Pfizer Reports First-Quarter 2013 Results

  Pfizer Reports First-Quarter 2013 Results

  *First-Quarter 2013 Revenues of $13.5 Billion, including All Zoetis^(1)
    Revenues
  *First-Quarter 2013 Adjusted Diluted EPS^(2) of $0.54, Reported Diluted
    EPS^(3) of $0.38
  *Repurchased $6.3 Billion of Common Stock to Date in 2013
  *Updates 2013 Adjusted ^ Diluted EPS^(2) Guidance to Reflect the Impact of
    Recent Changes in Foreign Exchange Rates and the Zoetis^(1) Initial Public
    Offering

Business Wire

NEW YORK -- April 30, 2013

Pfizer Inc. (NYSE: PFE) reported financial results for first-quarter 2013 and
updated certain components of its 2013 financial guidance to reflect the
impact of recent changes in foreign exchange rates and the initial public
offering (IPO) of a 19.8% ownership interest in Zoetis^(1) completed on
February 6, 2013, among other factors. Pfizer continues to consolidate
Zoetis^(1), as Pfizer retains an 80.2% ownership interest. The earnings
attributable to the divested interest in Zoetis^(1) (Net income attributable
to noncontrolling interests) are excluded from Adjusted^(2) and Reported^(3)
Net Income,  effective February 7, 2013. Results and guidance are summarized
below.

OVERALL RESULTS
($ in millions, except     First-Quarter

per share amounts)           2013       2012       % Change
Reported Revenues            $ 13,500     $ 14,885     (9   %)
Adjusted Income^(2)            3,911        4,344      (10  %)
Adjusted Diluted EPS^(2)       0.54         0.57       (5   %)
Reported Net Income^(3)        2,750        1,794      53   %
Reported Diluted EPS^(3)    0.38      0.24     58   %
                                                       

BUSINESS UNIT^(4) REVENUES
($ in millions)           First-Quarter
                            2013       2012       % Change
Favorable/(Unfavorable)                               Total  Operational
Primary Care                $ 3,238      $ 4,097      (21     %)   (20    %)
Specialty Care                3,164        3,580      (12     %)    (11    %)
Emerging Markets              2,420        2,299      5       %     6      %
Established Products          2,352        2,801      (16     %)    (15    %)
Zoetis^(1)                    1,090        1,040      5       %     6      %
Consumer Healthcare           811          727        12      %     12     %
Oncology                      372          288        29      %     31     %
Other^(5)                    53          53         --          --     
Total                     $ 13,500   $ 14,885   (9      %)   (8     %)
                                                                    

SELECTED ADJUSTED COSTS AND EXPENSES^(2)
($ in millions)            First-Quarter
                             2013      2012      % Change
(Favorable)/Unfavorable                              Total  Operational
                                                                 
Cost of Sales^(2)            $ 2,615     $ 2,658     (2     %)     (2     %)
As a Percent of Revenues       19.4%       17.9%     N/A           N/A
SI&A Expenses^(2)              3,494       3,948     (11    %)     (10    %)
R&D Expenses^(2)              1,708      1,756     (3     %)    (3     %)
Total                        $ 7,817     $ 8,362     (7     %)    (7     %)
                                                                   
Effective Tax Rate^(2)      26.9%    29.0%   N/A          N/A
                                                                          

2013 FINANCIAL GUIDANCE^(6)

Revenues and expenses of Zoetis^(1) continue to be included ^ in the 2013
financial guidance, except that Adjusted^(2) and Reported^(3) Diluted EPS
guidance excludes the earnings from the 19.8% divested interest effective
February 7, 2013. The financial guidance has been updated to reflect the
following:

  *Reported Revenues: The changes in foreign exchange rates in relation to
    the U.S. dollar from mid-January 2013 to mid-April 2013, notably the
    weakening of the Japanese yen.
  *Adjusted Diluted EPS^(2): The aforementioned changes in foreign exchange
    rates ($0.04 per share) as well as the impact of the Zoetis^(1) IPO ($0.02
    per share) noted above.
  *Reported Diluted EPS^(3): The aforementioned changes in foreign exchange
    rates and the impact of the Zoetis^(1) IPO as well as the gain associated
    with the transfer of certain product rights to Pfizer’s joint venture with
    Zhejiang Hisun Pharmaceuticals (Hisun) in China and an asset impairment
    charge.

                                                 
                                                   $55.3 to $57.3 billion
Reported Revenues                                
                                                   (previously $56.2 to $58.2
                                                   billion)
Adjusted Cost of Sales^(2) as a Percent of        19.0% to 20.0%
Revenues
Adjusted SI&A Expenses^(2)                        $15.6 to $16.6 billion
Adjusted R&D Expenses^(2)                         $6.5 to $7.0 billion
Adjusted Other (Income)/Deductions^(2)            Approximately $900 million
Effective Tax Rate on Adjusted Income^(2)         Approximately 28.0%
                                                   $1.44 to $1.59
Reported Diluted EPS^(3)                         
                                                   (previously $1.50 to $1.65)
                                                   $2.14 to $2.24
Adjusted Diluted EPS^(2)                         
                                                   (previously $2.20 to $2.30)
                                                 

EXECUTIVE COMMENTARY

Ian Read, Chairman and Chief Executive Officer, stated, “As we begin 2013, we
continue to generate attractive returns for our shareholders. We are clearly
seeing the benefits of the investments we’ve been making in our innovative
core, as evidenced by recent key product launches, including Eliquis, Xeljanz
and various oncology products, as well as significant progress within our
mid-to-late stage product pipeline, most notably palbociclib. Additionally, I
am very pleased with the successful completion of the Zoetis^(1) IPO and a
related debt offering, and with the value these actions have created thus far
for Pfizer’s shareholders. We remain focused on driving innovation and
managing the business in the context of the challenging operating environment
to ensure Pfizer remains well-positioned for long-term value creation, all in
the best interests of our shareholders.”

