PFIZER REPORTS FIRST-QUARTER 2016 RESULTS

NEW YORK–(BUSINESS WIRE)– Pfizer Inc. (NYSE: PFE) reported financial results for first-quarter
2016 and updated certain components of its 2016 financial guidance.

On September 3, 2015, Pfizer acquired Hospira, Inc. (Hospira).
Consequently, first-quarter 2016 financial results include three months
of legacy Hospira global operations while first-quarter 2015 financial
results do not include any contribution from legacy Hospira operations.

The Company manages its commercial operations through two distinct
businesses: an Innovative Products⁽³⁾ business and an
Established Products⁽³⁾ business. The Innovative Products⁽³⁾
business is composed of two operating segments: the Global Innovative
Pharmaceutical segment (GIP) and the Global Vaccines,
Oncology and Consumer Healthcare segment (VOC). The Established Products⁽³⁾
business consists of the Global Established Pharmaceutical
segment (GEP), which includes all legacy Hospira commercial operations.
Financial results for each of these segments are presented in the Operating
Segment Information section.

Some amounts in this press release may not add due to rounding. All
percentages have been calculated using unrounded amounts. References to
operational variances pertain to period-over-period growth rates that
exclude the impact of foreign exchange as well as the negative currency
impact related to Venezuela. Results for first-quarter 2016 and 2015 are
summarized below.

2016 FINANCIAL GUIDANCE⁽⁵⁾

The ranges for certain components of Pfizer’s 2016 financial guidance
have been updated today as set forth below, primarily reflecting the
following:

• Operational Factors: Strong performance to date coupled with an
  improved business outlook for 2016, which favorably impacted the
  midpoint of the guidance range for reported revenue⁽¹⁾ by
  approximately $1.0 billion and for reported⁽¹⁾ and adjusted⁽²⁾
  diluted EPS by $0.12.
• Foreign Exchange: Favorable changes in foreign exchange rates since
  mid-January 2016, which favorably impacted the midpoint of the
  guidance range for reported revenue⁽¹⁾ by approximately
  $1.0 billion and for reported⁽¹⁾ and adjusted⁽²⁾
  diluted EPS by $0.06.

EXECUTIVE COMMENTARY

Ian Read, Chairman and Chief Executive Officer, stated, “We began the
year with very strong operational performance across both our Innovative
and Established businesses and this has served as a key driver of an
increase in both our revenue and earnings per share guidance for the
remainder of the year. I believe this performance results from our
Company being well positioned in terms of product portfolio,
organizational structure and leadership, as well as by our continued
strong financial flexibility. In addition, our late stage product
pipeline is increasingly ready to deliver our next set of prospective
growth drivers with competitive positions in high-potential therapeutic
areas where I believe Pfizer can be a leader.

“In addition, we have made excellent progress integrating the legacy
Hospira operations and now expect to achieve $1.0 billion of Hospira
cost savings by 2018, 25% more than our initial cost savings target of
$800 million. Overall, we remain focused on delivering continued revenue
growth both through internal and external opportunities, managing an
efficient operating structure and making shareholder-friendly capital
allocation and business portfolio decisions,” Mr. Read concluded.

Frank D’Amelio, Chief Financial Officer, stated, “Overall, I am very
pleased with our first-quarter 2016 financial results and with our
ability to continue delivering shareholder value through prudent capital
allocation. We grew revenues by 15% operationally, excluding the impact
of foreign exchange and legacy Hospira operations. We also continued to
deliver significant value directly to shareholders by paying $1.9
billion in first-quarter 2016 dividends and executing a $5 billion
accelerated share repurchase agreement in March 2016.

“We raised our 2016 financial guidance for reported revenues⁽¹⁾
and adjusted diluted EPS⁽²⁾ to reflect the strong operational
performance to date coupled with an improved business outlook for 2016.
Changes in foreign exchange rates since mid-January 2016 also favorably
impacted our updated guidance. For the remainder of 2016, we expect to
continue to advance the Hospira integration while remaining focused on
delivering strong operating results,” Mr. D’Amelio concluded.

