- Worldwide Net Revenue for the 2006 Second Quarter and First Half
Increased 9% and 8% to $5.2 Billion and $10.0 Billion, Respectively
- Pharmaceuticals Net Revenue Growth of 11% for the 2006 Second Quarter Led
by Enbrel(R) and Prevnar(R)
- Prevnar Added to the National Immunization Program in the United Kingdom
- Wyeth Submits Two New Drug Applications
- Tygacil(TM) Receives Approval for Use in Europe
MADISON, N.J., July 20 /PRNewswire-FirstCall/ -- Wyeth (NYSE: WYE)
today reported results for the 2006 second quarter and first half ending
June 30, 2006. Worldwide net revenue increased 9% to $5.2 billion for the
2006 second quarter and 8% to $10.0 billion for the 2006 first half. There
was no net foreign exchange impact on worldwide net revenue for the 2006
second quarter or the 2006 first half.
"Wyeth continued its strong performance in the 2006 second quarter,"
said Robert Essner, Chairman and Chief Executive Officer. "Significant
sales growth from Enbrel, Prevnar and most of our broad product portfolio,
NDA filings for two new products, and the continuation of productivity
initiatives including our Pharmaceuticals sales force reorganization have
positioned us for further growth. We are on track for another excellent
year, and expect to reach at least the upper end of our 2006 pro forma
diluted earnings per share guidance range of $2.97 - $3.07."
2006 Second Quarter Product Highlights
ENBREL(R) continued to post strong revenue growth during the 2006
second quarter. Wyeth has exclusive rights to Enbrel outside of the U.S.
and Canada where net revenue was $370 million for the 2006 second quarter,
an increase of 36% over the 2005 second quarter. Enbrel sales in the U.S.
and Canada are expected to be reported by Wyeth's marketing partner Amgen
later today.
Enbrel is a breakthrough product approved for the treatment of chronic
inflammatory diseases, including rheumatoid arthritis (RA), juvenile
rheumatoid arthritis, ankylosing spondylitis, psoriatic arthritis and
psoriasis. Enbrel is the fastest growing pharmaceutical product among the
top 10 pharmaceutical products ranked globally by sales (Enbrel currently
ranked 9th). Enbrel continues to be Wyeth's top selling product in Europe
and, during the second quarter, Enbrel exceeded $300 million in quarterly
EU sales for the first time.
PREVNAR(R), Wyeth's vaccine to prevent invasive pneumococcal disease in
both infants and young children, achieved net revenue of $518 million for
the 2006 second quarter, an increase of 60% over the 2005 second quarter. A
major contributor to Prevnar's performance in the second quarter was its
introduction in the National Immunization Program in the U.K. In addition,
Prevnar was recently added to the national immunization schedules in
Greece, Norway, Switzerland, Belgium and the Netherlands. Prevnar is the
world's best selling vaccine and is now available in 66 countries
worldwide.
Worldwide net revenue for EFFEXOR(R) (Effexor and Effexor XR), the
number one selling antidepressant globally and an important therapy in
treating adult patients with major depressive disorder, generalized anxiety
disorder, social anxiety disorder and panic disorder, was $918 million for
the 2006 second quarter, an increase of 3% over the 2005 second quarter.
For the first half of 2006, Effexor grew by 6% over the first half of 2005.
PROTONIX(R), a proton pump inhibitor indicated for the healing and
symptomatic relief of erosive esophagitis (severe heartburn), posted net
revenue of $441 million for the 2006 second quarter, a decrease of 3%
versus the 2005 second quarter.
WYETH NUTRITION achieved net revenue of $300 million for the 2006
second quarter, an increase of 13% over the 2005 second quarter. Wyeth
Nutrition is on track to achieve $1.0 billion in global annual sales for
the second consecutive year.
Additional information regarding Wyeth's product sales may be accessed
on the Company's Internet website at http://www.wyeth.com by clicking on
the "Investor Relations" hyperlink.
R&D Update
Wyeth's R&D efforts in the second quarter achieved a number of key
milestones, with Wyeth filing two new drug applications (NDAs) for new
products (bazedoxifene for osteoporosis and desvenlafaxine succinate for
vasomotor symptoms); presenting important phase 3 data to the American
Society of Clinical Oncology on TORISEL(TM) (temsirolimus) for advanced
renal cell cancer; and receiving European approval for TYGACIL(TM). The
Company also expects approval of LYBREL(TM) (levonorgestrel/ethinyl
estradiol), a novel continuous regimen oral contraceptive for which Wyeth
received an approvable letter from the U.S. Food and Drug Administration
(FDA), and desvenlafaxine succinate (DVS-233) for major depressive disorder
in 2007.
