Pfizer Inc.’s profits were boosted by its merger with rival Wyeth and the absence of last years high charges due to investigations…
By Militza Richard
Pfizer announced fourth-quarter 2009 revenues of $16.5 Billion, up 34% compared with $12.3 billion in the year-ago quarter. The company’s full-year 2009 revenues were also up this year, reaching $50.0 billion — an increase of 4% compared with $48.3 billion in the same period in 2008.
Additionally, the company posted net income of $767 million, or 10 cents a share, compared with $266 million, or 4 cents a share, for the same period in 2008.
Pfizer completed the acquisition of Wyeth on October 15, 2009, and the 4Q and full-year results include the legacy Wyeth operations from the acquisition date through Pfizer’s domestic and international year-ends. The Wyeth legacy products brought additional revenue of $3.3 billion, or 27%, compared with the year-ago quarter, while revenues were also favorably impacted by $419 million, or 3%, due to legacy Pfizer products, and $469 million, or 4%, due to foreign exchange.
“During the fourth quarter, we closed the Wyeth acquisition and immediately began the integration of our operations, advancing the transformation of the company,” stated Jeff Kindler, Chairman and Chief Executive Officer of Pfizer. “We are pleased with the rapid pace of the integration and our ability to quickly realize the benefits of our combined organization.”
“Our results this quarter clearly demonstrate the ability of our colleagues to remain focused and deliver solid operational performance, while working to close the Wyeth acquisition and to ensure a successful integration,” Kindler continued. “We remain excited about our more diverse in-line product and pipeline portfolio, which we expect will result in improved opportunities for the company in 2010 and beyond.”
(For more information on Pfizer’s acquisition of Wyeth, please see Healthcare Digital’s coverage here)
Additionally, Pfizer benefited from a lack of charges this year. Last year’s fourth quarter contained $2.3 billion in charges connected to investigations into pain reliever Bextra and a few other products.
The company also issued its financial targets for 2010 and 2012. For 2010, Pfizer is targeting revenues between $67 billion and $69 billion and hopes for earnings of 95 cents a share to $1.10 with adjusted earnings between $2.10 and $2.20 a share. For 2012, the company is targeting reported revenue between $66.0 to $68.5 billion, with earnings between $1.58 and $1.73 a share and adjusted earnings between $2.25 and $2.35 a share.
Frank D’Amelio, Chief Financial Officer, stated, “Our 2010 financial guidance and 2012 financial targets balance the achievement of our projected cost reductions, including from the integration of Wyeth, with the expected increased investment to drive longer-term, top and bottom line performance. These goals reflect our continued confidence in the business and our ability to capitalize on near- to mid-term growth opportunities through a meaningful reallocation of investment. Additionally, our 2012 targets assume a modest level of planned business-development activities.”
For more information on Pfizer’s 2009 Financial Results please see the company’s full press release.
Edited by Gabe Perna