v3.22.2.2
Segment, Geographic and Other Revenue Information
 9 Months Ended
Oct. 02, 2022
Segment Reporting [Abstract]  
Segment, Geographic and Other Revenue Information Segment, Geographic and Other Revenue Information
A. Segment Information
We manage our commercial operations through two operating segments, Biopharma and PC1, which are each led by a single manager. Biopharma is the only reportable segment. Each operating segment has responsibility for its commercial activities. Regional commercial organizations market, distribute and sell our products and are supported by global platform functions that are responsible for the research, development, manufacturing and supply of our products and global corporate enabling functions. Biopharma receives its R&D services from WRDM and GPD. These services include IPR&D projects for new investigational products and additional indications for in-line products. Each operating segment has a geographic footprint across developed and emerging markets. Our chief operating decision maker uses the revenues and earnings of the operating segments, among other factors, for performance evaluation and resource allocation.
After the organizational changes in the third quarter of 2022 (see Note 1A), the new commercial structure within Biopharma is designed to better support and optimize performance across three broad therapeutic areas:
•Primary Care consists of the former Internal Medicine and Vaccines product portfolios, as well as COVID-19 products and potential future mRNA products.
•Specialty Care consists of the former Inflammation & Immunology, Rare Disease and Hospital (excluding Paxlovid) product portfolios.
•Oncology consists of the former Oncology product portfolio.
Other Costs and Business Activities––Certain pre-tax costs are not allocated to our operating segment results, such as costs included in Other business activities that are associated with: (i) R&D and medical expenses managed by our WRDM and GPD organizations; (ii) corporate enabling functions and other corporate costs; (iii) overhead costs primarily associated with our manufacturing operations; and (iv) our share of earnings from Haleon/the Consumer Healthcare JV. Additionally, all amortization of intangible assets, acquisition-related items, and certain significant items, representing substantive and/or unusual, and in some cases recurring, items that are evaluated on an individual basis by management and that, either as a result of their nature or size, would not be expected to occur as part of our normal business on a regular basis, are not allocated to our operating segment results. Beginning in the first quarter of 2022, acquisition-related items may now include purchase accounting impacts that previously were included as part of a reconciling item entitled “Purchase accounting adjustments” that we no longer separately present, such as the incremental charge to cost of sales from the sale of acquired inventory that was written up to fair value, depreciation related to the increase/decrease in fair value of acquired fixed assets, amortization related to the increase in fair value of acquired debt, and the fair value changes for contingent consideration. The operating results of PC1 are included in Other business activities.
Segment Assets––We manage our assets on a total company basis, not by operating segment, as our operating assets are shared or commingled. Therefore, our chief operating decision maker does not regularly review any asset information by operating
segment and, accordingly, we do not report asset information by operating segment. Total assets were $195 billion as of October 2, 2022 and $181 billion as of December 31, 2021.
Selected Income Statement Information
The following provides selected income statement information by reportable segment:
Three Months EndedNine Months Ended
 Revenues
Earnings(a)
Revenues
Earnings(a)
(MILLIONS)October 2,
2022		October 3,
2021		October 2,
2022		October 3,
2021		October 2,
2022		October 3,
2021		October 2,
2022		October 3,
2021
Reportable Segment:
Biopharma$22,319 $23,513 $14,665 $11,848 $75,066 $56,101 $45,222 $29,952 
Other business activities(b)
319 521 (4,007)(3,303)974 1,348 (9,820)(7,778)
Reconciling Items:
Amortization of intangible assets— — (822)(980)— — (2,478)(2,778)
Acquisition-related items— — (62)(41)— — (331)(14)
Certain significant items(c)
— — (773)318 — — (3,095)1,102 
$22,638 $24,035 $9,001 $7,843 $76,040 $57,450 $29,498 $20,484 
(a)Income from continuing operations before provision/(benefit) for taxes on income. Biopharma’s earnings include dividend income from our investment in ViiV of $112 million in the third quarter of 2022 and $38 million in the third quarter of 2021, and $237 million in the first nine months of 2022 and $127 million in the first nine months of 2021. In connection with the organizational changes effective in the third quarter of 2022, certain functions transferred between Biopharma and corporate enabling functions and certain activities were realigned within the GPD organization. We have reclassified $105 million of costs for the first six months of 2022, $57 million of costs in the third quarter of 2021 and $153 million of costs in the first nine months of 2021 from corporate enabling functions, which are included in Other business activities, to Biopharma to conform to the current period presentation.
