Pfizer Reports Third-Quarter 2011 Results

• Third-Quarter 2011 Revenues of $17.2 Billion
• Third-Quarter 2011 Adjusted Diluted EPS⁽¹⁾ of $0.62; Reported Diluted EPS⁽²⁾ of $0.48, which Reflects a $1.3 Billion After-Tax Gain on Sale of Capsugel⁽³⁾
• Increases 2011 Adjusted Diluted EPS⁽¹⁾ and Reported Diluted EPS⁽²⁾ Guidance Ranges; Reaffirms 2012 Financial Targets
• Repurchases $2.1 Billion and $6.5 Billion of Common Stock During Third-Quarter and Year-to-Date through October 31, 2011, Respectively; Increases 2011 Share Repurchase Target to between $7 Billion and $9 Billion

NEW YORK--(BUSINESS WIRE)--Pfizer Inc. (NYSE: PFE):

($ in millions, except per share amounts)
	Third-Quarter^(4)						Year-to-Date^(4)
	2011		2010		Change		2011		2010		Change
Reported Revenues	$	17,193	$	15,995	7	%	$	50,679	$	49,703	2	%
Adjusted Income^(1)		4,820		4,352	11	%		14,354		14,141	2	%
Adjusted Diluted EPS^(1)		0.62		0.54	15	%		1.81		1.75	3	%
Reported Net Income^(2)		3,738		866	*			8,570		5,367	60	%
Reported Diluted EPS^(2)		0.48		0.11	*			1.08		0.66	64	%
See end of text prior to tables for notes.
* Calculation not meaningful

Pfizer Inc. (NYSE: PFE) today reported financial results for third-quarter 2011. Third-quarter 2011 revenues were $17.2 billion, an increase of 7% compared with the year-ago quarter, which reflects operational growth of $247 million, or 1%, and the favorable impact of foreign exchange of $951 million, or 6%.

For third-quarter 2011, U.S. revenues were $6.9 billion, a decrease of 3% compared with the year-ago quarter. International revenues were $10.3 billion, an increase of 15% compared with the prior-year quarter, which reflected 4% operational growth and an 11% favorable impact of foreign exchange. U.S. revenues represented 40% of total revenues in third-quarter 2011 compared with 44% in the year-ago quarter, while international revenues represented 60% of total revenues in third-quarter 2011 compared with 56% in the year-ago quarter.

Financial Performance
	Third-Quarter Revenues
($ in millions) Favorable/(Unfavorable)	2011		2010		Change		Foreign Exchange		Operational
Primary Care^(5)	$	5,948	$	5,653	5	%	5	%	--
Specialty Care^(6)		3,799		3,717	2	%	7	%	(5	%)
Emerging Markets^(7)		2,438		2,072	18	%	6	%	12	%
Established Products^(8)		2,230		2,168	3	%	7	%	(4	%)
Oncology^(9)		332		335	(1	%)	8	%	(9	%)
Biopharmaceutical		14,747		13,945	6	%	6	%	--
Animal Health^(10)		1,041		860	21	%	6	%	15	%
Consumer Healthcare^(11)		774		673	15	%	4	%	11	%
Nutrition^(12)		577		441	31	%	7	%	24	%
Other^(13)		54		76	(29	%)	2	%	(31	%)
Total	$	17,193	$	15,995	7	%	6	%	1	%

See end of text prior to tables for notes.

Business Highlights

Primary Care⁽⁵⁾ unit revenues in third-quarter 2011 were favorably impacted primarily by foreign exchange, growth from Lipitor in the U.S. and from Celebrex, Lyrica, Pristiq and Spiriva, among others, and the addition of $119 million, or 2%, from legacy King products, while negatively impacted by the loss of exclusivity of Aricept in the U.S. in November 2010 as well as the loss of exclusivity of Lipitor in Canada and Spain in May and July 2010, respectively. Taken together, these losses of exclusivity reduced Primary Care⁽⁵⁾ unit revenues by $415 million, or 7%, in comparison with third-quarter 2010.

Specialty Care⁽⁶⁾ unit revenues were positively impacted by foreign exchange and strong growth in the Prevenar franchise and Enbrel in most international markets. Prevnar 13 revenues in the U.S. were lower than in third-quarter 2010 as fewer patients received the Prevnar 13 catch-up dose as the timeframe for eligibility has nearly expired. Specialty Care⁽⁶⁾ unit revenues were also negatively impacted by the loss of exclusivity of Vfend and Xalatan in the U.S. in February and March 2011, respectively. Collectively, these losses of exclusivity reduced Specialty Care⁽⁶⁾ unit revenues by $214 million, or 6%, in comparison with third-quarter 2010.

Emerging Markets⁽⁷⁾ unit revenues were positively impacted by foreign exchange and growth in certain key innovative brands, primarily the Prevenar franchise, Celebrex, Enbrel, Lyrica, Vfend and Zyvox, notably with double-digit operational growth in China, Russia, Turkey and India. Revenues were negatively impacted by the loss of exclusivity of Lipitor in Brazil and Mexico in August and December 2010, respectively. These losses of exclusivity reduced Emerging Markets⁽⁷⁾ unit revenues by $30 million, or 1%, in comparison with third-quarter 2010.

Established Products⁽⁸⁾ unit revenues were mainly impacted by the loss of exclusivity of Protonix and Zosyn in the U.S., which taken together reduced Established Products⁽⁸⁾ unit revenues by $242 million, or 11%, in comparison with third-quarter 2010. This decline was more than offset by $144 million, or 7%, from the addition of legacy King products, as well as foreign exchange. Total revenues from established products in both the Established Products⁽⁸⁾ and Emerging Markets⁽⁷⁾ units were $3.2 billion, with $996 million generated in emerging markets.

Animal Health⁽¹⁰⁾ unit revenues increased by 21%, in comparison with the same quarter last year, reflecting the positive operational impact of $90 million, or 10%, due to the addition of legacy King products, as well as the favorable conditions in global livestock markets and foreign exchange. The Consumer Healthcare⁽¹¹⁾ unit generated revenue growth of 15% in comparison with third-quarter 2010, primarily driven by the non-recurrence of the voluntary withdrawal of Centrum temporarily in Europe in third-quarter 2010, the U.S. launch of new dietary supplements in third-quarter 2011, as well as foreign exchange. Nutrition⁽¹²⁾ unit revenues increased 31% in comparison with the same quarter last year, primarily in China and the Middle East, from increased demand for premium products and from new product launches, in addition to foreign exchange.

Adjusted Expenses^(1), Adjusted Income^(1) and Adjusted Diluted EPS^(1) Highlights
	Third-Quarter Costs and Expenses
($ in millions) (Favorable)/Unfavorable	2011			2010			Change		Foreign Exchange		Operational
Adjusted Cost of Sales^(1)	$	3,325		$	2,852		17	%	10	%	7	%
As a Percent of Revenues		19.3	%		17.8	%	N/A		N/A		N/A
Adjusted SI&A Expenses^(1)		4,560			4,581		--		5	%	(5	%)
Adjusted R&D Expenses^(1)		2,034			2,155		(6	%)	2	%	(8	%)
Adjusted Total Costs^(14)	$	9,919		$	9,588		3	%	6	%	(3	%)

See end of text prior to tables for notes.

Adjusted total costs⁽¹⁴⁾ were $9.9 billion in third-quarter 2011, an increase of 3% compared with $9.6 billion in third-quarter 2010. Excluding the unfavorable impact of foreign exchange of $541 million, or 6%, adjusted total costs⁽¹⁴⁾ decreased 3%, primarily reflecting the benefit of cost-reduction and productivity initiatives, particularly in the research and development function. Savings were also generated in third-quarter 2011 by reductions in the U.S. field force and declines in promotional spending in response to product losses of exclusivity. These savings were partially offset by the addition of costs from legacy King operations and the inclusion of the annual U.S. healthcare reform fee.

The effective tax rate on adjusted income⁽¹⁾ was approximately 31% in third-quarter 2011 compared with approximately 30% in third-quarter 2010. The increase was primarily due to the change in the jurisdictional mix of earnings, partially offset by the extension of the U.S. research and development credit that was signed into law in December 2010.

The diluted weighted-average shares outstanding for third-quarter 2011 was 7.8 billion shares, a reduction of approximately 247 million shares compared with third-quarter 2010, primarily due to the Company’s ongoing share repurchase program.

As a result of the aforementioned factors, third-quarter 2011 adjusted income⁽¹⁾ was $4.8 billion, an increase of 11% compared with $4.4 billion in the year-ago quarter, and adjusted diluted EPS⁽¹⁾ was $0.62, an increase of 15% compared with $0.54 in the year-ago quarter.

Reported Net Income⁽²⁾ and Reported Diluted EPS⁽²⁾ Highlights

In addition to the aforementioned factors, third-quarter 2011 reported earnings in comparison with third-quarter 2010 reported earnings were favorably impacted by a $1.3 billion (after-tax) gain on the sale of Capsugel⁽³⁾ in third-quarter 2011, as well as the non-recurrence of impairment charges of $1.5 billion (pre-tax) related to certain intangible assets acquired in connection with the Wyeth acquisition and a $701 million (pre-tax) charge for asbestos litigation related to our wholly owned subsidiary, Quigley Company, Inc., both in third-quarter 2010. Third-quarter 2011 reported earnings were negatively impacted compared with the same period last year by higher charges associated with cost-reduction and productivity initiatives.

The effective tax rate on reported results was approximately 34% in third-quarter 2011 compared with approximately 39% in third-quarter 2010. The decrease in the effective tax rate was primarily due to the previously mentioned extension of the U.S. research and development credit and the change in the jurisdictional mix of earnings, as well as the decrease and jurisdictional mix of the aforementioned impairment charges.

As a result of all these factors, third-quarter 2011 reported net income⁽²⁾ was $3.7 billion, compared with $866 million in the prior-year quarter, and reported diluted EPS⁽²⁾ was $0.48, compared with $0.11 in the prior-year quarter.

Executive Commentary

Ian Read, President and Chief Executive Officer, stated, “Overall, I am very pleased with our financial performance despite the impact of product losses of exclusivity totaling approximately $950 million this quarter and the challenges posed by current global market and economic conditions. Excluding the impact of product losses of exclusivity, all of our businesses generated revenue growth while effectively managing their cost structures. Notably, in our Emerging Markets business, I am pleased that both our innovative and established product portfolios continued to perform well, largely as a result of our targeted investments despite a volatile environment. Further, in Japan, our second largest market, we generated 19% operational growth enterprise-wide. I am also happy with the strong performance of the Lipitor franchise and our ability to continue to maximize the value of this brand prior to its loss of exclusivity in the U.S. We remain well prepared for the Lipitor U.S. loss of exclusivity later this month and in various other countries shortly thereafter.”