Frank D’Amelio, Chief Financial Officer, stated, “With our consistent
financial performance and strong cash flows, including the proceeds from the
sale of our Nutrition business in November last year and from the IPO of a
19.8% interest in Zoetis^(1) and a related debt offering earlier this year, we
continue to make prudent capital allocation decisions for the benefit of our
shareholders. So far this year, we have returned approximately $8.0 billion to
shareholders in dividends and share repurchases, with significant additional
capital expected to be allocated to these activities for the remainder of the
year. Our solid performance during first-quarter 2013 was negatively impacted
by approximately $0.02 per share due to changes in foreign exchange rates in
relation to the U.S. dollar, including the devaluation of the Venezuelan
currency in February, since our initial financial guidance was provided in
January 2013.”

QUARTERLY FINANCIAL HIGHLIGHTS (First-Quarter 2013 vs. First-Quarter 2012)

  *Revenues decreased $1.4 billion, or 9%, which reflects an operational
    decline of $1.3 billion, or 8%, and the unfavorable impact of foreign
    exchange of $118 million, or 1%. The operational decrease was primarily
    the result of the losses of exclusivity of Lipitor during second-quarter
    2012 in developed Europe and Geodon in March 2012 in the U.S., the impact
    of purchasing patterns of Prevnar/Prevenar 13 in various markets, and
    certain other events, primarily within the Emerging Markets unit
    highlighted below.
  *Business unit revenues were impacted by the following:

       *Primary Care: Revenues decreased 20% operationally, primarily due to
         the shift in the reporting of Lipitor revenues in developed Europe
         and Australia to the Established Products unit beginning January 1,
         2013, as well as the loss of exclusivity and near-term expiration of
         co-promotion agreements for Aricept and Spiriva, respectively,
         partially offset by the strong performance of Lyrica in the U.S. and
         developed Europe.
       *Specialty Care: Revenues declined 11% operationally, primarily due to
         the timing of U.S. government purchases of Prevnar 13 and the shift
         in the reporting of Geodon and Revatio revenues in the U.S. and
         Xalabrands revenues in developed Europe and Australia to the
         Established Products unit beginning January 1, 2013.
       *Emerging Markets: Revenues grew 6% operationally, primarily due to
         strong volume growth in China, which was partially offset by the
         timing of government purchases ofEnbrel and the Prevenar franchise
         in certain emerging markets as well as the transfer of certain
         product rights to the Pfizer-Hisun joint venture.
       *Established Products: Revenues decreased 15% operationally, primarily
         due to multi-source generic competition in the U.S. for Lipitor
         beginning in late May 2012, as well as continuing competitive and
         pricing pressures. This decrease was partially offset by revenues
         from products in certain markets that were shifted to the Established
         Products unit from other business units beginning January 1, 2013.
       *Consumer Healthcare: Revenues increased 12% operationally, primarily
         due to the addition of Emergen-C from the acquisition of Alacer
         Corp., as well as solid growth of key products, including Advil and
         Robitussin, partially due to a severe cold and flu season in the U.S.
       *Oncology: Revenues increased 31% operationally, driven by the recent
         launches of new products, most notably Inlyta and Xalkori in several
         major markets.

  *Adjusted cost of sales, adjusted SI&A expenses and adjusted R&D
    expenses^(2) in the aggregate decreased $545 million, or 7%, primarily
    reflecting the benefits of cost-reduction and productivity initiatives,
    including a reduction in the field force and more streamlined corporate
    support functions and manufacturing network.
  *The effective tax rate on adjusted income^(2) decreased 2.1 percentage
    points, primarily due to the change in the jurisdictional mix of earnings
    and the extension of the U.S. research and development tax credit that was
    signed into law in January 2013. The first-quarter 2013 rate reflects the
    full-year benefit of the 2012 research and development tax credit and a
    portion of the 2013 research and development tax credit.
  *The diluted weighted-average shares outstanding declined by approximately
    329 million shares, primarily due to the Company’s ongoing
    share-repurchase program.
  *In addition to the aforementioned factors, first-quarter 2013 reported
    earnings were favorably impacted by lower charges related to legal
    matters, lower costs related to cost-reduction and productivity
    initiatives, and lower purchase accounting adjustments. Additionally,
    reported earnings were favorably impacted by the gain associated with the
    transfer of certain product rights to the Pfizer-Hisun joint venture,
    partially offset by less income from discontinued operations reflecting
    the divestiture of the Nutrition business in November 2012.

RECENT NOTABLE DEVELOPMENTS

Product Developments

  *Eliquis was launched in the U.S., UK, Germany, Denmark and Japan for the
    reduction in the risk of stroke and systemic embolism in patients with
    nonvalvular atrial fibrillation.
  *The Xeljanz U.S. field force launch meeting was held in early March.
    Additionally, Xeljanz was approved in Japan for the treatment of adults
    with rheumatoid arthritis (RA) who have had an inadequate response to
    existing therapies, such as methotrexate.
  *Bosulif was granted conditional marketing authorization by the European
    Commission for use in certain patients with previously treated chronic
    myelogenous leukemia.
  *Quillivant XR, the first once-daily, extended-release, liquid
    methylphenidate for attention deficit hyperactivity disorder, was launched
    in the U.S.
  *The U.S. Patent and Trademark Office granted Pfizer a reissue patent
    covering Celebrex. The reissue patent will expire in December 2015, while
    the basic patent will expire in May 2014, in each case including six
    months of pediatric exclusivity. Pfizer has initiated legal proceedings
    against several generic companies to enforce the reissued patent.