(b)Other business activities include revenues and costs associated with PC1 and costs that we do not allocate to our operating segments, per above, including acquired IPR&D expenses in the periods presented. In the third quarter and first nine months of 2022, earnings include $426 million of acquired IPR&D expenses for an upfront payment related to the closing of the acquisition of ReViral, as well as a charge to Cost of sales of approximately $400 million related to excess raw materials for Paxlovid. Earnings in the first nine months of 2022 also include write-offs to Cost of sales of inventory, related to COVID-19 products that have exceeded or are expected to exceed their approved shelf-lives prior to being used, of $516 million. In the third quarter and first nine months of 2021, earnings include $706 million of acquired IPR&D expenses associated with our collaboration with Arvinas.
(c)Certain significant items are substantive and/or unusual, and in some cases recurring, items (as noted above). Earnings in the first nine months of 2022 includes, among other items: (i) net losses on equity securities of $1.3 billion recorded in Other (income)/deductions––net and (ii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $701 million ($344 million recorded in Selling, informational and administrative expenses and the remaining amounts primarily recorded in Restructuring charges and certain acquisition-related costs). Earnings in the first nine months of 2021 includes, among other items: (i) net gains on equity securities of $1.6 billion recorded in Other (income)/deductions––net and (ii) actuarial valuation and other pension and postretirement plan gains of $932 million recorded in Other (income)/deductions––net, partially offset by (iii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $1.1 billion ($310 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs). Earnings in the third quarter of 2021 includes, among other items: (i) actuarial valuation and other pension and postretirement plan gains of $899 million recorded in Other (income)/deductions––net, partially offset by (ii) restructuring charges/(credits) and implementation costs and additional depreciation—asset restructuring of $823 million ($150 million recorded in Selling, informational and administrative expenses and the remaining amount primarily recorded in Restructuring charges and certain acquisition-related costs). For additional information, see Notes 3 and 4.
B. Geographic Information
The following summarizes revenues by geographic area:
 Three Months EndedNine Months Ended
(MILLIONS)October 2,
2022		October 3,
2021		%
Change		October 2,
2022		October 3,
2021		%
Change
United States$13,851 $7,020 97 $33,991 $22,066 54 
Developed Europe3,136 6,221 (50)14,705 13,836 6 
Developed Rest of World2,351 4,498 (48)10,671 8,617 24 
Emerging Markets3,300 6,296 (48)16,673 12,930 29 
Revenues$22,638 $24,035 (6)$76,040 $57,450 32 
C. Other Revenue Information
Significant Customers––For information on our significant wholesale customers, see Note 17C in our 2021 Form 10-K. Additionally, revenues from the U.S. government represented 38% and 27% of total revenues for the three and nine months ended October 2, 2022, respectively, and primarily represent sales of Paxlovid and Comirnaty. Accounts receivable from the
U.S. government represented 44% of total trade accounts receivable as of October 2, 2022, and primarily relate to sales of Paxlovid and Comirnaty.