QUARTERLY FINANCIAL HIGHLIGHTS (First-Quarter 2016 vs. First-Quarter
2015)

Reported revenues⁽¹⁾ totaled $13.0 billion, an increase of
$2.1 billion, or 20%, which reflects operational growth of $2.9 billion,
or 26%, partially offset by the unfavorable impact of foreign exchange
of $729 million, or 7%. Excluding the impact of legacy Hospira
operations of $1.2 billion and foreign exchange, Pfizer-standalone
revenues increased by $1.7 billion operationally, or 15%. Compared with
the prior-year quarter, first-quarter 2016 revenues were favorably
impacted by approximately $900 million as a result of first-quarter 2016
having five additional selling days in the U.S. and four additional
selling days in international markets. This imbalance in selling days
will be offset in fourth-quarter 2016 resulting in essentially the same
number of selling days in full-year 2016 as 2015.

Operational revenue growth in developed markets was driven primarily by
the inclusion of $1.1 billion of revenues from legacy Hospira operations
and continued strong performance of several key products, notably
Ibrance, Prevnar 13, Eliquis, Xeljanz and Lyrica — all primarily in the
U.S. In emerging markets, revenues increased 14% operationally,
favorably impacted by the addition of legacy Hospira operations, which
contributed $78 million, as well as the performance of Enbrel, Prevenar
13 and continued strong volume growth from certain other products.

Operational revenue growth was partially offset primarily by the loss of
exclusivity and associated generic competition for Zyvox, primarily in
the U.S. and certain developed Europe markets, and Lyrica in certain
developed Europe markets.

Innovative Products⁽³⁾ Business Highlights

Revenues for the Innovative Products⁽³⁾ business increased
28% operationally, reflecting the following:

• GIP revenues increased 25% operationally, primarily due to strong
  operational growth from Eliquis globally, Lyrica and Xeljanz both
  primarily in the U.S., Enbrel in most international markets and
  Chantix primarily in the U.S. Operational growth was slightly offset
  by the expiration of the collaboration agreement to co-promote Rebif
  in the U.S., which expired at the end of 2015.
• VOC revenues increased 33% operationally, reflecting the following:
  • Global Vaccines revenues increased 22% operationally, driven by
    growth from Prevnar 13, primarily in the U.S., reflecting the
    timing of government purchases for the pediatric indication and
    continued strong uptake among adults due to the overall success of
    commercial programs.
  • Global Oncology revenues increased 95% operationally, primarily
    driven by continued strong momentum following the February 2015
    U.S. launch of Ibrance for advanced breast cancer and, to a lesser
    extent, stronger demand for Sutent and Xalkori in most markets.
  • Consumer Healthcare revenues increased 10% operationally,
    primarily due to Nexium 24HR and Advil, both in the U.S.,
    reflecting strong demand following increased promotion and the
    launch of a tablet form for Nexium 24HR in first-quarter 2016.

Established Products⁽³⁾⁽⁴⁾ Business
Highlights

• GEP⁽⁴⁾ revenues increased 24% operationally due to the
  inclusion of legacy Hospira operations, which contributed $1.2
  billion, partially offset by the loss of exclusivity and associated
  generic competition for certain Peri-LOE Products⁽⁶⁾,
  primarily Zyvox in the U.S. and certain developed Europe markets as
  well as Lyrica in certain developed Europe markets. Revenues excluding
  the contribution from the legacy Hospira portfolio (GEP⁽⁴⁾
  Standalone) increased 1% operationally, reflecting 7% operational
  growth from Legacy Established Products⁽⁶⁾ and 11%
  operational growth from the Sterile Injectable Pharmaceuticals⁽⁶⁾
  portfolio, partially offset by an 18% operational decline from
  Peri-LOE Products⁽⁶⁾. GEP⁽⁴⁾ revenues in
  emerging markets increased 10% operationally, driven by the inclusion
  of legacy Hospira operations and reflecting operational growth from
  Legacy Established Products⁽⁶⁾ and the GEP⁽⁴⁾
  Standalone Sterile Injectable Pharmaceuticals⁽⁶⁾ portfolio.