Pipeline Developments

  *The Committee for Medicinal Products for Human Use (CHMP) of the European
    Medicines Agency adopted a negative opinion for Xeljanz for the treatment
    of adult patients with moderate-to-severe active RA. The CHMP is of the
    opinion that Xeljanz does not demonstrate a favorable benefit:risk
    profile. Pfizer intends to appeal this opinion and immediately seek a
    re-examination of the opinion by the CHMP.
  *Palbociclib received Breakthrough Therapy designation by the U.S. Food and
    Drug Administration (FDA) for the potential treatment of patients with
    breast cancer. Additionally, a randomized phase 3 study evaluating
    palbociclib in combination with letrozole for first-line treatment of
    post-menopausal women with ER+/HER2- advanced breast cancer began
    enrolling patients in February.
  *Inotuzumab ozogamicin received Orphan Drug designation from the FDA for
    the treatment of acute lymphoblastic leukemia.

Business Development/Portfolio Review

  *An IPO of a 19.8% ownership interest in Zoetis^(1) as well as a related
    debt offering were completed. Total proceeds of approximately $6 billion
    from these transactions are being allocated to share repurchases, which
    remain the case to beat for capital allocation.
  *Pfizer entered into a worldwide (except Japan) collaboration agreement
    with Merck & Co., Inc. to develop and commercialize ertugliflozin and
    ertugliflozin-containing fixed-dose combinations with metformin and
    Januvia^® (sitagliptin) tablets. Ertugliflozin is Pfizer’s investigational
    medicine for type 2 diabetes, with phase 3 trials expected to begin later
    in 2013.

For additional details, see the attached financial schedules, product revenue
tables and disclosure notice.

      An initial public offering (IPO) of a 19.8% ownership interest in Zoetis
      Inc. (Zoetis), a subsidiary of Pfizer, was completed on February 6,
(1)  2013. Prior to the completion of the IPO, Pfizer transferred
      substantially all of its animal health business assets and liabilities
      to Zoetis.
      
      Pfizer continues to consolidate Zoetis, as Pfizer retains an 80.2%
      ownership interest. The earnings attributable to the 19.8% divested
      interest in Zoetis (Net income attributable to noncontrolling interests)
      are excluded from Adjusted^(2) and Reported^(3) Net income attributable
      to Pfizer Inc., effective February 7, 2013. Therefore, in accordance
      with Pfizer’s domestic and international reporting periods, 19.8% of the
      earnings of Zoetis for approximately two months of the U.S. operations
      and approximately one month of the international operations of Zoetis in
      first-quarter 2013 are excluded from Net income attributable to Pfizer
      Inc.
      
      "Adjusted Income" and its components and "Adjusted Diluted Earnings Per
      Share (EPS)" are defined as reported U.S. generally accepted accounting
      principles (GAAP) net income^(3) and its components and reported diluted
      EPS^(3) excluding purchase accounting adjustments, acquisition-related
      costs, discontinued operations and certain significant items. 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, and, therefore, components of the overall adjusted
      income measure. As described under Adjusted Income in the Management’s
      Discussion and Analysis of Financial Condition and Results of Operations
(2)   section of Pfizer's Form 10-K/A for the year ended December 31, 2012,
      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 first-quarter 2013
      and 2012, as well as reconciliations of full-year 2013 guidance for
      adjusted income and adjusted diluted EPS to full-year 2013 guidance for
      reported net income^(3) and reported diluted EPS^(3). 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.
      
      “Reported Net Income” is defined as net income attributable to Pfizer
(3)   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.
      
      For a description of the revenues in each business unit, see Note 18A to
      Pfizer’s consolidated financial statements included in Pfizer’s Form
(4)   10-K/A for the year ended December 31, 2012. Revenues for certain
      products in certain markets that were reported in the Primary Care and
      Specialty Care units through December 31, 2012 are being reported in the
      Established Products unit beginning January 1, 2013, as follows:
        *Lipitor and Caduet revenues in developed Europe, Australia and New
          Zealand, which were reported in the Primary Care unit
        *Detrol revenues in developed Europe, which were reported in the
          Primary Care unit
        *Viagra revenues in Canada and South Korea, which were reported in
          the Primary Care unit
        *Geodon and Revatio revenues in the U.S., and Xalabrands revenues in
          developed Europe, Australia and New Zealand, which were reported in
          the Specialty Care unit
      
      Other represents revenues generated from Pfizer CentreSource, Pfizer’s
(5)   contract manufacturing and bulk pharmaceutical chemical sales
      organization.
      
(6)   The 2013 financial guidance reflects the following:
        *Benefit of a full-year contribution from Zoetis^(1), except that
          earnings attributable to the 19.8% divested interest have been
          excluded from Adjusted^(2) and Reported^(3) Net Income guidance and
          Adjusted^(2) and Reported^(3) Diluted EPS guidance effective
          February 7, 2013. See note (1) for further details. No other
          components of the 2013 financial guidance were impacted by the
          Zoetis^(1) IPO.
        *Does not assume the completion of any business development
          transactionsnot completed as of March 31, 2013, 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 March
          31, 2013.
        *Reported Diluted EPS^(3) guidance includes the gain associated with
          the transfer of certain product rights to the Pfizer-Hisun joint
          venture and an asset impairment charge, both recorded in
          first-quarter 2013.
        *Exchange rates assumed are a blend of the actual exchange rates in
          effect during the first three months of 2013 and the mid-April 2013
          exchange rates for the remainder of the year.
        *Reconciliation of the 2013 Adjusted Income^(2) and Adjusted Diluted
          EPS^(2) guidance to the 2013 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       $15.0 - $15.7   $2.14 - $2.24
Purchase accounting impacts of transactions    (3.4)             (0.49)
completed as of March31,2013
Acquisition-related costs                      (0.4 - 0.5)       (0.06 - 0.07)
Certain other items, including                 (0.5 - 0.8)       (0.08 - 0.12)
non-acquisition-related restructuring costs
Costs associated with the separation of       (0.2)           (0.02)
Zoetis^(1)
Reported net income attributable to Pfizer    $10.1 - $11.2   $1.44 - $1.59
Inc./diluted EPS^(3) guidance
                                                                 

PFIZER INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME^(1)
(UNAUDITED)
(millions, except per common share data)
                                                                 