Significant Product Revenues
The following provides detailed revenue information for several of our major products:
(MILLIONS)Three Months EndedNine Months Ended
PRODUCTPRIMARY INDICATION OR CLASSOct. 2, 2022Oct. 3, 2021Oct. 2, 2022Oct. 3, 2021
TOTAL REVENUES(a)
$22,638 $24,035 $76,040 $57,450 
GLOBAL BIOPHARMACEUTICALS BUSINESS (BIOPHARMA)(a), (b)
$22,319 $23,513 $75,066 $56,101 
Primary Care$15,846 $16,680 $55,676 $35,804 
Comirnaty direct sales and alliance revenues(c)
Active immunization to prevent COVID-19
4,402 12,977 26,477 24,277 
PaxlovidCOVID-19 infection (high risk population)7,514 — 17,099 — 
Eliquis alliance revenues and direct salesNonvalvular atrial fibrillation, deep vein thrombosis, pulmonary embolism1,464 1,346 5,001 4,470 
Prevnar family(d)
Pneumococcal disease1,607 1,447 4,601 3,971 
Premarin familySymptoms of menopause110 148 327 420 
NimenrixMeningococcal ACWY disease79 51 221 145 
BMP2Development of bone and cartilage58 71 201 186 
FSME-IMMUN/TicoVacTick-borne encephalitis disease67 47 177 161 
ToviazOveractive bladder30 56 130 174 
TrumenbaMeningococcal B disease60 52 108 102 
Chantix/ChampixAn aid to smoking cessation treatment in adults 18 years of age or older4 7 8 409 
All other Primary CareVarious451 479 1,326 1,490 
Specialty Care$3,404 $3,749 $10,267 $11,205 
Vyndaqel/VyndamaxATTR-CM and polyneuropathy602 501 1,766 1,454 
Xeljanz
RA, PsA, UC, active polyarticular course juvenile idiopathic arthritis, ankylosing spondylitis
502 610 1,304 1,734 
Enbrel (Outside the U.S. and Canada)
RA, juvenile idiopathic arthritis, PsA, plaque psoriasis, pediatric plaque psoriasis, ankylosing spondylitis and nonradiographic axial spondyloarthritis
230 283 767 888 
SulperazonBacterial infections178 181 598 515 
Inflectra
Crohn’s disease, pediatric Crohn’s disease, UC, pediatric UC, RA in combination with methotrexate, ankylosing spondylitis, PsA and plaque psoriasis
131 172 403 485 
Ig Portfolio(e)
Various124 99 356 311 
BeneFIXHemophilia B99 104 325 328 
ZaviceftaBacterial infections98 107 302 306 
GenotropinReplacement of human growth hormone90 95 261 284 
ZithromaxBacterial infections71 66 250 198 
MedrolAnti-inflammatory glucocorticoid79 109 235 320 
FragminTreatment/prevention of venous thromboembolism60 74 202 223 
SomavertAcromegaly70 70 202 203 
Refacto AF/XynthaHemophilia A58 69 188 235 
VfendFungal infections51 51 171 204 
All other Anti-infectivesVarious374 455 1,123 1,384 
All other Specialty CareVarious586 702 1,816 2,134 
Oncology$3,070 $3,085 $9,124 $9,091 
IbranceHR-positive/HER2-negative metastatic breast cancer1,283 1,381 3,841 4,039 
Xtandi alliance revenuesmCRPC, nmCRPC, mCSPC320 309 878 879 
InlytaAdvanced RCC252 256 760 742 
Zirabev
Treatment of mCRC; unresectable, locally advanced, recurrent or metastatic NSCLC; recurrent glioblastoma; metastatic RCC; and persistent, recurrent or metastatic cervical cancer
146 96 432 311 
BosulifPhiladelphia chromosome–positive chronic myelogenous leukemia141 136 425 395 
XalkoriALK-positive and ROS1-positive advanced NSCLC118 116 362 371 
Ruxience
Non-hodgkin’s lymphoma, chronic lymphocytic leukemia, granulomatosis with polyangiitis (Wegener’s Granulomatosis) and microscopic polyangiitis
120 124 357 343 
(MILLIONS)Three Months EndedNine Months Ended
PRODUCTPRIMARY INDICATION OR CLASSOct. 2, 2022Oct. 3, 2021Oct. 2, 2022Oct. 3, 2021
RetacritAnemia87 110 308 322 
SutentAdvanced and/or metastatic RCC, adjuvant RCC, refractory GIST (after disease progression on, or intolerance to, imatinib mesylate) and advanced pancreatic neuroendocrine tumor75 142 287 537 
Lorbrena
ALK-positive metastatic NSCLC
99 67 247 193 
Bavencio alliance revenuesLocally advanced or metastatic urothelial carcinoma; metastatic Merkel cell carcinoma; immunotherapy and tyrosine kinase inhibitor combination for patients with advanced RCC73 54 198 122 
AromasinPost-menopausal early and advanced breast cancer66 56 187 159 
BesponsaRelapsed or refractory B-cell acute lymphoblastic leukemia 55 50 164 145 
Braftovi
In combination with Mektovi for metastatic melanoma in patients with a BRAFV600E/K mutation and, in combination with Erbitux® (cetuximab)(f), for the treatment of BRAFV600E -mutant mCRC after prior therapy
58 47 156 136 
TrazimeraHER-positive breast cancer and metastatic stomach cancers51 45 149 131 
Mektovi
In combination with Braftovi for metastatic melanoma in patients with a BRAFV600E/K mutation
45 41 129 112 
All other OncologyVarious80 53 243 155 
PFIZER CENTREONE(b)
$319 $521 $974 $1,348 
Total Alliance revenues included above$1,689 $2,068 $6,320 $5,718 
(a)On December 31, 2021, we completed the sale of our Meridian subsidiary. Prior to its sale, Meridian was managed as part of the former Hospital therapeutic area (see footnote (b) below). Beginning in the fourth quarter of 2021, the financial results of Meridian are reflected as discontinued operations. See Note 1A.
