PFE - Pfizer Inc. - Q2 2013 Earnings Call Transcript

    Company Name:Pfizer Inc.
    Event Title:Q2 2013 Earnings Call Transcript
    Event Date:30-Jul-2013
    Event Time:10:00 AM ET



    Good day, everyone and welcome to Pfizer Second Quarter 2013 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Mr. Chuck Triano, Senior Vice President of Investor Relations. Please go ahead, sir.

    Charles E. Triano

    Senior Vice President, Investor Relations
    Good morning and thank you for joining us today to review Pfizer's second quarter 2013 performance.

    I am joined today as usual by our Chairman and CEO, Ian Read; Frank D'Amelio, our CFO; Olivier Brandicourt, President and General Manager of Emerging Markets and Established Products; Mikael Dolsten, President of Worldwide Research & Development; Geno Germano, President and General Manager of Specialty Care and Oncology; Amy Schulman, General Counsel and Business Unit Lead for our Consumer Business and John Young, President and General Manager of Primary Care.

    The slides that will be presented on this call can be viewed on our homepage at by clicking on the link for Pfizer quarterly corporate performance, second quarter 2013, which is located in the Investor Presentations section in the lower right hand corner of this page.

    Before we start, I'd like to remind you that our discussions during this call will include forward-looking statements and that actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ are disused in Pfizer's 2012 annual report on Form 10-K and in our reports on Forms 10-Q and 8-K.

    Discussions during this conference call will include certain financial measures that were not prepared in accordance with Generally Accepted Accounting Principles. Reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in Pfizer's current report on Form 8-K dated today July 30th, 2013. Also as we outlined in our earnings release as a result of the full disposition of Zoetis the financial results of the Animal Health business are now reported as a discontinued operation for the second quarter and year-to-date for both 2012 and 2013.

    With that I'll now turn the call over to Ian Read. Ian?

    Ian Read

    Chairman and Chief Executive Officer
    Thank you Chuck. I'll begin with some comments on the quarter. We saw solid operational revenue growth in number of areas.

    Within our innovative businesses, Oncology grew 28% driven by the uptake of new products mostly in Inlyta and Xalkori in several major markets, and we saw strong performance from Lyrica in developed markets which grew 14% and Celebrex in the U.S. which grew 13%. The consumer business grew 5% operationally primarily due to strong global growth from Centrum. And China had strong volume growth most notably for Lipitor and Prevenar overall total China revenues grew 14% operationally or 22% excluding the impact of product transfers in connection with forming our partnership with Hisun.

    We continually expect that the second half of this year will be stronger than the first half for emerging markets, although on a full-year basis we now expect to see operational revenue growth of mid single-digits rather than high single-digits. This is mainly due to a slowdown in growth in Brazil and Russia, and the impact of cost containment measures in Columbia, Poland, Thailand and Turkey. We completed the full separation of Zoetis into a standalone public company. The transactions related to the disposition of Zoetis generated approximately 17.2 billion of aftertax value for Pfizer shareholders.

    And our Board of Directors authorized a new 10 billion share repurchase program to be utilized over time. This new program is an addition to the 3.1 billion of authorization remaining under the company's current share repurchase program.

    Turning to our products and pipeline assets. The launches of both Eliquis and XELJANZ continue to progress in various markets around the world. And we are gaining market approvals for both XELJANZ and Eliquis in additional countries. We are encouraged with the potential for both of these therapies over time. For Eliquis we're focused gaining preferred formulary acceptance, continue to obtain reimbursement and building physician knowledge in comfort about the drug and its profile.

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