Pfizer 2009 Annual Review
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Pfizer 2009 Annual Review

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Pfizer. Where science comes to life. Where life meets science.

Pfizer. Where science comes to life. Where life meets science.

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Pfizer 2009 Annual Review Pfizer 2009 Annual Review Document Transcript

  • SCIENCE AnnuAl Review 2009
  • Jean Cui (center) and her la Jolla laboratories team are pioneering new approaches to non-small cell lung cancer. 3 find videos of JeAn Cui And otheR sCientists At pfizeR.Com/AnnuAl We bring the best scientific minds together to challenge the most feared diseases of our time…
  • lung cancer cells, as seen here and on the cover, are difficult to kill, and standard chemotherapy brings harsh side effects. one potential new approach appears to avoid those effects and has showed such promise that it has been expedited to phase iii trials.
  • martin Brenner and his team are working on an approach to treat diabetes by regrowing pancreatic cells. by charting a neW course in biomedical research…
  • a unique model our approach to discovering and developing new medicines and In terms of accountability, this approach distinctly clarifies who is for Scientific vaccines. Biomedical research at responsible for each sequence in the Pfizer is now organized into two multiyear, billion-dollar-plus march achievement collaborative, highly focused units, from scientific theory to approved, PharmaTherapeutics R&D and prescribed medicine or vaccine. BioTherapeutics R&D. Each of these The two research units each have units marshals the resources to the responsibility to bring forward pursue and prove theories about sufficient numbers of potential how either small-molecule chemical medicines and vaccines to sustain compounds or large-molecule, Pfizer’s growth. The customer-facing protein-based biologics might business units have the responsibility prevent or change the course of a for moving molecules that are disease. At the point of “proof of proven in concept through the It’s often said that humanity will concept,” the potential new medicine mid-to-late stages of clinical trials make more biomedical progress or vaccine is transferred to one to commercialization. Our new in the next 20 years than in the of Pfizer’s customer-facing business model to manage this sequence previous two thousand. Behind that groups for large-scale clinical trials, makes certain that there is strong statement is a complex question. registration and commercialization. agreement between research and With so much new science to The key words for this approach commercial groups on what to put pursue, how does a company like are focus and accountability. Chief into clinical trials. This approach Pfizer prioritize targets, manage risk Scientific Officers within our two also helps us glean valuable lessons and deliver sufficient numbers of R&D units lead discovery and early from each failure that may boost the medicines to expand the business? development teams precisely chances for future success. Pfizer took a large step toward focused on either a therapeutic answering that question in 2009 area or on a specific technology, 3 Learn more at pfizer.com/annuaL with the addition of Wyeth and such as Regenerative Medicine, the continued transformation of that cuts across therapeutic lines and provides a platform for advancing scientific inquiry.
  • collaborative, clinical trials. Research teams are built around specific disease areas, biotech companies that Pfizer has acquired and essentially left as Strongly focused including oncology, psychoses, focused units, while supporting them pain and cardiovascular/metabolic/ with the benefits of our scale and research units endocrine disorders. Scientists depth of scientific expertise. focusing on a specific disease area In addition, BioTherapeutics R&D are located together to improve the and PharmaTherapeutics R&D don’t chances for serendipitous discovery. try to “go it alone.” Both are partners PharmaTherapeutics R&D is also with some of the world’s best organized to leverage Pfizer’s scientific teams in other companies, substantial investments in capabilities in academia and in government such as medicinal chemistry, organizations. These partnerships high-throughput screening and include involvement in the fast- Pfizer’s two research units, pharmacokinetics. We also have a expanding scientific community in PharmaTherapeutics R&D and compound library that ranges into Asia, where Pfizer both executes BioTherapeutics R&D, work in close the billions of chemical entities, its own research and collaborates partnership toward the vision many of them already tested for with others. of leadership wherever we choose safety in humans. Overall, Pfizer’s lead in enabling to compete. We want to be first, Our BioTherapeutics R&D technologies, our culture of or in the front wave, in introducing organization expanded greatly innovating across boundaries, and new classes of therapies. If we are with the acquisition of Wyeth. our ability to back idea-rich scientists entering an established therapeutic BioTherapeutics R&D includes with global resources can help open class, we want to offer a best-in-class centers devoted to vaccines research; the door to a new era of biomedical medicine or vaccine that may research into inflammation, research achievement. change the course of a disease. immunology, biocorrection and PharmaTherapeutics R&D focuses tissue repair; and relationships with 3 Learn more at pfizer.com/annuaL on small-molecule chemicals to biotechnology organizations outside generate new candidates for Pfizer. In addition, BioTherapeutics R&D includes groups such as CovX and Rinat—highly specialized
  • insulin, represented in this molecular model, is one of the body’s miracle hormones, instructing liver, muscle and fat cells to absorb and store glucose. insufficient insulin production leads to diabetes. pfizer is investing substantially in potential new treatments for diabetes and its effects on organs such as kidneys and eyes.
  • Kathleen wood and her team have advanced the science on Alzheimer’s disease for two decades, contributing to the foundation of knowledge about this debilitating condition. …We are advancing health, Well-being and quality of life through top-flight science.
  • the synapse, where neurons meet, is one area of focus in our research. Alzheimer’s disease has proven very resistant to treatment, which is why pfizer is attacking it on multiple fronts, using both biological and small- molecule approaches.
  • darren wong is applying RnA therapy to liver cancer, striving to shut down its ability to spread. focused on unmet medical needs, We Work tirelessly to get more breakthroughs to more people, faster.
  • investing breadth of scientific talent and considerable resources, Pfizer is able bacterial, fungal and viral infections. We continue to challenge some of to Win, to bring together the experts, the the most feared diseases of our time, platforms, the technologies and the including what have traditionally for patients partnerships to make an impact been termed “neglected diseases” and pfizer across many therapeutic areas. —diseases like malaria that strike However, even Pfizer, strong as it millions of people, largely in is, must have focus. Our pipeline of developing nations. We are also about 500 projects is largely focused combating “orphan diseases”—often on six “Invest to Win” areas, where devastating conditions striking we believe that we have significant limited numbers of people. Our 2009 new opportunities for innovation and agreement with the Israeli company market leadership. These are: Protalix, for example, is focused on • Alzheimer’s disease developing a plant-based enzyme Developing a new vaccine or medicine • Oncology treatment for Gaucher’s disease, requires many kinds of scientific • Diabetes an inherited condition occurring just expertise, including deep knowledge • Inflammation once in every 20,000 live births. of diseases and their targets, as • Pain This compound is now in Phase III well as mastery of the science and • Psychoses trials and is already being made technology required to find the best available, with permission from approach to the disease target. While our portfolio of research regulatory authorities, to people Many companies in our industry are projects is centered on these areas, suffering from this disease. limited in their ability to assemble Pfizer can go where the science and manage all the expertise takes us. Our overall portfolio of 3 Learn more at pfizer.com/annuaL and knowledge required to bring a investigational medicines covers series of new therapies and vaccines many significant unmet medical to doctors. Blessed with depth and needs, from neurological conditions such as autism to agents that fight increasingly treatment-resistant
  • unraveling Pfizer is committed to the discovery, investigation and development to develop a companion diagnostic test kit to identify those patients cancer on of innovative treatment options who are most likely to benefit from to improve the outlook for cancer this proposed vaccine’s mechanism multiple patients worldwide. Our oncology of action. fronts pipeline currently has both Pfizer oncology research is also biologics and small molecules in pushing the frontiers of bioinnovation. development, including several Our CovX research unit is currently first-in-class compounds. We now in preclinical testing with a novel have hundreds of clinical trials under molecule, CVX-241, which aims to way in oncology, in some of the eliminate two factors that drive most prevalent and difficult-to-treat blood vessel growth in tumors. cancers, such as lung, prostate, CovX’s “scaffold” technology colorectal, breast, liver, renal cell and combines short-lived therapeutic various hematological cancers. peptides with longer-lived antibodies, Pfizer scientists, along with bringing both into a single agent. their colleagues in many alliances For cancer patients who must often and partnerships, are among the use combination therapies—multiple leaders in the global effort to infusions or injections—CVX-241 develop innovative “personalized could become an important medicine” approaches for patients. option in their treatment regimens One example can be seen in our and an addition to the overall proposed vaccine, now in Phase II anticancer arsenal. trials, to treat the most common malignant brain tumor in adults. 3 Learn more at pfizer.com/annuaL Toward that goal, Pfizer entered into an agreement with the German pharmaceutical company QIAGEN
  • typical cancer treatments aim to “lock the door” to try to keep the cancer from coming out of the cell. A novel approach is to use RnA to “take away the keyhole” so the cancer can never emerge.
  • Annaliesa Anderson (center) and her team are focused on developing a preventive vaccine for lethal staph infections. patients and their families and physicians knoW the value of our contributions.
  • Gram-positive bacteria that resist commonly prescribed treatment, such as methicillin- resistant Staphylococcus aureus (in purple) are a serious, growing danger. pfizer’s zyvox is effective against gram-positive bacteria and can be taken both intravenously and orally.
  • Kyri dunussi-Joannopoulos is facing down autoimmune diseases, seeking to change the landscape for patient treatment. We have the approach, scale and spirit to accelerate the march of medical advances…
  • now— Prevnar 13, approved in more than 40 countries for use by infants specific immune responses. In this field of therapeutic vaccines, we a global and young children, provides the have in-licensed an approach broadest serotype coverage of any from Celldex Therapeutics for an force in pneumococcal conjugate vaccine immunotherapy vaccine to treat Vaccines available and constitutes a new glioblastoma multiforme, the most platform for growth. common brain cancer in adults. Our pipeline is focused on the This vaccine, now in Phase II trials, discovery and development of targets a mutated form of the first-in-class and/or best-in-class epidermal growth factor receptor, novel vaccines. Our preventive which is found only in cancer cells. vaccine late-stage pipeline includes A successful vaccine in this area Prevnar 13, now in Phase III could help save, extend or improve clinical trials for the prevention of the lives of tens of thousands of pneumococcal disease in adults, and patients every year. A number of The combination of Wyeth and an investigational vaccine in Phase II additional therapeutic vaccine targets Pfizer has resulted in an organization clinical trials for the prevention are under active investigation. with broad capabilities, in preventive of meningococcal B disease (the With recent advances in science and therapeutic vaccines research, most common meningococcal and technology, we are optimistic development and technology. The strain in the U.S. and Europe) in about making important progress foundation of our vaccine success adolescents. Our preventive vaccine with our vaccine pipeline. Our is the Prevnar franchise, known as early-research pipeline includes world-class research facilities and Prevenar in most markets outside programs targeted to help protect abundance of scientific expertise put the U.S. Prevnar, the world’s against hospital-acquired infections, us among the leaders in this exciting top-selling vaccine, is associated with sexually transmitted diseases and area of research. significant public health benefits in meningococcal B disease in infants. regions where it is routinely used. We are also exploring whether 3 Learn more at pfizer.com/annuaL vaccines can do more than prevent diseases. We believe vaccines may be able to treat disease by stimulating
  • fighting Alzheimer’s disease is a growing global epidemic. The effects are monoclonal antibody to the beta- amyloid plaques that are theorized a Looming devastating for patients, families to contribute to Alzheimer’s disease. and communities as loved ones drift Bapineuzumab came to Pfizer as epidemic away. The current annual worldwide a result of the Wyeth acquisition. cost of Alzheimer’s disease is Pfizer’s pipeline includes other estimated at $315 billion and, with compounds designed to address aging populations, this social burden Alzheimer’s disease, across a range is only expected to increase. of mechanisms. In response, Pfizer has committed In our clinical trials, safety and itself to a collaborative global effort, efficacy of new approaches involving public and private interests, are being assessed across all stages to manage the effects of Alzheimer’s of Alzheimer’s disease, both as disease. In addition to our own single therapies and in combination substantial research program, we with currently available “standard aim both to raise awareness and of care” therapies. We are hoping provide a unified, global voice for that one or more of our advanced all those with a stake in Alzheimer’s programs will bear fruit, offering disease research, care and advocacy. new options for effective, safe At Pfizer, we are urgently working Alzheimer’s disease treatments. on multiple approaches to treating Alzheimer’s disease and are 3 Learn more at pfizer.com/annuaL optimistic that new solutions may be within our reach. One treatment in Phase III clinical trials is bapineuzumab, being developed by Pfizer and Janssen, a subsidiary of Johnson & Johnson. Bapineuzumab is a humanized
  • Rheumatoid arthritis, an autoimmune disease, can greatly affect quality of life. pfizer’s tasocinitib, a JAK-3 inhibitor now in phase iii trials, may offer physicians and patients a new alternative for managing it.