                                               First-Quarter         % Incr. /
                                               2013       2012       (Decr.)
Revenues                                       $ 13,500   $ 14,885   (9     )
Costs and expenses:
Cost of sales^(2)                                2,652      2,745    (3     )
Selling, informational and administrative        3,585      3,968    (10    )
expenses^(2)
Research and development expenses^(2)            1,800      2,062    (13    )
Amortization of intangible assets^(3)            1,234      1,420    (13    )
Restructuring charges and certain                138        597      (77    )
acquisition-related costs
Other deductions––net^(4)                       170       1,658    (90    )
Income from continuing operations before         3,921      2,435    61
provision for taxes on income
Provision for taxes on income                   1,160     711      63
Income from continuing operations                2,761      1,724    60
Discontinued operations––net of tax             4         79       (95    )
Net income before allocation to                  2,765      1,803    53
noncontrolling interests
Less: Net income attributable to                15        9        67
noncontrolling interests
Net income attributable to Pfizer Inc.         $ 2,750    $ 1,794    53
                                                                     
Earnings per common share––basic:
Income from continuing operations
attributable to Pfizer Inc. common             $ 0.38     $ 0.23     65
shareholders
Discontinued operations––net of tax             -         0.01     (100   )
Net income attributable to Pfizer Inc.         $ 0.38     $ 0.24     58
common shareholders
                                                                     
Earnings per common share––diluted:
Income from continuing operations
attributable to Pfizer Inc. common             $ 0.38     $ 0.23     65
shareholders
Discontinued operations––net of tax             -         0.01     (100   )
Net income attributable to Pfizer Inc.         $ 0.38     $ 0.24     58
common shareholders
                                                                     
Weighted-average shares used to calculate
earnings per common share:
Basic                                           7,187     7,537
Diluted                                         7,269     7,598
                                                                     
See next page for notes (1) through (4)


PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
                                                      
      These financial statements present the three months ended March 31, 2013
(1)   and April 1, 2012. Subsidiaries operating outside the United States are
      included for the three months ended February 24, 2013 and February 26,
      2012.
                                                                            
      On November 30, 2012, we completed the sale of our Nutrition business.
      The operating results of this business are reported as Discontinued
      operations––net of tax for the three months ended April 1, 2012.
                                                                            
      The financial results for the three months ended March 31, 2013 are not
      necessarily indicative of the results which could ultimately be achieved
      for the full year.
                                                                            
(2)   Exclusive of amortization of intangible assets, except as discussed in
      footnote (3) below.
                                                                            
      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
(3)   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 deductions––net includes the following:
                                          First-Quarter
                (millions of dollars)     2013               2012
                Interest income^(a)       $   (95    )       $   (81     )
                Interest expense^(a)         391              390     
                Net interest expense          296                309
                Royalty-related               (71    )           (97     )
                income
                Gain associated with
                Pfizer's joint                (490   )           -
                venture in China^(b)
                Net gain on asset             (26    )           (7      )
                disposals
                Certain legal                 (83    )           814
                matters, net^(c)
                Certain asset
                impairment                    399                432
                charges^(d)
                Costs associated with
                the separation of             17                 32
                Zoetis^(e)
                Other, net                   128              175     
                Other deductions––net     $   170           $   1,658   
                                                                            
                Interest income increased in first-quarter 2013 due to higher
                cash balances. Interest expense was virtually unchanged in
      (a)       first-quarter 2013 compared to first-quarter 2012 as the
                impact of the Zoetis debt issuance on January 28, 2013 was
                offset by otherwise lower debt balances.
                                                                            
                Represents the gain associated with the transfer of certain
      (b)       product rights to Pfizer's 49%-owned equity-method investment
                in China.
                                                                            
                In first-quarter 2013, primarily includes an $80 million
                insurance recovery related to a certain litigation matter. In
      (c)       first-quarter 2012, primarily relates to a $450 million
                settlement of a lawsuit by Brigham Young University related to
                Celebrex and charges related to hormone-replacement therapy
                litigation.
                                                                            
                In first-quarter 2013, significantly relates to developed
                technology, for use in the development of bone and cartilage,
                acquired in connection with our acquisition of Wyeth. In
      (d)       first-quarter 2012, primarily relates to an in-process
                research and development (IPR&D) intangible asset compound
                targeting autoimmune diseases acquired in connection with our
                acquisition of Wyeth and certain other intangible asset
                impairments.
                                                                            
                Costs incurred in connection with the initial public offering
      (e)       of an approximate 19.8% ownership interest in Zoetis. Includes
                expenditures for banking, legal, accounting and similar
                services.
                

PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)
(millions of dollars, except per common share data)
                                                                                                 
                      Three Months Ended March 31, 2013
                                       Purchase        Acquisition-                      Certain
                      GAAP             Accounting      Related          Discontinued     Significant     Non-GAAP
                      Reported^(1)     Adjustments     Costs^(2)        Operations       Items^(3)       Adjusted^(4)
Revenues            $ 13,500         $ -             $ -              $ -              $ -             $ 13,500
Cost of sales^(5)     2,652            5               (33     )        -                (9       )      2,615
Selling,
informational and     3,585            7               (2      )        -                (96      )      3,494
administrative
expenses^(5)
Research and
development           1,800            1               -                -                (93      )      1,708
expenses^(5)
Amortization of
intangible            1,234            (1,191   )      -                -                -               43
assets^(6)
Restructuring
charges and certain   138              -               (60     )        -                (78      )      -
acquisition-related
costs
Other                 170              (54      )      -                -                148             264
deductions––net
Income from
continuing
operations before     3,921            1,232           95               -                128             5,376
provision for taxes
on income
Provision for taxes   1,160            339             27               -                (80      )      1,446
on income
Income from
continuing            2,761            893             68               -                208             3,930
operations
Discontinued
operations––net of    4                -               -                (4       )       -               -
tax
Net income
attributable to       15               1               -                -                3               19
noncontrolling
interests
Net income
attributable to       2,750            892             68               (4       )       205             3,911
Pfizer Inc.
Earnings per common
share attributable    0.38             0.12            0.01             -                0.03            0.54
to Pfizer
Inc.––diluted
                                                                                                         