Income Statement Highlights

• Adjusted cost of sales⁽²⁾, adjusted SI&A expenses⁽²⁾
  and adjusted R&D expenses⁽²⁾ in the aggregate increased
  $1.1 billion operationally, or 16%, reflecting the inclusion of legacy
  Hospira operations in first-quarter 2016 and the following
  Pfizer-standalone operational factors:
  • higher adjusted cost of sales⁽²⁾ primarily due to
    higher sales volumes;
  • higher adjusted SI&A expense⁽²⁾, primarily
    reflecting higher general and administrative expenses as well as
    increased investments to support certain recently launched
    products and other in-line biopharmaceutical products; and
  • lower adjusted R&D expense⁽²⁾, primarily reflecting
    the non-recurrence of a $295 million upfront payment to OPKO
    Health, Inc. in first-quarter 2015 associated with a worldwide
    development and commercialization agreement.

• The effective tax rate on adjusted income⁽²⁾ declined 0.6
  percentage points to 23.8% from 24.4%. This decline was primarily due
  to a favorable change in the jurisdictional mix of earnings, an
  increase in tax benefits associated with the resolution of certain tax
  positions pertaining to prior years with various foreign tax
  authorities, as well as an increase in tax benefits due to the
  permanent extension of the U.S. R&D tax credit on December 18, 2015.
• The diluted weighted-average shares outstanding declined by 78 million
  shares compared to the prior-year quarter due to Pfizer’s share
  repurchase program, including the impact of a $5 billion accelerated
  share repurchase agreement executed in February 2015 and completed in
  July 2015 and another reduction of 136 million shares associated with
  an accelerated share repurchase agreement executed in March 2016.
• In addition to the aforementioned factors, first-quarter 2016 reported
  earnings were primarily impacted by the following:

  Favorable
  impacts:

  • a lower effective tax rate, primarily due to tax benefits related
    to the final resolution (pending court approval) of an agreement
    in principle reached in February 2016 to resolve certain claims
    related to Protonix and tax benefits associated with our Venezuela
    operations, partially offset by an unfavorable change in the
    jurisdictional mix of earnings; and
  • lower charges incurred during first-quarter 2016 for business and
    legal entity alignment activities compared with the prior-year
    quarter.

  
  Unfavorable impacts:

  • higher acquisition-related costs, legal charges and purchase
    accounting adjustments in first-quarter 2016 compared with the
    prior-year quarter; and
  • higher asset impairment charges associated with losses on certain
    equity-method investments in first-quarter 2016.

