Pfizer Inc. (NYSE: PFE) is out with its earnings report for the third quarter, and the drug giant reported that revenues were down 16% to $14.0 billion. Some 12% was due to an operational decline of $1.9 billion and 4% was due to the unfavorable impact of foreign exchange. The company’s adjusted earnings came in at $0.53 per share. Thomson Reuters was calling for estimates of $14.64 billion in revenue and $0.53 EPS.

Pfizer also has declared that it will seek a $10 billion share repurchase program after the sale of its nutrition business. The company sees earnings for the year now coming in at $2.14 to $2.17 in adjusted EPS, versus a prior range of $2.12 to $2.22 EPS. It now sees revenues of $58 to $59 billion versus a prior target of $58 to $60 billion.

Here are some of the comments about each unit:

• Primary Care unit revenues decreased 37% operationally in comparison with the same period last year, primarily due to the losses of exclusivity of Lipitor in the U.S. in November 2011, developed Europe during second-quarter 2012 and Japan in June 2011, as well as the resulting shift in the reporting of U.S. and Japan Lipitor revenues to the Established Products unit beginning January 1, 2012. Specialty Care unit revenues declined 5% operationally in comparison with third-quarter 2011. Revenues were positively impacted by the operational growth of Enbrel, Rebif and Benefix, and negatively impacted by the decline in the Prevnar/Prevenar franchise.
• Established Products unit revenues increased 11% operationally in comparison with the prior-year period, primarily reflecting the inclusion of $320 million of U.S. and Japan branded Lipitor revenues in third-quarter 2012, as well as launches of generic versions of other Pfizer branded primary care and specialty care products.
• Emerging Markets unit revenues grew 6% operationally in comparison with third-quarter 2011, primarily due to volume growth in China, Mexico and Russia as a result of more targeted promotional efforts for key innovative and established products, including Lipitor, Norvasc and Lyrica.
• Animal Health unit revenues increased 4% operationally in comparison with the same quarter last year, largely due to increased demand across the companion animal and global livestock portfolios in key geographies.

Pfizer shares closed at $24.87 on Wednesday, versus a 52-week range of $18.15 to $26.09.

JON C. OGG

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