  • Knut niss (left) is doing basic research on adult stem cells with the ultimate goal of combating chronic inflammatory bowel disease. …and help bring about a healthier World. your World.
  • Bone marrow transplants of adult stem cells are a very effective but often poorly tolerated treatment for certain conditions. pfizer Regenerative medicine is investigating ways to refine adult stem cell treatments to spare patients from excessive pain.
  • pfiZer.
  • Where science comes to life. www.pfizer.com/annual
  • The rapid pace of the Wyeth integration reflects the most fundamental principle at Pfizer: We meet our commitments to our stakeholders, starting with our commitments to you, the owners of the company.” Jeff Kindler Chairman of the Board and Chief Executive Officer 16
  • Pfizer colleagues have stepped up to the challenge of executing one of the fastest integrations in recent business history. To Our Owners When I first wrote to you as Chairman three years ago, uniquely able to make those investments and, we had just made the necessary but painful decision to therefore, policymakers must continue to preserve end our late-stage development program for torcetrapib and enhance an environment that encourages due to safety concerns. That program offered a companies like ours to invest capital in the pursuit of potential new treatment for the millions of people medical innovation; living with cardiovascular disease—which still remains • Drug discovery and development is enormously the world’s number one killer, despite all the medical expensive and inherently risky—so those of us advances and increased knowledge about healthier who are stewards of your capital must invest it lifestyles over the last few decades. wisely. We must take prudent risks; rigorously apply Several months later, we made another difficult hurdle rates appropriate for the nature of the specific decision—this time to withdraw Exubera from the investment; recognize that not every investment market. The world’s first inhalable insulin, this novel will succeed in this business; carefully monitor our technology offered a medical advance to treat diabetes. investments; and, importantly, know when to stop But it was not accepted by the people we hoped would funding projects that are not meeting their goals. use it, prescribe it or pay for it. Our job, of course, is to achieve for you, over time, These two medical programs sought to address an appropriate return for those investments as a urgent challenges to global health, and they had strong whole; and scientific merit when they began years earlier. That’s • It is unwise to rely on one or two blockbuster why billions of dollars were invested in them over a long drugs (whether on the market or still in the period of time. pipeline) for a disproportionate amount of These two outcomes—disappointing for patients our future revenue and profit. We must take and our colleagues, and expensive for our shareholders— a balanced approach to the risks and rewards brought into sharp focus several truths about the represented by the different types of product biopharmaceutical business: and market opportunities presented by today’s biopharmaceutical business. • People around the world continue to suffer from unmet medical needs—so society must continue to make the significant but risky investments necessary to find cures and treatments to meet those needs. Biopharmaceutical companies are 17
  • Our Path Forward • We now have a portfolio of profitable, growing And so, as I reported in my letter to you after my first diversified businesses that closely complement full year as Chairman and CEO, we adopted a different our core biopharmaceutical businesses. The course than we had taken in the recent past. combination of Pfizer and Wyeth brought together leading animal health, consumer health, nutrition We called it Our Path Forward and it has five strategies: and capsule manufacturing businesses that produce • Refocus and optimize our patent-protected portfolio; profitable growth—and that together offer a range • Find and capitalize on new opportunities for of treatments and preventive measures for every established products; stage of life for people and animals; and • Grow in emerging markets; • We are continuously reducing our costs, • Grow our diversified businesses; and improving our productivity and making our cost • Instill a culture of innovation and continuous structure more flexible. During 2007 and 2008, improvement. we reduced our total cost base by $2.8 billion, We have pursued these strategies aggressively and on a constant-currency basis versus 2006. This was the Wyeth transaction accelerated our progress toward achieved in large part by reducing the workforce each one: from 98,000 to 81,900; and by decreasing the number of manufacturing and R&D sites by more • In our patent-protected portfolio, we narrowed than 40 percent—from 78 to 46 and from 15 to the focus of our research to those therapeutic nine, respectively. All told, the total real estate areas where we can invest to win. These are the footprint was reduced by more than 35 percent. We diseases where the medical needs are greatest, announced further cost reduction plans in January where the science is most promising, and where 2009 in conjunction with the Wyeth acquisition. We Pfizer’s capabilities are strongest. They include aim to achieve additional savings of approximately oncology, pain, inflammation, Alzheimer’s disease, $7 billion before making focused investments in psychoses and diabetes. In addition, thanks in growth opportunities, yielding net cost savings significant part to the Wyeth acquisition, we have of between $4 billion and $5 billion after those increased our emphasis on biotherapeutics and reinvestments by 2012, on a constant-currency basis. vaccines. When we updated our pipeline in late We will continue to improve every aspect of our January of this year, we announced that we had productivity and the efficiency with which we deploy 133 programs in development, including 27 biologics your capital. Our solid track record on this score and 6 vaccines, up from 16 biologics and one provides confidence in our ability to both return that vaccine when we updated the pipeline a year earlier; capital to shareholders as well as to make disciplined • We made Pfizer’s first significant investments in investments in the many growth opportunities generic medicines and are turning a historically before us—in marketed products as well as in new declining business—consisting of products that products and new markets. have lost their exclusivity—into a platform for future profitable growth. We did this by creating a focused, accountable, high-performing Established Pursuing Health Solutions in Diverse Ways Products unit with a culture all its own. This business Together, all of these changes have produced a very operates with the speed and agility demanded by different company today from what we were when I first its unique marketplace. We now have approximately wrote to you three years ago. 600 products in our Established Products portfolio. We remain, of course, a biopharmaceutical company While the results in this unit will vary, it generated driven by scientific innovation. But we now pursue year-over-year operational revenue growth for the health solutions in numerous and diverse ways: first time in the fourth quarter of 2009; • For people as well as animals; • Similarly, we created an Emerging Markets • Through research in small molecules, large molecules Business Unit to seize opportunities in the and vaccines; fastest-growing biopharmaceutical markets • Through prescription as well as over-the-counter in the world. We have made the right kinds of medicines; investments in the right markets—those in which we • Through patent-protected, generic and “branded are in a premier competitive position as a result of generic” medicines; our historical presence, the breadth of our portfolio, • Through human nutritional supplements and vitamins; and our strong relationships with local partners. As • Through primary care, specialty care, and oncology a result, this business produced double-digit revenue treatments and cures; and growth in many markets during 2009, led by China, • In the developed world as well as in the developing India, Brazil and Russia; world. 18
  • “Thanks in significant part to the Wyeth acquisition, we have increased our emphasis on Acquired with Wyeth, Pfizer’s Andover, Massachusetts biotherapeutics facility is home to leading experts in recombinant DNA and other biotherapeutic technologies. and vaccines.” In short, we are a company whose mission is to At the same time, however, we will continue to apply science and our global resources to improve respond to unmet medical needs across our business in health and well-being at every stage of life. numerous other ways. We will drive profitable growth I believe the people, capabilities and assets that we from multiple additional sources—from new indications have brought together make Pfizer uniquely valuable for existing products; from medicines to treat diseases to people around the world. We now have more ways that afflict relatively smaller, but still large, segments than ever to help the tens of millions of people who live of the population; from opportunities across emerging with disease today—as well as the tens of millions of markets; from our established products portfolio; and people we can help by preventing illnesses and disease from our diversified businesses. in the future. Together with continuing improvements in For shareholders, this means enormous opportunities. productivity, and smart, disciplined capital allocation, And, it also means we will no longer be overly dependent we expect our strategy to produce, over time, modest on one or two in-line blockbuster drugs or potential top-line growth, stronger and consistent bottom-line blockbusters. In fact, no Pfizer product is expected to growth, and continued strong dividend payments—all account for more than 10 percent of our annual revenue of which, in turn, should enhance shareholder value. once Lipitor loses U.S. exclusivity. Clearly, we are still pursuing blockbusters—medicines 2009: Challenges and Progress that can individually prevent, treat or cure dreaded As I noted earlier, our acquisition of Wyeth, which we illnesses that afflict tens of millions of people. We are closed late in 2009, significantly advanced each of the bringing together the best scientific minds—inside and strategies in Our Path Forward. outside our company—to attack some of the most Thanks to the extraordinary work of thousands feared diseases of our time. In many therapeutic areas, of individuals at Pfizer and Wyeth, the transaction we believe our late-stage pipeline provides potential was closed on time. The integration has so far met new medicines and vaccines that will address enormous or exceeded our expectations in terms of speed, in unmet medical needs—like Alzheimer’s disease, chronic achievement of milestones, and, most importantly from pain and rheumatoid arthritis. my point of view, in advancing a culture through which we gain the best thinking and talent from both legacy companies and move forward together on behalf of our shareholders and other stakeholders. 19
  • “Over the past three years, we’ve substantially enhanced our leadership at all levels, through internal promotions and by hiring people from inside and outside the industry.” Pfizer’s Executive Leadership Team. You can learn more from each of these leaders on pages 26 –31 of this report. Our performance in 2009 clearly demonstrates The Spirit of Small…The Power of Scale the ability of our colleagues to remain focused and to Delivering commitments requires clear accountability. deliver solid operational performance, while also working But big companies often produce bureaucracy the to ensure a successful integration. From the moment way gardens produce weeds, and bureaucracy is the the acquisition received required legal approvals, our enemy of accountability. And, of course, it can suffocate colleagues moved quickly. The day after the acquisition the ability of leaders closest to their customers to closed, we announced the identity of all country leaders act quickly in a highly competitive and fast-moving and the location of all headquarters sites. Within six global marketplace. days, U.S. Primary Care field force members knew their At the same time, there are significant aspects status. Within 30 days, we announced an integrated of our business where size and scale are not only a plan for R&D site reductions. And within 90 days, we competitive advantage but, in some ways, essential. completed a scientifically complex prioritization and High-throughput screening; large, global clinical trials; announced Pfizer’s new combined R&D pipeline. extensive field forces in certain markets; economies of The rapid pace of the Wyeth integration reflects scale in manufacturing—these are just a few examples the most fundamental principle at Pfizer: We meet our of areas in which Pfizer can, when we do it right, use our commitments to our stakeholders, starting with our size and scale to our advantage. commitments to you, the owners of the company. So, at Pfizer, we follow a principle that I call “the spirit Since this management team has been fully in place, of small and the power of scale.” Whether competing we have consistently met or exceeded the adjusted in different geographies or different businesses, our financial guidance1 that we have provided—despite an general managers have clear accountability for business extremely dynamic operating and policy environment. units that are now small enough to focus on meeting We did so again in 2009, and our financial guidance for the very different needs of the unique customers they 2010 reflects our plan to continue delivering results and serve. Similarly, the Chief Scientific Officers of our meeting our commitments. research units lead small groups of scientists focused on specific therapeutic or technology areas. In each of these cases, accountability and authority are clear. At the same time they are backed by Pfizer’s global scale and resources—providing a level of efficiency and other advantages that they could not achieve on their own. 1 See note 3 on page 35. 20
