Exhibit 99
For Immediate Release
Investor Relations Contact: Media Contact:
Justin R. Victoria Lowell B. Weiner
(973) 660-5340 (973) 660-5013
Wyeth Reports
Earnings Results for the
2003 Second Quarter and First Half
Madison, New Jersey, July 23, 2003 - Wyeth (the Company) (NYSE: WYE) today
reported net revenue and earnings results for the 2003 second quarter and first
half. Worldwide net revenue increased 7% for the 2003 second quarter and 4% for
the 2003 first half. Excluding the impact of foreign exchange, worldwide net
revenue increased 3% for the 2003 second quarter and was flat for the 2003 first
half.
2003 Second Quarter Results
- ---------------------------
Net income for the 2003 second quarter increased 44% to $864.4 million compared
with $599.9 million in the prior year. Diluted earnings per share increased 44%
to $0.65 compared with $0.45 in the prior year.
The increases in net income and diluted earnings per share for the 2003 second
quarter were greater than the growth rate in net revenue due primarily to higher
other income, as a
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result of gains on product sales, as noted below, and lower interest expense,
which factors were partially offset by higher cost of goods sold, as a
percentage of net revenue.
The higher cost of goods sold, as a percentage of net revenue, was attributable
to higher manufacturing costs and a change in product mix. Less profitable
product mix for the 2003 second quarter was mainly due to decreased sales of
higher margin products, including the Premarin family of products and Cordarone
I.V., and higher sales of lower margin products such as Protonix and Zosyn,
offset, in part by higher sales of Prevnar, a high margin product.
Gains on Product Sales
- ----------------------
Included in Other Income, Net for the second quarter were gains from the
divestiture of certain pharmaceutical and consumer healthcare products amounting
to approximately $290 million. The divestitures included U.S. product rights to
Ativan, Isordil, Diamox, Ziac, Zebeta and Anacin and the global rights to
Sonata. The sales and profits of these divested products, individually or in the
aggregate, are not material to either business segment or the Company's
consolidated financial results.
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2003 First Half Results
- -----------------------
Net income and diluted earnings per share both increased 46% for the 2003 first
half to $2,142.3 million and $1.61, respectively, compared with $1,471.8 million
and $1.10 in the prior year. The 2003 first half net income and diluted earnings
per share included a first quarter gain of $860.6 million ($558.7 million
after-tax or $0.42 per share-diluted) related to the sale of the remaining
31,235,958 shares of the Company's Amgen common stock holdings. Excluding the
Amgen gain from the 2003 first half results, net income and diluted earnings per
share for the 2003 first half each increased 8%.
Higher net income for the 2003 first half, excluding the Amgen gain, was
affected by the same items that impacted the 2003 second quarter results, which
included higher other income and lower interest expense, partially offset by a
less profitable product mix and higher manufacturing costs, as well as higher
selling, general and administrative expenses.
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Segment Information
- -------------------
The following table sets forth worldwide net revenue by operating segment
together with the percentage changes from the comparable period in the prior
year:
Three Months Six Months
Ended 6/30/03 Ended 6/30/03
-------------------- --------------------
Operating Segment ($ in 000's) Inc ($ in 000's) Inc
- ---------------------- ------------ --- ------------ ---
Human Pharmaceuticals $ 2,979,528 6% $ 5,954,586 3%
Animal Health Products 213,943 10% 395,938 11%
------------ --- ----------- ---
Pharmaceuticals 3,193,471 6% 6,350,524 3%
Consumer Healthcare 553,085 12% 1,085,089 10%
------------ --- ------------ ---
Total $ 3,746,556 7% $ 7,435,613 4%
============ === ============ ===
Pharmaceuticals
---------------
Worldwide pharmaceutical net revenue increased 6% for the 2003 second quarter
and 3% for the 2003 first half. Excluding the favorable impact of foreign
exchange, worldwide pharmaceutical net revenue increased 2% for the 2003 second
quarter and decreased 1% for the 2003 first half.
Human Pharmaceuticals
---------------------
Worldwide human pharmaceutical net revenue increased 6% for the 2003 second
quarter and 3% for the 2003 first half due primarily to higher sales of Protonix
(strong prescription
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volume growth), Effexor XR (substantial global growth), Prevnar and Zosyn (both
reflecting consistent increased manufacturing capability) and increased alliance
revenue offset, in part, by lower sales of the Premarin family of products and
Cordarone I.V. (market exclusivity ended October 2002). Excluding the favorable
impact of foreign exchange, worldwide human pharmaceutical net revenue increased
2% for the 2003 second quarter and decreased 1% for the 2003 first half.
