2. “A LEADER IN
We are becoming the Pfizer we are meant to be –
one that can offer healthy solutions at every stage
of life.In Pfizer’s ongoing transformation, we are
challenging the conventional thinking that says a
company can’t be large and global, as well as focused
NEARLY ALL
and entrepreneurial. We’re making fast progress in
reshaping how we work, what we offer and how
we can succeed in these uncertain times.
KEY ACHIEVEMENTS
DIMENSIONS
145 OF HUMAN
MILLION DOSES OF
$5.3BILLION
IN SALES FROM MEDICINES
AND ANIMAL
MEDICINES”
ZITHROMAX DONATED TO
FIGHT BLINDING TRACHOMA IN ANIMAL HEALTH
PRODUCT SALES
$8.5 BILLION
#1
IN CASH DIVIDENDS PAID
CONTENTS PAGE
$7.9
1 Chairman’s Report to Shareholders
4 Financial Highlights
8 Pfizer-Wyeth
NUMBER 1 11
18
20
Key Medicines and Their Performance
Teamwork & Collaboration
Strategy CHAIRMAN’S REPORT
IN PRESCRIPTION 22 Primary Care TO SHAREHOLDERS
BILLION INVESTED IN R&D PHARMACEUTICAL SALES 24
24
Oncology
Specialty Care To Our Owners: Pfizer continued its transformation
IN 2008 TO 2009 25 Established Products in 2008 and, early in 2009, announced a major
25 Emerging Markets move to accelerate that process—an agreement to
PFIZER $47 MILLION IN PUBLIC
HEALTH GRANTS AWARDED
26
30
34
Research & Development
Partnerships, Alliances & Acquisitions
New Opportunities
acquire Wyeth, America’s fifth-largest pharmaceutical
company. The combined organization will be the
world’s premier biopharmaceutical company: diverse,
AND WYETH AGREE IN 46 COUNTRIES FROM 38 Employees flexible, a leader in nearly all dimensions of human and
01 TO JOIN TOGETHER 2007 TO 2011 40
45
Board of Directors
Corporate & Shareholder Information
animal medicines and vaccines, and well positioned in
both developed and emerging markets.
Jeff Kindler
Chairman of the Board and Chief Executive Officer
02
Preparing Pfizer to take this transformational step COMMITMENTS MADE – COMMITMENTS KEPT ACCELERATING INNOVATION BECOMING MORE ENTREPRENEURIAL – AND ACCOUNTABLE
began with our efforts late in 2006 and in 2007
Our drive for change, however, starts with one of the oldest paths to trust and accomplishment—keeping our In this review last year, we reported on our drive to In late 2006, when I became CEO, I said that one of Pfizer’s biggest immediate challenges was to simplify
to reduce the number of layers in the company,
commitments. In these annual letters to you, I’ve repeated what I believe—that all Pfizer leaders, starting with open a second front in the search for new cures and an organization that had grown too complex and cumbersome. One colleague, in an e-mail to me, put it best:
streamline decision-making and expand our discovery
me, must be accountable for meeting the commitments we’ve made to find new sources of revenue, become vaccines. We organized the Biotherapeutics and “Get the bureaucracy out of our way. Give us the tools to do our work and the authority to make decisions.
efforts. Our transformation continued in 2008 with a
faster and more efficient, and build a strong pipeline of new compounds and product extensions. Action by Bioinnovation Center, which is both independent Then hold us accountable for the decisions we make.” Making Pfizer work better meant changing both the
new strategic framework called “Our Path Forward”
action, quarter by quarter, we are establishing Pfizer as a company that keeps promises. At the beginning of of, and interdependent with, Pfizer Global culture and the structure of our organization. In 2008 we took a dramatic step to reshape Pfizer into a more
and later that year with the reorganization of the
2008, we made or reaffirmed four major commitments to you, our investors. These were: Research & Development. Just over a year into that flexible, entrepreneurial and, yes, accountable organization. We completely reorganized our global market-
company into smaller, more agile business units.
transformation, we are excited about the progress leading Pharmaceutical segment into customer focused business units devoted to Primary Care, Specialty
Every step of the way, Pfizer colleagues have worked
• To hold revenues steady, despite the deteriorating economic environment and made by both research groups, their ability to Care, Oncology, Emerging Markets and Established Products.
to increase the ability of the company to deal with a
the losses-of-exclusivity we faced in 2007 and 2008. collaborate as alliances are formed with other research
very fast-changing business environment. We’ve titled
organizations, and their potential to “supercharge”
this report “Doing Things Differently” because that’s • To complete the program to achieve an absolute reduction in our adjusted total costs of
our pipeline with medicines and vaccines that PFIZER AND WYETH “GET THE BUREAUCRACY
exactly the approach we’re taking—challenging the at least $1.5 billion–$2 billion, on a constant currency basis, as compared with 2006.