  • In the last year, this approach produced results that Advancing Science are hard to imagine happening at Pfizer, even two or As I stated earlier, science remains at the center of three years ago. who we are at Pfizer. As we’ve been changing the • We joined forces with GlaxoSmithKline to create company, we’ve also reflected the changing science ViiV Healthcare, a separate company that brings of biopharmaceutical research, which is taking many together the industry’s best assets in combating promising directions. Historically, companies like ours HIV/AIDS. have primarily focused on new medicines based on • By empowering our Established Products business to chemical compounds, and we will continue to build move quickly, we beat out competitors to collaborate on our strengths in this critical area. But we are also with Protalix in developing an orphan drug to increasing our investment in research that seeks new treat Gaucher’s disease. The Protalix partnership medicines and vaccines that are made of protein-based represents Pfizer’s first entry in the biosimilar drug biological molecules. market. In order to do so, we charted a unique course in • We entered into major licensing agreements with 2009, by creating two distinct research organizations, three India-based pharmaceutical companies— PharmaTherapeutics R&D and BioTherapeutics R&D. Aurobindo Pharma Ltd., Claris Lifesciences Ltd. and Within these two groups, world-class Chief Scientific Strides Arcolab—that add new non-Pfizer products Officers—advised by specialized panels of independent to our portfolio, enhancing the availability of experts—lead highly targeted scientific teams focused medicines to underserved people around the world. on particular therapeutic areas or technologies. • We formed a partnership with Bausch & Lomb, These teams search for compounds that they believe a leading global supplier of eye care treatments, have the probability of scientific, clinical, technical and in which both companies will promote each regulatory success. other’s prescription ophthalmic products, allowing Conferring on these Chief Scientific Officers and each of us to extend our level of support to eye their teams the authority and resources to pursue this care professionals. kind of research matters today more than ever. Medical • We created the industry’s first Regenerative Medicine solutions are within reach for some of the most feared Unit to harness the potential of stem cells. This diseases of our time, especially those where the unmet scientific team is less than 2 years old and it already medical need is greatest. plans to start clinical studies this year—an achievement We are especially enthusiastic about our late-stage that would not be possible without combining our pipeline, which has 34 new molecular entities and new willingness to empower them to move at their own indications in Phase III. Among the most noteworthy speed with our experience and scale in regulatory of our ongoing late-stage clinical trials are studies strategy, policy and pharmaceutical sciences. of potential treatments for rheumatoid arthritis, for • We joined forces with Eli Lilly and Merck to establish Alzheimer’s disease, for the prevention of venous the Asian Cancer Research Group, an independent, thromboembolism, for lung and breast cancer, for not-for-profit company. Its goal is to improve the chronic pain indications, for renal cell carcinoma, for knowledge of cancers prevalent in Asia and to chronic myelogenous leukemia and for the use of the accelerate drug discovery efforts by sharing the breakthrough Prevnar 13 vaccine for adults. resulting data with the scientific community. Not every trial will produce the exact results for which • We joined with Private Access, an innovator in we all hope—that’s the nature of drug discovery and privacy-enhanced search technology, to increase development, which is inherently risky. But we are more recruitment into clinical trials by creating the first enthusiastic about our late-stage pipeline than we have online community to address privacy concerns, by been in years. giving participants full control over the amount and type of information they share with researchers. Reforming Health Care • We developed CUE, an integrated, multichannel, As I stated earlier, for drug discovery and development closed loop marketing system designed to provide to continue, society must sustain and enhance the customized information to physicians and health policy environment that provides incentives for investors care providers based on their unique needs. Pfizer’s like you to support the innovation that our scientists scale allowed us to make this important investment bring to the laboratory every day. across business units and ensure a consistent That presents, of course, an increasingly difficult experience for U.S. physicians and other health care challenge for policymakers as countries around the providers, while tailoring content to ensure those world struggle with the need to improve the ability important customers have the information they need of their citizens to obtain quality, affordable health to make important prescribing decisions. 21
  • OUr PUrPOSE 1 Working together for a healthier world OUr MISSIOn 2 3 (see page 19) OUr cOMMITMEnTS Pfizer’s five-element strategic (See page 38) course, Our Path Forward, integrates the company’s OUr STraTEgIES 4 5 Purpose, Mission, Commitments, (See page 18) Strategies and Values and guides all our decision making. You OUr valUES can learn more about Our Path Integrity Forward on www.pfizer.com. Collaboration Community Customer Focus Leadership Innovation Performance Quality Respect for People care—while they deal with escalating deficits which, But, from my point of view, two things were true in turn, are often substantially affected by increasing when this debate started and they remain true now. health care costs. This challenge will grow even more First, the U.S. health care system cannot continue acute in many parts of the world as fewer active workers on a course in which too many Americans lack access generate the revenue to pay for health care and other to quality health care at an affordable cost and in social benefits that larger numbers of retired people will which our lack of investment in innovation, prevention need and demand. and wellness will continue to burden our society with At Pfizer, we know we must participate constructively growing and unsustainable costs. in addressing this critical societal challenge. In Second, as a major participant in the U.S. health care particular, we have a responsibility to be a leading system, Pfizer has a responsibility to play a leading and voice in support of improving everyone’s ability to have constructive role in the ongoing reform of that system. reliable and affordable health care while maintaining I can assure you that we will continue to do so. a policy structure in which the search for new cures and treatments can continue. Leadership Brings Responsibility So, as we promote policies that advance innovation, Of course, the responsibility that comes with leadership we work actively in partnership with governments takes many forms. Last year, we resolved allegations and nongovernmental organizations to expand of past off-label promotional practices and paid a access to quality care in every part of the world. And significant fine as a result. This was a blow to all of we’ve redoubled our efforts in the face of the weak us at Pfizer because it didn’t reflect the company that global economy. we know. In the U.S., Pfizer has been a consistent advocate To move forward, we have taken substantial for the right kind of health care reform from the measures that further strengthen our internal controls beginning of the current debate. We’ve been clear and and that pioneer new procedures designed to prevent, consistent about our principles—improve access to detect and correct any future problems. These include quality, affordable care; preserve the doctor/patient requiring additional training for our colleagues and relationship; invest in prevention and wellness; and leaders, instituting new and advanced monitoring promote medical innovation. systems and giving greater authority to our Chief The debate in the U.S. over the last year was difficult Compliance Officer. for the country in many ways, and the outcome remains controversial. 22
  • People expect us to respect and support their We are fortunate to have a Board of Directors that communities, to act ethically, to practice environmental is deeply committed to integrity and ethical leadership. stewardship and to support responsible public policies. Two distinguished members joined us late in 2009, after That’s why we have committed to using our global serving on Wyeth’s Board. Dr. Frances D. Fergusson presence and scale to make a difference in local served as President of Vassar College for 20 years, and communities and the world around us. Throughout this John P. Mascotte served as CEO of Blue Cross and Blue report, you can see many examples—from the Global Shield of Kansas City. Health Fellows, to MAINTAIN, our program that helps I want to thank Dr. Dana G. Mead, who is retiring in people in the U.S. keep getting the Pfizer medicines they April after 12 years on our Board. Dana’s keen insight need even after losing their jobs and health insurance, and broad experience have been tremendous assets to our long-term agreement to supply Prevenar 13 to to Pfizer. He entered business after a long career in the the world’s poorest countries—of how Pfizer is striving military, where he was the youngest colonel in the to meet our responsibilities as a global leader. U.S. Army. He was an executive at International Paper In everything we do, we are committed to earning before becoming Chairman and CEO of Tenneco in the trust of the people we serve. Every employee, every the 1990s. Since 2003, he has served as Chairman of leader and every Director of Pfizer is responsible for the MIT Corporation. I am grateful to Dana and to all helping us do this. One way we work to earn trust is by of our Board members for their strong oversight and attracting leaders known for their integrity. wise counsel. Over the past three years, we’ve substantially enhanced our leadership at all levels, through internal Our Path Forward: The Next Step promotions and by hiring people from inside and As I discussed earlier in this letter, we launched Our Path outside the industry. We added two outstanding Wyeth Forward at the beginning of 2008 to describe where executives to our Executive Leadership Team (ELT): Pfizer stood, where we wanted to go, and our plans for Cavan Redmond, who leads Pfizer Diversified Businesses, getting there. Since then, Our Path Forward has guided and Mikael Dolsten, who leads the BioTherapeutics the way Pfizer operates. Research and Development Group. We also added Now, Pfizer takes the next step on Our Path Forward. Freda Lewis-Hall, a premier physician, researcher and We do so as a much more diversified company, uniquely biopharmaceutical executive, as Chief Medical Officer. positioned to apply science and our global reach to In addition, we brought in other leaders from outside improve health and well-being at every stage of life. Pfizer. Some have joined from competitor companies, Having built a track record of keeping our commitments, while others have joined us from groups ranging we can now ask ourselves: How can we serve the world’s from major research universities, to FasterCures, to health needs like no other company? the Fred Hutchinson Cancer Center, to world-class This report sets out for you some of the ways we are companies outside our industry. doing that and will do that. As you will see, Pfizer is now We also have a member of the ELT retiring this much more than the sum of its parts. April—Bill Ringo, who leads our Worldwide Business All of us at your company are moving forward with Development, Strategy and Innovation teams. After clear goals, meaningful accountability and a passion retiring from Eli Lilly, Bill joined Pfizer two years ago and for our work. We know we have much to do in the years has helped diversify our portfolio through the Wyeth ahead, and we know you have significant expectations acquisition. He has also connected the company more of us. We will deliver. closely with expanding opportunities in biotechnology. I would like to thank Bill for his wise counsel and his important contributions to the changes that we have Sincerely, made in the last two years. The Board of Directors has elected Kristin Peck to take over Bill’s responsibilities and join the ELT. She has been a Pfizer colleague for several years, and most recently helped lead Worldwide Strategy and Innovation. The Board has also elected Doug Lankler, our Chief Compliance Officer, to the ELT. Doug leads our Corporate Compliance functions. His election Jeff Kindler reflects Pfizer’s continued commitment to integrity Chairman of the Board and and the seriousness with which the Board and I take all Chief Executive Officer issues of compliance. March 25, 2010 23