“I am excited by the potential opportunity for Xalkori, recently launched in U.S. specialty pharmacies for the treatment of ALK-positive advanced non-small cell lung cancer, and Prevnar 13/Prevenar 13, recently approved in the European Union for the prevention of invasive pneumococcal disease in adults aged 50 years and older. Additionally, we have several compounds in our late-stage pipeline, notably Eliquis for stroke prevention in patients with atrial fibrillation, tofacitinib in rheumatoid arthritis and axitinib in advanced renal cell carcinoma, among others. Each of these opportunities represents a potential valuable, new treatment option for patients in need,” Mr. Read continued.

Frank D’Amelio, Chief Financial Officer, stated, “Given our solid performance so far this year, our continued confidence in the business within the current environment and our financial flexibility, we are narrowing the range of many of our 2011 financial guidance components and reaffirming our 2012 financial targets. Notably, we are increasing our 2011 adjusted diluted EPS⁽¹⁾ guidance range, resulting in an updated range of $2.24 to $2.29. Additionally, we returned approximately $3.6 billion to our shareholders during the quarter through $1.5 billion in dividends and $2.1 billion from the repurchase of 112.9 million shares. So far in 2011, we have repurchased $6.5 billion, or 331.6 million of our shares, and we now anticipate repurchasing between $7 billion and $9 billion of our common stock this year. In total, we have returned approximately $11.2 billion to our shareholders this year through dividends and share repurchases.”

2011 Financial Guidance⁽¹⁵⁾

For full-year 2011, Pfizer’s financial guidance, at current exchange rates⁽¹⁶⁾, is summarized below.

Reported Revenues	$66.2 to $67.2 billion (previously $65.2 to $67.2 billion)
Adjusted Cost of Sales^(1) as a Percentage of Revenues	19.8% to 20.3% (previously 19.5% to 20.5%)
Adjusted SI&A Expenses^(1)	$19.4 to $19.9 billion (previously $19.2 to $20.2 billion)
Adjusted R&D Expenses^(1)	$8.1 to $8.4 billion (previously $8.0 to $8.5 billion)
Adjusted Other (Income)/Deductions^(1)	Approximately $800 million (previously approximately $1.0 billion)
Effective Tax Rate on Adjusted Income^(1)	Approximately 29%
Reported Diluted EPS^(2)	$1.20 to $1.30 (previously $1.09 to $1.24)
Adjusted Diluted EPS^(1)	$2.24 to $2.29 (previously $2.16 to $2.26)

2012 Financial Targets⁽¹⁵⁾

For full-year 2012, Pfizer’s financial targets, at current exchange rates⁽¹⁶⁾, are summarized below.

Reported Revenues	$62.2 to $64.7 billion
Adjusted SI&A Expenses^(1)	$17.5 to $18.5 billion
Adjusted R&D Expenses^(1)	$6.5 to $7.0 billion
Adjusted Other (Income)/Deductions^(1)	Approximately $1.0 billion
Adjusted Operating Margin^(1)	High 30%s to low 40%s
Effective Tax Rate on Adjusted Income^(1)	Approximately 29%
Reported Diluted EPS^(2)	$1.58 to $1.73
Adjusted Diluted EPS^(1)	$2.25 to $2.35
Operating Cash Flow	At least $19.0 billion

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

(1) "Adjusted Income" and its components and "Adjusted Diluted Earnings Per Share (EPS)" are defined as reported net income⁽²⁾ and its components and reported diluted EPS⁽²⁾ excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. Adjusted Cost of Sales, Adjusted Selling, Informational and Administrative (SI&A) expenses, Adjusted Research and Development (R&D) expenses and Adjusted Other (Income)/Deductions are income statement line items prepared on the same basis, and, therefore, components of the overall adjusted income measure. As described under Adjusted Income in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of Pfizer's Form 10-Q for the fiscal quarter ended July 3, 2011, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. We believe that investors' understanding of our performance is enhanced by disclosing this measure. Reconciliations of third-quarter 2011 and 2010 and the first nine months of 2011 and 2010 adjusted income and its components and adjusted diluted EPS to reported net income⁽²⁾ and its components and reported diluted EPS⁽²⁾, as well as reconciliations of full-year 2011 guidance and 2012 targets for adjusted income and adjusted diluted EPS to full-year 2011 guidance and 2012 targets for reported net income⁽²⁾ and reported diluted EPS⁽²⁾, are provided in the materials accompanying this report. The adjusted income and its components and adjusted diluted EPS measures are not, and should not be viewed as, substitutes for U.S. generally accepted accounting principles (GAAP) net income and its components and diluted EPS.

(2) “Reported Net Income” is defined as net income attributable to Pfizer Inc. in accordance with U.S. GAAP. “Reported Diluted EPS” is defined as reported diluted EPS attributable to Pfizer Inc. common shareholders in accordance with U.S. GAAP.

(3) Capsugel provided capsule products and related services to the pharmaceutical and associated healthcare industries. On August 1, 2011, Pfizer completed the sale of Capsugel to an affiliate of Kohlberg Kravis Roberts & Co. L.P.

(4) In all periods presented, the results from the Capsugel⁽³⁾ business are reflected in a single line, Discontinued operations - net of tax until the completion of the sale on August 1, 2011. Additionally, due to the acquisition of King Pharmaceuticals, Inc. (King), legacy King operations are reflected in the 2011 results beginning January 31, 2011. Therefore, in accordance with Pfizer’s domestic and international reporting periods, the results for the first nine months of 2011 reflect approximately eight months of King’s U.S. operations and approximately seven months of King’s international operations. Legacy King operations are not reflected in the results for the first nine months of 2010.

(5) The Primary Care unit includes revenues from human pharmaceutical products primarily prescribed by primary-care physicians, and may include, but are not limited to, products in the following therapeutic and disease areas: Alzheimer’s disease, cardiovascular (excluding pulmonary arterial hypertension), diabetes, erectile dysfunction, genitourinary, major depressive disorder, pain, respiratory and smoking cessation. Examples of products in this unit include, but are not limited to, Celebrex, Chantix, Lipitor, Lyrica, Premarin, Pristiq and Viagra. All revenues for such products are allocated to the Primary Care unit, except those generated in emerging markets⁽⁷⁾ and those that are managed by the Established Products⁽⁸⁾ unit.

(6) The Specialty Care unit includes revenues from human pharmaceutical products primarily prescribed by physicians who are specialists, and may include, but are not limited to, products in the following therapeutic and disease areas: anti-infectives, endocrine disorders, hemophilia, inflammation, multiple sclerosis, ophthalmology, pulmonary arterial hypertension, specialty neuroscience and vaccines. Examples of products in this unit include, but are not limited to, BeneFIX, Enbrel, Genotropin, Geodon, the Prevnar/Prevenar franchise, Rebif, ReFacto, Revatio, Xalatan, Xyntha and Zyvox. All revenues for such products are allocated to the Specialty Care unit, except those generated in emerging markets⁽⁷⁾ and those that are managed by the Established Products⁽⁸⁾ unit.

(7) The Emerging Markets unit includes revenues from all human prescription pharmaceutical products sold in emerging markets, including, but not limited to, Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

(8) The Established Products unit generally includes revenues from human prescription pharmaceutical products that have lost patent protection or marketing exclusivity in certain countries and/or regions. Typically, products are transferred to this unit in the beginning of the fiscal year following losing patent protection or marketing exclusivity. In certain situations, products may be transferred to this unit at a different point than the beginning of the fiscal year following losing patent protection or marketing exclusivity in order to maximize their value. This unit also excludes revenues generated in emerging markets⁽⁷⁾. Examples of products in this unit include, but are not limited to, Arthrotec, Effexor, Medrol, Norvasc, Protonix, Relpax and Zosyn/Tazocin.

(9) The Oncology unit includes revenues from human oncology and oncology-related products. Examples of products in this unit include, but are not limited to, Aromasin, Sutent, Torisel and Xalkori. All revenues for such products are allocated to the Oncology unit, except those generated in emerging markets⁽⁷⁾ and those that are managed by the Established Products⁽⁸⁾ unit.

(10) Animal Health includes worldwide revenues from products to prevent and treat disease in livestock and companion animals, including, but not limited to, vaccines, parasiticides and anti-infectives. On July 7, 2011, the Company announced that it is exploring strategic alternatives for Animal Health, which may include, among others, a full or partial separation from Pfizer through a spin-off, sale or other transaction.

(11) Consumer Healthcare generally includes worldwide revenues from non-prescription medicines and vitamins and may include, but are not limited to, products in the following therapeutic categories: GI-topicals, nutritionals, pain management and respiratory. Examples of products in Consumer Healthcare include, but are not limited to, Advil, Caltrate, Centrum, ChapStick and Robitussin.

(12) Nutrition generally includes revenues from a full line of infant and toddler nutritional products sold outside the U.S. and Canada. Examples of products in Nutrition include, but are not limited to, the S-26 and SMA product lines as well as formula for infants with special nutritional needs. On July 7, 2011, the Company announced that it is exploring strategic alternatives for Nutrition, which may include, among others, a full or partial separation from Pfizer through a spin-off, sale or other transaction.

(13) Includes revenues generated primarily from Pfizer Centersource.

(14) Represents the total of Adjusted Cost of Sales⁽¹⁾, Adjusted SI&A expenses⁽¹⁾ and Adjusted R&D expenses⁽¹⁾.

(15) Does not assume the completion of any business-development transactions not completed as of October 2, 2011, including any one-time upfront payments associated with such transactions. Also excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of October 2, 2011. The 2011 financial guidance includes revenues and expenses related to the Capsugel⁽³⁾ business as a discontinued operation through July 31, 2011. The gain on the sale of Capsugel⁽³⁾ is reflected in 2011 Reported Diluted EPS⁽²⁾ guidance, but is not reflected in 2011 Adjusted Diluted EPS⁽¹⁾ guidance.

(16) The current exchange rates assumed in connection with the 2011 financial guidance are a blend of the actual exchange rates in effect during the first nine months of 2011 and the mid-October 2011 exchange rates for the remainder of the year. The current exchange rates assumed in connection with the 2012 financial targets are the mid-October 2011 exchange rates.

