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Pfizer slumps in fourth quarter, 2011

Pfizer, the global pharmaceutical giant with operations in the Philadelphia region, reported operational revenue declines for the fourth quarter and the full year of 2011.

Pfizer slumps in fourth quarter, 2011

Pfizer, the global pharmaceutical giant with operations in the Philadelphia region, reported operational revenue declines for the fourth quarter and the full year of 2011.

Pfizer's cholesterol drug Lipitor, the world's best selling prescription medicine, lost complete patent protection on Nov. 30, 2011 and Pfizer has tried to cling to the revenue with advertising and promotional discounts. The company hoped to keep 40 percent of the market, but reports suggested it was only able to keep 32 percent.

Pfizer has a big presence in Collegeville, Montgomery County, but that facility was acquired from Wyeth, which Pfizer purchased in 2009. At the time, the company said it would cut 20,000 jobs from the combined operations and it has exceeded that total. There were more cuts in Collegeville last week.

The company said in a statement that fourth-quarter 2011 revenues were $16.7 billion, a drop of 4% compared with $17.4 billion in the fourth quarter of 2010. That involves an operational decline of $765 million, or 5%, and the favorable impact of foreign exchange of $157 million, or 1%. In the United States, the fourth-quarter 2011 revenues were $6.3 billion, a decrease of 12% compared with the same period in 2010.

The company says foreign revenues were $10.4 billion, an increase of 3% compared with the prior-year quarter, which reflects 1% operational growth and a 2% favorable impact of foreign exchange. U.S. revenues represented 38% of total revenues in fourth-quarter 2011 compared with 41% in the year-ago quarter, while international revenues represented 62% of total revenues in fourth-quarter 2011 compared with 59% in the year-ago quarter.

The statement said full-year 2011 revenues were $67.4 billion, an increase of 1% compared with $67.1 billion in full-year 2010, which reflects an operational decline of $1.6 billion, or 2%, and the favorable impact of foreign exchange of $1.9 billion, or 3%. For full-year 2011, U.S. revenues were $26.9 billion, a decrease of 7% compared with full-year 2010. International revenues were $40.5 billion, an increase of 6% compared with the prior-year, which reflects 1% operational growth and a 5% favorable impact of foreign exchange. U.S. revenues represented 40% of total revenues in full-year 2011 compared with 43% in full-year 2010, while international revenues represented 60% of total revenues in full-year 2011 compared with 57% in full-year 2010.

David Sell
About this blog
David Sell blogs about the region's pharmaceutical industry. Follow him on Facebook.

For Inquirer.com. Portions of this blog may also be found in the Inquirer's Sunday Health Section.

Reach David at dsell@phillynews.com.

David Sell
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