  • FInancIal HIgHlIgHTS THrEE-YEar SUMMarY AS OF AND FOR ThE YEAR ENDED DECEMBER 31, % ChANgE (MILLIONS, ExCEPT PER COMMON ShARE DATA) 2009 2008 2007 09/08 08/07 Revenues(a) $ 50,009 $ 48,296 $ 48,418 4 — Research and development expenses (a) $ 7,845 $ 7,945 $ 8,089 (1) (2) Acquisition-related in-process research and development charges(a,b) $ 68 $ 633 $ 283 (89) 123 Restructuring charges and certain acquisition-related costs(a) $ 4,337 $ 2,675 $ 2,534 62 6 Income from continuing operations before provision for taxes on income and noncontrolling interests(a) $ 10,827 $ 9,694 $ 9,278 12 4 Net income attributable to Pfizer Inc. (a) $ 8,635 $ 8,104 $ 8,144 7 — Diluted earnings per common share attributable to Pfizer Inc. shareholders(a) $ 1.23 $ 1.20 $ 1.17 3 3 Weighted average shares —diluted 7,045 6,750 6,939 4 (3) Number of common shares outstanding 8,051 6,722 6,737 20 — Working capital $ 24,445 $ 16,067 $ 25,014 52 (36) goodwill & other identifiable intangible assets, net $ 110,391 $ 39,185 $ 41,880 182 (6) Total assets $ 212,949 $ 111,148 $ 115,268 92 (4) Total debt(c) $ 48,662 $ 17,283 $ 13,139 182 32 Total Pfizer Inc. shareholders’ equity $ 90,014 $ 57,556 $ 65,010 56 (11) Shareholders’ equity per common share $ 11.19 $ 8.56 $ 9.65 31 (11) Cash provided by continuing operating activities $ 16,587 $ 18,238 $ 13,353 (9) 37 Property, plant and equipment additions $ 1,205 $ 1,701 $ 1,880 (29) (9) Purchases of common stock $ — $ 500 $ 9,994 (100) (95) Cash dividends paid $ 5,548 $ 8,541 $ 7,975 (35) 7 (a) Our 2009 results of operations include approximately two-and-a-half also related to Animal Health; and in 2007 BioRexis Pharmaceutical months of the fourth calendar quarter of 2009 in the case of Wyeth’s Corporation and Embrex, Inc. For acquisitions completed after U.S. operations and approximately one-and-a-half months of the fourth January 1, 2009, we record acquired IPR&D on our consolidated calendar quarter of 2009 in the case of Wyeth’s international operations. balance sheet as indefinite-lived intangible assets. (b) cquisition-related in-process research and development (IPR&D) A (c) ur short-term borrowings are rated P-1 by Moody’s Investors Service O charges in 2009 related to the resolution of a contingency associated (Moody’s) and A1+ by Standard & Poors (S&P). Our long-term debt with our 2008 acquisition of CovX; in 2008 primarily related to our is rated A1 by Moody’s and AA by S&P. Moody’s and S&P are major acquisitions of Serenex, Inc., Encysive Pharmaceuticals, Inc., CovX, corporate debt-rating organizations. Coley Pharmaceuticals, Inc., a number of animal health product lines Detailed information on our financial and operational performance can be from Schering-Plough Corporation, as well as two smaller acquisitions found in the 2009 Financial Report. 24
  • BOarD OF DIrEcTOrS Dennis a. ausiello, M.D.(2, 4, 5) Michael S. Brown, M.D.(4, 5) Physician-in-Chief, Massachusetts Distinguished Chair, Biomedical General Hospital Sciences, Regental Professor, University of Texas Southwestern Medical Center M. anthony Burns (1, 2, 4) robert n. Burt (3, 5) Chairman Emeritus, Ryder System, Inc. Retired Chairman and CEO, FMC Corporation W. Don cornwell (2, 3) Frances D. Fergusson, Ph.D.(3, 5) Retired Founder, Chairman and CEO, President Emeritus, Vassar College Granite Broadcasting Corporation William H. gray III(4, 5) constance J. Horner (1, 4, 6) Co-Chairman, GrayLoeffler, LLC Former Assistant to the President of the United States and Director of Presidential Personnel James M. Kilts (3, 5) Jeffrey B. Kindler (1) Founding Partner, Chairman of the Board and Centerview Partners Chief Executive Officer, Pfizer Inc. Management, LLC george a. lorch(3, 5) John P. Mascotte(4, 5) Chairman Emeritus, Armstrong Retired President and CEO, Holdings, Inc. Blue Cross and Blue Shield of Kansas City, Inc. Dana g. Mead, Ph.D.(3, 5) Suzanne nora Johnson(2, 3, 5) Chairman, MIT Corporation Retired Vice Chairman, Will retire as a Board member effective The Goldman Sachs Group, Inc. as of the 2010 Annual Meeting Stephen W. Sanger (2, 4,) William c. Steere, Jr.(5) Retired Chairman and CEO, Chairman of the Board Emeritus, General Mills Pfizer Inc. (1) Executive Committee (2) Audit Committee (3) Compensation Committee (4) Corporate Governance Committee (5) Science and Technology Committee (6) Lead Independent Director 25
  • lEaDIng aT THE InTErSEcTIOn OF lIFE anD ScIEncE EXEcUTIvE lEaDErSHIP TEaM Pfizer’s Executive Leadership Team includes the Chairman and CEO, Jeff Kindler, and the heads of the company’s commercial, research and manufacturing units, as well Martin Mackay as the leaders of staff groups. Senior Vice President and President, PharmaTherapeutics Research and Development The team, most of whom came to Pfizer after 2006, reflects the “ t comes down to this: we are out I company’s increased diversity to conquer disease. That’s an of thought and experience, and amazing, driving aspiration. We’re working to make real inroads includes two senior leaders joining against conditions that affect the from Wyeth, Mikael Dolsten lives of countless people around the world. We’ve done just that against and Cavan Redmond. Executive conditions like heart disease. Now Leadership Team members whose we’re seeing strategies take shape quotes are in large type joined the that may make a disease like Alzheimer’s a manageable one in team in 2009. a decade or two—just in time to help the greatest age wave the world has ever seen. But it’s more than Alzheimer’s—it’s diabetes, it’s cancer, it’s pain, it’s inflammation, it’s malaria and infection. That’s our passion. And that’s what drives our scientists and all the stunning talent we have here. We’re applying what we know about science to crack some of the biggest mysteries in the world—and in doing that, change the course of life for the better for billions of people.” 26
  • Frank D’Amelio Mikael Dolsten Senior Vice President and Senior Vice President and President, Chief Financial Officer BioTherapeutics Research and Development “ he addition of Wyeth advances T every one of Pfizer’s stated “ fizer is focused on becoming P strategies for generating sustainable growth. We have tremendous a world leader in biotherapeutics. potential to create value through a company that operates globally, So what does that mean? is more diverse than at any other time in our recent history, and is It means we can attack conditions strong in our financial foundations, the capabilities of our people and such as Alzheimer’s disease our ability to operate efficiently. We understand that the more and pain from more than one we manage our costs and make disciplined financial decisions, the angle — using our expertise more options we have to prudently deploy our capital with the ultimate in both small molecules and goal of increasing total return for our shareholders.” biotherapeutics — and greatly improving our chances for success.” 27
  • Sally Susman Ian C. Read Mary McLeod Senior Vice President, Senior Vice President and Senior Vice President, Policy, External Affairs and Group President, Pfizer Worldwide Worldwide Human Resources Communications Biopharmaceutical Businesses “ y mission at Pfizer is to do all M “ f you are not innovative in today’s “ hree years ago, Pfizer began I T I can to close the perception gap economy, you don’t succeed. the process of fundamentally between the important, noble So by definition, Pfizer has to be reinventing itself. Our efforts focus and often groundbreaking work innovative. We’ve brought new on our patients and our customers that we do, and the cynicism and thinking to just about all of the ways and other stakeholders, and they misinformation that exists about we operate, from our marketing are created and executed by our the industry and sometimes the practices to the organization of our colleagues. At all levels of the company. There’s no question that commercial operations. We’ve been organization, people are taking we live in a noisy world, and it’s innovative in our business model accountability for implementing tempting to think that the way to and in how we focus our resources, Our Path Forward, which provides be heard is to turn up the volume. almost relentlessly, around our direction for achieving our We are thinking differently. We customers, in developed markets like strategies, commitments and believe that the route to being the U.S. and Europe, and emerging values. We have organized into heard starts with listening. We’re markets such as China, India, Brazil smaller, more agile teams that doing that, changing where we need and Russia. We now have the ability, have responsibility for applying to change, speaking out when we nearly unmatched in our industry, those strategies to accomplish our must, and letting our positive action, to focus on a particular market ambitious performance goals. We day after day, be the best response or target, and marshal resources are building a more diverse and to those who question whether we quickly to achieve our goals. We’re inclusive culture that drives results can both do well—and do good.” increasingly able to bring whole throughout the company. Working solutions, not just products, to together to transform Pfizer is how physicians, payers and patients.” we achieve our success in becoming a more diversified health care company.” 28
  • Cavan M. Redmond Senior Vice President and Group President, Pfizer Diversified Businesses “ fizer provides both the initial P lines of defense against disease and many of the most important treatment options for when people get sick. Our animal health products keep pets healthy and the food supply safe. Even more exciting, our array of products, technologies and capabilities opens up nearly endless opportunities for us to work across our businesses to create new health solutions that help people get well and stay well today— and tomorrow.” 29
  • Amy W. Schulman Freda C. Lewis-Hall Senior Vice President and Senior Vice President and General Counsel Chief Medical Officer “ hen I joined Pfizer in 2008, a lot W of people asked me, ‘Why this?’ “ fizer can bring unmatched P ‘Why now?’ The answer, most fundamentally, is that I believe brainpower and resources to in Pfizer. What we are doing is mission-critical. The opportunity being the best in patient safety to be more intimately involved in sorting out health care solutions is and care. We know that the compelling. The collaborative work we do is a big draw. We are direct decision to take a medicine is and, most important, unafraid to see things as they are, and not as never routine. When you see our we wish that they were. That is the only way we will be able to deliver name on a product, you can be on our commitments to the people who depend on us.” assured that your safety and good health are our highest priorities. That’s true from the moment a potential new medicine is used by the first patient in a clinical trial, until the last day that medicine is offered for sale, anywhere in the world.” 30
  • William R. Ringo Natale S. Ricciardi Senior Vice President, Senior Vice President and President, Worldwide Business Development, Pfizer Global Manufacturing Strategy & Innovation “ any people think about innovation “ quiet but highly effective M A through the lens of “products” and revolution is taking place at Pfizer— many of the products that Pfizer that of continuous improvement. has launched are truly innovative In just a few years, we’ve trained and have helped treat and cure thousands of colleagues to take patients with a variety of diseases. apart processes—some of them in Innovation, though, goes far beyond place for decades—analyze them, the pill to the minds and skills of and put them back together in our colleagues and partners, all of ways that yield better results, whom are working to understand often at higher levels of quality and what new businesses we can create. less expensively. This movement has Opportunities abound. Business spread beyond manufacturing innovation arises from the to just about every dimension unmet needs of our customers— of our company. No process is it can be enabled by cutting-edge beyond further improvement. technology, new processes The blossoming of this movement is or business models. At Pfizer, making Pfizer not just more efficient, innovation knows no boundaries.” but also more environmentally conscious, more in tune with our customers and a more satisfying place to work.” 31