Three NDA submissions are expected to be filed in the next 9 months
that represent innovative treatment breakthroughs, including the filing of
bifeprunox for schizophrenia (in concert with our partner Solvay
Pharmaceuticals); Torisel for renal cell carcinoma; and methylnaltrexone
subcutaneous formulation for the treatment of opioid-induced side effects
in patients with advanced illness (in concert with our partner Progenics
Pharmaceuticals, Inc.).
2006 Second Quarter Results
Reported net income and diluted earnings per share for the 2006 second
quarter were $1,064.8 million and $0.78, respectively, compared with $976.6
million and $0.72 for the 2005 second quarter. Effective January 1, 2006,
the Company adopted Statement of Financial Accounting Standards (SFAS) No.
123R which requires the expensing of stock options. The 2006 second quarter
results included stock option expense, which reduced diluted earnings per
share by approximately $0.04. The 2005 second quarter results, which have
not been restated to include the impact of expensing stock options, would
have been lower by approximately $0.04 per share had we expensed stock
options. To assist in performing second quarter comparisons, a pro forma
presentation is provided under "Results of Operations - As Adjusted" at the
end of this press release.
The 2006 second quarter results also included charges of $39.5 million
($27.3 million after-tax or $0.02 per share-diluted) related to the
Company's productivity initiatives, which are discussed in greater detail
below. The 2006 productivity initiatives charges are considered to be
certain significant items for purposes of analyzing the Company's results
of operations. For the 2006 second quarter, net income and diluted earnings
per share, before certain significant items, were $1,092.1 million and
$0.80, respectively. For the 2005 second quarter, net income and diluted
earnings per share, assuming stock option expensing, would have been $922.8
million and $0.68, respectively. There were no certain significant items
for the 2005 second quarter.
The increases in net income and diluted earnings per share for the 2006
second quarter, before certain significant items and assuming the expensing
of stock options in the 2005 second quarter, resulted from higher net
revenue, lower cost of goods sold and lower selling, general and
administrative expenses, both as a percentage of net revenue, higher other
income, net and lower interest expense, net offset, in part, by higher
research and development spending. Included in other income, net were
pre-tax gains from product divestitures amounting to approximately $16.7
million and $4.5 million in the 2006 and 2005 second quarter, respectively.
2006 First Half Results
Reported net income and diluted earnings per share for the 2006 first
half were $2,184.4 million and $1.60, respectively, compared with $2,054.7
million and $1.52 for the 2005 first half. The 2006 first half results
included stock option expense, which reduced diluted earnings per share by
approximately $0.07. The 2005 first half results, which have not been
restated to include the impact of expensing stock options, would have been
lower by approximately $0.09 per share had we expensed stock options. In
order to assist in performing first half comparisons, a pro forma
presentation is provided under "Results of Operations - As Adjusted" at the
end of this press release.
The 2006 first half results also included charges of $74.6 million
($51.5 million after-tax or $0.04 per share-diluted) related to the
Company's productivity initiatives, which are discussed in greater detail
below. The 2006 productivity initiatives charges are considered to be
certain significant items for purposes of analyzing the Company's results
of operations. For the 2006 first half, net income and diluted earnings per
share, before certain significant items, were $2,235.9 million and $1.64,
respectively. For the 2005 first half, net income and diluted earnings per
share, assuming stock option expensing, would have been $1,935.8 million
and $1.43, respectively. There were no certain significant items for the
2005 first half.
The increases in net income and diluted earnings per share for the 2006
first half, before certain significant items and assuming the expensing of
stock options in the 2005 first half, resulted from higher net revenue,
lower cost of goods sold and lower selling, general and administrative
expenses, both as a percentage of net revenue, and lower interest expense,
net offset, in part, by higher research and development spending and lower
other income, net. Included in other income, net were pre-tax gains from
product divestitures amounting to approximately $34.3 million and $143.0
million in the 2006 and 2005 first half, respectively.