Animal Health Products
----------------------
Worldwide animal health product net revenue increased 10% for the 2003 second
quarter and 11% for the 2003 first half. The increase in revenue was due
primarily to higher domestic sales of the Company's West Nile - Innovator, a
biological vaccine for horses. Excluding the favorable impact of foreign
exchange, worldwide animal health product net revenue increased 6% for the 2003
second quarter and 8% for the 2003 first half.
Consumer Healthcare
-------------------
Worldwide consumer healthcare net revenue increased 12% for the 2003 second
quarter and increased 10% for the 2003 first half. The increases were due
primarily to sales of Alavert (introduced in the 2002 fourth quarter) and higher
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sales of cough/cold/allergy products, Advil and Caltrate. The first half
increase was partially offset by lower sales of Centrum. Excluding the impact of
foreign exchange, worldwide consumer healthcare net revenue increased 8% for the
2003 second quarter and 7% for the 2003 first half.
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Wyeth is one of the world's largest research-driven pharmaceutical and health
care products companies. It is a leader in the discovery, development,
manufacturing and marketing of pharmaceuticals, vaccines, biotechnology products
and non-prescription medicines that improve the quality of life for people
worldwide. The Company's major divisions include Wyeth Pharmaceuticals, Wyeth
Consumer Healthcare and Fort Dodge Animal Health.
The statements in this press release that are not historical facts, are
forward-looking statements based on current expectations of future events that
involve risks and uncertainties including, without limitation, risks associated
with the inherent uncertainty of pharmaceutical research, product development,
manufacturing, commercialization, economic conditions including interest and
currency exchange rate fluctuations, the impact of competitive or generic
products, product liability and other types of lawsuits, the impact of
legislative and regulatory compliance and obtaining approvals, and patent, and
other risks and uncertainties, including those detailed from time to time in the
Company's periodic reports, including quarterly reports on Form 10-Q and the
annual report on Form 10-K, filed with the Securities and Exchange Commission.
Actual results may vary materially from the forward-looking statements. The
Company assumes no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
The Company will hold a conference call with research analysts at 8:00 a.m.
Eastern Time today. The purpose of the call is to review the financial results
of the Company for the second quarter and first half. Interested investors and
others may listen to the call live or on a delayed basis through the internet
webcast, which may be accessed by visiting the Company's website at
www.wyeth.com and clicking on the "Investor Relations" icon. Also, for recent
announcements and additional information including product sales information,
please refer to the Company's website.
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The comparative results of operations are as follows:
(In thousands except per share amounts)
Three Months Ended Six Months Ended
----------------------- -----------------------
6/30/2003 6/30/2002 6/30/2003 6/30/2002
---------- ---------- ---------- ----------
Net Revenue $3,746,556 $3,502,848 $7,435,613 $7,146,369
Cost of Goods Sold 1,019,895 887,215 1,948,199 1,689,394
Selling, General and Administrative
Expenses 1,362,022 1,310,100 2,653,492 2,580,384
Research and Development Expenses 500,851 526,867 1,014,365 1,007,073
Interest Expense, Net 25,878 55,621 52,878 108,959
Other Income, Net (270,302) (48,690) (263,567) (133,338)
Gain on Sale of Amgen Shares - - (860,554) -
---------- ---------- ---------- ---------
Income Before Federal and Foreign
Taxes 1,108,212 771,735 2,890,800 1,893,897
Provision for Federal and Foreign
Taxes 243,807 171,876 748,513 422,118
---------- ---------- ---------- ----------
Net Income(1) $864,405 $599,859 $2,142,287 $1,471,779
========== ========== ========== ==========
Basic Earnings Per Share $0.65 $0.45 $1.61 $1.11
========== ========== ========== ==========
Average Number of Common Shares
Outstanding During Each
Period - Basic(2) 1,329,333 1,325,989 1,328,238 1,324,970
Diluted Earnings Per Share(1) $0.65 $0.45 $1.61 $1.10
========== ========== ========== ==========
Average Number of Common Shares
Outstanding During Each
Period - Diluted(2) 1,335,186 1,336,296 1,333,306 1,337,407
(1) Net income and diluted earnings per share for the 2003 first half were
$2,142,287 and $1.61 compared with $1,471,779 and $1.10 in the prior year.
The 2003 first half net income and diluted earnings per share included a
first quarter gain of $860,554 ($558,694 after-tax or $0.42 per
share-diluted) related to the sale of the remaining 31,235,958 shares of
the Company's Amgen common stock holdings. Excluding the Amgen gain from
the 2003 first half results, net income and diluted earnings per share for
the 2003 first half both increased 8%.
(2) The average number of common shares outstanding for diluted earnings per
share is higher than for basic earnings per share due to the assumed
conversion of outstanding stock options into common stock equivalents
using the treasury stock method.
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