RECENT NOTABLE DEVELOPMENTS

Product Developments

• Chantix/Champix (varenicline) — In April 2016, Pfizer
  announced publication in The Lancet of results from the largest
  clinical trial of approved smoking cessation medicines, called EAGLES
  (Evaluating Adverse Events in a Global Smoking Cessation Study). This
  smoking cessation trial included 8,144 adult smokers and was designed
  to compare the neuropsychiatric safety of Chantix/Champix
  (varenicline) and bupropion with placebo and nicotine patch in adult
  smokers with and without a history of psychiatric disorders. The
  authors concluded that the trial did not show a significant increase
  in serious neuropsychiatric adverse events with Chantix/Champix or
  bupropion compared to placebo and nicotine patch. There were more
  neuropsychiatric adverse events in the psychiatric cohort than the
  non-psychiatric cohort across all treatment arms including placebo.
  Results also showed that smokers treated with Chantix/Champix had
  significantly higher quit rates than those treated with bupropion,
  nicotine patch or placebo. Full results of the EAGLES trial were
  published in The Lancet on April 22, 2016.
• Ibrance (palbociclib)
  • In April 2016, Pfizer announced positive top-line results from the
    Phase 3 PALOMA-2 trial for Ibrance. The study met its primary
    endpoint by demonstrating an improvement in progression-free
    survival (PFS) for the combination of Ibrance plus letrozole
    compared with letrozole plus placebo in post-menopausal women with
    estrogen receptor-positive, human epidermal growth factor receptor
    2-negative (HER2-) advanced or metastatic breast cancer who had
    not received previous systemic treatment for their advanced
    disease. The PALOMA-2 trial provides confirmatory evidence for
    Ibrance in combination with letrozole in the first-line setting,
    which was first studied in the Phase 2 PALOMA-1 trial. These data
    will support additional planned global regulatory submissions and
    a request for conversion of the accelerated approval for Ibrance
    to regular approval in the U.S. Detailed efficacy and safety
    results from the PALOMA-2 trial will be presented at the American
    Society of Clinical Oncology (ASCO) 2016 Annual Meeting.
  • Pfizer announced in February 2016 that the U.S. Food and Drug
    Administration (FDA) approved a supplemental New Drug Application
    (sNDA) expanding the use of Ibrance 125 mg capsules to include the
    treatment of hormone receptor-positive, HER2- advanced or
    metastatic breast cancer in combination with fulvestrant in women
    with disease progression following endocrine therapy.
• Inflectra (infliximab-dyyb) — In April 2016, the FDA approved
  Celltrion’s Inflectra (infliximab-dyyb) across all eligible
  indications of the reference product, Remicade⁽⁷⁾
  (infliximab). Inflectra is now the first and only biosimilar
  monoclonal antibody therapy to be approved in the U.S. Hospira, now a
  Pfizer company, entered into an agreement with Celltrion Inc. and
  Celltrion Healthcare, Co., Ltd. in 2009 for several potential
  biosimilar products, including Inflectra. As a result, Pfizer holds
  exclusive commercialization rights to Inflectra in the U.S.
• Xalkori (crizotinib) — Pfizer announced in March 2016 that the
  FDA approved a sNDA for Xalkori to treat patients with metastatic
  non-small cell lung cancer (NSCLC) whose tumors are ROS1-positive.
  Additionally, the European Medicines Agency (EMA) is reviewing an
  application to extend the marketing authorization of Xalkori to
  include the treatment of adult patients with ROS1-positive advanced
  NSCLC.
• Xeljanz (tofacitinib citrate)
  • Pfizer announced in April 2016 top-line results from its first
    Phase 3 study investigating tofacitinib for the treatment of
    psoriatic arthritis (PsA), Oral Psoriatic Arthritis triaL (OPAL)
    Broaden. This study evaluated the efficacy and safety of
    tofacitinib 5 mg and 10 mg twice daily (BID) in adult patients
    with active PsA who had an inadequate response to at least one
    conventional synthetic disease-modifying antirheumatic drug and
    who were tumor necrosis factor inhibitor-naïve. OPAL Broaden met
    its primary efficacy endpoints demonstrating that both tofacitinib
    5 mg BID and 10 mg BID were superior to treatment with placebo at
    3 months as measured by American College of Rheumatology 20
    response and Health Assessment Questionnaire Disability Index
    score. Overall safety findings in this study were consistent with
    those observed in the broader rheumatology clinical development
    program for tofacitinib.
  • In March 2016, Pfizer announced that the EMA has accepted for
    review the Marketing Authorization Application for Xeljanz 5 mg
    tablets twice daily for the treatment of patients with moderate to
    severe rheumatoid arthritis (RA) who have had an inadequate
    response or intolerance to methotrexate (MTX).
  • In February 2016, Pfizer announced that the FDA has approved
    Xeljanz XR extended-release 11 mg tablets for the once-daily
    treatment of moderate to severe RA in patients who have had an
    inadequate response or intolerance to MTX. Xeljanz XR is the first
    and only once-daily oral RA treatment in its class, known as Janus
    kinase (JAK) inhibitors.