                                                                                                         
                                                                                                         
                      Three Months Ended April 1, 2012
                                       Purchase        Acquisition-                      Certain
                      GAAP             Accounting      Related          Discontinued     Significant     Non-GAAP
                      Reported^(1)     Adjustments     Costs^(2)        Operations       Items^(3)       Adjusted^(4)
Revenues            $ 14,885         $ -             $ -              $ -              $ -             $ 14,885
Cost of sales^(5)     2,745            (8       )      (79     )        -                -               2,658
Selling,
informational and     3,968            3               (1      )        -                (22      )      3,948
administrative
expenses^(5)
Research and
development           2,062            1               (5      )        -                (302     )      1,756
expenses^(5)
Amortization of
intangible            1,420            (1,352   )      -                -                -               68
assets^(6)
Restructuring
charges and certain   597              -               (98     )        -                (499     )      -
acquisition-related
costs
Other                 1,658            (90      )      -                -                (1,244   )      324
deductions––net
Income from
continuing
operations before     2,435            1,446           183              -                2,067           6,131
provision for taxes
on income
Provision for taxes   711              384             67               -                616             1,778
on income
Income from
continuing            1,724            1,062           116              -                1,451           4,353
operations
Discontinued
operations––net of    79               -               -                (79      )       -               -
tax
Net income
attributable to       9                -               -                -                -               9
noncontrolling
interests
Net income
attributable to       1,794            1,062           116              (79      )       1,451           4,344
Pfizer Inc.
Earnings per common
share attributable    0.24             0.14            0.02             (0.01    )       0.19            0.57
to Pfizer
Inc.––diluted
                                                                                                         
See end of tables for notes (1) through (6).
                                                                                                         
Certain amounts may reflect rounding adjustments.
                                                                                                         
EPS amounts may not add due to rounding.


PFIZER INC. AND SUBSIDIARY COMPANIES
NOTES TO RECONCILIATION OF GAAP REPORTED TO NON-GAAP ADJUSTED INFORMATION
CERTAIN LINE ITEMS
(UNAUDITED)
                                                        
      These financial statements present the three months ended March 31, 2013
(1)   and April 1, 2012. Subsidiaries operating outside the United States are
      included for the three months ended February 24, 2013 and February 26,
      2012.
                                                                            
      On November 30, 2012, we completed the sale of our Nutrition business.
      The operating results of this business are reported as Discontinued
      operations––net of tax for the three months ended April 1, 2012.
                                                                            
(2)   Acquisition-related costs include the following:
                                                                            
                                            First-Quarter
                (millions of dollars)       2013               2012
                                                                            
                Integration costs^(a)       $   39             $  100
                Restructuring                   21                (2     )
                charges^(a)
                Additional
                depreciation––asset            35              85     
                restructuring^(b)
                Total
                acquisition-related             95                183
                costs––pre-tax
                Income taxes^(c)               (27    )         (67    )
                Total
                acquisition-related         $   68            $  116    
                costs––net of tax
                                                                            
                Integration costs represent external, incremental costs
                directly related to integrating acquired businesses, and
                primarily include expenditures for consulting and the
      (a)       integration of systems and processes. Restructuring charges
                include employee termination costs, asset impairments and
                other exit costs associated with business combinations. All of
                these costs and charges are included in Restructuring charges
                and certain acquisition-related costs.
                                                                            
                Represents the impact of changes in the estimated useful lives
                of assets involved in restructuring actions related to
                acquisitions. Included in Cost of sales ($33 million) and
                Selling, informational and administrative expenses ($2
      (b)       million) for the three months ended March 31, 2013. Included
                in Cost of sales ($79 million), Research and development
                expenses ($5 million) and Selling, informational and
                administrative expenses ($1 million) for the three months
                ended April 1, 2012.
                                                                            
      (c)       Included in Provision for taxes on income.
                                                                            
(3)   Certain significant items include the following:
                                            First-Quarter
                (millions of dollars)       2013               2012
                                                                            
                Restructuring               $   78             $  499
                charges^(a)
                Implementation costs
                and additional                  139               318
                depreciation––asset
                restructuring^(b)
                Certain legal                   (87    )          775
                matters^(c)
                Certain asset                   396               412
                impairment charges^(d)
                Gain associated with
                Pfizer's joint venture          (490   )          -
                in China^(e)
                Costs associated with
                the separation of               76                38
                Zoetis^(f)
                Other                          16              25     
                Certain significant             128               2,067
                items––pre-tax
                Income taxes^(g)               80              (616   )
                Certain significant         $   208           $  1,451  
                items––net of tax
                                                                            
                Primarily relates to our cost-reduction and productivity
      (a)       initiatives. Included in Restructuring charges and certain
                acquisition-related costs.
                                                                            
                Primarily relates to our cost-reduction and productivity
                initiatives. Included in Research and development expenses
                ($93 million), Selling, informational and administrative
      (b)       expenses ($40 million) and Cost of sales ($6 million) for the
                three months ended March 31, 2013. Included in Research and
                development expenses ($302 million) and Selling, informational
                and administrative expenses ($16 million) for the three months
                ended April 1, 2012.
                                                                            
                Included in Other deductions––net. In 2013, primarily includes
                an $80 million insurance recovery related to a certain
      (c)       litigation matter. In 2012, primarily relates to a $450
                million settlement of a lawsuit by Brigham Young University
                related to Celebrex and charges related to hormone-replacement
                therapy litigation.
                                                                            
                Included in Other deductions––net. In 2013, significantly
                relates to developed technology, for use in the development of
                bone and cartilage, acquired in connection with our
      (d)       acquisition of Wyeth. In 2012, primarily relates to an IPR&D
                intangible asset compound targeting autoimmune diseases
                acquired in connection with our acquisition of Wyeth, and
                certain other intangible asset impairments.
                                                                            
