact on our competitive position of new product entrants, in-line branded products, generic products, private label products and product candidates that treat diseases and conditions similar to those treated by our in-line drugs and drug candidates;
the implementation by the FDA of an abbreviated legal pathway to approve biosimilar products, which could subject our biologic products to competition from biosimilar products in the U.S., with attendant competitive pressures, after the expiration of any applicable exclusivity period and patent rights;
the ability to meet generic and branded competition after the loss of patent protection for our products or competitor products;
the ability to successfully market both new and existing products domestically and internationally;
difficulties or delays in manufacturing;
trade buying patterns;
the impact of existing and future legislation and regulatory provisions on product exclusivity;
trends toward managed care and healthcare cost containment;
the impact of the U.S. Budget Control Act of 2011 (the Budget Control Act) and the deficit-reduction actions to be taken pursuant to the Budget Control Act in order to achieve the deficit-reduction targets provided for therein, and the impact of any broader deficit-reduction efforts;
the impact of U.S. healthcare legislation enacted in 2010the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Actand of any modification or repeal of any of the provisions thereof;
U.S. federal or state legislation or regulatory action affecting, among other things: pharmaceutical product pricing, reimbursement or access, including under Medicaid, Medicare and other publicly funded or subsidized health programs; the importation of prescription drugs from outside the U.S. at prices that are regulated by governments of various foreign countries; direct-to-consumer advertising and interactions with healthcare professionals; and the use of comparative effectiveness methodologies that could be implemented in a manner that focuses primarily on the cost

- 31 -



differences and minimizes the therapeutic differences among pharmaceutical products and restricts access to innovative medicines; as well as pricing pressures as a result of highly competitive insurance markets;
legislation or regulatory action in markets outside the U.S. affecting pharmaceutical product pricing, reimbursement or access, including, in particular, continued government-mandated price reductions for certain biopharmaceutical products in certain European and emerging market countries and Japan and government-imposed access restrictions in certain countries;
the exposure of our operations outside the U.S. to possible capital and exchange controls, expropriation and other restrictive government actions, changes in intellectual property legal protections and remedies, as well as political unrest and unstable governments and legal systems;
contingencies related to actual or alleged environmental contamination;
claims and concerns that may arise regarding the safety or efficacy of in-line products and product candidates;
any significant breakdown, infiltration, or interruption of our information technology systems and infrastructure;
legal defense costs, insurance expenses, settlement costs, the risk of an adverse decision or settlement and the adequacy of reserves related to product liability, patent protection, government investigations, consumer, commercial, securities, antitrust, environmental and tax issues, ongoing efforts to explore various means for resolving asbestos litigation, and other legal proceedings;
our ability to protect our patents and other intellectual property, both domestically and internationally;
interest rate and foreign currency exchange rate fluctuations, including the impact of possible currency devaluations in countries experiencing high inflation rates;
governmental laws and regulations affecting domestic and foreign operations, including, without limitation, tax obligations and changes affecting the tax treatment by the U.S. of income earned outside of the U.S. that may result from pending and possible future proposals;
any significant issues involving our largest wholesaler customers, which account for a substantial portion of our revenues;
the possible impact of the increased presence of counterfeit medicines in the pharmaceutical supply chain on our revenues and on patient confidence in the integrity of our medicines;
any significant issues that may arise related to the outsourcing of certain operational and staff functions to third parties, including with regard to quality, timeliness and compliance with applicable legal requirements and industry standards;
changes in U.S. generally accepted accounting principles;
uncertainties related to general economic, political, business, industry, regulatory and market conditions including, without limitation, uncertainties related to the impact on us, our customers, suppliers and lenders and counterparties to our foreign-exchange and interest-rate agreements of challenging global economic conditions and recent and possible future changes in global financial markets; and the related risk that our allowance for doubtful accounts may not be adequate;
any changes in business, political and economic conditions due to actual or threatened terrorist activity in the U.S. and other parts of the world, and related U.S. military action overseas;
growth in costs and expenses;
changes in our product, segment and geographic mix; and
the impact of acquisitions, divestitures, restructurings, internal reorganizations, product recalls and withdrawals and other unusual items, including our ability to realize the projected benefits of our cost-reduction and productivity initiatives, including those related to our research and development organization, and of the internal separation of our commercial operations into three new global businesses.
A further list and description of risks, uncertainties and other matters can be found in our Annual Report on Form 10-K for the fiscal year ended December�31, 2013 and in our subsequent reports on Form 10-Q, in each case including in the sections thereof captioned Forward-Looking Information and Factors That May Affect Future Results and Item 1A. Risk Factors, and in our subsequent reports on Form 8-K.

- 32 -



The operating segment information provided in this earnings release and the attachments does not purport to represent the revenues, costs and income from continuing operations before provision for taxes on income that each of our operating segments would have reported had each segment operated as a standalone company during the periods presented.
This earnings release may include discussion of certain clinical studies relating to various in-line products and/or product candidates.��These studies typically are part of a larger body of clinical data relating to such products or product candidates, and the discussion herein should be considered in the context of the larger body of data.

- 33 -


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