  • SHarPlY FOcUSED On cUSTOMEr nEEDS Biomedical Discovery and Early Development clinical Development and life cycle Management WOrlDWIDE BIOPHarMacEUTIcal BUSInESSES PHarMaTHEraPEUTIcS rESEarcH & DEvElOPMEnT 1 2 3 4 5 PrIMarY SPEcIalTY OncOlOgY ESTaBlISHED EMErgIng carE carE PrODUcTS MarKETS Chantix1 Enbrel Aromasin Effexor Prevenar BIOTHEraPEUTIcS Lipitor geodon Camptosar Norvasc Enbrel rESEarcH & DEvElOPMEnT Lyrica Prevnar2 Mylotarg Fragmin Lipitor Pristiq xalatan Sutent Tazosyn Lyrica Viagra Zyvox Torisel Cardura Sutent EnaBlIng FUncTIOnS anD PFIzEr glOBal ManUFacTUrIng Enabling Functions Medical, Legal, Finance, human Resources, Strategic Planning/Business Development and Policy/External Affairs/Communications services for PFIzEr DIvErSIFIED BUSInESSES Pfizer businesses and Pfizer Inc. Pfizer global Manufacturing 1 2 3 4 Manufacturing, Quality Assurance and Secure Distribution services to support research, clinical and commercial operations. anIMal caPSUgEl cOnSUMEr nUTrITIOn HEalTH HEalTHcarE Convenia Coni-Snap Centrum S26 gold Pre Term Excede Licaps Advil Feeding System Improvac Vcaps Caltrate S26 gold Revolution PressFit Robitussin Promil gold Zulvac xcelodose ChapStick Progress gold Promise gold 1 Known as Champix outside the U.S. 2 Known as Prevenar outside the U.S., Canada and Thailand research, Development and Product Management 32
  • Pfizer is firmly focused on the Biopharmaceutical Businesses, which Pfizer global Manufacturing needs of customers, starting with works to prove the new product anchors all our groups with state- patients and extending to all key in the clinic, obtain regulatory of-the-art production services and stakeholders. Two Research and approvals, launch it and manage it a secure, efficient supply chain. Development groups discover through its life cycle. Enabling Functions advance a range prescription medicines and vaccines Pfizer Diversified Businesses serves of business goals, including strong and develop them until “proof of those who use our consumer health financial controls, strict compliance, concept.” A promising product care products, nutritionals, animal and wide-ranging engagement is then transferred to one of five health products, and capsules for with colleagues, business partners groups within Pfizer Worldwide medicines and dietary supplements. and the public. KEY cUSTOMErS HEalTH carE PaTIEnTS PHarMacISTS PrOFESSIOnalS WHOlESalErS PaYErS gOvErnMEnTS KEY cUSTOMErS anIMal cOnSUMErS nEW ParEnTS OWnErS vETErInarIanS ManUFacTUrErS rETaIlErS 33 33
  • WHErE 2009 rEvEnUES caME FrOM 8.4% 0.7% DIVERSIFIED OThER BUSINESSES 43.5% 56.5% 90.9% UNITED STATES REST OF WORLD BIOPhARMACEUTICAL BUSINESSES SOUrcE OF rEvEnUE U.S. vs. rEST OF WOrlD Though still predominantly a biopharmaceutical company, Pfizer is No. 1 in the top three global markets Pfizer diversified into consumer health care products and for biopharmaceuticals—the U.S., the nutritionals with the acquisition of Wyeth. European Union and Japan. 14.2% EMERgINg MARKETS 23%LIPITOR 85.8% DEVELOPED MARKETS 77% ALL OThER DEvElOPED vs. lIPITOr vs. all OTHEr EMErgIng MarKETS MarKETED PrODUcTS (BIOPHarMacEUTIcal BUSInESSES) The acquisition of Wyeth is reducing Pfizer’s Pfizer has a remarkable opportunity in emerging reliance on Lipitor and, in 2012, it is projected that markets, and is already the top U.S.-headquartered no single Pfizer product will account for more biopharmaceutical company in these markets. than 10% of revenues. 34
  • 2010 gUIDancE1 $67-$69 $9.1-$9.6 billion billion rEPOrTED rEvEnUES aDJUSTED r&D EXPEnSES3 $0.95- $2.10- $1.10 $2.20 rEPOrTED DIlUTED EarnIngS aDJUSTED DIlUTED EarnIngS PEr SHarE2 PEr SHarE3 1 Our 2010 guidance does not assume the completion of any business-development transactions not completed as of December 31, 2009. It excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of December 31, 2009, as well as the potential impact of health care reform in the U.S. In addition, this guidance is based on approximate foreign currency exchange rates in effect in late January 2010. 2 “Reported net income” is defined as net income attributable to Pfizer Inc. in accordance with U.S. generally accepted accounting principles (gAAP). “Reported diluted earnings per share” is defined as reported diluted earnings per share attributable to Pfizer Inc. common shareholders in accordance with U.S. gAAP. 3 “Adjusted income” and its components and “Adjusted diluted earnings per share” are defined as “reported net income”2 and its components and “reported diluted earnings per share”2 excluding purchase-accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. “Adjusted R&D Expenses” is an income statement line item prepared on the same basis and, therefore, a component of the overall adjusted income measure. As described in our Form 10-K for the fiscal year ended December 31, 2009, we use adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. A reconciliation of 2009 adjusted income and its components and adjusted diluted earnings per share to “reported net income”2 and its components and “reported diluted earnings per share”2 is provided in our Form 8-K filed on February 3, 2010. Additional information regarding our 2009 financial performance can be found in our Form 10-K for the fiscal year ended December 31, 2009. The adjusted income and its components and adjusted diluted earnings per share measures are not, and should not be viewed as, substitutes for U.S. gAAP net income and its components and diluted earnings per share. 35
  • OUr PIPElInE aS OF JanUarY 27, 2010 PrOgraMS In clInIcal PHaSE I PHaSE II DIScOvErY PrOJEcTS 49 44 A new medicine or vaccine takes In Phase I, an experimental effectiveness and safety. (All clinical years to discover and fully develop. compound is tested in a small studies are done by independent Only a miniscule number of small- number of human volunteers to investigators.) Registration means molecule or biological compounds assess safety and tolerability. Phase that Pfizer has filed an application tested in the laboratory emerge II clinical trials focus on effectiveness with a health regulatory authority to as promising enough to justify in treating or preventing a disease. obtain marketing approval for a new investment in a series of highly Phase III trials test the results of medicine or vaccine. regulated controlled trials for safety earlier trials in larger populations and and efficacy. gather additional information about 36
  • TrIal Or rEgISTraTIOn PHaSE III In rEgISTraTIOn TOTal 34 6 133 Since our last update— Visit pfizer.com/pipeline, Pfizer’s March 31, 2009 online database, where you can • 63 Programs Advanced learn more about our portfolio of • 13 Programs Discontinued new medicines and vaccines, and • 4 Programs Transferred to ViiV find out more about our biomedical healthcare (see p. 39) research and development efforts • 1 Program Out-Licensed around the world. (dalbavancin) 37
  • HOW WE DO BUSInESS In Serving Our Stakeholders OUr cOMMITMEnTS more than 170 cities. In our research, supply network. Recognizing that risks In 2009 Pfizer adopted a series of we are targeting diseases of the increase with a greater dependence commitments that are both aspirational developing world and working with many on outside vendors, Pfizer has put into and achievable. These commitments partners to develop socially responsible, place a comprehensive supplier oversight demonstrate how we can serve the sustainable and commercially viable system to ensure quality, as well as good world’s health needs in ways that health care solutions. environmental, health and safety (EHS) are unique to our company. Our systems and practices. Assessments of commitments are to: EHS conditions at our suppliers help us manage business continuity, liability and • dvance wellness, prevention, A reputational risks and ensure that supply treatments and cures; decisions align with Pfizer’s values. • ring the best scientific minds B During the last five years of our EHS together to challenge the most assessment program, we have conducted feared diseases of our time; on-site inspections at more than • et the standard for quality, safety S 400 new or existing supplier facilities. and value of medicines; MEETIng SPEcIalIzED nEEDS Pfizer is also committed to helping • se our global presence and scale to U Capsugel, part of Pfizer Diversified suppliers improve EHS competencies make a difference in local Businesses, is the world leader in through training workshops and communities and the world around us; providing empty hard capsules to coaching sessions. • romote curiosity, inclusion and a P makers of medicines, vitamins and passion for our work; dietary supplements. An innovator • e a leading voice for improving B in new drug delivery technologies, cOUnTErFEIT rIngS STOPPED everyone’s ability to have reliable Capsugel faced a market need: aT THE SOUrcE and affordable health care; and capsules to satisfy everyone’s dietary Protecting the integrity of our medicines • aximize our financial performance M and cultural requirements. Enter is of paramount importance to us. so that we can meet our Vcaps capsules—two-piece capsules That’s why we’ve taken a leadership commitments to all who rely on us. formulated from plant matter and position among pharmaceutical suitable for vegetarians. Starch-free, companies to protect consumers of our On its own, each commitment can gluten-free, preservative-free, and kosher medicines from the dangers posed by advance the world’s health and wellness. and halal certified, Vcaps run smoothly counterfeits. During 2009, authorities Taken together, these commitments give on high-speed and semi-automatic from 45 countries reported seizing us the framework for transforming health filling machines and are produced to almost 11.1 million counterfeit dosages care as we know it today. the same standards that have made of Pfizer medicines. Many of these seizures the Capsugel name synonymous with were the result of evidence obtained by exceptional quality. Pfizer Global Security colleagues and EMErgIng MarKETS In FOcUS The rapid integration of operations then referred to authorities for their following the Wyeth acquisition is action. The seizures were the result of putting Pfizer’s greater diversity and 285 raids, a 37.7 percent increase scale to work. This includes additional over 2008, and resulted in 625 arrests, expansion into emerging markets, the a 30.9 percent increase. fastest-growing segment of the global pharmaceutical business. The addition of Wyeth assets has solidified our leadership in Asia and Latin America and OPTIMIzIng THE ManUFacTUrIng enhanced our presence in China, where anD SUPPlY cHaIn we have now expanded operations into To optimize Pfizer’s manufacturing and supply chain, we are continuing to develop a competitive “make or buy” 38
  • In Delivering Our Pipeline PIPElInE UPDaTE biologics. Approximately 70 percent of AMC eligibility designation, which Pfizer reported on its biotherapeutics Pfizer’s research projects and 75 percent are both expected later this year. This research and development pipeline on of the late-stage portfolio are now process is administered by the United January 27, 2010. The updated pipeline focused on these areas. Nations Children’s Fund, piloted by the showed 133 programs in Phase I GAVI Alliance and funded by the Bill through registration and included: & Melinda Gates Foundation and the governments of Italy, the U.K., Canada, • 0 compounds in development for 3 Russia and Norway. (Read more at various oncology indications; www.pfizer.com/news.) • 0 compounds in development 1 for Alzheimer’s disease; • ight compounds in development e for pain; • 1 compounds in development 1 PrEvnar 13 aPPrOvED In MOrE for inflammation; and THan 40 cOUnTrIES • 7 biologics and ix vaccines. 2 s Pneumococcal disease is one of the world’s leading causes of vaccine- Late-stage compounds in preventable death worldwide for children development include our novel JAK-3 younger than 5 years old. Pfizer’s viiv HEalTHcarE laUncHES inhibitor for rheumatoid arthritis; Prevnar 13 (known as Prevenar 13 TO cOMBaT HIv tanezumab for osteoarthritis of the in most markets outside the U.S.) is In 2009, Pfizer and GlaxoSmithKline knee; PF-02341066 for advanced approved for the prevention of serious (GSK) launched a new company, ViiV small-cell lung cancer; and apixaban, an pneumococcal disease in infants and Healthcare, dedicated to delivering investigational blood thinner for acute young children. Pfizer is also in the advances in HIV treatment and coronary syndrome, being developed late stages of investigating the use of care. This new company, focused with Bristol-Myers Squibb. Prevnar 13 to protect older adults, who solely on research, development and are also at increased risk of developing commercialization of HIV treatments, invasive pneumococcal disease. This opens a new opportunity to advance vaccine includes the seven serotypes the work against HIV worldwide by in Prevnar, plus an additional six combining the work of two companies serotypes, including serotype 19A, now known for innovation in HIV treatment. the most common cause of invasive ViiV Healthcare integrates the pipeline pneumococcal disease among children and marketed HIV portfolios of both in the U.S. under 5 and increasing in Pfizer and GSK, and will continue the PrIOrITIzIng THE PIPElInE prevalence elsewhere. On March 23, commitments of these two companies Pfizer has identified six “Invest to Win” 2010, Pfizer announced a 10-year to improve access to HIV medicines for areas of research that hold significant Provisional Supply Agreement to everyone. Not-for-profit pricing for HIV potential opportunities for innovation supply Prevenar 13 for infants and medicines continues for those countries and leadership: oncology, pain, young children in the world’s poorest most in need. ViiV Healthcare is also inflammation, Alzheimer’s disease, countries, under the terms of the supporting research and development psychoses and diabetes. Pfizer’s pipeline, Advance Market Commitment (AMC) activities specifically to address access to streamlined following the acquisition pilot project against pneumococcal HIV medicines in the developing world, of Wyeth, demonstrates focused disease. The AMC procurement including treatments and formulations investment in these areas of great unmet process is designed to provide the for children living with HIV, and medical need, as well as growth in the poorest nations greater access to new managing a new fund to help prevent critical technologies of vaccines and pneumoccal conjugate vaccines. The mother-to-child transmission. agreement is subject to prequalification by the World Health Organization and 39