                Included in Other deductions––net. Represents the gain
      (e)       associated with the transfer of certain product rights to
                Pfizer's 49%-owned equity-method investment in China.
                                                                            
                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, as well as costs associated with the separation of
                Zoetis employees, net assets and operations from Pfizer, such
      (f)       as consulting and systems costs. Included in Selling,
                informational and administrative expenses ($56 million), Other
                deductions––net ($17 million) and Cost of Sales ($3 million)
                for the three months ended March 31, 2013. Included in Other
                deductions––net ($32 million) and Selling, informational and
                administrative expenses ($6 million) for the three months
                ended April 1, 2012.
                                                                            
      (g)       Included in Provision for taxes on income.
                                                                            
      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
(4)   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.
                                                                            
(5)   Exclusive of amortization of intangible assets, except as
      discussed in footnote (6) below.
                                                                            
      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
(6)   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.
      

PFIZER INC.
REVENUES
FIRST-QUARTER 2013 and 2012
(UNAUDITED)
(millions of dollars)

                  WORLDWIDE                              UNITED STATES               TOTAL INTERNATIONAL^(a)
                                     % Change                         %                       % Change
                                                                                Change
                  2013      2012      Total   Oper.   2013     2012     Total   2013     2012     Total   Oper.
TOTAL REVENUES     $ 13,500  $ 14,885  (9  %)  (8  %)  $ 5,368  $ 5,952  (10 %)  $ 8,132  $ 8,933  (9  %)  (8  %)
REVENUES FROM
BIOPHARMACEUTICAL  $ 11,546  $ 13,065  (12 %)  (11 %)  $ 4,517  $ 5,185  (13 %)  $ 7,029  $ 7,880  (11 %)  (9  %)
PRODUCTS:
Lyrica                1,066      955      12  %   12  %      438       395     11  %      628       560     12  %   14  %
Enbrel (Outside
the U.S. and          877        899      (2  %)   (1  %)     -         -       -          877       899     (2  %)   (1  %)
Canada)
Prevnar               846        945      (10 %)   (11 %)     450       556     (19 %)     396       389     2   %    1   %
13/Prevenar 13
Celebrex              653        634      3   %    4   %      424       407     4   %      229       227     1   %    3   %
Lipitor^(b)           626        1,395    (55 %)   (55 %)     171       383     (55 %)     455       1,012   (55 %)   (54 %)
Viagra                461        496      (7  %)   (7  %)     245       268     (9  %)     216       228     (5  %)   (6  %)
Zyvox                 342        325      5   %    6   %      176       171     3   %      166       154     8   %    10  %
Sutent                302        300      1   %    1   %      84        86      (2  %)     218       214     2   %    3   %
Norvasc               301        334      (10 %)   (6  %)     10        14      (29 %)     291       320     (9  %)   (5  %)
Premarin family       244        261      (7  %)   (6  %)     220       237     (7  %)     24        24      -        1   %
Genotropin            189        195      (3  %)   (1  %)     47        41      15  %      142       154     (8  %)   (5  %)
BeneFIX               189        183      3   %    3   %      88        85      4   %      101       98      3   %    2   %
Vfend                 187        178      5   %    7   %      17        25      (32 %)     170       153     11  %    13  %
Chantix/Champix       166        178      (7  %)   (6  %)     87        92      (5  %)     79        86      (8  %)   (5  %)
Pristiq               166        151      10  %    10  %      131       121     8   %      35        30      17  %    19  %
Detrol/Detrol LA      151        195      (23 %)   (22 %)     103       123     (16 %)     48        72      (33 %)   (32 %)
Xalatan/Xalacom       147        227      (35 %)   (33 %)     8         11      (27 %)     139       216     (36 %)   (33 %)
Refacto AF/Xyntha     139        132      5   %    5   %      29        25      16  %      110       107     3   %    2   %
Zithromax/Zmax        116        123      (6  %)   (2  %)     4         5       (20 %)     112       118     (5  %)   (2  %)
Zoloft                116        130      (11 %)   (6  %)     14        17      (18 %)     102       113     (10 %)   (4  %)
Medrol                113        134      (16 %)   (16 %)     40        38      5   %      73        96      (24 %)   (24 %)
Effexor               105        129      (19 %)   (19 %)     36        41      (12 %)     69        88      (22 %)   (22 %)
Zosyn/Tazocin         87         128      (32 %)   (32 %)     36        64      (44 %)     51        64      (20 %)   (20 %)
Tygacil               87         81       7   %    7   %      43        40      8   %      44        41      7   %    7   %
Relpax                86         85       1   %    2   %      52        51      2   %      34        34      -        2   %
Fragmin               86         91       (5  %)   (8  %)     10        12      (17 %)     76        79      (4  %)   (6  %)
Rapamune              84         82       2   %    3   %      49        45      9   %      35        37      (5  %)   (5  %)
Prevnar/Prevenar      81         138      (41 %)   (33 %)     -         -       -          81        138     (41 %)   (33 %)
(7-valent)
Cardura               76         84       (10 %)   (6  %)     1         1       -          75        83      (10 %)   (6  %)
EpiPen                72         58       24  %    24  %      62        51      22  %      10        7       43  %    43  %
Revatio               72         136      (47 %)   (46 %)     14        85      (84 %)     58        51      14  %    14  %
Sulperazon            71         58       22  %    23  %      -         -       -          71        58      22  %    23  %
Xanax XR              70         68       3   %    3   %      12        14      (14 %)     58        54      7   %    8   %
Inlyta                63         7        *        *          35        7       *          28        -       *        *
Aricept^(c)           62         94       (34 %)   (35 %)     -         -       -          62        94      (34 %)   (35 %)
Unasyn                56         54       4   %    7   %      1         -       *          55        54      2   %    6   %
Caduet                56         65       (14 %)   (12 %)     5         9       (44 %)     51        56      (9  %)   (8  %)
Xalkori               53         17       212 %    *          28        14      100 %      25        3       *        *
Neurontin             52         58       (10 %)   (11 %)     10        13      (23 %)     42        45      (7  %)   (7  %)
Inspra                52         49       6   %    9   %      1         1       -          51        48      6   %    9   %
Toviaz                52         46       13  %    11  %      27        25      8   %      25        21      19  %    19  %
Aromasin              51         56       (9  %)   (8  %)     3         4       (25 %)     48        52      (8  %)   (8  %)
Dalacin/Cleocin       50         49       2   %    2   %      17        15      13  %      33        34      (3  %)   (3  %)
Alliance              747        836      (11 %)   (10 %)     635       580     9   %      112       256     (56 %)   (55 %)
revenues^(d)
All other
biopharmaceutical     1,878      2,226    (16 %)   (15 %)     654       1,013   (35 %)     1,224     1,213   1   %    3   %
products^(e)
All other
established         1,428    1,563   (9  %)  (8  %)   475     634    (25 %)   953     929    3   %   4   %
products^(e)
REVENUES FROM
OTHER PRODUCTS:
ZOETIS              $ 1,090    $ 1,040    5   %    6   %    $ 454     $ 422     8   %    $ 636     $ 618     3   %    4   %
CONSUMER            $ 811      $ 727      12  %    12  %    $ 378     $ 326     16  %    $ 433     $ 401     8   %    7   %
HEALTHCARE
OTHER^(f)          $ 53      $ 53      -      -      $ 19     $ 19     -      $ 34     $ 34     -      -   
                                                                                                                          