Pipeline Developments

A comprehensive update of Pfizer’s development pipeline was published
today and is now available at www.pfizer.com/pipeline.
It includes an overview of Pfizer’s research and a list of compounds in
development with targeted indication and phase of development, as well
as mechanism of action for candidates from Phase 2 through registration.

• Avelumab (MSB0010718C) — Merck KGaA, Darmstadt, Germany (Merck
  KGaA) and Pfizer announced in April 2016 the treatment of the first
  patient in a Phase 3 study of avelumab, an investigational fully human
  anti-PD-L1 IgG1 monoclonal antibody, in an advanced renal cell
  carcinoma (RCC) setting. The study, JAVELIN Renal 101, is the first
  pivotal trial investigating avelumab in combination with Inlyta
  (axitinib), Pfizer’s tyrosine kinase inhibitor (TKI), in patients with
  previously untreated advanced RCC, and the only Phase 3 trial
  currently evaluating an anti-PD-L1 immunotherapy in combination with a
  vascular endothelial growth factor-receptor TKI in this setting.
  JAVELIN Renal 101 is a multicenter, international, randomized (1:1),
  open-label trial designed to evaluate the potential superiority,
  assessed by PFS, of first-line avelumab combined with Inlyta compared
  with Sutent (sunitinib malate) monotherapy, Pfizer’s oral,
  small-molecule, multi-targeted receptor TKI, in patients with
  unresectable, locally advanced or metastatic RCC with clear cell
  component. The study is expected to enroll 583 patients across
  approximately 170 sites in Asia, Europe, Latin America and North
  America.
• Bococizumab (PF-04950615, RN316)
  • Pfizer announced in April 2016 the completion of patient
    enrollment for the global SPIRE-2 cardiovascular outcome trial for
    bococizumab, an investigational Proprotein Convertase Subtilisin
    Kexin type 9 inhibitor (PCSK9i). SPIRE-2 is evaluating the
    efficacy and safety of bococizumab compared to placebo in reducing
    the risk of major cardiovascular events among 10,600 patients at
    high risk for cardiovascular disease – including those without a
    prior history of cardiovascular events – who are on
    highly-effective statins or with documented statin intolerance.
    Many factors impact the duration of cardiovascular outcome
    studies, including that they are time-to-event trials, which can
    make it difficult to predict when the studies will accrue the
    required number of events. Based on current estimates, the SPIRE-2
    study is expected to complete in the second half of 2017.
  • In April 2016, Pfizer announced positive top-line results from the
    second of six Phase 3 studies evaluating the low-density
    lipoprotein cholesterol (LDL-C) reduction activity of bococizumab.
    The SPIRE-AI (AutoInjector) trial of bococizumab administered with
    a pre-filled pen met its co-primary endpoints: percent change from
    baseline in LDL-C reduction at 12 weeks compared to placebo and
    proportion of patients successfully operating the pre-filled pen.
    The results of the SPIRE-AI trial are expected to be part of a
    potential regulatory filing for bococizumab.