A reconciliation of net income and diluted earnings per share as
reported under generally accepted accounting principles (GAAP) to net
income and diluted earnings per share, before certain significant items and
assuming stock option expensing for the 2005 second quarter and first half,
is presented in the following table:
(UNAUDITED)
(In millions except per share
amounts) Three Months Ended Six Months Ended
Item Description 6/30/2006 6/30/2005 6/30/2006 6/30/2005
Net income, as reported $1,064.8 $976.6 $2,184.4 $2,054.7
Productivity initiatives 27.3 -- 51.5 --
Net income, as adjusted, before
certain significant items(1) $1,092.1 $976.6 $2,235.9 $2,054.7
Stock-based employee compensation,
not included in net income -- (53.8) -- (118.9)
Net income, as adjusted,
including all stock-based
compensation awards(2) $1,092.1 $922.8 $2,235.9 $1,935.8
Diluted earnings per share, as
reported $0.78 $0.72 $1.60 $1.52
Productivity initiatives 0.02 -- 0.04 --
Diluted earnings per share, as
adjusted, before certain
significant items(1) $0.80 $0.72 $1.64 $1.52
Stock-based employee compensation,
not included in net income -- (0.04) -- (0.09)
Diluted earnings per share, as
adjusted, including all
stock-based compensation awards(2) $0.80 $0.68 $1.64 $1.43
(1) Wyeth calculates net income before certain significant items by
excluding the after-tax effect of items considered by management to be
unusual from the net income reported under GAAP. Wyeth's management
uses this measure to manage and evaluate the Company's performance and
believes it is appropriate to disclose this non-GAAP measure to assist
investors with analyzing business performance and trends. The
productivity initiatives charges, which include the costs of closing
certain manufacturing facilities, including accelerated depreciation,
certain reorganization costs and the elimination of certain positions
at the Company's facilities have been excluded, as these charges are
not considered to be indicative of continuing operating results.
Wyeth's management believes that excluding these items from the
Company's results provides a more appropriate view of the Company's
operations for the accounting periods presented.
(2) Stock-based compensation expense for the 2006 second quarter and first
half has been recorded in accordance with SFAS No. 123R, which the
Company adopted as of January 1, 2006. In order to present the
results for the 2006 and 2005 second quarter and first half on a
comparable basis, the 2005 second quarter and first half results have
been adjusted in the above table to reflect the pro forma effect of
expensing stock options in 2005.
These measures should not be considered in isolation or as a substitute
for the results of operations and diluted earnings per share prepared in
accordance with GAAP.
Gains from product divestitures are not considered certain significant
items because they constitute an integral part of the Company's analysis of
divisional performance. However, they are important to understanding
changes in our reported net income. Excluding the certain significant items
and the gains from product divestitures described above, as well as
assuming stock option expensing for the 2005 second quarter and first half,
net income and diluted earnings per share were $1,080.0 million and $0.79,
respectively, for the 2006 second quarter as compared with $920.1 million
and $0.68, for the 2005 second quarter and $2,212.3 million and $1.62,
respectively, for the 2006 first half as compared with $1,843.0 million and
$1.36, for the 2005 first half.
Productivity Initiatives
The Company continued with its long-term global productivity
initiatives, which were launched in 2005, to adapt to the changing
pharmaceutical industry environment. The guiding principles of these
initiatives include innovation, cost savings, process excellence and
accountability, with an emphasis on improving productivity. As a result of
these initiatives, the Company recorded charges of $39.5 million ($27.3
million after-tax or $0.02 per share-diluted) in the 2006 second quarter
and $74.6 million ($51.5 million after-tax or $0.04 per share-diluted) in
the 2006 first half to recognize the costs of closing certain manufacturing
facilities, including accelerated depreciation, certain reorganization
costs and the cost of eliminating certain positions at the Company's
facilities. Charges of $26.5 million were recorded within Cost of Goods
Sold, $7.9 million within Selling, General and Administrative Expenses and
$5.1 million within Research and Development Expenses for the 2006 second
quarter. Charges of $55.2 million were recorded within Cost of Goods Sold,
$11.1 million within Selling, General and Administrative Expenses and $8.3
million within Research and Development Expenses for the 2006 first half.