status quo of our industry and breaking away from
address some of the world’s most pressing medical OUT OF OUR WAY. GIVE US
• To achieve adjusted diluted earnings per share performance of at least $2.35 per share. needs.In 2008 we completed a plan that largely Pfizer’s path forward now includes an agreement to
old practices that are no longer relevant in a new
environment. A streamlined, more flexible, strategically • To improve R&D productivity, as measured by medicines moving into late-stage development. brings all of the discovery scientists working on a acquire Wyeth. Once this acquisition is complete, THE TOOLS TO DO OUR
grounded Pfizer is now ready to create one of the Here’s how we did in meeting each of these commitments. specific therapeutic area under one roof. This sounds
counterintuitive in the age of the Internet, but we
Pfizer will be uniquely positioned to promote health WORK AND THE AUTHORITY
most dynamic and diversified companies in the and wellness at all stages of life, and respond more
global health care industry.
believe that personal interaction is what energizes effectively to unmet medical needs. We will also be TO MAKE DECISIONS. THEN
IMPROVING R&D PRODUCTIVITY REDUCING OUR ADJUSTED scientific inquiry. We’ve focused our discovery efforts one of the most diversified companies in the global
HOLD US ACCOUNTABLE
TOTAL COSTS more intently on areas where the world desperately health care industry, overcoming reliance on any
We are on track to achieve the R&D objectives we needs new treatments – Alzheimer’s disease, cancer, single product. The new company will offer people FOR OUR DECISIONS.”
shared with you in March 2008. These are: We completed the cost-reduction program we infections and inflammation, to name some of the a range of treatments for every stage of life – from
announced in 2006 by exceeding our cost-reduction prominent therapeutic areas where we are making vitamins for prenatal care to baby formula to vaccines
• 15 to 20 Phase III starts in 2008 – 2009. target. By the end of 2008, we decreased our good progress. We also created a Target Generation to readily available consumer products to therapies
• 24 to 28 new molecular entities or new indications adjusted total costs by $2.8 billion, when compared Unit that will use advances in human genetics and for pain, cancer and Alzheimer’s disease. We will lead
in the Phase III pipeline by the end of 2009. with 2006 costs, on a constant currency basis. We systems biology to overcome one of the biggest in nearly every dimension of biopharmaceuticals and
remain absolutely committed to streamlining our hurdles in biopharmaceutical research – the attrition in almost all of the world’s major markets. Pfizer’s
• 15 to 20 regulatory submissions from 2010 to 2012 of compounds at each stage of the clinical process. acquisition of Wyeth will be a transformational step
business further and creating a cost structure that
gives us the most flexibility during these Investing in truly cutting-edge science, in 2008 we enabled by a willingness to do things differently. We
Our Phase III pipeline is the largest in our history and
uncertain times. launched Pfizer Regenerative Medicines to build on look to the future with optimism and relish the work
includes 12 programs focused on the high-priority
the growing understanding of how stem cells work. we have yet to do to make Pfizer the world’s premier
disease areas of diabetes, oncology, inflammation/
Pfizer is the first biopharmaceutical company to have biopharmaceutical company.
immunology, Alzheimer’s disease, psychosis and
a unit dedicated to stem cell therapeutics, one of the
pain. You can learn much more about Pfizer’s ACHIEVING OUR ADJUSTED DILUTED most exciting disciplines in bioscience.
current pipeline of new compounds and indications Thank you for your continued confidence in our
EARNINGS PER SHARE TARGET people, our products and our plans for the future.
by visiting www.pfizer.com.I know it’s difficult to
talk about keeping our commitments in operating We were at the high end of our 2008 guidance range,
performance when Pfizer’s share price hit a 10-year delivering $2.42 in adjusted diluted earnings per Sincerely,
low in the first quarter of 2009. The fact that nearly all share, an improvement of 11 percent over 2007.
public companies faced a crushing loss of investor
confidence is of little comfort to the millions of people
who hold Pfizer shares. No one in Pfizer is satisfied
HOLDING REVENUES STEADY Jeff Kindler
with the company’s share price. We recognize that to
Chairman of the Board and Chief Executive Officer
build shareholder value, we have to continue to keep
Our 2008 full-year revenues were $48.3 billion, July 1, 2009
our commitments year after year. Operational success
will, over time, drive up the value of the company. compared with $48.4 billion in 2007. This was in
line with the guidance we gave early in 2008. We
achieved this goal despite the loss of exclusivity of
three large-selling medicines, Norvasc, Zyrtec/ZyrtecD
and Camptosar, which accounted for $2.9 billion in
2008 revenue and $5.5 billion in revenue in 2007. We
also achieved this goal despite shrinking economies in
nearly all of our major markets.
07 08
Annual Report
Pfizer
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225 E, Grand Ave Chicago, IL 60611
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225 E, Grand Ave Chicago, IL 60611 / T: 312 512 1313
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20 Cement Town / Report by Hans Loos
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32 A Big Breath / Florence and the Machine
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96 Then / by Christopher Ferguson 193 Personals / Stories from our fave peeps
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Can we weather A Big Breath Essay: Cement Town
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04 05
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