Corporate Developments

• In April 2016, Pfizer announced that the merger agreement between
  Pfizer and Allergan plc (Allergan) entered into on November 22, 2015
  was terminated by mutual agreement of the companies. The decision was
  driven by the actions announced by the U.S. Department of Treasury on
  April 4, 2016, which the companies concluded qualified as an “Adverse
  Tax Law Change” under the merger agreement. In connection with the
  termination of the merger agreement, on April 8, 2016 (which falls
  into Pfizer’s second fiscal quarter), Pfizer paid Allergan $150
  million for reimbursement of Allergan’s expenses associated with the
  terminated transaction.
• Pfizer announced in March 2016 that it entered into an accelerated
  share repurchase agreement with Goldman, Sachs & Co. (GS&Co.) to
  repurchase $5 billion of Pfizer’s common stock. Pursuant to the terms
  of the agreement, on March 10, 2016, Pfizer paid $5 billion to GS&Co.
  and received an initial delivery of approximately 136 million shares
  of Pfizer common stock from GS&Co. At settlement of the agreement,
  which is expected to occur during the second quarter of 2016, GS&Co.
  may be required to deliver additional shares of common stock to
  Pfizer, or, under certain circumstances, Pfizer may be required to
  deliver shares of its common stock or may elect to make a cash payment
  to GS&Co., with the number of shares to be delivered or the amount of
  such payment based on the volume-weighted average price, less a
  discount, of Pfizer’s common stock during the term of the transaction.
• Pfizer reported in February 2016 that its Wyeth subsidiary reached an
  agreement in principle to resolve claims alleging that Wyeth’s
  practices relating to the calculation of Medicaid rebates for its drug
  Protonix (pantoprazole sodium) between 2001 and 2006, several years
  before Pfizer acquired Wyeth in 2009, violated the Federal Civil False
  Claims Act and other laws. As a result, in February 2016, Pfizer
  reissued its fourth-quarter and full-year 2015 financial results
  prepared in accordance with U.S. generally accepted accounting
  principles (GAAP) to reflect a charge of $784.6 million. In April
  2016, this agreement was finalized and Wyeth made a payment of this
  amount to resolve these claims. The final agreement is subject to
  court approval and does not include an admission of liability by
  Wyeth. As previously mentioned, a tax benefit related to this
  resolution was recorded in Pfizer’s first-quarter 2016 GAAP financial
  results.

Please find Pfizer’s press release and associated financial tables,
including reconciliations of certain GAAP reported to non-GAAP adjusted
information, at the following hyperlink:

http://www.pfizer.com/system/files/presentation/Q1_2016_PFE_Earnings_Press_Release_nvewlnavd.pdf

(Note: If clicking on the above link does not open up a new web page,
you may need to cut and paste the above URL into your browser’s address
bar.)

For additional details, see the associated financial schedules and
product revenue tables attached to the press release located at the
hyperlink referred to above and the attached disclosure notice.

• Does not assume the completion of any business development
  transactions not completed as of April 3, 2016, including any one-time
  upfront payments associated with such transactions.
• Excludes the potential effects of the resolution of litigation-related
  matters not substantially resolved as of April 3, 2016.
• Exchange rates assumed are a blend of the actual exchange rates in
  effect during first-quarter 2016 and mid-April 2016 exchange rates for
  the remainder of the year.
• Guidance for 2016 reported revenues⁽¹⁾ reflects the
  anticipated negative impact of $2.3 billion due to recent and expected
  generic competition for certain products that have recently lost or
  are anticipated to soon lose patent protection.
• Guidance for 2016 reported revenues⁽¹⁾ also reflects the
  anticipated negative impact of $1.3 billion as a result of unfavorable
  changes in foreign exchange rates relative to the U.S. dollar compared
  to foreign exchange rates from 2015, including $0.8 billion due to the
  estimated significant negative currency impact related to Venezuela.
  The anticipated negative impact on reported⁽¹⁾ and adjusted⁽²⁾
  diluted EPS resulting from unfavorable changes in foreign exchange
  rates compared to foreign exchange rates from 2015 is approximately
  $0.10, including $0.07 due to the estimated significant negative
  currency impact related to Venezuela.
• Guidance for reported⁽¹⁾ and adjusted⁽²⁾ diluted
  EPS assumes diluted weighted-average shares outstanding of
  approximately 6.2 billion shares.
• Reconciliation of the 2016 Adjusted income⁽²⁾ and Adjusted
  diluted EPS⁽²⁾ guidance to the 2016 Reported net income
  attributable to Pfizer Inc.⁽¹⁾ and Reported diluted EPS
  attributable to Pfizer Inc.⁽¹⁾ common shareholders guidance:

• Peri-LOE Products include products that have recently lost or are
  anticipated to soon lose patent protection. These products primarily
  include Celebrex and Zyvox in most developed markets, Lyrica in
  certain developed Europe markets, Pristiq globally and Inspra in the
  EU.
• Sterile Injectable Pharmaceuticals include generic injectables and
  proprietary specialty injectables (excluding Peri-LOE Products).
• Legacy Established Products include products that lost patent
  protection (excluding Sterile Injectable Pharmaceuticals and Peri-LOE
  Products).

DISCLOSURE NOTICE: Except where otherwise noted, the information
contained in this earnings release and the related attachments is as of
May 3, 2016. We assume no obligation to update any forward-looking
statements contained in this earnings release and the related
attachments as a result of new information or future events or
developments.

This earnings release and the related attachments contain
forward-looking statements about our anticipated future operating and
financial performance, business plans and prospects, in-line products
and product candidates, strategic reviews, capital allocation,
business-development plans, the benefits expected from our recent
acquisition of Hospira and plans relating to share repurchases and
dividends, among other things, that involve substantial risks and
uncertainties. You can identify these statements by the fact that they
use future dates or use words such as “will,” “may,” “could,” “likely,”
“ongoing,” “anticipate,” “estimate,” “expect,” “project,” “intend,”
“plan,” “believe,” “target,” “forecast,” “goal,” “objective,” “aim” and
other words and terms of similar meaning. Among the factors that could
cause actual results to differ materially from past results and future
plans and projected future results are the following:

