Q3 2011 Earnings Call
November 01, 2011 10:00 am ET
Olivier Brandicourt - President of Worldwide Primary Care Business and General Manager of Worldwide Primary Care Business
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Geno J. Germano - President of Pfizer Specialty Care & Oncology and General Manager of Pfizer Specialty Care & Oncology
Frank A. D'Amelio - Chief Financial Officer, Executive Vice President of Business Operations and Member of Executive Compliance Committee
Mikael Dolsten - Senior Vice President and President of Pfizer Worldwide Research & Development
Charles E. Triano - Senior Vice President of Investor Relations
Unknown Executive -
David S. Simmons - President of Emerging Markets & Established Products units and General Manager of Emerging Markets & Established Products units
Amy W. Schulman - Executive Vice President, Corporate Secretary, General Counsel, Business Unit Lead of Pfizer Nutrition and Member of Executive Compliance Committee
Charles Anthony Butler - Barclays Capital, Research Division
Steve Scala - Cowen and Company, LLC, Research Division
Gregory B. Gilbert - BofA Merrill Lynch, Research Division
David Risinger - Morgan Stanley, Research Division
Seamus Fernandez - Leerink Swann LLC, Research Division
Tim Anderson - Sanford C. Bernstein & Co., LLC., Research Division
Jami Rubin - Goldman Sachs Group Inc., Research Division
Barbara A. Ryan - Deutsche Bank AG, Research Division
John T. Boris - Citigroup Inc, Research Division
Christopher Schott - JP Morgan Chase & Co, Research Division
Catherine J. Arnold - Crédit Suisse AG, Research Division
Good day, everyone, and welcome to Pfizer's Third Quarter 2011 Earnings Conference Call. Today's call is being recorded. At this time, I would look to turn the call over to Mr. Chuck Triano, Senior Vice President of Investor Relations. Please go ahead, sir.
Charles E. Triano
Good morning, and thank you for joining us today to review Pfizer's third quarter 2011 performance. I'm joined today by our CEO, Ian Read; Frank D’Amelio, our CFO; Olivier Brandicourt, President and General Manager of Primary Care; Michael Dolsten, President of Research and Development; Geno Germano, President and General Manager of Specialty Care and Oncology; Amy Schulman, General Counsel and Business Unit Lead for Nutritionals; and David Simmons, President and General Manager of Emerging Markets and Established Products. The slides that will be presented on this call can be viewed on our homepage, pfizer.com, by clicking on the link for Pfizer quarterly corporate performance third quarter 2011 located in the Investor Presentation section in the lower right-hand corner of this page.
Before we start, I would like to remind you that our discussions during this conference call will include forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ are discussed in Pfizer's 2010 annual report on Form 10-K and in our reports on Forms 10-Q and 8-K. Also, the discussions during this conference call will include certain financial measures that were not prepared in accordance with Generally Accepted Accounting Principles. Reconciliation of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in Pfizer's current report on Form 8-K dated today, November 1, 2011. With that, I'll now turn the call over to Ian Read. Ian?
Ian C. Read
Thank you, Chuck. During my remarks this morning, I will briefly recap some highlights from the quarter, provide an update on our capital allocation activities including where we are with the Animal Health and Nutritional strategic reviews, comment on some of the continued progress we're seeing in the productivity of our innovative core and close with a few comments about the external market and political environment we're operating within.
Overall, we delivered a solid financial performance for the quarter despite a challenging global operating environment and the ongoing impact from LOEs. And given our performance year-to-date, we have increased our EPS guidance range for the full year.
In terms of highlights for the quarter, our Emerging Markets business had a strong quarter delivering operational growth of 12% with solid performance in key countries such as China, Russia, Turkey and India. All we know, these markets will continue to be volatile going forward. Our performance this quarter demonstrates the traction we are getting as a result of the investments we are making.
We saw strong performance this quarter from Lipitor in the U.S. We have worked hard to maximize the value of and best position the brand ahead of the LOE. We are well prepared as the November 30 LOE date in the U.S. approaches.
I am pleased with the continued progress of our Established Products business to penetrate the growing generics market both in developed markets as well as within emerging markets. Close to $1 billion of the $3.2 billion in total revenues for Established Products in both the Emerging Markets and Established Products unit came from Emerging Markets. Overall, the performance of our established product unit was strong excluding the impact of LOEs experienced this quarter. I would also note our Established Products business has stepped in to help address recent drug shortages within the U.S., particularly in the area of off-patent oncology products.
In Specialty Care, our Prevenar franchise continues to do well. While sales performed in the U.S. reflected the tail end of the catch-up opportunity, we saw continued growth in most international markets. The underlying demand for Prevnar remains robust.
Animal Health, Nutrition and Consumer all turned in strong quarters. Operationally with Animal Health growing 15%, Nutrition growing 24% and Consumer growing 11% over the same quarter last year. And in Japan, our second largest market, we generated 19% operational growth company-wide.