(b)See Note 1A for information about our recent organizational changes. PC1 includes revenues from our contract manufacturing, including certain Comirnaty-related manufacturing activities performed on behalf of BioNTech ($7 million and $108 million for the third quarter and the first nine months of 2022, respectively, and $187 million and $274 million for the third quarter and the first nine months of 2021, respectively), and revenues from our active pharmaceutical ingredient sales operation, as well as revenues related to our manufacturing and supply agreements with former legacy Pfizer businesses/partnerships, including but not limited to, transitional manufacturing and supply agreements with Viatris following the spin-off of the Upjohn Business. Prior to the fourth quarter of 2021, PC1 was managed within our former Hospital product portfolio.
(c)Excludes revenues for certain Comirnaty-related manufacturing activities performed on behalf of BioNTech, which are included in the PC1 contract development and manufacturing organization.
(d)Prevnar family include revenues from Prevnar 13/Prevenar 13 (pediatric and adult) and Prevnar 20/Apexxnar (adult).
(e)Immunoglobulin (Ig) portfolio includes the revenues from Panzyga, Octagam and Cutaquig.
(f)Erbitux® is a registered trademark of ImClone LLC.
Remaining Performance Obligations––Contracted revenue expected to be recognized from remaining performance obligations for firm orders in long-term contracts to supply Comirnaty to our customers totaled approximately $22 billion as of October 2, 2022, which includes amounts received in advance and deferred, as well as amounts that will be invoiced as we deliver these products to our customers in future periods. Of this amount, we expect to recognize revenue of approximately $9 billion in 2022, $13 billion in 2023 and $200 million in 2024. Remaining performance obligations are based on foreign exchange rates as of the end of the third quarter of 2022 and exclude arrangements with an original expected contract duration of less than one year.
Deferred Revenues––Our deferred revenues primarily relate to advance payments received or receivable from various government or government sponsored customers in international markets for supply of Comirnaty and Paxlovid. The deferred revenues related to Comirnaty and Paxlovid total $6.2 billion as of October 2, 2022, with $6.1 billion and $126 million recorded in current and noncurrent liabilities, respectively. The deferred revenues related to Comirnaty total $3.3 billion as of December 31, 2021, with $3.0 billion and $249 million recorded in current liabilities and noncurrent liabilities, respectively. There were no deferred revenues associated with Paxlovid as of December 31, 2021. The increase in Comirnaty and Paxlovid deferred revenues during the first nine months of 2022 was primarily the result of additional advance payments received as we entered into new or amended contracts, including new advance payments received for Paxlovid contracts, less amounts recognized in Revenues as we delivered the products to our customers and the impact of foreign exchange. During the third quarter and first nine months of 2022, we recognized revenue of $68 million and $2.5 billion, respectively, that was included in the balance of Comirnaty deferred revenues as of December 31, 2021. The Comirnaty and Paxlovid deferred revenues as of October 2, 2022 will be recognized in Revenues proportionately as we transfer control of the products to our customers and satisfy our performance obligation under the contracts, with the amounts included in current liabilities expected to be recognized in Revenues within the next 12 months, and the amounts included in noncurrent liabilities expected to be recognized in Revenues in the last three months of 2023 and in the first quarter of 2024. Deferred revenues associated with contracts for other products were not significant as of October 2, 2022 or December 31, 2021.