* Calculation not meaningful.
      Total International represents Developed Europe region + Developed Rest
(a)  of World region + Emerging Markets region. Details for these regions are
      located on the following page.
      Lipitor lost exclusivity in the U.S. in November 2011 and various other
(b)   major markets in 2011 and 2012. This loss of exclusivity reduced branded
      worldwide revenues by $792 million in first-quarter 2013, in comparison
      with first-quarter 2012.
(c)   Represents direct sales under license agreement with Eisai Co., Ltd.
(d)   Includes Enbrel (in the U.S. and Canada), Spiriva, Rebif, Aricept and
      Eliquis.
(e)   Includes sales of generic atorvastatin. All other established products
      is a subset of All other biopharmaceutical products.
(f)   Represents revenues generated from Pfizer CentreSource, our contract
      manufacturing and bulk pharmaceutical chemical sales organization.
      
Certain amounts and percentages may reflect rounding adjustments.


PFIZER INC.
INTERNATIONAL REVENUES BY GEOGRAPHIC REGION
FIRST-QUARTER 2013 and 2012
(UNAUDITED)
(millions of dollars)

                  DEVELOPED EUROPE^(a)                 DEVELOPED REST OF WORLD^(b)          EMERGING MARKETS^(c)
                                   % Change                         % Change                         % Change
                  2013     2012     Total   Oper.   2013     2012     Total   Oper.   2013     2012     Total    Oper.
TOTAL
INTERNATIONAL      $ 3,029  $ 3,537  (14 %)  (15 %)  $ 2,172  $ 2,612  (17 %)  (12 %)  $ 2,931  $ 2,784  5    %   6    %
REVENUES
REVENUES FROM
BIOPHARMACEUTICAL  $ 2,668  $ 3,207  (17 %)  (18 %)  $ 1,941  $ 2,374  (18 %)  (12 %)  $ 2,420  $ 2,299  5    %   6    %
PRODUCTS -
INTERNATIONAL:
Lyrica                340       300     13  %   12  %      171       169     1   %   10  %      117       91      29   %   29   %
Enbrel (Outside       556       550     1   %    (1  %)     124       155     (20 %)   (13 %)     197       194     2    %    6    %
Canada)
Prevnar               167       160     4   %    3   %      63        75      (16 %)   (20 %)     166       154     8    %    10   %
13/Prevenar 13
Celebrex              38        41      (7  %)   (10 %)     107       107     -        6   %      84        79      6    %    5    %
Lipitor^(d)           73        519     (86 %)   (86 %)     129       282     (54 %)   (51 %)     253       211     20   %    19   %
Viagra                93        87      7   %    6   %      40        51      (22 %)   (21 %)     83        90      (8   %)   (8   %)
Zyvox                 75        72      4   %    3   %      33        37      (11 %)   -          58        45      29   %    31   %
Sutent                101       105     (4  %)   (6  %)     33        39      (15 %)   (13 %)     84        70      20   %    23   %
Norvasc               27        32      (16 %)   (19 %)     124       164     (24 %)   (16 %)     140       124     13   %    12   %
Premarin family       2         2       -        -          9         8       13  %    -          13        14      (7   %)   (7   %)
Genotropin            65        76      (14 %)   (16 %)     50        52      (4  %)   4   %      27        26      4    %    4    %
BeneFIX               57        57      -        (2  %)     34        32      6   %    3   %      10        9       11   %    11   %
Vfend                 71        67      6   %    4   %      37        37      -        8   %      62        49      27   %    27   %
Chantix/Champix       32        34      (6  %)   (6  %)     35        41      (15 %)   (12 %)     12        11      9    %    19   %
Pristiq               -         -       -        -          23        19      21  %    21  %      12        11      9    %    9    %
Detrol/Detrol LA      15        34      (56 %)   (59 %)     22        24      (8  %)   (4  %)     11        14      (21  %)   (21  %)
Xalatan/Xalacom       39        93      (58 %)   (59 %)     58        79      (27 %)   (20 %)     42        44      (5   %)   -
Refacto AF/Xyntha     89        87      2   %    1   %      18        11      64  %    64  %      3         9       (67  %)   (67  %)
Zithromax/Zmax        18        17      6   %    6   %      40        53      (25 %)   (17 %)     54        48      13   %    13   %
Zoloft                15        15      -        (7  %)     55        66      (17 %)   (6  %)     32        32      -         -
Medrol                22        24      (8  %)   (8  %)     10        11      (9  %)   (9  %)     41        61      (33  %)   (34  %)
Effexor               24        30      (20 %)   (23 %)     18        34      (47 %)   (50 %)     27        24      13   %    13   %
Zosyn/Tazocin         11        13      (15 %)   (15 %)     3         4       (25 %)   (25 %)     37        47      (21  %)   (21  %)
Tygacil               16        15      7   %    7   %      2         1       100 %    100 %      26        25      4    %    4    %
Relpax                17        17      -        -          12        13      (8  %)   8   %      5         4       25   %    25   %
Fragmin               42        43      (2  %)   (5  %)     18        18      -        -          16        18      (11  %)   (11  %)
Rapamune              12        12      -        -          4         4       -        -          19        21      (10  %)   (5   %)
Prevnar/Prevenar      -         -       -        -          81        104     (22 %)   (12 %)     -         34      (100 %)   (100 %)
(7-valent)
Cardura               22        25      (12 %)   (12 %)     27        34      (21 %)   (12 %)     26        24      8    %    8    %
EpiPen                -         -       -        -          10        7       43  %    38  %      -         -       -         -
