-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, J4wZ22fGzzBmWXnuHE3rUzxFAjw5pI92Q0ouS1ibdP4qZP+yMfdaRiWWPhMdjjEt kzCvBFYxONCUxsh9bRTzfQ== 0000005187-03-000036.txt : 20030723 0000005187-03-000036.hdr.sgml : 20030723 20030722174607 ACCESSION NUMBER: 0000005187-03-000036 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030723 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030723 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WYETH CENTRAL INDEX KEY: 0000005187 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 132526821 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-01225 FILM NUMBER: 03797140 BUSINESS ADDRESS: STREET 1: 5 GIRALDA FARMS CITY: MADISON STATE: NJ ZIP: 07940 BUSINESS PHONE: 9736605000 MAIL ADDRESS: STREET 1: 5 GIRALDA FARMS CITY: MADISON STATE: NJ ZIP: 07940 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN HOME PRODUCTS CORP DATE OF NAME CHANGE: 20020308 FORMER COMPANY: FORMER CONFORMED NAME: AMERICAN HOME PRODUCTS CORP DATE OF NAME CHANGE: 19920703 8-K 1 earn8k2q.txt EARNINGS RELEASE SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 DATE OF REPORT (Date of earliest event reported): July 23, 2003 Wyeth (Exact name of registrant as specified in its charter) Delaware 1-1225 13-2526821 (State or other jurisdiction (Commission File (IRS Employer of incorporation) Number) Identification No.) Five Giralda Farms, Madison, New Jersey 07940 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: 973-660-5000 Item 7. Financial Statements and Exhibits (c) Exhibits (99) Press Release Reporting Wyeth's Earnings Results for the 2003 Second Quarter. Item 9. Regulation FD Disclosure Attached as Exhibit 99 hereto is Wyeth's Earnings Results for the 2003 Second Quarter. This information is not being filed but rather is being furnished under Regulation FD. Wyeth has posted this Current Report on Form 8-K on its internet website at www.wyeth.com. Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. WYETH By: /s/ Paul J. Jones Paul J. Jones Vice President and Controller (Duly Authorized Signatory) Dated: July 23, 2003 EX-99 3 pressrel.txt 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 1 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. 2 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 $0.42 per share-diluted) related to the sale of the remaining 31,235,958 shares of the Company's Amgen common stock holdings. Excluding the Amgen gain from the 2003 first half results, net income and diluted earnings per share for the 2003 first half each increased 8%. Higher net income for the 2003 first half, excluding the Amgen gain, was affected by the same items that impacted the 2003 second quarter results, which included higher other income and lower interest expense, partially offset by a less profitable product mix and higher manufacturing costs, as well as higher selling, general and administrative expenses. 3 Segment Information - ------------------- The following table sets forth worldwide net revenue by operating segment together with the percentage changes from the comparable period in the prior year: Three Months Six Months Ended 6/30/03 Ended 6/30/03 -------------------- -------------------- Operating Segment ($ 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 4 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 5 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. 6 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. 7 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. 8 -----END PRIVACY-ENHANCED MESSAGE-----