As of June 30, 2006, total net pre-tax charges of $265.2 million have been
recorded in connection with the Company's productivity initiatives since
inception. Additional costs such as asset impairment, accelerated
depreciation, personnel costs and other exit costs, as well as certain
implementation costs associated with these initiatives, are expected to
continue for several years as additional strategic decisions are made and
are projected to total approximately $750.0 million to $1,000.0 million, on
a pre-tax basis.
Segment Information
The following table sets forth worldwide net revenue by reportable segment
together with the percentage changes from the comparable period in the prior
year:
(UNAUDITED)
Three Months Ended Six Months Ended
6/30/2006 6/30/2006
Increase/
Reportable Segment ($ in 000's) Increase ($ in 000's) (Decrease)
Pharmaceuticals $4,286,251 11% $8,321,763 10 %
Consumer Healthcare 598,005 -- 1,152,191 (5)%
Animal Health 272,487 11% 520,726 6 %
Consolidated Total $5,156,743 9% $9,994,680 8 %
Pharmaceuticals
Worldwide Pharmaceuticals net revenue increased 11% for the 2006 second
quarter and 10% for the 2006 first half due primarily to higher sales of
Prevnar, Enbrel, Effexor, Nutritionals and rhBMP-2 offset, in part, by
lower sales of ZOTON(R), which is experiencing generic competition.
Increases in net revenue were also attributed to higher sales of Protonix
and the PREMARIN(R) family of products for the 2006 first half.
Additionally, alliance revenue increased 27% to $357.4 million for the 2006
second quarter, and 28% to $611.5 million for the 2006 first half, due
primarily to higher sales of Enbrel in the U.S. and Canada. There was no
net foreign exchange impact on Pharmaceuticals net revenue for the 2006
second quarter or first half.
Consumer Healthcare
Worldwide Consumer Healthcare net revenue was flat for the 2006 second
quarter and decreased 5% for the 2006 first half. The 2006 second quarter
results were attributable to the absence of 2006 sales of Solgar products,
which were divested in the 2005 third quarter, and an increase in sales of
ADVIL(R). The decrease in the 2006 first half was due primarily to the
absence of 2006 sales of Solgar products, lower sales of ROBITUSSIN(R),
DIMETAPP(R) and ADVIL COLD & SINUS(R) due to the impact of retailer actions
and state legislation related to pseudoephedrine (PSE)-containing products
offset, in part, by an increase in sales of Advil and CENTRUM(R). Excluding
the favorable impact of foreign exchange, worldwide Consumer Healthcare net
revenue decreased 1% for the 2006 second quarter. There was no net foreign
exchange impact on Consumer Healthcare net revenue for the 2006 first half.
Animal Health
Worldwide Animal Health net revenue increased 11% for the 2006 second
quarter and 6% for the 2006 first half due to higher sales of companion
animal and livestock products, partially offset by lower sales of equine
products. There was no net foreign exchange impact on Animal Health net
revenue for the 2006 second quarter or first half.
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
and are subject to risks and uncertainties that could cause actual results
to differ materially from those expressed or implied by such statements.
These risks and uncertainties include risks associated with the inherent
uncertainty of the timing and success of product research, development and
commercialization (including with respect to our pipeline products), drug
pricing and payment for our products by government and third-party payers,
manufacturing, data generated on the safety and efficacy of our products,
economic conditions including interest and currency exchange rate
fluctuations, changes in generally accepted accounting principles, the
impact of competitive or generic products, trade buying patterns, global
business operations, product liability and other types of litigation, the
impact of legislation and regulatory compliance, intellectual property
rights, strategic relationships with third parties, environmental
liabilities, and other risks and uncertainties, including those detailed
from time to time in our periodic reports filed with the Securities and
Exchange Commission, including our current reports on Form 8-K, quarterly
reports on Form 10-Q and annual report on Form 10-K, particularly the
discussion under the caption "Item 1A, Risk Factors." We assume no
obligation to publicly update any forward-looking statements, whether as a
result of new information, future developments 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 of 2006.
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 Internet website at http://www.wyeth.com and clicking on the
"Investor Relations" hyperlink. Also, for recent announcements and
additional information including product sales information, please refer to
the Company's Internet website.