Revatio               37        32      16  %    16  %      13        12      8   %    17  %      8         7       14   %    28   %
Sulperazon            -         -       -        -          7         9       (22 %)   (11 %)     64        49      31   %    29   %
Xanax XR              27        22      23  %    18  %      9         11      (18 %)   (9  %)     22        21      5    %    5    %
Inlyta                10        -       *        *          18        -       *        *          -         -       -         -
Aricept^(e)           14        45      (69 %)   (69 %)     40        40      -        (3  %)     8         9       (11  %)   (11  %)
Unasyn                10        9       11  %    11  %      18        19      (5  %)   5   %      27        26      4    %    4    %
Caduet                4         3       33  %    33  %      35        37      (5  %)   (3  %)     12        16      (25  %)   (25  %)
Xalkori               12        3       *        *          10        -       *        *          3         -       *         *
Neurontin             11        16      (31 %)   (31 %)     9         10      (10 %)   (18 %)     22        19      16   %    16   %
Inspra                32        31      3   %    -          14        13      8   %    23  %      5         4       25   %    25   %
Toviaz                20        17      18  %    18  %      2         2       -        -          3         2       50   %    50   %
Aromasin              14        20      (30 %)   (30 %)     9         14      (36 %)   (29 %)     25        18      39   %    39   %
Dalacin/Cleocin       7         8       (13 %)   (13 %)     5         6       (17 %)   -          21        20      5    %    -
Alliance              28        86      (67 %)   (67 %)     73        152     (52 %)   (50 %)     11        18      (39  %)   (39  %)
revenues^(f)
All other
biopharmaceutical     403       388     4   %    2   %      289       318     (9  %)   -          532       507     5    %    5    %
products^(g)
All other
established         281     271    4   %   2   %    224     245    (9  %)  (3  %)   448     413    8    %   10   %
products^(g)
REVENUES FROM
OTHER PRODUCTS -   $ 361    $ 330    9   %   7   %   $ 231    $ 238    (3  %)  (3  %)  $ 511    $ 485    5    %   8    %
INTERNATIONAL:
                                                                                                                                   

* Calculation not meaningful.
(a)  Developed Europe region includes the following markets: Western Europe,
      Finland and the Scandinavian countries.
(b)   Developed Rest of World region includes the following markets:
      Australia, Canada, Japan, New Zealand and South Korea.
      Emerging Markets region includes, but is not limited to, the following
(c)   markets: Asia (excluding Japan and South Korea), Latin America, the
      Middle East, Eastern Europe, Africa, Turkey and Central Europe.
      Lipitor lost exclusivity in various international markets in 2011 and
(d)   2012. This loss of exclusivity reduced branded international revenues by
      $581 million in first-quarter 2013, in comparison with first-quarter
      2012.
(e)   Represents direct sales under license agreement with Eisai Co., Ltd.
(f)   Includes Enbrel (in Canada), Spiriva and Aricept.
(g)   Includes sales of generic atorvastatin. All other established products
      is a subset of All other biopharmaceutical products.

Certain amounts and percentages may reflect rounding adjustments.


DISCLOSURE NOTICE: The information contained in this earnings release and the
attachments is as of April 30, 2013. 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, as well as their decisions 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;
  *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 possible failure of the U.S. federal government to suspend enforcement
    of the federal debt ceiling beyond May 18, 2013 or to increase the federal
    debt ceiling and any resulting inability of the U.S. federal government to
    satisfy its financial obligations, including under Medicare, Medicaid and
    other publicly funded or subsidized health programs;
  *the impact of U.S. healthcare legislation enacted in 2010 – the Patient
    Protection and Affordable Care Act, as amended by the Health Care and
    Education Reconciliation Act - and of any modification or repeal of any of
    the provisions thereof;
  *U.S. 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
    differences and minimizes the therapeutic differences among pharmaceutical
    products and restricts access to innovative medicines;
  *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;
  *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;
  *our ability to successfully implement any strategic alternative that we
    decide to pursue with regard to our remaining approximately 80% ownership
    interest in Zoetis Inc. and the impact thereof; and
  *the impact of acquisitions, divestitures, restructurings, 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.

A further list and description of risks, uncertainties and other matters can
be found in our Annual Report on Form 10-K/A for the fiscal year ended
December 31, 2012 and in our 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 reports on
Form 8-K.

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.

This earnings release does not constitute an offer to sell, or a solicitation
of an offer to buy, any securities, which will be made only by prospectus.

Contact:

Pfizer Inc.
Media:
Joan Campion, 212-733-2798
Investors:
Suzanne Harnett, 212-733-8009
 
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