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Wyeth Reports Earnings Results for the 2009 Second Quarter and First Half and Raises Full Year 2009 Guidance
Date:7/23/2009

gn exchange, as compared with the 2008 second quarter. The 2% increase, excluding the impact of foreign exchange, was primarily due to higher sales of Wyeth's key pharmaceutical franchises PREVNAR((R)),( )ENBREL((R)) (outside the U.S. and Canada) and Nutritional products, along with higher sales of PRISTIQ((R)), TYGACIL((R)), TORISEL((R)) and the Hemophilia family and higher Enbrel alliance revenue. These increases were partially offset by decreased sales of EFFEXOR((R)) due primarily to increased generic competition in international markets. Excluding the impact of foreign exchange, net revenue for the 2009 second quarter for the Pharmaceuticals, Consumer Healthcare and Animal Health segments increased 3%, 2% and 1%, respectively.

Gross margin, excluding certain significant items, as a percentage of net revenue, increased 0.7 percentage points to 73.2% for the 2009 second quarter from 72.5% for the 2008 second quarter.

Selling, general and administrative expenses, excluding certain significant items, decreased 9% for the 2009 second quarter versus the 2008 second quarter and decreased 4%, excluding the impact of foreign exchange. This decrease, excluding the impact of foreign exchange, was primarily due to cost savings related to the Company's productivity initiatives, which were partially offset by increased pension expense.

Research and development expenses, excluding certain significant items, increased 7% for the 2009 second quarter versus the 2008 second quarter and increased 8%, excluding the impact of foreign exchange. The increase was primarily due to increased clinical trial spending, including oncology projects and Prevnar 13 adult, as well as costs related to a recently announced in-licensing transaction.

Interest expense, net was $83.0 million for the 2009 second quarter as compared with $18.7 million for the 200
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SOURCE Wyeth
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