PFIZER INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(millions, except per common share data)
			Third Quarter						% Incr. /		Nine Months					% Incr. /
			2011			2010			(Decr.)		2011		2010			(Decr.)
	Revenues		$	17,193		$	15,995		7		$	50,679	$	49,703		2
	Costs and expenses:
		Cost of sales ^(a)		3,679			3,790		(3	)		11,177		11,676		(4	)
		Selling, informational and administrative expenses ^(a)		4,621			4,599		-			14,097		13,776		2
		Research and development expenses ^(a)		2,188			2,188		-			6,516		6,590		(1	)
		Amortization of intangible assets		1,397			1,156		21			4,168		3,972		5
		Acquisition-related in-process research and development charges		-			-		-			-		74		(100	)
		Restructuring charges and certain acquisition-related costs		1,101			499		121			2,474		2,090		18
		Other deductions--net		538			2,349		(77	)		1,778		3,036		(41	)
	Income from continuing operations before provision
		for taxes on income		3,669			1,414		159			10,469		8,489		23
	Provision for taxes on income			1,235			558		121			3,223		3,165		2
	Income from continuing operations			2,434			856		184			7,246		5,324		36
	Discontinued operations:
		(Loss)/income from discontinued operations--net of tax		(13	)		26		*			39		76		(49	)
		Gain/(loss) on sale of discontinued operations--net of tax		1,328			(11	)	*			1,316		(9	)	*
	Discontinued operations--net of tax			1,315			15		*			1,355		67		*
	Net income before allocation to noncontrolling interests			3,749			871		*			8,601		5,391		60
	Less: net income attributable to noncontrolling interests			11			5		120			31		24		29
	Net income attributable to Pfizer Inc.		$	3,738		$	866		*		$	8,570	$	5,367		60
	Earnings per share - basic: ^(b)
		Income from continuing operations attributable to
		Pfizer Inc. common shareholders	$	0.31		$	0.11		182		$	0.92	$	0.66		39
		Discontinued operations--net of tax		0.17			-		*			0.17		0.01		*
		Net income attributable to Pfizer Inc. common shareholders	$	0.48		$	0.11		*		$	1.09	$	0.67		63
	Earnings per share - diluted: ^(b)
		Income from continuing operations attributable to
		Pfizer Inc. common shareholders	$	0.31		$	0.11		182		$	0.91	$	0.66		38
		Discontinued operations--net of tax		0.17			-		*			0.17		0.01		*
		Net income attributable to Pfizer Inc. common shareholders	$	0.48		$	0.11		*		$	1.08	$	0.66		64
	Weighted-average shares used to calculate earnings per common share:
		Basic		7,770			8,027					7,877		8,045
		Diluted		7,810			8,057					7,925		8,079
(a)	Exclusive of amortization of intangible assets, except as discussed in footnote 3 below.
(b)	EPS amounts may not add due to rounding.
*	Calculation not meaningful.
	Certain amounts and percentages may reflect rounding adjustments.
1.	The above financial statements present the three-month and nine-month periods ended October 2, 2011 and October 3, 2010. Subsidiaries operating outside the United States are included for the three-month and nine-month periods ended August 28, 2011 and August 29, 2010.
	The sale of the Capsugel business closed on August 1, 2011, and we have recognized a gain related to the sale of Capsugel in Discontinued operations: Gain/(loss) on sale of discontinued operations--net of tax for the three-month and nine-month periods ended October 2, 2011. Capsugel is presented as a discontinued operation and we have made certain reclassification adjustments to conform the 2010 amounts to the current-period presentation.
	On January 31, 2011, we completed our tender offer for the outstanding shares of common stock of King Pharmaceuticals, Inc. (King) and, commencing from that date, our financial statements include the assets, liabilities, operating results and cash flows of King. Therefore, in accordance with Pfizer's domestic and international reporting periods, the first nine months of 2011 results reflect approximately eight months of King's U.S. operations and approximately seven months of King's international operations. Our consolidated statements of income for the three-month and nine-month periods ended October 3, 2010 do not include King's results of operations.
2.	The financial results for the three-month and nine-month periods ended October 2, 2011 are not necessarily indicative of the results which could ultimately be achieved for the full year.
3.	Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute our products is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, informational and administrative expenses or Research and development expenses, as appropriate.
	See Supplemental Information that accompanies these materials for additional details.

PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF REPORTED NET INCOME ATTRIBUTABLE TO PFIZER INC. AND ITS COMPONENTS
AND REPORTED DILUTED EPS ATTRIBUTABLE TO PFIZER INC. COMMON SHAREHOLDERS
TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS ^(a)
(UNAUDITED)
(millions of dollars, except per common share data)
				Quarter Ended October 2, 2011
							Purchase			Acquisition-						Certain
							Accounting			Related			Discontinued			Significant
				Reported			Adjustments			Costs^(2)			Operations			Items^(3)			Adjusted
	Revenues		$	17,193		$	-		$	-		$	-		$	-		$	17,193
	Costs and expenses:
		Cost of sales ^(b)		3,679			(289	)		(68	)		-			3			3,325
		Selling, informational and administrative expenses ^(b)		4,621			(11	)		(17	)		-			(33	)		4,560
		Research and development expenses ^(b)		2,188			-			(5	)		-			(149	)		2,034
		Amortization of intangible assets		1,397			(1,360	)		-			-			-			37
		Acquisition-related in-process research and development charges		-			-			-			-			-			-
		Restructuring charges and certain acquisition-related costs		1,101			-			(211	)		-			(890	)		-
		Other (income)/deductions--net		538			(51	)		-			-			(241	)		246
	Income from continuing operations before provision
		for taxes on income		3,669			1,711			301			-			1,310			6,991
	Provision for taxes on income			1,235			447			59			-			419			2,160
	Income from continuing operations			2,434			1,264			242			-			891			4,831
	Discontinued operations:
		(Loss)/income from discontinued operations--net of tax		(13	)		-			-			13			-			-
		Gain/(loss) on sale of discontinued operations--net of tax		1,328			-			-			(1,328	)		-			-
	Discontinued operations--net of tax			1,315			-			-			(1,315	)		-			-
	Net income before allocation to noncontrolling interests			3,749			1,264			242			(1,315	)		891			4,831
	Less: net income attributable to noncontrolling interests			11			-			-			-			-			11
	Net income attributable to Pfizer Inc.		$	3,738		$	1,264		$	242		$	(1,315	)	$	891		$	4,820
	Earnings per common share - diluted: ^(c)
		Income from continuing operations attributable to Pfizer Inc.
		common shareholders	$	0.31		$	0.16		$	0.03		$	-		$	0.11		$	0.62
		Discontinued operations--net of tax		0.17			-			-			(0.17	)		-			-
		Net income attributable to Pfizer Inc. common shareholders	$	0.48		$	0.16		$	0.03		$	(0.17	)	$	0.11		$	0.62
				Nine Months Ended October 2, 2011
							Purchase			Acquisition-						Certain
							Accounting			Related			Discontinued			Significant
				Reported			Adjustments			Costs^(2)			Operations			Items^(3)			Adjusted
	Revenues		$	50,679		$	-		$	-		$	-		$	-		$	50,679
	Costs and expenses:
		Cost of sales ^(b)		11,177			(1,086	)		(411	)		-			(6	)		9,674
		Selling, informational and administrative expenses ^(b)		14,097			(6	)		(41	)		-			(39	)		14,011
		Research and development expenses ^(b)		6,516			-			(9	)		-			(397	)		6,110
		Amortization of intangible assets		4,168			(4,069	)		-			-			-			99
		Acquisition-related in-process research and development charges		-			-			-			-			-			-
		Restructuring charges and certain acquisition-related costs		2,474			-			(1,010	)		-			(1,464	)		-
		Other (income)/deductions--net		1,778			(71	)		-			-			(1,270	)		437
	Income from continuing operations before provision
		for taxes on income		10,469			5,232			1,471			-			3,176			20,348
	Provision for taxes on income			3,223			1,354			327			-			1,059			5,963
	Income from continuing operations			7,246			3,878			1,144			-			2,117			14,385
	Discontinued operations:
		(Loss)/income from discontinued operations--net of tax		39			-			-			(39	)		-			-
		Gain/(loss) on sale of discontinued operations--net of tax		1,316			-			-			(1,316	)		-			-
	Discontinued operations--net of tax			1,355			-			-			(1,355	)		-			-
	Net income before allocation to noncontrolling interests			8,601			3,878			1,144			(1,355	)		2,117			14,385
	Less: net income attributable to noncontrolling interests			31			-			-			-			-			31
	Net income attributable to Pfizer Inc.		$	8,570		$	3,878		$	1,144		$	(1,355	)	$	2,117		$	14,354
	Earnings per common share - diluted: ^(c)
		Income from continuing operations attributable to Pfizer Inc.
		common shareholders	$	0.91		$	0.49		$	0.14		$	-		$	0.27		$	1.81
		Discontinued operations--net of tax		0.17			-			-			(0.17	)		-			-
		Net income attributable to Pfizer Inc. common shareholders	$	1.08		$	0.49		$	0.14		$	(0.17	)	$	0.27		$	1.81
	(a)	Adjusted income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.
	(b)	Exclusive of amortization of intangible assets, except as discussed in note 1.
	(c)	EPS amounts may not add due to rounding.
	See end of tables for notes.
	Certain amounts may reflect rounding adjustments.

PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF REPORTED NET INCOME ATTRIBUTABLE TO PFIZER INC. AND ITS COMPONENTS
AND REPORTED DILUTED EPS ATTRIBUTABLE TO PFIZER INC. COMMON SHAREHOLDERS
TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS ^(a)
(UNAUDITED)
(millions of dollars, except per common share data)
				Quarter Ended October 3, 2010
							Purchase			Acquisition-						Certain
							Accounting			Related			Discontinued			Significant
				Reported			Adjustments			Costs^(2)			Operations			Items^(3)			Adjusted
	Revenues		$	15,995		$	-		$	-		$	-		$	(4	)	$	15,991
	Costs and expenses:
		Cost of sales ^(b)		3,790			(487	)		(241	)		-			(210	)		2,852
		Selling, informational and administrative expenses ^(b)		4,599			9			(27	)		-			-			4,581
		Research and development expenses ^(b)		2,188			(8	)		(25	)		-			-			2,155
		Amortization of intangible assets		1,156			(1,124	)		-			-			-			32
		Acquisition-related in-process research and development charges		-			-			-			-			-			-
		Restructuring charges and certain acquisition-related costs		499			-			(499	)		-			-			-
		Other (income)/deductions--net		2,349			(15	)		-			-			(2,207	)		127
	Income from continuing operations before provision
		for taxes on income		1,414			1,625			792			-			2,413			6,244
	Provision for taxes on income			558			378			233			-			718			1,887
	Income from continuing operations			856			1,247			559			-			1,695			4,357
	Discontinued operations:
		(Loss)/income from discontinued operations--net of tax		26			-			-			(26	)		-			-
		Gain/(loss) on sale of discontinued operations--net of tax		(11	)		-			-			11			-			-
	Discontinued operations--net of tax			15			-			-			(15	)		-			-
	Net income before allocation to noncontrolling interests			871			1,247			559			(15	)		1,695			4,357
	Less: net income attributable to noncontrolling interests			5			-			-			-			-			5
	Net income attributable to Pfizer Inc.		$	866		$	1,247		$	559		$	(15	)	$	1,695		$	4,352
	Earnings per common share - diluted: ^(c)
		Income from continuing operations attributable to Pfizer Inc.
		common shareholders	$	0.11		$	0.15		$	0.07		$	-		$	0.21		$	0.54
		Discontinued operations--net of tax		-			-			-			-			-			-
		Net income attributable to Pfizer Inc. common shareholders	$	0.11		$	0.15		$	0.07		$	-		$	0.21		$	0.54
				Nine Months Ended October 3, 2010
							Purchase			Acquisition-						Certain
							Accounting			Related			Discontinued			Significant
				Reported			Adjustments			Costs^(2)			Operations			Items^(3)			Adjusted
	Revenues		$	49,703		$	-		$	-		$	-		$	(17	)	$	49,686
	Costs and expenses:
		Cost of sales ^(b)		11,676			(2,564	)		(367	)		-			(221	)		8,524
		Selling, informational and administrative expenses ^(b)		13,776			17			(190	)		-			14			13,617
		Research and development expenses ^(b)		6,590			(23	)		(45	)		-			-			6,522
		Amortization of intangible assets		3,972			(3,880	)		-			-			-			92
		Acquisition-related in-process research and development charges		74			(74	)		-			-			-			-
		Restructuring charges and certain acquisition-related costs		2,090			-			(2,090	)		-			-			-
		Other (income)/deductions--net		3,036			(40	)		-			-			(2,501	)		495
	Income from continuing operations before provision
		for taxes on income		8,489			6,564			2,692			-			2,691			20,436
	Provision for taxes on income			3,165			1,631			696			-			779			6,271
	Income from continuing operations			5,324			4,933			1,996			-			1,912			14,165
	Discontinued operations:
		(Loss)/income from discontinued operations--net of tax		76			-			-			(76	)		-			-
		Gain/(loss) on sale of discontinued operations--net of tax		(9	)		-			-			9			-			-
	Discontinued operations--net of tax			67			-			-			(67	)		-			-
	Net income before allocation to noncontrolling interests			5,391			4,933			1,996			(67	)		1,912			14,165
	Less: net income attributable to noncontrolling interests			24			-			-			-			-			24
	Net income attributable to Pfizer Inc.		$	5,367		$	4,933		$	1,996		$	(67	)	$	1,912		$	14,141
	Earnings per common share - diluted: ^(c)
		Income from continuing operations attributable to Pfizer Inc.
		common shareholders	$	0.66		$	0.61		$	0.25		$	-		$	0.24		$	1.75
		Discontinued operations--net of tax		0.01			-			-			(0.01	)		-			-
		Net income attributable to Pfizer Inc. common shareholders	$	0.66		$	0.61		$	0.25		$	(0.01	)	$	0.24		$	1.75
	(a)	Adjusted income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.
	(b)	Exclusive of amortization of intangible assets, except as discussed in note 1.
	(c)	EPS amounts may not add due to rounding.
	See end of tables for notes.
	Certain amounts may reflect rounding adjustments.

PFIZER INC. AND SUBSIDIARY COMPANIES
RECONCILIATION OF REPORTED NET INCOME ATTRIBUTABLE TO PFIZER INC. AND ITS COMPONENTS
AND REPORTED DILUTED EPS ATTRIBUTABLE TO PFIZER INC. COMMON SHAREHOLDERS
TO ADJUSTED INCOME AND ITS COMPONENTS AND ADJUSTED DILUTED EPS*
(UNAUDITED)
1)	Amortization expense related to acquired intangible assets that contribute to our ability to sell, manufacture, research, market and distribute our products is included in Amortization of intangible assets as these intangible assets benefit multiple business functions. Amortization expense related to acquired intangible assets that are associated with a single function is included in Cost of sales, Selling, informational and administrative expenses or Research and development expenses, as appropriate.
2)	Acquisition-related costs includes the following:
			Third Quarter						Nine Months
		(millions of dollars)	2011			2010			2011			2010
		Transaction costs^(a)	$	5		$	-		$	28		$	13
		Integration costs^(a)		187			231			567			650
		Restructuring charges^(a)		19			268			415			1,427
		Additional depreciation - asset restructuring^(b)		90			293			461			602
		Total acquisition-related costs -- pre-tax		301			792			1,471			2,692
		Income taxes^(c)		(59	)		(233	)		(327	)		(696	)
		Total acquisition-related costs -- net of tax	$	242		$	559		$	1,144		$	1,996
	(a)	Transaction costs include costs, such as banking, legal, accounting and other similar costs, associated with business combinations. Integration costs primarily represent external, incremental costs directly related to integrating acquired businesses and primarily include expenditures for consulting and systems integration. Restructuring charges include employee termination costs, asset impairments and other exit costs associated with business combinations.
	(b)	Represents the impact of changes in the estimated useful lives of assets involved in restructuring actions related to acquisitions. Included in Cost of sales ($68 million), Selling, informational and administrative expenses ($17 million) and Research and development expenses ($5 million) for the three months ended October 2, 2011. Included in Cost of sales ($411 million), Selling, informational and administrative expenses ($41 million) and Research and development expenses ($9 million) for the nine months ended October 2, 2011. Included in Cost of sales ($241 million), Selling, informational and administrative expenses ($27 million), and Research and development expenses ($25 million) for the three months ended October 3, 2010. Included in Cost of sales($367 million), Selling, informational and administrative expenses ($190 million) and Research and development expenses ($45 million) for the nine months ended October 3, 2010.
	(c)	Included in Provision for taxes on income.
3)	Certain significant items includes the following:
			Third Quarter						Nine Months
		(millions of dollars)	2011			2010			2011			2010
		Restructuring charges^(a)	$	890		$	-		$	1,464		$	-
		Implementation costs and additional depreciation - asset restructuring^(b)		182			-			436			-
		Certain legal matters^(c)		132			701			657			843
		Certain asset impairment charges^(d)		105			1,468			582			1,668
		Inventory write-off^(e)		(1	)		212			11			212
		Other^(f)		2			32			26			(32	)
		Total certain significant items -- pre-tax		1,310			2,413			3,176			2,691
		Income taxes^(g)		(419	)		(718	)		(1,059	)		(779	)
		Total certain significant items -- net of tax	$	891		$	1,695		$	2,117		$	1,912
	(a)	Included in Restructuring charges and certain acquisition-related costs, primarily related to our cost-reduction and productivity initiatives.
	(b)	Primarily related to our cost-reduction and productivity initiatives. Included in Selling, informational and administrative expenses ($33 million) and Research and development expenses ($149 million) for the three months ended October 2, 2011. Included in Selling, informational and administrative expenses ($39 million) and Research and development expenses ($397 million) for the nine months ended October 2, 2011.
	(c)	Included in Other deductions - net. In the first nine months of 2011, primarily relates to charges for hormone-replacement therapy litigation. In both periods of 2010, primarily includes a charge for asbestos litigation related to our wholly owned subsidiary, Quigley Company, Inc.
	(d)	Primarily included in Other deductions - net. In 2011 and 2010, primarily relates to certain Wyeth assets, including in-process research and development (IPR&D) intangible assets.
	(e)	Included in Cost of sales. In 2010, primarily relates to unfinished inventory acquired as part of the Wyeth acquisition that became unusable after the acquisition date.
	(f)	Primarily included in Other deductions - net. In 2010, primarily represents gains on the divestiture of certain Pfizer Animal Health products and related assets.
	(g)	Included in Provision for taxes on income.
*	Adjusted income and its components and adjusted diluted EPS are not, and should not be viewed as, substitutes for U.S. GAAP net income and its components and diluted EPS.

PFIZER INC.
BUSINESS REVENUES^(1)
FIRST NINE MONTHS OF 2011 and 2010
(UNAUDITED)
(millions of dollars)
							Foreign
	2011		2010		Change		Exchange		Operational
Primary Care	$	17,259	$	17,442	(1	%)	3	%	(4	%)
Specialty Care		11,425		11,009	4	%	4	%	-
Emerging Markets		7,031		6,294	12	%	4	%	8	%
Established Products		6,914		7,682	(10	%)	4	%	(14	%)
Oncology		982		1,045	(6	%)	4	%	(10	%)
Biopharmaceutical		43,611		43,472	-		3	%	(3	%)
Animal Health		3,078		2,599	18	%	4	%	14	%
Consumer Healthcare		2,240		2,014	11	%	3	%	8	%
Nutrition		1,540		1,375	12	%	5	%	7	%
Other		210		243	(14	%)	-		(14	%)
TOTAL	$	50,679	$	49,703	2	%	4	%	(2	%)
(1) See notes 5-13 in the accompanying earnings release for a description of each business unit and of "Other".