Results of Operations
The comparative results of operations are as follows:
(In thousands except per share amounts)
(UNAUDITED)
Three Months Ended Six Months Ended
6/30/2006 6/30/2005 6/30/2006 6/30/2005
Net Revenue $5,156,743 $4,713,835 $9,994,680 $9,292,833
Cost of Goods Sold(1) 1,373,559 1,337,090 2,710,677 2,686,547
Selling, General and
Administrative Expenses(1) 1,652,397 1,527,912 3,116,993 2,980,593
Research and Development
Expenses(1) 750,673 625,704 1,435,343 1,233,661
Interest Expense, Net 2,491 17,152 8,004 47,151
Other Income, Net(2) (51,476) (38,066) (166,051) (272,628)
Income Before Income Taxes 1,429,099 1,244,043 2,889,714 2,617,509
Provision for Income Taxes 364,309 267,469 705,341 562,764
Net Income(3) $1,064,790 $976,574 $2,184,373 $2,054,745
Basic Earnings Per Share(4) $0.79 $0.73 $1.62 $1.54
Average Number of Common
Shares Outstanding During
Each Period - Basic 1,345,377 1,339,101 1,344,955 1,337,514
Diluted Earnings Per Share(4) $0.78 $0.72 $1.60 $1.52
Average Number of Common
Shares Outstanding During
Each Period - Diluted 1,371,648 1,361,830 1,372,110 1,359,495
(1) The 2006 second quarter included charges of $39,500 ($27,303 after-tax
or $0.02 per share-diluted) related to activities associated with the
Company's productivity initiatives. Charges of $26,516 were included
in Cost of Goods Sold, $7,927 in Selling, General and Administrative
Expenses and $5,057 in Research and Development Expenses. The 2006
first half included charges of $74,600 ($51,503 after-tax or $0.04 per
share-diluted) related to activities associated with the Company's
productivity initiatives. Charges of $55,191 were included in Cost of
Goods Sold, $11,094 in Selling, General and Administrative Expenses
and $8,315 in Research and Development Expenses.
(2) Other income, net included royalty income for the 2006 second quarter
and first half of $67,787 and $133,234, respectively, compared with
$78,671 and $144,224 for the prior year.
(3) Stock-based compensation expense for the 2006 second quarter and first
half has been recorded in accordance with SFAS No. 123R, which the
Company adopted as of January 1, 2006. The 2006 second quarter and
first half results included net stock-based compensation expense for
stock options, restricted stock and performance share awards totaling
$94,793 and $148,536, respectively. The 2005 second quarter and first
half results included net stock-based compensation expense only for
restricted stock and performance share awards of $22,213 and $26,690,
respectively. Prior to the adoption of SFAS No. 123R, no expense was
recorded for stock options.
(4) 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 the Company's outstanding convertible senior
debentures, outstanding stock options, deferred contingent common
stock awards, restricted stock awards and convertible preferred stock
into common stock equivalents using the treasury stock method. For
purposes of calculating diluted earnings per share, interest expense,
net of capitalized interest and taxes, related to the Company's
outstanding convertible senior debentures is added back to reported
net income, and the additional common shares (assuming conversion) are
included in total shares outstanding. Interest expense, net of
capitalized interest and taxes was $6,981 and $13,741 for the 2006
second quarter and first half, respectively, compared with $4,413 and
$8,477 for the comparable periods in 2005.
Results of Operations - As Adjusted
The 2005 second quarter and first half results, as reported above, do
not include the impact of expensing stock options. In order to assist in
performing year-over-year comparisons during 2006, Wyeth has prepared the
following presentation of its results of operations for the three months
and six months ended June 30, 2006 and 2005, adjusted where noted below, to
exclude certain significant items during the 2006 second quarter and first
half and to reflect the 2005 second quarter and first half pro forma effect
of expensing stock options.