  • In Targeting Unmet Needs nEW ParTnErSHIPS EXPanD for the development of blood vessels first-year goal of establishing smoke-free gEnErIcS POrTFOlIO that supply tumors, as well as receptors public spaces at all 40 of its participating Pfizer is a growing force in the rapidly critical for tumor survival. Palladia is hospitals, the program’s results have expanding but highly contested generics now being marketed through Pfizer supported a wider smoking ban passed marketplace. While we have a huge Animal Health. by the Chinese Ministry of Health that generics catalog of our own, we recently will be adopted by all hospitals in China entered into major licensing agreements in 2011. with three India-based pharmaceutical companies, Claris Lifesciences, Aurobindo Pharma and Strides Arcolab. These agreements will bring hundreds of high- quality generic medicines to underserved populations around the world and add numerous products to Pfizer’s portfolio of established brands in key markets. SMOKIng cESSaTIOn arOUnD In addition, we launched Pfizer Injectables, THE WOrlD a U.S.-based business offering off-patent One of Pfizer’s key investments in cOllaBOraTIng TO EXPanD rESEarcH injectables and hospital products, including health, the Global Health Partnerships InTO nEglEcTED DISEaSES Pfizer brands and generic medicines. program, has supported 32 grantees At Pfizer, we recognize our responsibility in 46 countries across five continents, to help combat diseases that affect funding innovative solutions to people in the developing world. In challenges in cancer and tobacco alliance with global health organizations, control. A partnership between the Pfizer public-private partnerships and Foundation and Pfizer’s business groups companies that share our commitment, across country offices, it addresses one Pfizer is conducting research programs of the world’s most urgent public health for “neglected diseases” such as malaria, problems—the ravages of smoking. tuberculosis and river blindness. Our tobacco control grantees are Working with the World Health FIrST canInE cancEr THEraPY helping to build networks and alliances Organization’s Special Programme In 2009, Palladia, a prescription-only oral for tobacco control in nine countries, for Research in Tropical Diseases, we therapy, became the first FDA-approved training thousands of physicians, have opened access to Pfizer’s library canine cancer therapy in the U.S. It has encouraging thousands of smokers of medicinal compounds and trained also received marketing authorization to quit, and working to protect scientists from developing countries. approval in the European Union. Palladia nonsmokers from secondhand smoke. To expand screening efforts for tropical treats mast cell tumors, the second most For example, the Smoke-free Hospital diseases such as African sleeping common type of tumor in dogs. These Program—jointly sponsored by the sickness, Pfizer is collaborating with the tumors often appear as lumps in the skin Pfizer Foundation, Pfizer China, the Drugs for Neglected Diseases Initiative and may spread to the pet’s internal Chinese Association of Tobacco while pursuing a molecular approach for organs, requiring extensive surgery, Control and the China Hospitals this group of diseases with several chemotherapy or radiation treatment. Association—aims to ban smoking in all U.K. universities. A tyrosine kinase inhibitor, Palladia works public areas of participating hospitals. Malaria afflicts up to 250 million by blocking key receptors important The program also seeks to identify and people annually, killing close to 1 million implement best practices in smoke-free people a year, mostly children in Africa. regulation, as well as provide smoking We are providing the Medicines for cessation awareness training for health Malaria Venture (MMV) access to Pfizer’s care professionals. Having reached its 40
  • library of chemical entities to screen a reduction of 60 percent. This will foster Pfizer Consumer Healthcare— approximately 200,000 compounds greater access to rifabutin, which was already one of the world’s leaders in that have the potential to be developed recently added to the WHO Model List the development, manufacturing and into new treatments against P. falciparum, of Essential Medicines. marketing of nonprescription medicines, the parasite that causes acute malaria, vitamins and nutritional products—is including multidrug-resistant strains. In continually bringing to market new consultation with MMV and the London TOvIaz laUncHES In U.S. products and line extensions that meet School of Hygiene & Tropical Medicine Overactive bladder (OAB) affects more evolving needs for self-care solutions. we are in Phase III development of than 33 million Americans—men and For example, early in 2009, we the combination of azithromycin and women—and can affect anyone at any introduced the Centrum Ultra line of chloroquine as a potential treatment time. Yet awareness of OAB’s symptoms products in the U.S. Centrum Ultra of malaria. In addition, Pfizer and the and treatments has been quite low, is a scientifically advanced line of Italian firm Sigma-Tau entered into primarily because of reluctance by gender- and age-specific multivitamins a license-and-supply agreement to patients to talk to doctors about their specially formulated to help meet the market Eurartesim, a novel, fixed-dose, condition. With the launch of Toviaz, nutritional needs of men and women. once-daily, artemisinin-based Pfizer’s latest prescription treatment for The success of Centrum Ultra in its combination therapy in Africa. This OAB, the company not only introduced first year represents Pfizer Consumer product, which is currently under review the brand to patients and physicians, Healthcare’s largest new product launch by the European Medicines Agency, aims but also developed a support plan, called in the U.S. since Advil. to treat uncomplicated P. falciparum YourWay, to help OAB patients manage Also, in the fourth quarter of 2009 malaria in adults and children, while the condition. The YourWay support plan we introduced advanced new formulas reducing the potential for re-infection. is available at no charge. Information of Centrum and Centrum Silver/Select If these products are approved by can be delivered by e-mail, telephone 50+ in 14 European markets. This regulatory authorities, the partnerships or Web site. patent-pending formula upgrade is will expand access for underserved a major milestone that represents a populations while allowing Pfizer to significant opportunity to grow the realize a commercial return, an approach Centrum business throughout Europe. we believe will prove sustainable for our Advanced Centrum and Centrum business and for society. Silver/Select 50+ contain specially adjusted levels of key vitamins and minerals to help fill nutritional gaps ParTnErIng WITH THE clInTOn and deliver multiple health benefits FOUnDaTIOn TO FIgHT HIv/aIDS such as energy, immunity, healthy cOnSUMEr PrODUcTS Pfizer has entered into a partnership appearance, eye health, bone health MaInTaIn MOMEnTUM with the Clinton Foundation HIV/AIDS and environmental stress protection. As people worldwide become increasingly Initiative that will reduce the cost and aware of issues surrounding health expand the availability of rifabutin, an and wellness, they’re taking more antibiotic used to treat tuberculosis in proactive roles to maintain their personal HIV/AIDS patients taking second-line well-being and treat minor illnesses antiretroviral therapy. Tuberculosis is a through self-care solutions. Pfizer’s leading killer of those who succumb to solutions range from Advil pain relievers HIV/AIDS. For five years, rifabutin prices to ThermaCare heatwraps. will be capped in emerging markets at $1 per 150 mg dose, or $90 for the six-month full course of treatment— 41
  • In Expanding the Science SHangHaI InITIaTIvE SUPPOrTS than in solvents. These innovations FUnDaMEnTal rESEarcH have dramatically reduced the number Fundamental research in China got a of processing steps, avoided the use boost from a new joint initiative between of chemical solvents and hazardous Pfizer and the Shanghai Institutes for reagents, minimized waste, cut energy Biological Sciences (SIBS). Research requirements and reduced certain projects will be selected and developed production costs. It’s a compelling ParTnErIng TO DrIvE rESEarcH jointly by Pfizer and SIBS scientists, with example of why Green Chemistry is the The list of research partnerships forged significant funding from Pfizer. This is right thing to do. in 2009 is long and spans the globe, the latest in a series of Pfizer initiatives involving leaders in applied health aimed at supporting China as it becomes sciences from academia, biotherapeutics one of the leading contributors to health companies, public-private partnerships, care innovation worldwide. Innovation global health organizations and in the early stages of drug development, government. Many are featured in this including exploration into basic review. Additional highlights include: bioscience principles, has the potential to alter the way we look at health care • collaboration with Crown Biosciences A over the next 20 years. At Pfizer, we at its facilities in Taicang, China, intend to lead health care innovation at glOBalIzaTIOn OF clInIcal TrIalS to discover and develop novel every stage. Pfizer is committed to upholding the therapeutics for cancer; highest ethical standards in all of its • raceway Pharmaceuticals’ G clinical trials around the world. Pfizer’s acquisition of the worldwide rEalIzIng THE PrOMISE OF research is conducted according to commercial rights for three grEEn cHEMISTrY international standards, and we were investigational dermatological Our Green Chemistry program seeks the first pharmaceutical company to molecules from Pfizer, while retaining to integrate environmental, health be accredited by the Association for our services to shepherd the projects and safety considerations throughout the Accreditation of Human Research through development; the research, discovery, development, Protection Programs in 2009 for ensuring • first-of-its-kind collaboration A manufacture and distribution of our the protection of people who volunteer with the U.S. Environmental products. Green Chemistry is now to participate in early-stage trials. As our Protection Agency (EPA) to validate integral to the way all Pfizer scientists trials in global markets increase, Pfizer an EPA-designed set of tools and and engineers perform their work. has taken a leadership role in building technologies that could better It is about advancing scientific the capabilities of local investigators in predict toxicology outcomes in drug innovation—the heart and strength good clinical practices, in partnership discovery and development; and of our company—to reduce our with local academic and professional • partnership with China’s Fudan A environmental footprint. institutions. Pfizer is also a leader in University to establish a graduate A case in point is Lipitor. New, clinical trial transparency. We publicly program in Clinical Data Management FDA-approved manufacturing processes post summary results of all our clinical and Statistical Programming, designed for this widely-prescribed medicine trials, including those where further to develop qualified professionals use nature’s own chemical catalysts development has been discontinued. to support clinical research, which is (enzymes) at key steps. This allows much In addition, Pfizer has become the first rapidly increasing in China. of the chemistry to be run in water rather company to begin disclosing payments made to principal investigators and their institutions for Pfizer-sponsored studies run in the U.S. 42