PFIZER INC. REVENUES THIRD QUARTER 2011 and 2010 (UNAUDITED) (millions of dollars)
	WORLDWIDE								UNITED STATES						TOTAL INTERNATIONAL^(1)
	2011		2010		% Change				2011		2010		% Change		2011		2010		% Change
					Total		Oper.						Total						Total		Oper.
TOTAL REVENUES	$	17,193	$	15,995	7	%	1	%	$	6,879	$	7,063	(3	%)	$	10,314	$	8,932	15	%	4	%
REVENUES FROM BIOPHARMACEUTICAL PRODUCTS:	$	14,747	$	13,945	6	%	-		$	6,019	$	6,298	(4	%)	$	8,728	$	7,647	14	%	3	%
Lipitor		2,602		2,534	3	%	(2	%)		1,470		1,298	13	%		1,132		1,236	(8	%)	(18	%)
Prevnar / Prevenar 13		1,006		735	37	%	35	%		454		540	(16	%)		552		195	183	%	176	%
Enbrel (Outside the U.S. and Canada)		957		799	20	%	7	%		-		-	-			957		799	20	%	7	%
Lyrica		961		757	27	%	19	%		379		356	6	%		582		401	45	%	31	%
Celebrex		643		578	11	%	8	%		405		390	4	%		238		188	27	%	16	%
Viagra		493		459	7	%	2	%		244		242	1	%		249		217	15	%	4	%
Norvasc		350		330	6	%	(2	%)		5		-	100	%		345		330	5	%	(5	%)
Zyvox		321		285	13	%	7	%		154		148	4	%		167		137	22	%	11	%
Xalatan / Xalacom		277		416	(33	%)	(40	%)		9		157	(94	%)		268		259	3	%	(8	%)
Sutent		298		257	16	%	7	%		78		67	16	%		220		190	16	%	4	%
Premarin Family		267		263	2	%	1	%		241		241	-			26		22	18	%	13	%
Geodon / Zeldox		263		262	-		(2	%)		217		224	(3	%)		46		38	21	%	8	%
Detrol / Detrol LA		213		237	(10	%)	(13	%)		136		163	(17	%)		77		74	4	%	(6	%)
Genotropin		215		211	2	%	(7	%)		46		51	(10	%)		169		160	6	%	(5	%)
Vfend		171		200	(15	%)	(22	%)		-		64	(100	%)		171		136	26	%	17	%
Chantix / Champix		156		163	(4	%)	(10	%)		68		74	(8	%)		88		89	(1	%)	(12	%)
Effexor XR		165		175	(6	%)	(13	%)		52		58	(10	%)		113		117	(3	%)	(15	%)
BeneFIX		178		156	14	%	7	%		76		67	13	%		102		89	15	%	2	%
Zosyn / Tazocin		149		255	(42	%)	(44	%)		75		177	(58	%)		74		78	(5	%)	(10	%)
Caduet		150		127	18	%	12	%		80		86	(7	%)		70		41	71	%	49	%
Pristiq		146		118	24	%	21	%		119		102	17	%		27		16	69	%	47	%
Zoloft		139		126	10	%	1	%		15		18	(17	%)		124		108	15	%	3	%
Prevnar / Prevenar (7-valent)		98		179	(45	%)	(64	%)		-		-	-			98		179	(45	%)	(65	%)
Revatio		140		116	21	%	14	%		80		72	11	%		60		44	36	%	21	%
Medrol		127		119	7	%	3	%		33		33	-			94		86	9	%	4	%
Refacto AF/Xyntha		140		102	37	%	25	%		32		22	45	%		108		80	35	%	20	%
Zithromax / Zmax		93		90	3	%	(5	%)		4		4	-			89		86	3	%	(7	%)
Aricept**		117		106	10	%	(2	%)		-		-	-			117		106	10	%	(2	%)
Aromasin		85		111	(23	%)	(30	%)		8		39	(79	%)		77		72	7	%	(4	%)
Cardura		92		95	(3	%)	(12	%)		1		1	-			91		94	(3	%)	(12	%)
Rapamune		96		104	(8	%)	(11	%)		47		55	(15	%)		49		49	-		(7	%)
Fragmin		95		84	13	%	2	%		9		13	(31	%)		86		71	21	%	9	%
BMP2		83		101	(18	%)	(19	%)		77		98	(21	%)		6		3	100	%	60	%
Relpax		86		75	15	%	9	%		47		42	12	%		39		33	18	%	6	%
Xanax XR		77		72	7	%	(2	%)		13		14	(7	%)		64		58	10	%	(2	%)
Tygacil		76		78	(3	%)	(7	%)		38		40	(5	%)		38		38	-		(8	%)
Neurontin		67		80	(16	%)	(21	%)		14		21	(33	%)		53		59	(10	%)	(17	%)
Diflucan		72		74	(3	%)	(9	%)		-		2	(100	%)		72		72	-		(6	%)
Arthrotec		61		61	-		(4	%)		32		32	-			29		29	-		(7	%)
Unasyn		58		61	(5	%)	(11	%)		3		3	-			55		58	(5	%)	(13	%)
Protonix		65		203	(68	%)	(68	%)		65		203	(68	%)		-		-	-		-
EpiPen***		59		-	*		*			47		-	*			12		-	*		*
Sulperazon		51		49	4	%	(3	%)		-		-	-			51		49	4	%	(3	%)
Skelaxin***		58		-	*		*			58		-	*			-		-	-		-
Inspra		51		37	38	%	22	%		1		1	-			50		36	39	%	22	%
Dalacin/Cleocin		51		54	(6	%)	(12	%)		15		17	(12	%)		36		37	(3	%)	(9	%)
Alliance Revenue****		919		1,042	(12	%)	(15	%)		571		741	(23	%)		348		301	16	%	3	%
All other biopharmaceutical products		1,710		1,409	21	%	13	%		501		322	56	%		1,209		1,087	11	%	1	%
All other established products		1,406		1,161	21	%	19	%		388		245	58	%		1,018		916	11	%	2	%
REVENUES FROM OTHER PRODUCTS:
ANIMAL HEALTH	$	1,041	$	860	21	%	15	%	$	433	$	369	17	%	$	608	$	491	24	%	12	%
CONSUMER HEALTHCARE	$	774	$	673	15	%	11	%	$	408	$	374	9	%	$	366	$	299	22	%	13	%
NUTRITION	$	577	$	441	31	%	24	%		-		-	-		$	577	$	441	31	%	24	%
OTHER*****	$	54	$	76	(29	%)	(31	%)	$	19	$	22	(14	%)	$	35	$	54	(35	%)	(37	%)

*	-	Calculation not meaningful.
**	-	Represents direct sales under license agreement with Eisai Co., Ltd.
***	-	Legacy King product. King's results are included in our financial statements commencing from the acquisition date of January 31, 2011, in accordance with Pfizer's domestic and international year-ends.
		Therefore, our results for the third quarter of 2010 do not include King's results of operations.
****	-	Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.
*****	-	Includes revenues generated primarily from Pfizer Centresource.
Certain amounts and percentages may reflect rounding adjustments.
(1)		Total International represents Developed Europe region + Developed Rest of World region + Emerging Markets region. Details for these regions are located on the following page.

PFIZER INC. REVENUES DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION THIRD QUARTER 2011 and 2010 (UNAUDITED) (millions of dollars)
	DEVELOPED EUROPE^(1)								DEVELOPED REST OF WORLD^(2)								EMERGING MARKETS^(3)
	2011		2010		% Change				2011		2010		% Change				2011		2010		% Change
					Total		Oper.						Total		Oper.						Total		Oper.
TOTAL INTERNATIONAL REVENUES	$	4,074	$	3,762	8	%	(4	%)	$	2,840	$	2,349	21	%	8	%	$	3,400	$	2,821	21	%	14	%
REVENUES FROM BIOPHARMACEUTICAL PRODUCTS - INTERNATIONAL:	$	3,723	$	3,466	7	%	(5	%)	$	2,567	$	2,109	22	%	8	%	$	2,438	$	2,072	18	%	12	%
Lipitor		595		628	(5	%)	(16	%)		337		397	(15	%)	(27	%)		200		211	(5	%)	(10	%)
Prevnar / Prevenar 13		192		129	49	%	32	%		84		21	300	%	236	%		276		45	*		*
Enbrel (Outside the U.S. and Canada)		626		531	18	%	4	%		139		97	43	%	26	%		192		171	12	%	6	%
Lyrica		326		268	22	%	8	%		162		63	157	%	128	%		94		70	34	%	30	%
Celebrex		46		42	10	%	-			112		86	30	%	18	%		80		60	33	%	27	%
Viagra		102		95	7	%	(5	%)		57		47	21	%	9	%		90		75	20	%	13	%
Norvasc		38		45	(16	%)	(27	%)		187		178	5	%	(6	%)		120		107	12	%	6	%
Zyvox		78		69	13	%	1	%		38		32	19	%	6	%		51		36	42	%	36	%
Xalatan / Xalacom		126		134	(6	%)	(17	%)		94		81	16	%	4	%		48		44	9	%	-
Sutent		119		104	14	%	1	%		42		36	17	%	6	%		59		50	18	%	10	%
Premarin Family		3		3	-		(33	%)		7		7	-		14	%		16		12	33	%	17	%
Geodon / Zeldox		18		19	(5	%)	(16	%)		7		5	40	%	25	%		21		14	50	%	36	%
Detrol / Detrol LA		38		39	(3	%)	(11	%)		25		22	14	%	(4	%)		14		13	8	%	8	%
Genotropin		90		90	-		(12	%)		55		42	31	%	16	%		24		28	(14	%)	(15	%)
Vfend		78		70	11	%	(1	%)		34		30	13	%	10	%		59		36	64	%	58	%
Chantix / Champix		37		35	6	%	(6	%)		39		46	(15	%)	(26	%)		12		8	50	%	38	%
Effexor XR		48		55	(13	%)	(25	%)		39		37	5	%	(5	%)		26		25	4	%	(8	%)
BeneFIX		69		62	11	%	(2	%)		25		24	4	%	(8	%)		8		3	167	%	133	%
Zosyn / Tazocin		15		22	(32	%)	(38	%)		4		5	(20	%)	-			55		51	8	%	2	%
Caduet		4		5	(20	%)	(40	%)		51		22	132	%	105	%		15		14	7	%	-
Pristiq		-		-	-		-			17		10	70	%	36	%		10		6	67	%	50	%
Zoloft		17		21	(19	%)	(30	%)		74		57	30	%	12	%		33		30	10	%	7	%
Prevnar / Prevenar (7-valent)		4		23	(83	%)	(82	%)		94		56	68	%	53	%		-		100	(100	%)	(126	%)
Revatio		37		30	23	%	7	%		12		8	50	%	22	%		11		6	83	%	100	%
Medrol		24		22	9	%	-			11		12	(8	%)	-			59		52	13	%	10	%
Refacto AF/Xyntha		99		73	36	%	22	%		9		7	29	%	17	%		-		-	-		-
Zithromax / Zmax		15		15	-		(13	%)		37		34	9	%	(6	%)		37		37	-		(5	%)
Aricept**		61		53	15	%	-			45		39	15	%	5	%		11		14	(21	%)	(27	%)
Aromasin		42		44	(5	%)	(18	%)		17		15	13	%	7	%		18		13	38	%	31	%
Cardura		30		36	(17	%)	(28	%)		37		36	3	%	(3	%)		24		22	9	%	-
Rapamune		15		14	7	%	-			4		4	-		-			30		31	(3	%)	(10	%)
Fragmin		45		33	36	%	21	%		21		18	17	%	6	%		20		20	-		(10	%)
BMP2		6		3	100	%	33	%		-		-	-		-			-		-	-		-
Relpax		20		17	18	%	-			15		12	25	%	8	%		4		4	-		-
Xanax XR		26		26	-		(12	%)		12		10	20	%	-			26		22	18	%	9	%
Tygacil		16		19	(16	%)	(26	%)		1		1	-		-			21		18	17	%	6	%
Neurontin		17		22	(23	%)	(33	%)		14		13	8	%	-			22		24	(8	%)	(8	%)
Diflucan		21		21	-		(14	%)		13		12	8	%	-			38		39	(3	%)	(5	%)
Arthrotec		12		14	(14	%)	(29	%)		13		12	8	%	-			4		3	33	%	33	%
Unasyn		8		9	(11	%)	(22	%)		21		17	24	%	-			26		32	(19	%)	(16	%)
Protonix		-		-	-		-			-		-	-		-			-		-	-		-
EpiPen***		-		-	-		-			12		-	*		*			-		-	-		-
Sulperazon		-		-	-		-			11		10	10	%	(10	%)		40		39	3	%	-
Skelaxin***		-		-	-		-			-		-	-		-			-		-	-		-
Inspra		33		25	32	%	16	%		13		9	44	%	22	%		4		2	100	%	100	%
Dalacin/Cleocin		9		10	(10	%)	(11	%)		7		5	40	%	-			20		22	(9	%)	(9	%)
Alliance Revenue****		131		130	1	%	(11	%)		196		153	28	%	15	%		21		18	17	%	11	%
All other biopharmaceutical products		387		361	7	%	(6	%)		323		281	15	%	5	%		499		445	12	%	5	%
All other established products		294		273	8	%	(5	%)		283		242	17	%	5	%		441		401	10	%	5	%
REVENUES FROM OTHER PRODUCTS - INTERNATIONAL:	$	351	$	296	19	%	7	%	$	273	$	240	14	%	-		$	962	$	749	28	%	21	%