The comparative results of operations - as adjusted are as follows:
(In thousands except per share amounts)
(UNAUDITED) - AS ADJUSTED
Three Months Ended Six Months Ended
6/30/2006 6/30/2005 6/30/2006 6/30/2005
Net Revenue $5,156,743 $4,713,835 $9,994,680 $9,292,833
Cost of Goods Sold(1)(2) 1,347,043 1,343,269 2,655,486 2,699,210
Selling, General and
Administrative
Expenses(1)(2) 1,644,470 1,570,556 3,105,899 3,073,260
Research and Development
Expenses(1)(2) 745,616 646,480 1,427,028 1,279,590
Interest Expense, Net 2,491 17,152 8,004 47,151
Other Income, Net(3) (51,476) (38,066) (166,051) (272,628)
Income Before Income Taxes 1,468,599 1,174,444 2,964,314 2,466,250
Provision for Income
Taxes(2) 376,506 251,625 728,438 530,462
Net Income(1)(2) $1,092,093 $922,819 $2,235,876 $1,935,788
Basic Earnings Per Share(4) $0.81 $0.69 $1.66 $1.45
Average Number of Common
Shares Outstanding During
Each Period - Basic 1,345,377 1,339,101 1,344,955 1,337,514
Diluted Earnings Per Share(4) $0.80 $0.68 $1.64 $1.43
Average Number of Common
Shares Outstanding During
Each Period - Diluted 1,371,648 1,361,830 1,372,110 1,359,495
(1) Charges of $39,500 ($27,303 after-tax or $0.02 per share-diluted)
related to activities associated with the Company's productivity
initiatives were excluded from the results of operations for the 2006
second quarter. These charges are considered certain significant
items and have been excluded above as follows: $26,516 from Cost of
Goods Sold, $7,927 from Selling, General and Administrative Expenses
and $5,057 from Research and Development Expenses. Charges of $74,600
($51,503 after-tax or $0.04 per share-diluted) related to activities
associated with the Company's productivity initiatives were excluded
from the results of operations for the 2006 first half. These charges
are considered certain significant items and have been excluded above
as follows: $55,191 from Cost of Goods Sold, $11,094 from Selling,
General and Administrative Expenses and $8,315 from Research and
Development Expenses.
Wyeth calculates net income before certain significant items by
excluding the after-tax effect of items considered by management to be
unusual from the net income reported under GAAP. Wyeth's management
uses this measure to manage and evaluate the Company's performance and
believes it is appropriate to disclose this non-GAAP measure to assist
investors with analyzing business performance and trends. The
productivity initiatives charges which include the costs of closing
certain manufacturing facilities, including accelerated depreciation,
certain reorganization expenses and the elimination of certain
positions at the Company's facilities have been excluded as these
charges are not considered to be indicative of continuing operating
results. Wyeth's management believes that excluding these items from
the Company's results provides a more appropriate view of the
Company's operations for the accounting periods presented.
This measure should not be considered in isolation or as a substitute
for the results of operations and diluted earnings per share prepared
in accordance with GAAP.
(2) The adjusted results of operations for the 2005 second quarter
includes the pro forma effect of expensing stock options relating to
the Company's stock compensation plans of $6,179 in Cost of Goods
Sold, $42,644 in Selling, General and Administrative Expenses and
$20,776 in Research and Development Expenses, as well as a related tax
benefit of $15,844. The adjusted results of operations for the 2005
first half reflects the pro forma effect of expensing stock options
relating to the Company's stock compensation plans of $12,663 in Cost
of Goods Sold, $92,667 in Selling, General and Administrative Expenses
and $45,929 in Research and Development Expenses, as well as a related
tax benefit of $32,302.
(3) Other income, net included royalty income for the 2006 second quarter
and first half of $67,787 and $133,234, respectively, compared with
$78,671 and $144,224 for the comparable periods in 2005.
(4) 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 the Company's outstanding convertible senior
debentures, outstanding stock options, deferred contingent common
stock awards, restricted stock awards and convertible preferred stock
into common stock equivalents using the treasury stock method. For
purposes of calculating diluted earnings per share, interest expense,
net of capitalized interest and taxes, related to the Company's
outstanding convertible senior debentures is added back to reported
net income, and the additional common shares (assuming conversion) are
included in total shares outstanding. Interest expense, net of
capitalized interest and taxes was $6,981 and $13,741 for the 2006
second quarter and first half, respectively, compared with $4,413 and
$8,477 for the comparable periods in 2005.
The pro forma presentation of the Company's 2005 quarterly and full
year results of operations reflecting the pro forma effect of stock option
expensing within the appropriate line of the results of operations and the
pro forma effect on earnings per share for the period presented may be
accessed on the Company's Internet website at http://www.wyeth.com by
clicking on the "Investor Relations" hyperlink.
SOURCE Wyeth
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Related links:
http://www.wyeth.com
CONTACT:
Media: Douglas Petkus, +1-973-660-5218, or
Investor: Justin Victoria, +1-973-660-5340, both of Wyeth
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