  • In Meeting Our Responsibilities rESPOnSIBIlITY IS InTEgral nonbinding proposal asking the Board TO SUccESS of Directors to give shareholders a Corporate responsibility is fundamental “say on pay” vote. Following discussions to Pfizer’s business and our ability to with shareholders, the Board determined achieve our mission and purpose. To that a biennial advisory vote will ensure that responsibility is part of facilitate our shareholder outreach how we do business every day, most of activities and provide another way to Pfizer’s corporate responsibility issues HElPIng PEOPlE gET THEIr receive input on compensation policies are managed within our businesses. MEDIcInES In a DIFFIcUlT and practices. At the same time, such EcOnOMIc clIMaTE Pfizer’s corporate responsibility efforts a vote will foster a more long-term are coordinated globally by a team For decades, Pfizer has been committed approach to evaluating our executive that is part of Policy, External Affairs to making our medicines accessible to compensation policies and practices. and Communications, whose leader uninsured and underinsured Americans. reports directly to the CEO. This team In 2004 Pfizer created Pfizer Helpful focuses on guiding overall strategy Answers so that with just one phone call rESPOnDIng TO DISaSTErS and goal setting, ensuring clear to a toll-free number or a visit to one When disasters strike, Pfizer and our communications, and engaging with key Web site, patients could be directed to colleagues respond immediately. internal and external stakeholders. In the Pfizer program that might best meet Less than 48 hours after Haiti’s 2009 we made two significant moves to their needs. Today, Pfizer Helpful Answers devastating earthquake, Pfizer pledged strengthen our efforts. We established is the largest and most extensive suite over $1 million in medicines, as well a new Global Corporate Responsibility of patient assistance programs in our as an additional monetary donation Colleague Network to connect and industry. In the last five years alone, to international relief organizations. align all Pfizer colleagues who have Pfizer Helpful Answers and the Wyeth That number has since been increased corporate-responsibility-related roles patient assistance programs combined to over $4 million in medicines, over-the- around the world. We also strengthened helped nearly 6 million uninsured or counter products and cash contributions. oversight by instituting twice-yearly underinsured patients get access to In addition, the Pfizer Foundation’s updates to Pfizer’s Board of Directors’ more than 48 million prescriptions, Matching Gifts program matches Corporate Governance Committee on with a value of more than $5.7 billion financial contributions made by U.S.- progress toward corporate responsibility at wholesale cost. and Puerto Rico-based colleagues goals and emerging issues potentially Pfizer continues to evolve its assistance and retirees to 501(c)(3) organizations affecting Pfizer’s reputation and our programs to meet the changing needs in the U.S. and Puerto Rico. ability to meet our business objectives. of patients. Last year, for example, Pfizer Similarly, when Taiwan’s worst Helpful Answers launched the MAINTAIN typhoon in 50 years devastated the program, designed to help eligible island, when two super typhoons hit the EXEcUTIvE cOMPEnSaTIOn— people in the U.S. who have lost their Philippines two weeks apart engulfing “SaY On PaY” jobs and health insurance to continue to Manila in floodwaters as high as seven Executive compensation has become get their Pfizer primary care medicines feet, and when earthquakes struck Chile, a principal topic of discussion for many for free for up to one year or until they Indonesia and Italy, Pfizer and our stakeholders. Giving shareholders a become insured again, whichever comes colleagues responded with significant “say on pay”—a nonbinding, advisory first. The idea for MAINTAIN came from donations of time, medical supplies and vote on executive compensation—has a Pfizer executive in our Asia business, cash to help with rescue efforts and been widely debated in the business and went from suggestion to launch in rehabilitation work. and investment communities as well as seven weeks. Originally designed to last in government. At Pfizer’s 2009 Annual one year, MAINTAIN was extended a Meeting shareholders approved a second year, through 2010, and Wyeth primary care medicines are being included in the program. 43
  • In Setting the Standards ETHIcS anD cOMPlIancE Declaration on Human Rights and the Pfizer’s Corporate Ethics and Compliance International Labour Organization Program, established under the direction Declaration on Fundamental Principles of our Board of Directors, supports and Rights at Work. Pfizer is a signatory our unyielding commitment to high of the United Nations Global Compact standards of legal and ethical conduct. and we support its Ten Principles Strong ethical performance supports on human rights, labor, environment our ability to operate in markets around rEcOgnITIOn aS a grEaT PlacE and anticorruption. the world and helps protect Pfizer from TO WOrK We believe that people have a right litigation and negative impacts on our Diversity is integral to our business to health, and, while governments may reputation. Our Corporate Compliance culture, and we consider it a distinct have the primary responsibility, we Officer and staff provide oversight and advantage in the marketplace. embrace the unique role Pfizer can play guidance to help ensure compliance In addition to numerous individual in promoting this right. Our commitment with applicable laws, regulations and awards, such as Nikkei’s “Woman of is embodied in the many approaches company policies. Colleagues worldwide the Year” to Pfizer Japan executive we have developed to improve access to receive Pfizer’s Code of Business Chizuro Kiyomura (pictured above), medicines and strengthen health care Conduct, known as the “Blue Book,” our positive culture and workplace systems for underserved people around which explains Pfizer’s commitment gained recognition by many monitors the world. to maintaining high standards and of the corporate world. Once again, performing with integrity. Pfizer has the Working Mother 100 Best also made considerable investments PUBlIc POlIcY Companies roster includes Pfizer, to prevent bribery and corruption. Engaging in public policy is a crucial in recognition of our commitment to Our International Anti-Bribery and facet of our efforts to create an enabling family-friendly benefits. For the sixth Anti-Corruption Corporate Procedure environment to improve access to consecutive year, Pfizer earned the implementation platform helps local medicines and health care. America’s highest possible score in the Human teams train colleagues and adopt local current health care system faces real Rights Campaign Foundation’s procedures. We also have established challenges, and we strongly believe that Corporate Equality Index, which evaluates a compliance hotline in 70 countries. there is long-term value to creating a U.S.-based businesses on their treatment These efforts will support our expansion system that is more efficient, stable and of lesbian, gay, bisexual and transgender globally and help ensure that Pfizer’s performance oriented. That is why we employees, investors and customers. business is conducted consistently and support health care reform. Reform that Also for the sixth time, the Women’s ethically around the world. expands comprehensive health care Business Enterprise National Council coverage, improves quality and provides named Pfizer one of the top corporations value for patients, while enhancing choices for world-class programs that create and health care innovation, is an important level playing fields for women’s business goal that benefits patients. Done right, enterprises. Diversity/Careers magazine reform can improve Americans’ health, recognized Pfizer as a 2009 Best broaden access to care and manage costs. Diversity Company in Engineering & Our guiding principle is to support reform Information Technology. And Universum, that helps many more patients while a global employer branding company, promoting continued innovation in the named Pfizer one of the top 50 most HUMan rIgHTS search for cures. attractive employers, based on a survey Pfizer strives to uphold human rights in of 120,000 business and engineering all of our business activities. We fully students from top academic institutions support the principles in the Universal in 11 leading economies. 44
  • cOrPOraTE anD SHarEHOlDEr InFOrMaTIOn Stock listings Political action committee (Pac) Our Common Stock is listed on the New York Stock Exchange. To review our most recent PAC and corporate political It is also listed on the London, NYSE Euronext and Swiss contributions report, go online at www.pfizer.com/pac. stock exchanges, and traded on various United States regional stock exchanges. Environmental, Health and Safety (EHS) Our global EHS initiatives, Environmental Sustainability Stock Transfer agent and registrar Program and performance metrics may be found online Computershare Trust Company, N.A. at www.pfizer.com/ehs and in our Corporate Responsibility 250 Royall Street Report at www.pfizer.com/crreport. Canton, MA 02021 Telephone: 1-800-PFE-9393 Helplines Outside the U.S., Canada and Patients, customers and health care professionals who Puerto Rico: 1-781-575-4591 have questions about any of our products should call Internet: www.computershare.com 1-800-438-1985. Uninsured or underinsured patients who need help getting Shareholder Services and Programs their Pfizer medicines should call Pfizer Helpful Answers®, Please contact our Stock Transfer Agent and Registrar with our family of patient assistance programs that provide Pfizer inquiries concerning shareholder accounts of record and stock medicines for free or at a savings to patients who qualify. transfer matters, and also for information on the following To learn more, visit www.PfizerHelpfulAnswers.com or call services and programs: 1-866-706-2400. • Shareholder Investment Program – direct purchase of Pfizer stock Send Us Your Feedback – dividend reinvestment We value your views on this Annual Review. Did it help you – automatic monthly investments to better understand Pfizer? Was the information presented • Book-entry share ownership in a reader-friendly manner? Please send your comments to • Direct deposit of dividends annual.report@pfizer.com. You can find more information about Pfizer online at Forward-looking Information www.pfizer.com. Real-time news about Pfizer can be found Please refer to Pfizer’s 2009 Form 10-K for a description of on our Facebook page (www.facebook.com/Pfizer) and the substantial risks and uncertainties related to the forward- through Twitter (www.Twitter/Pfizer_news). looking statements included in this Annual Review. Our Form 10-K is available on our Web site at www.pfizer.com/sec and This Annual Review is produced by Pfizer’s Policy, External on the Securities and Exchange Commission’s Web site at Affairs and Communications group. www.sec.gov. corporate responsibility report This report provides additional detailed information about how Pfizer conducts business responsibly and engages with stakeholders to advance good health and expand a sustainable business. This report is available online at www.pfizer.com/crreport. Pfizer’s commitment to conduct business in a sustainable way includes © 2010 Pfizer Inc All rights reserved. adopting green practices with respect to this report. The text of this Annual All trademarks appearing in this Annual Review are owned by or licensed to Review is printed on paper made from well-managed forests and other Pfizer Inc or its affiliates. controlled sources containing 10 percent post-consumer fiber content and is made free of elemental chlorine. The paper is independently certified Wyeth is now part of Pfizer. The merger of local Wyeth and Pfizer entities may to the Forest Stewardship Council (FSC) standards. be pending in various jurisdictions and integration is subject to completion of various local legal and regulatory obligations. Accordingly, some changes Our printer, Sandy Alexander Inc., an ISO 14001:2004 Certified printer with will not become effective outside of the U.S. and Puerto Rico until the relevant Forest Stewardship Council (FSC) Chain of Custody certification, printed this go-live date. All content in this message is subject to works council and/or report with the use of renewable wind power resulting in nearly zero volatile union consultations and other legal requirements where appropriate. organic compound (VOC) emissions. This saved 15,962 pounds of carbon dioxide emissions. This amount of wind-generated electricity is equivalent to Design: Ideas On Purpose, New York 13,849 miles not driven in an automobile or 1,085 trees planted. Principal Photography: Catherine Ledner, Victor John Penner, Neil Selkirk 45
  • LIFE AnnuAL REvIEw 2009
  • we all want the same things in life—health, vitality, freedom, longevity. The picture of health. An expanded, more diversified Pfizer can now serve people at all stages of life.