*	-	Calculation not meaningful.
**	-	Represents direct sales under license agreement with Eisai Co., Ltd.
***	-	Legacy King product. King's results are included in our financial statements commencing from the acquisition date of January 31, 2011, in accordance with Pfizer's domestic and international year-ends.
		Therefore, our results for the third quarter of 2010 do not include King's results of operations.
****	-	Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.
Certain amounts and percentages may reflect rounding adjustments.
(1)		Developed Europe region includes the following markets: Western Europe and the Scandinavian countries.
(2)		Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand, and South Korea.
(3)		Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

PFIZER INC. REVENUES NINE MONTHS 2011 and 2010 (UNAUDITED) (millions of dollars)
	WORLDWIDE								UNITED STATES						TOTAL INTERNATIONAL^(1)
	2011		2010		% Change				2011			2010	% Change		2011		2010		% Change
					Total		Oper.						Total						Total		Oper.
TOTAL REVENUES	$	50,679	$	49,703	2	%	(2	%)	$	20,603	$	21,661	(5	%)	$	30,076	$	28,042	7	%	1	%
REVENUES FROM BIOPHARMACEUTICAL PRODUCTS:	$	43,611	$	43,472	-		(3	%)	$	18,246	$	19,554	(7	%)	$	25,365	$	23,918	6	%	-
Lipitor		7,578		8,104	(6	%)	(9	%)		4,187		3,921	7	%		3,391		4,183	(19	%)	(24	%)
Prevnar / Prevenar 13		2,823		1,590	78	%	76	%		1,533		1,231	25	%		1,290		359	259	%	251	%
Enbrel (Outside the U.S. and Canada)		2,741		2,409	14	%	7	%		-		-	-			2,741		2,409	14	%	7	%
Lyrica		2,695		2,242	20	%	16	%		1,116		1,073	4	%		1,579		1,169	35	%	27	%
Celebrex		1,856		1,752	6	%	3	%		1,179		1,176	-			677		576	18	%	10	%
Viagra		1,458		1,429	2	%	(1	%)		732		729	-			726		700	4	%	(2	%)
Norvasc		1,081		1,120	(3	%)	(10	%)		23		24	(4	%)		1,058		1,096	(3	%)	(10	%)
Zyvox		965		876	10	%	7	%		486		463	5	%		479		413	16	%	9	%
Xalatan / Xalacom		960		1,287	(25	%)	(30	%)		159		453	(65	%)		801		834	(4	%)	(10	%)
Sutent		870		771	13	%	8	%		218		198	10	%		652		573	14	%	7	%
Premarin Family		757		779	(3	%)	(3	%)		683		713	(4	%)		74		66	12	%	5	%
Geodon / Zeldox		753		763	(1	%)	(2	%)		627		642	(2	%)		126		121	4	%	(3	%)
Detrol / Detrol LA		668		758	(12	%)	(14	%)		422		515	(18	%)		246		243	1	%	(5	%)
Genotropin		654		650	1	%	(5	%)		144		156	(8	%)		510		494	3	%	(4	%)
Vfend		558		595	(6	%)	(11	%)		64		187	(66	%)		494		408	21	%	15	%
Chantix / Champix		545		522	4	%	1	%		248		252	(2	%)		297		270	10	%	3	%
Effexor XR		537		1,512	(64	%)	(66	%)		207		1,142	(82	%)		330		370	(11	%)	(17	%)
BeneFIX		518		474	9	%	6	%		223		211	6	%		295		263	12	%	6	%
Zosyn / Tazocin		490		749	(35	%)	(36	%)		267		505	(47	%)		223		244	(9	%)	(12	%)
Caduet		435		388	12	%	8	%		235		256	(8	%)		200		132	52	%	38	%
Pristiq		422		341	24	%	22	%		348		301	16	%		74		40	85	%	65	%
Zoloft		420		390	8	%	-			46		54	(15	%)		374		336	11	%	3	%
Prevnar / Prevenar (7-valent)		406		1,030	(61	%)	(66	%)		-		214	(100	%)		406		816	(50	%)	(58	%)
Revatio		393		352	12	%	8	%		229		216	6	%		164		136	21	%	12	%
Medrol		383		341	12	%	9	%		116		88	32	%		267		253	6	%	2	%
Refacto AF/Xyntha		380		290	31	%	25	%		75		61	23	%		305		229	33	%	25	%
Zithromax / Zmax		335		303	11	%	4	%		17		10	70	%		318		293	9	%	1	%
Aricept**		335		337	(1	%)	(7	%)		-		-	-			335		337	(1	%)	(7	%)
Aromasin		294		361	(19	%)	(22	%)		53		122	(57	%)		241		239	1	%	(5	%)
Cardura		289		312	(7	%)	(13	%)		4		11	(64	%)		285		301	(5	%)	(12	%)
Rapamune		285		292	(2	%)	(5	%)		139		150	(7	%)		146		142	3	%	(2	%)
Fragmin		283		258	10	%	3	%		32		40	(20	%)		251		218	15	%	7	%
BMP2		277		298	(7	%)	(8	%)		260		286	(9	%)		17		12	42	%	20	%
Relpax		250		239	5	%	2	%		142		141	1	%		108		98	10	%	2	%
Xanax XR		232		224	4	%	(2	%)		41		38	8	%		191		186	3	%	(4	%)
Tygacil		224		250	(10	%)	(13	%)		112		133	(16	%)		112		117	(4	%)	(9	%)
Neurontin		222		238	(7	%)	(10	%)		51		57	(11	%)		171		181	(6	%)	(10	%)
Diflucan		201		205	(2	%)	(6	%)		3		5	(40	%)		198		200	(1	%)	(5	%)
Arthrotec		182		185	(2	%)	(4	%)		96		97	(1	%)		86		88	(2	%)	(7	%)
Unasyn		172		182	(5	%)	(10	%)		4		6	(33	%)		168		176	(5	%)	(10	%)
Protonix		168		535	(69	%)	(69	%)		168		535	(69	%)		-		-	-		-
EpiPen***		160		-	*		*			133		-	*			27		-	*		*
Sulperazon		155		153	1	%	(4	%)		-		-	-			155		153	1	%	(4	%)
Skelaxin***		145		-	*		*			145		-	*		-			-	*		*
Inspra		142		113	26	%	17	%		3		4	(25	%)		139		109	28	%	18	%
Dalacin/Cleocin		139		168	(17	%)	(21	%)		35		55	(36	%)		104		113	(8	%)	(12	%)
Alliance Revenue****		2,678		3,107	(14	%)	(16	%)		1,628		2,211	(26	%)		1,050		896	17	%	9	%
All other biopharmaceutical products		5,097		4,198	21	%	17	%		1,613		872	85	%		3,484		3,326	5	%	(1	%)
All other established products		4,207		3,492	20	%	20	%		1,287		703	83	%		2,920		2,789	5	%	(1	%)
REVENUES FROM OTHER PRODUCTS:
ANIMAL HEALTH	$	3,078	$	2,599	18	%	14	%	$	1,205	$	1,006	20	%	$	1,873	$	1,593	18	%	11	%
CONSUMER HEALTHCARE	$	2,240	$	2,014	11	%	8	%	$	1,087	$	1,016	7	%	$	1,153	$	998	16	%	9	%
NUTRITION	$	1,540	$	1,375	12	%	7	%		-		-	-		$	1,540	$	1,375	12	%	7	%
OTHER*****	$	210	$	243	(14	%)	(14	%)	$	65	$	85	(24	%)	$	145	$	158	(8	%)	(10	%)

*	-	Calculation not meaningful.
**	-	Represents direct sales under license agreement with Eisai Co., Ltd.
***	-	Legacy King product. King's results are included in our financial statements commencing from the acquisition date of January 31, 2011, in accordance with Pfizer's domestic and international year-ends.
		Therefore, our results for the first nine months of 2010 do not include King's results of operations.
****	-	Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.
*****	-	Includes revenues generated primarily from Pfizer Centresource. Certain amounts and percentages may reflect rounding adjustments.
(1)		Total International represents Developed Europe region + Developed Rest of World region + Emerging Markets region. Details for these regions are located on the following page.

