Pfizer Conference Call Highlights

Pfizer

reported its third quarter earnings on Tuesday. Shares of the company are neutral. Below are some key highlights from its conference call: • In our innovative business for global innovative pharmaceuticals, the underlying business grew 9% operationally if you exclude approximately $425 million, or a negative 13% impact due to LOEs and the loss of Enbrel Alliance revenue. • Operationally, the Vaccine business grew 19%, the Oncology business grew 17%, and the Consumer Health Care grew 4%. • For our established business, GAAP revenues for the quarter were down. • Since launch, based on the most recent data, Eliquis' share has increased from 0% to 44% while our main competitor shares declined from the high of 70s to slightly above ours. • For Xeljanz, the inclusion of structural data in the Xeljanz label has served as an inflection point with prescribers. • We hope to see further steady share gains, aided by the growing attractiveness to physicians of using Xeljanz as an effective monotherapy option. • Again this quarter, we achieved solid company-wide performance in emerging markets. • Revenues increased 9% operationally compared to the year-ago quarter, driven by growth in China and Latin America. • Overall performance year-to-date positions us to achieve a strong finish. • Looking ahead, the period of high LOE impact will continue through 2016, making it difficult to generate revenue growth on a net basis. • We expect the size of the impact to be substantially reduced started in 2017. • Making our R&D more productive so we deliver on our pipeline; continuing to make smart and shareholder-friendly decisions around how we allocate our capital; and globally positioning Pfizer to be a market leader for organic and inorganic growth opportunities. • Regarding the pipeline, we recently achieved several regulatory milestones in our late-stage Vaccines and Oncology pipelines. • The FDA accepted the Biologics license application for our meningitis B vaccine with prior review instead of PDUFA data February 14, 2015. • The new drug application of palbociclib was accepted with priority review with an April 13, 2013 PDUFA date. • In terms of capital allocation, we have a strong solid track record of taking expenses out of the business, generating strong operating cash flows, and having a sound balance sheet that is a competitive advantage. • We have returned significant capital to shareholders through share repurchases and dividends. • During the period 2011 through 2013, we returned approximately $53 billion and expect to return nearly $12 billion in 2014. • In summary, we have an unrelenting focus on successfully executing on our commitments so that we start 2015 financially and operationally strong, and with the flexibility to take the actions that create value and that are best for our shareholders, patients and colleagues.