• the outcome of research and development activities, including, without
  limitation, the ability to meet anticipated pre-clinical and clinical
  trial commencement and completion dates, regulatory submission and
  approval dates, and launch dates for product candidates, as well as
  the possibility of unfavorable pre-clinical and clinical trial
  results, including unfavorable new clinical data and additional
  analyses of existing clinical data;
• decisions by regulatory authorities regarding whether and when to
  approve our drug applications, which will depend on the assessment by
  such regulatory authorities of the benefit-risk profile suggested by
  the totality of the efficacy and safety information submitted;
  decisions by regulatory authorities regarding labeling, ingredients
  and other matters that could affect the availability or commercial
  potential of our products; and uncertainties regarding our ability to
  address the comments in complete response letters received by us with
  respect to certain of our drug applications to the satisfaction of the
  FDA;
• the speed with which regulatory authorizations, pricing approvals and
  product launches may be achieved;
• the outcome of post-approval clinical trials, which could result in
  the loss of marketing approval for a product or changes in the
  labeling for, and/or increased or new concerns about the safety or
  efficacy of, a product that could affect its availability or
  commercial potential;
• risks associated with interim data, including the risk that final
  results of studies for which interim data have been provided and/or
  additional clinical trials may be different from (including less
  favorable than) the interim data results and may not support further
  clinical development of the applicable product candidate or indication;
• the success of external business-development activities, including the
  ability to satisfy the conditions to closing of any announced
  transactions in the anticipated time frame or at all;
• 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 implementation by the FDA and regulatory authorities in certain
  other countries of an abbreviated legal pathway to approve biosimilar
  products, which could subject our biologic products to competition
  from biosimilar products, with attendant competitive pressures, after
  the expiration of any applicable exclusivity period and patent rights;
• 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 any significant spending reductions or cost controls
  affecting Medicare, Medicaid or other publicly funded or subsidized
  health programs or changes in the tax treatment of employer-sponsored
  health insurance that may be implemented, and/or any significant
  additional taxes or fees that may be imposed on the pharmaceutical
  industry as part of any broad deficit-reduction effort;
• 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. federal or state 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; restrictions on direct-to-consumer
  advertising; limitations on interactions with healthcare
  professionals; or 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;
  as well as pricing pressures for our products as a result of highly
  competitive insurance markets;
• legislation or regulatory action in markets outside the U.S. affecting
  pharmaceutical product pricing, reimbursement or access, including, in
  particular, continued government-mandated reductions in prices and
  access restrictions for certain biopharmaceutical products to control
  costs in those markets;
• the exposure of our operations outside the U.S. to possible capital
  and exchange controls, expropriation and other restrictive government
  actions, changes in intellectual property legal protections and
  remedies, as well as political unrest,unstable governments and legal
  systems and inter-governmental disputes;
• 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;
• any 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 matters, government investigations,
  consumer, commercial, securities, antitrust, environmental,
  employment, tax issues, ongoing efforts to explore various means for
  resolving asbestos litigation, and other legal proceedings;
• our ability to protect our patents and other intellectual property,
  both domestically and internationally;
• interest rate and foreign currency exchange rate fluctuations,
  including the impact of possible currency devaluations in countries
  experiencing high inflation rates;
• 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 the
  U.S. that may result from pending and possible future proposals;
• any significant issues involving our largest wholesaler customers,
  which account for a substantial portion of our revenues;
• the possible impact of the increased presence of counterfeit medicines
  in the pharmaceutical supply chain on our revenues and on patient
  confidence in the integrity of our medicines;
• any significant issues that may arise related to the outsourcing of
  certain operational and staff functions to third parties, including
  with regard to quality, timeliness and compliance with applicable
  legal requirements and industry standards;
• any significant issues that may arise related to our joint ventures
  and other third-party business arrangements;
• 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 customers,
  suppliers and lenders 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; and
  the related risk that our allowance for doubtful accounts may not be
  adequate;
• 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;
• the impact of purchase accounting adjustments, acquisition-related
  costs, discontinued operations and certain significant items;
• the impact of acquisitions, divestitures, restructurings, internal
  reorganizations, product recalls, withdrawals and other unusual items,
  including our ability to realize the projected benefits of our
  cost-reduction and productivity initiatives, including those related
  to our research and development organization, and of the internal
  separation of our commercial operations into our current operating
  structure;
• the risk of an impairment charge related to our intangible assets,
  goodwill or equity-method investments;
• risks related to internal control over financial reporting; and
• risks and uncertainties related to our recent acquisition of Hospira,
  including, among other things, the ability to realize the anticipated
  benefits of the acquisition of Hospira, including the possibility that
  expected synergies and accretion will not be realized or will not be
  realized within the expected time frame; the risk that the businesses
  will not be integrated successfully; disruption from the transaction
  making it more difficult to maintain business and operational
  relationships; significant transaction costs; and unknown liabilities.

We cannot guarantee that any forward-looking statement will be realized,
although we believe we have been prudent in our plans and assumptions.
Achievement of anticipated results is subject to substantial risks,
uncertainties and inaccurate assumptions. Should known or unknown risks
or uncertainties materialize or should underlying assumptions prove
inaccurate, actual results could vary materially from past results and
those anticipated, estimated or projected. Investors should bear this in
mind as they consider forward-looking statements, and are cautioned not
to put undue reliance on forward-looking statements. A further list and
description of risks, uncertainties and other matters can be found in
our Annual Report on Form 10-K for the fiscal year ended December 31,
2015, including in the sections thereof captioned “Forward-Looking
Information and Factors That May Affect Future Results” and “Item 1A.
Risk Factors”, and in our subsequent reports on Form 8-K.

The operating segment information provided in this earnings release and
the related attachments does not purport to represent the revenues,
costs and income from continuing operations before provision for taxes
on income that each of our operating segments would have recorded had
each segment operated as a standalone company during the periods
presented.

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. In addition,
clinical trial data are subject to differing interpretations, and, even
when we view data as sufficient to support the safety and/or
effectiveness of a product candidate or a new indication for an in-line
product, regulatory authorities may not share our views and may require
additional data or may deny approval altogether.

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