PFIZER INC. REVENUES DETAIL OF INTERNATIONAL REVENUES BY GEOGRAPHIC REGION NINE MONTHS 2011 and 2010 (UNAUDITED) (millions of dollars)
	DEVELOPED EUROPE^(1)								DEVELOPED REST OF WORLD^(2)								EMERGING MARKETS^(3)
	2011		2010		% Change				2011		2010		% Change				2011		2010		% Change
					Total		Oper.						Total		Oper.						Total		Oper.
TOTAL INTERNATIONAL REVENUES	$	12,223	$	12,079	1	%	(4	%)	$	8,059	$	7,344	10	%	(1	%)	$	9,794	$	8,619	14	%	9	%
REVENUES FROM BIOPHARMACEUTICAL PRODUCTS - INTERNATIONAL:	$	11,064	$	10,974	1	%	(5	%)	$	7,270	$	6,650	9	%	(1	%)	$	7,031	$	6,294	12	%	7	%
Lipitor		1,804		1,987	(9	%)	(14	%)		955		1,505	(37	%)	(44	%)		632		691	(9	%)	(12	%)
Prevnar / Prevenar 13		545		274	99	%	88	%		171		23	*		*			574		62	*		*
Enbrel (Outside the U.S. and Canada)		1,758		1,659	6	%	-			391		288	36	%	22	%		592		462	28	%	23	%
Lyrica		931		802	16	%	10	%		381		162	135	%	114	%		267		205	30	%	26	%
Celebrex		134		132	2	%	(4	%)		307		245	25	%	15	%		236		199	19	%	13	%
Viagra		296		299	(1	%)	(6	%)		158		143	10	%	-			272		258	5	%	1	%
Norvasc		127		154	(18	%)	(21	%)		575		601	(4	%)	(13	%)		356		341	4	%	-
Zyvox		229		215	7	%	1	%		108		93	16	%	5	%		142		105	35	%	30	%
Xalatan / Xalacom		385		430	(10	%)	(15	%)		270		265	2	%	(8	%)		146		139	5	%	-
Sutent		353		322	10	%	4	%		122		100	22	%	11	%		177		151	17	%	13	%
Premarin Family		8		8	-		(13	%)		24		21	14	%	10	%		42		37	14	%	5	%
Geodon / Zeldox		58		66	(12	%)	(17	%)		17		13	31	%	15	%		51		42	21	%	14	%
Detrol / Detrol LA		119		129	(8	%)	(13	%)		82		71	15	%	4	%		45		43	5	%	2	%
Genotropin		267		277	(4	%)	(9	%)		162		133	22	%	9	%		81		84	(4	%)	(7	%)
Vfend		226		219	3	%	(2	%)		108		92	17	%	9	%		160		97	65	%	61	%
Chantix / Champix		134		123	9	%	4	%		124		124	-		(9	%)		39		23	70	%	65	%
Effexor XR		141		184	(23	%)	(28	%)		114		113	1	%	(10	%)		75		73	3	%	(1	%)
BeneFIX		193		187	3	%	(2	%)		82		65	26	%	17	%		20		11	82	%	73	%
Zosyn / Tazocin		49		83	(41	%)	(43	%)		11		12	(8	%)	-			163		149	9	%	5	%
Caduet		13		15	(13	%)	(20	%)		143		79	81	%	64	%		44		38	16	%	11	%
Pristiq		-		-	-		-			48		27	78	%	54	%		26		13	100	%	85	%
Zoloft		61		66	(8	%)	(14	%)		217		181	20	%	8	%		96		89	8	%	4	%
Prevnar / Prevenar (7-valent)		22		230	(90	%)	(91	%)		277		172	61	%	45	%		107		414	(74	%)	(82	%)
Revatio		105		94	12	%	5	%		34		24	42	%	29	%		25		18	39	%	33	%
Medrol		78		74	5	%	-			35		34	3	%	(3	%)		154		145	6	%	4	%
Refacto AF/Xyntha		279		209	33	%	26	%		25		20	25	%	5	%		1		-	100	%	*
Zithromax / Zmax		61		61	-		(3	%)		131		115	14	%	1	%		126		117	8	%	3	%
Aricept**		171		172	(1	%)	(8	%)		125		111	13	%	4	%		39		54	(28	%)	(30	%)
Aromasin		142		146	(3	%)	(8	%)		51		45	13	%	2	%		48		48	-		(2	%)
Cardura		94		114	(18	%)	(22	%)		116		116	-		(9	%)		75		71	6	%	1	%
Rapamune		45		41	10	%	5	%		13		13	-		(8	%)		88		88	-		(5	%)
Fragmin		132		110	20	%	12	%		57		48	19	%	8	%		62		60	3	%	(2	%)
BMP2		17		12	42	%	15	%		-		-	-		-			-		-	-		-
Relpax		56		54	4	%	(4	%)		40		33	21	%	9	%		12		11	9	%	9	%
Xanax XR		80		81	(1	%)	(6	%)		36		33	9	%	(3	%)		75		72	4	%	(3	%)
Tygacil		49		60	(18	%)	(22	%)		4		3	33	%	-			59		54	9	%	4	%
Neurontin		58		64	(9	%)	(16	%)		42		41	2	%	(7	%)		71		76	(7	%)	(8	%)
Diflucan		59		64	(8	%)	(13	%)		35		35	-		(11	%)		104		101	3	%	1	%
Arthrotec		37		45	(18	%)	(22	%)		37		35	6	%	-			12		8	50	%	50	%
Unasyn		26		29	(10	%)	(14	%)		61		57	7	%	(7	%)		81		90	(10	%)	(11	%)
Protonix		-		-	-		-			-		-	-		-			-		-	-		-
EpiPen***		-		-	-		-			27		-	*		*			-		-	-		-
Sulperazon		-		-	-		-			32		32	-		(13	%)		123		121	2	%	(2	%)
Skelaxin***		-		-	-		-			-		-	-		-			-		-	-		-
Inspra		92		78	18	%	12	%		37		25	48	%	27	%		10		6	67	%	50	%
Dalacin/Cleocin		26		31	(16	%)	(23	%)		19		19	-		(11	%)		59		63	(6	%)	(10	%)
Alliance Revenue****		433		399	9	%	3	%		557		442	26	%	14	%		60		55	9	%	5	%
All other biopharmaceutical products		1,171		1,175	-		(5	%)		909		841	8	%	(1	%)		1,404		1,310	7	%	3	%
All other established products		883		906	(3	%)	(8	%)		806		741	9	%	(2	%)		1,231		1,142	8	%	4	%
REVENUES FROM OTHER PRODUCTS - INTERNATIONAL:	$	1,159	$	1,105	5	%	-		$	789	$	694	14	%	3	%	$	2,763	$	2,325	19	%	14	%

*	-	Calculation not meaningful.
**	-	Represents direct sales under license agreement with Eisai Co., Ltd.
***	-	Legacy King product. King's results are included in our financial statements commencing from the acquisition date of January 31, 2011, in accordance with Pfizer's domestic and international year-ends.
		Therefore, our results for the first nine months of 2010 do not include King's results of operations.
****	-	Enbrel (in the U.S. and Canada), Aricept, Exforge, Rebif and Spiriva.
Certain amounts and percentages may reflect rounding adjustments.
(1)		Developed Europe region includes the following markets: Western Europe and the Scandinavian countries.
(2)		Developed Rest of World region includes the following markets: Australia, Canada, Japan, New Zealand, and South Korea.
(3)		Emerging Markets region includes, but is not limited to, the following markets: Asia (excluding Japan and South Korea), Latin America, Middle East, Africa, Central and Eastern Europe and Turkey.

PFIZER INC.
SUPPLEMENTAL INFORMATION

1. Change in Reported Cost of Sales

Reported cost of sales decreased 3% in third-quarter 2011 and 4% in the first nine months of 2011, compared to the same periods in 2010. The decreases are due to lower purchase accounting adjustments and lower inventory write-offs in 2011, as well as savings associated with our cost-reduction and productivity initiatives, partially offset by the addition of King’s manufacturing operations and the unfavorable impact of foreign exchange of 8% in third-quarter 2011 and 7% in the first nine months of 2011.

Reported cost of sales as a percentage of revenues decreased 2.3 percentage points to 21.4% in third-quarter 2011, compared to the same period in 2010, reflecting the aforementioned factors.

2. Change in Reported Selling, Informational & Administrative (SI&A) Expenses and Reported Research & Development (R&D) Expenses

Reported SI&A expenses were largely unchanged in third-quarter 2011 and increased 2% in the first nine months of 2011, compared to the same periods in 2010. Both periods were unfavorably impacted by the annual fee provided for under the 2010 U.S. healthcare reform legislation beginning this year and the addition of legacy King operating costs, and favorably impacted by savings associated with our cost-reduction and productivity initiatives. In addition, the third quarter and first nine months of 2011 were unfavorably impacted by foreign exchange of 5% and 3%, respectively.

Reported R&D expenses were largely unchanged in third-quarter 2011 and decreased 1% in the first nine months of 2011, compared to the same periods in 2010. Both periods were favorably impacted by savings associated with our cost-reduction and productivity initiatives, and unfavorably impacted by higher charges related to those initiatives, the addition of legacy King expenses and the unfavorable impact of foreign exchange of 2% in both periods.

3. Other (Income)/Deductions – Net

($ in millions)		Third Quarter						Nine Months
		2011			2010			2011			2010
Interest income^(a)	$	(110	)	$	(100	)	$	(332	)	$	(297	)
Interest expense^(a)		423			427			1,285			1,338
Net interest expense		313			327			953			1,041
Royalty-related income		(135	)		(158	)		(447	)		(395	)
Net losses/(gains) on asset disposals		18			(13	)		(8	)		(243	)
Certain legal matters, net^(b)		132			712			619			886
Certain asset impairment charges^(c)		105			1,478			585			1,710
Other, net		105			3			76			37
Other deductions-net	$	538		$	2,349		$	1,778		$	3,036

(a) Interest income increased in both periods of 2011 due to higher cash balances and higher interest rates earned on investments. Interest expense decreased in both periods of 2011 due to lower long- and short-term debt balances and the conversion of some fixed-rate liabilities to floating-rate liabilities.

