Pfizer

Pfizer 4Q10

4Q10 Revenues: $17.6 billion (+6%)

4Q10 Earnings: $2.9 billion (+277%)

FY Revenues: $67.8 billion (+36%)

FY Earnings: $8.3 billion (-4%)

Comments: U.S. revenues dropped 3% in 4Q10 to $7.2 billion, while international sales were up 13% to $10.3 billion. For the year, revenues were up $17.8 billion, but the company received a boost of $18.1 billion from legacy Wyeth products and $1.1 billion from exchange rates. Legacy Pfizer products were down 3% for FY. The company announced a $5 billion share buyback program, and plans to cut 2012 R&D to approximately $6.5 to $7.0 billion; 2010 R&D expenditure was $9.4 billion, and included some integration costs. For 2011, the company predicts flat sales, followed by a single-digit decline in 2012. In a statement, new president and chief executive officer Ian Read said the company will look to “an increased level of outsourcing for services that do not drive competitive advantage for Pfizer.” Lipitor sales dropped 17% in 4Q10 to $2.6 billion, led by a 26% fall in international sales.