  • Those in the baby boom generation were Time magazine’s “Man of the Year” in 1967. now crossing into their 60s, they will drive unprecedented demand for better health care.
  • we hope to get the most out of life at every stage, not just for ourselves but also for the people we love. The power of genetics is becoming increasingly understood, and the first steps toward truly personalized medicines are now being taken.
  • a Wide array At Pfizer, we strive to improve well- being at all stages of life. In 2009, In addition, our roster of trusted consumer brands includes Advil, of Life-affirming by acquiring Wyeth, we became Centrum, Robitussin and ChapStick, a more diversified company, offering as well as the GOLD line of infant products a wider range of high-quality and toddler nutritional products. products for people and animals. We offer suites of animal medicines These include vaccines to prevent that support livestock farming and disease, biological and pharmaceutical keep companion animals healthy therapies to treat illnesses, technologies and strong. We have Capsugel, to deliver medicines, and iconic a global leader in creating innovative brands in consumer health and dosage forms for the pharmaceutical nutrition, all offered across developed and dietary supplement industries. and emerging markets. Our products are valuable at all We are well-known for a number stages of life. Our work is profound of widely prescribed therapies, and felt by every person who, including Lipitor, Viagra, Lyrica, because of our offerings, is able to Enbrel and Celebrex. We are maintain or reclaim well-being and moving quickly in oncology, with quality of life. breakthrough treatments such And with a pipeline expanded as Sutent. But we do more than through the Wyeth acquisition, treat disease. We help prevent it we feel confident that a greater through our vaccines, and through number of essential and life-affirming medicines such as Chantix (marketed products are on their way. outside the U.S. as Champix), the world’s leading prescription medicine 3 Learn more at pfizer.com/annuaL for smoking cessation. We also market hundreds of entries in the fastest-growing segment of the pharmaceutical business— generic medicines.
  • Keeping Patient safety is the first priority at Pfizer—from the moment a technology to report adverse events directly to the U.S. Food and Drug our compound is cleared for clinical Administration. Preliminary results trials, to its approval by regulators for show that these reports were more patients marketing, through its manufacture complete and more timely, often Safe and distribution, and for as long as filed from the point of care. We are it is for sale anywhere in the world. now working to expand the pilot to Thousands of Pfizer colleagues in other health systems and to include specialized groups devoted to safety, devices as well. risk management, quality assurance, We empower patients, their data collection and analysis, global caregivers and the public with security, medical communication, up-to-date, meaningful information— and regulatory compliance focus trying to make certain that intently on the safe, effective and people can understand clearly appropriate use of our medicines, the benefits, risks and proper use vaccines and other products. of our medicines. The Pfizer We are among the innovators Medicine Safety Education Web site in improving patient safety. One (www.pfizer.com/medicinesafety) area of great interest is improving helps people understand more the quality and speed of adverse about how a medicine’s safety event reporting. In 2009 we began is determined, monitored and a collaboration with Brigham communicated. This highly and Women’s Hospital, Partners interactive site has had more than Healthcare, the Clinical Data 100,000 unique visitors since its Exchange Consortium, and CRIX launch in late 2008. It includes a International to improve the direct link to MedWatch, the FDA’s timeliness and quality of data in Safety Information and Adverse adverse event reporting. In the Event reporting program. group’s pilot study, physicians used electronic health record 3 Learn more at pfizer.com/annuaL
  • Pfizer now markets a stable of trusted self-care brands—Advil, Caltrate, Centrum, Robitussin and ThermaCare among them.
  • The condition we share is the human one. Pfizer’s on Facebook—and Twitter. And we’re a leader in how social media can improve health for people of all ages.
  • Pfizer is focusing a number of programs on the special needs of women, from helping them manage the symptoms of menopause to improving their odds against cancer.
  • At Pfizer, we focus on maximizing wellness and minimizing illness—striving to protect and reclaim health and well-being for people and animals around the world. Pets are family. Pfizer Animal Health is there for pets—and their families.
  • everywhere we touch people’s lives at every stage. We fight sickness and foster In the developing world, we are a force for expanded access and We call well-being with everything from improvements in health care delivery. preventive vaccines, to vitamins and We are strong in emerging markets, Home medicines for self-care, to some of the fastest-growing segment of our the most sophisticated treatments global biopharmaceuticals business. for threatening diseases such as We invest in communities. Through cancer and resistant infections. our Global Health Fellows program, We help people care for their pets as one example, Pfizer colleagues and keep the world’s food supply with specialized skills volunteer for strong in the face of a growing three-to-six-month assignments with global population. nongovernmental, multilateral and Pfizer sees human health care in community-based organizations on the broadest sense—and the most the frontiers of health care delivery specific. We are helping everyone for underserved populations. Overall, from governments to individual Pfizer is working in partnership with We are truly global, an integral part patients navigate the changing patients, caregivers, physicians, of people’s lives in communities world of health care. Our knowledge payers, health ministries and and nations around the world. of our products and the health local health care providers around Pfizer has a reach that no other care environment equips us to help the world, leaving them better science-based health care company society make the most of its current equipped to meet their most basic can match. Through our vaccines investment in health care, meeting challenge—keeping people healthy. and other biopharmaceutical the needs of patients and their products, pharmaceuticals, consumer families today. At the same time, 3 Learn more at pfizer.com/annuaL health care products, nutritionals, we are working to help shape health capsules and animal health products, care systems of the future, focusing on prevention, early diagnosis and wider access to needed treatment.
  • expanding to developing new business models that will improve access to quality In addition, we are working with global procurement agencies to access medicines in a commercially viable, provide more-affordable medicines, affordable and sustainable manner expand access to innovative products, as a Business for patients facing barriers to basic and conduct research and development Strategy health care. specifically for underserved people in Working with these valued the developing world. customers offers us new opportunities In parallel, we continue responsible and challenges. A key enabler will expansion of our philanthropic be partnerships with governments, social health portfolio, including nongovernmental institutions, programs such as the International private organizations, health Trachoma Initiative. This initiative care professionals and patients aims to eliminate the leading cause themselves. We are exploring a of preventable blindness in the Our goal is to work together for a variety of frameworks, including developing world, through donations healthier world and, in so doing, build new financial models for health of Pfizer’s antibiotic Zithromax long-term, sustainable value for our care. In 2008 Pfizer announced a and support for community-based investors. As a route to that goal, we partnership with Grameen Bank, training and education. These seek to improve access to medicines and we continue to work together innovative approaches are among and health care in ways that to assess the needs of patients, the many being conducted by teams improve Pfizer’s standing among community health care workers across Pfizer that position us to do people and their governments, and and others in Bangladesh. Based more to help meet the health needs open new opportunities for all of on what we have learned from this of more people than ever before, us. Pfizer has launched a global assessment, Pfizer and Grameen around the world. access strategy within our Emerging have begun setting priorities on Markets Business Unit, dedicated how best to meet the most urgent 3 Learn more at pfizer.com/annuaL unmet needs of these customers. We are now developing a tailored pilot initiative.
  • In 2009, as it did in 2008, 2007 and 2006, Working Mother magazine put Pfizer on its “100 Best Companies” list.
  • we want everyone, everywhere, to have access to reliable, affordable health care, and to trust in the quality and safety of their medicines. Pfizer is on track to reach people in more than 250 of China’s cities by 2011.
  • They deserve a smoke-free environment. Pfizer is supporting smoking cessation projects in 46 countries across five continents.
  • we have the science, scale and reach to help build a healthier world. Our network of web sites for patients and caregivers contains information on a variety of health and wellness topics.
  • playing While mother’s milk is the best and only food most newborns pediatricians in markets ranging from China to Mexico to Australia “catch-up” need for the first 6 months of life, has been enthusiastic, with studies show that breastfeeding doctors seeing this approach as on Low alone may not meet all the a genuine, long-sought innovation Birthweight immediate neonatal needs of very in infant nutrition. preterm or low birthweight infants. As with all our infant nutritionals, infant Supplementation can be key to better Pfizer is committed to marketing this nutrition health outcomes. For formula-fed preterm or low birthweight babies, formula in accordance with the aim and principles of the World Health however, parents in many markets Organization code, and abiding by can only get “one size fits all” infant national codes wherever they exist formulas. Modifying these formulas and ensuring strict compliance. With themselves, parents must make the integration of Pfizer and Wyeth, Preterm or low birthweight babies complex adjustments according we continue to strengthen efforts face challenges when it comes to to their pediatrician’s instructions, to monitor code compliance, and nutrition, particularly once their without necessarily being sure if the to ensure our marketing of infant parents take them home. While result is optimal for their new child. formulas is carried out with the best in the hospital, these newborns Pfizer Nutrition now offers a interests of parents and babies first often receive fortified breast post-hospital-discharge formula and foremost. milk or specialized formulas that specially designed for low are precisely balanced for their birthweight and preterm newborns. 3 Learn more at pfizer.com/annuaL needs—richer in calories and denser Parents simply follow the easy-to- in key nutrients. understand instructions on the package to precisely reflect their pediatrician’s instructions for at-home feeding. The response from
  • What green Pfizer has a long-standing commitment to environmental, of our products from discovery through use and disposal. We seek means— health and safety protection. We are innovative ways to reduce our building on the bedrock of successful packaging and wastes and look for our new programs to push sustainable opportunities to recycle. environmental practices throughout our businesses cLean Water and supplier network. While we Sustainability continue to emphasize full compliance We are striving to decrease water use, assessing our global impact and Strategy with legal requirements and are proud of our many accolades, we looking for opportunities to expand our responsibility in addressing this have developed a clear vision that world health issue. focuses on where we believe Pfizer can bring additional value. Our With guidance from our mission encompasses: stakeholders, we have set near-term and longer-range priorities for Pfizer is on a green journey. We energy and cLimate cHange executing our environmental are integrating environmental We are actively driving down our strategies. We continue to report on sustainability into our business, carbon footprint by reducing our issues and progress toward these better enabling us to realize our greenhouse gas emissions and priorities, as well as other footprint purpose of “Working together increasing our energy efficiency. management measures such as for a healthier world.” We are using Our work goes beyond our facilities minimizing releases to air and water, our capabilities to mitigate our to rethinking the cars our sales force reducing waste and increasing impact on climate change, improve use and the routes they drive. recycling efforts. product stewardship and manage product SteWardSHip water resources. Pfizer delivers safe and effective 3 Learn more at pfizer.com/annuaL products. We are also working to minimize the potential impact
  • Pfizer is on a “green journey” to build environmentally sustainable practices everywhere we operate.
  • Better health—that is our quest and commitment to the world. Your world. when this great-grandfather was born in 1910, the u.S. had fewer than 10,000 centenarians. now it has more than 130,000.
  • In partnership with groups such as uSAID and the world Health Organization, Pfizer is fighting the alarming rates of maternal mortality in the developing world.
  • Pfizer. Thanks to biomedical research, he’s survived everything from malaria to melanoma. Life sends its challenges. Pfizer helps people through them.
  • Where life meets science. www.pfizer.com/annual