(b) In the first nine months of 2011, primarily relates to charges for hormone-replacement therapy litigation. In both periods of 2010, primarily includes a charge for asbestos litigation related to our wholly owned subsidiary, Quigley Company, Inc.

(c) In 2011 and 2010, primarily relates to certain Wyeth assets, including in-process research and development (IPR&D) intangible assets.

4. Effective Tax Rate

Reported

The effective tax rate on reported Income from continuing operations before provision for taxes on income for third-quarter 2011 was 33.7% compared to 39.5% for third-quarter 2010, and in the first nine months of 2011 was 30.8% compared to 37.3% in the first nine months of 2010. The decreases in the effective tax rate were primarily due to:

• the extension of the U.S. research and development credit, which was signed into law on December 17, 2010;
• the decrease and jurisdictional mix of certain impairment charges related to assets acquired in connection with the Wyeth acquisition; and
• the change in the jurisdictional mix of earnings.

Adjusted

The effective tax rate on adjusted income⁽¹⁾ for third quarter 2011 was 30.9% compared to 30.2% in third-quarter 2010 primarily due to the change in the jurisdictional mix of earnings partially offset by the extension of the U.S. research and development credit, and in the first nine months of 2011 was 29.3% compared to 30.7% in the first nine months of 2010 primarily as a result of the extension of the U.S. research and development credit and the change in the jurisdictional mix of earnings.

5. Reconciliation of 2011 Adjusted Income⁽¹⁾ and Adjusted Diluted EPS⁽¹⁾ Guidance to 2011 Reported Net Income Attributable to Pfizer Inc. and Reported Diluted EPS Attributable to Pfizer Inc. Common Shareholders Guidance ^(a)

	Full-Year 2011 Guidance
($ in billions, except per share amounts)	Net Income^(b)	Diluted EPS^(b)
Income/(Expense)
Adjusted Income/Diluted EPS^(1) Guidance	~$17.7 - $18.1	~$2.24 - $2.29
Purchase Accounting Impacts of Transactions Completed as of 10/2/11	(4.8)	(0.62)
Acquisition-Related Costs	(1.5 – 1.7)	(0.19 - 0.21)
Non-Acquisition-Related Restructuring Costs^(c)	(2.0 – 2.2)	(0.25 - 0.28)
Gain on Sale of and Income from Capsugel Discontinued Operations	1.3	0.17
Other Certain Significant Items	(0.8)	(0.10)
Reported Net Income Attributable to Pfizer Inc./Diluted EPS Guidance	~$9.5 - $10.3	~$1.20 - $1.30

(a) The current exchange rates assumed in connection with the 2011 financial guidance are a blend of the actual exchange rates in effect during the first nine months of 2011 and the mid-October 2011 exchange rates for the remainder of the year.

(b) Includes revenues and expenses related to the Capsugel business as a discontinued operation through July 31, 2011. Does not assume the completion of any business-development transactions not completed as of October 2, 2011, including any one-time upfront payments associated with such transactions. Also excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of October 2, 2011.

(c) Includes amounts related to our initiatives to reduce R&D spending, including our realigned R&D footprint, and related to other cost-reduction and productivity initiatives. These amounts are included in Certain Significant Items.

6. Reconciliation of 2012 Adjusted Income⁽¹⁾ and Adjusted Diluted EPS⁽¹⁾ Targets to 2012 Reported Net Income Attributable to Pfizer Inc. and Reported Diluted EPS Attributable to Pfizer Inc. Common Shareholders Targets ^(a)

	Full-Year 2012 Targets
($ in billions, except per share amounts)	Net Income^(b)	Diluted EPS^(b)
Income/(Expense)
Adjusted Income/Diluted EPS^(1) Targets	~$17.2 - $17.9	~$2.25 - $2.35
Purchase Accounting Impacts of Transactions Completed as of 10/2/11	(3.8)	(0.50)
Acquisition-Related Costs	(0.7 - 1.0)	(0.09 - 0.12)
Non-Acquisition-Related Restructuring Costs^(c)	(0.3 - 0.4)	(0.03 - 0.05)
Reported Net Income Attributable to Pfizer Inc./Diluted EPS Targets	~$12.0 - $13.1	~$1.58 - $1.73

(a) The current exchange rates assumed in connection with the 2012 financial targets are the mid-October 2011 exchange rates.

(b) Does not assume the completion of any business-development transactions not completed as of October 2, 2011, including any one-time upfront payments associated with such transactions. Also excludes the potential effects of the resolution of litigation-related matters not substantially resolved as of October 2, 2011.

(c) Includes amounts related to our initiatives to reduce R&D spending, including our realigned R&D footprint, and related to other cost-reduction and productivity initiatives. These amounts are included in Certain Significant Items.

⁽¹⁾ “Adjusted income” and “adjusted diluted earnings per share (EPS)” are defined as reported net income attributable to Pfizer Inc. and reported diluted EPS attributable to Pfizer Inc. common shareholders excluding purchase accounting adjustments, acquisition-related costs, discontinued operations and certain significant items. As described under Adjusted Income in the Management’s Discussion and Analysis of Financial Condition and Results of Operations section of Pfizer’s Form 10-Q for the fiscal quarter ended July 3, 2011, management uses adjusted income, among other factors, to set performance goals and to measure the performance of the overall company. We believe that investors’ understanding of our performance is enhanced by disclosing this measure. The adjusted income and adjusted diluted EPS measures are not, and should not be viewed as, substitutes for U.S. GAAP net income and diluted EPS.

DISCLOSURE NOTICE: The information contained in this earnings release and the attachments is as of November 1, 2011. The Company assumes no obligation to update forward-looking statements contained in this earnings release or the attachments as a result of new information or future events or developments.

This earnings release and the attachments contain forward-looking information about the Company’s future operating and financial performance, business plans and prospects, in-line products and product candidates, and share-repurchase and dividend-rate plans that involves substantial risks and uncertainties. You can identify these statements by the fact that they use words such as “will,” “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “target,” “forecast”, “goal”, “objective” and other words and terms of similar meaning or use future dates. Among the factors that could cause actual results to differ materially are the following: the success of research and development activities, including, without limitation, the ability to meet anticipated clinical trial completion dates, regulatory submission and approval dates, and launch dates for product candidates; decisions by regulatory authorities regarding whether and when to approve our drug applications as well as their decisions regarding labeling, ingredients and other matters that could affect the availability or commercial potential of our products; the speed with which regulatory authorizations, pricing approvals and product launches may be achieved; the success of external business-development activities; competitive developments, including the impact on our competitive position of new product entrants, in-line branded products, generic products, private label products and product candidates that treat diseases and conditions similar to those treated by our in-line drugs and drug candidates; the ability to meet generic and branded competition after the loss of patent protection for our products or competitor products; the ability to successfully market both new and existing products domestically and internationally; difficulties or delays in manufacturing; trade buying patterns; the impact of existing and future legislation and regulatory provisions on product exclusivity; trends toward managed care and healthcare cost containment; the impact of the U.S. Budget Control Act of 2011 (the Budget Control Act) and the deficit-reduction actions to be taken pursuant to the Budget Control Act in order to achieve the deficit-reduction targets provided for therein; the impact of U.S. healthcare legislation enacted in 2010 – the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act - and of any modification, repeal or invalidation of any of the provisions thereof; U.S. legislation or regulatory action affecting, among other things, pharmaceutical product pricing, reimbursement or access, including under Medicaid, Medicare and other publicly funded or subsidized health programs, the importation of prescription drugs from outside the U.S. at prices that are regulated by governments of various foreign countries, direct-to-consumer advertising and interactions with healthcare professionals, and the use of comparative effectiveness methodologies that could be implemented in a manner that focuses primarily on the cost differences and minimizes the therapeutic differences among pharmaceutical products and restricts access to innovative medicines; legislation or regulatory action in markets outside the U.S. affecting pharmaceutical product pricing, reimbursement or access; contingencies related to actual or alleged environmental contamination; claims and concerns that may arise regarding the safety or efficacy of in-line products and product candidates; significant breakdown, infiltration, or interruption of our information technology systems and infrastructure; legal defense costs, insurance expenses, settlement costs, the risk of an adverse decision or settlement and the adequacy of reserves related to product liability, patent protection, government investigations, consumer, commercial, securities, environmental and tax issues, ongoing efforts to explore various means for resolving asbestos litigation, and other legal proceedings; the Company’s ability to protect its patents and other intellectual property both domestically and internationally; interest rate and foreign currency exchange rate fluctuations; governmental laws and regulations affecting domestic and foreign operations, including, without limitation, tax obligations and changes affecting the tax treatment by the U.S. of income earned outside of the U.S. that result from the enactment in August 2010 of the Education Jobs and Medicaid Assistance Act of 2010 and that may result from pending and possible future proposals; changes in U.S. generally accepted accounting principles; uncertainties related to general economic, political, business, industry, regulatory and market conditions including, without limitation, uncertainties related to the impact on us, our lenders, our customers, our suppliers and counterparties to our foreign-exchange and interest-rate agreements of challenging global economic conditions and recent and possible future changes in global financial markets; any changes in business, political and economic conditions due to actual or threatened terrorist activity in the U. S. and other parts of the world, and related U. S. military action overseas; growth in costs and expenses; changes in our product, segment and geographic mix; and the impact of acquisitions, divestitures, restructurings, product withdrawals and other unusual items, including (i) our ability to successfully implement our plans, announced on February 1, 2011, regarding the Company’s research and development function, including the planned exit from the Company’s Sandwich, U.K. site, subject to works council and union consultations; (ii) our ability to realize the projected benefits of our acquisitions of Wyeth and King Pharmaceuticals, Inc.; (iii) our ability to realize the projected benefits of our cost-reduction and productivity initiatives, including those related to the Wyeth integration and to our research and development function; and (iv) the impact of the strategic alternatives that we decide to pursue for our Animal Health and Nutrition businesses. A further list and description of risks, uncertainties and other matters can be found in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2010 and in its reports on Form 10-Q, in each case including in the sections thereof captioned “Forward-Looking Information and Factors That May Affect Future Results” and “Item 1A. Risk Factors”, and in its reports on Form 8-K.

This earnings release may include discussion of certain clinical studies relating to various in-line products and/or product candidates. These studies typically are part of a larger body of clinical data relating to such products or product candidates, and the discussion herein should be considered in the context of the larger body of data.