We believe that our medicines provide significant value for both healthcare providers and patients, not only from the improved treatment of diseases but also from a reduction in other healthcare costs, such as emergency room or hospitalization costs, as w ell as improvements in health, w ellness and productivity. We continue to actively engage in dialogues about the value of our products and how w e can best w ork w ith patients, physicians and payers to prevent and treat disease and improve outcomes. We w ill w ork w ithin the current legal and pricing structures, as w ell as continue to review our pricing arrangements and contracting methods w ith payers, to maximize access to patients and minimize any adverse impact on our revenues.
On November 30, 2012, w e completed the sale of our Nutrition business to Nestlé. On February 6, 2013, w e completed the sale of approximately 19.8% of our ow nership stake in Zoetis through an initial public offering. We may in the future make a tax-free distribution to our shareholders of all or a portion of our remaining equity interest in Zoetis, w hich may include one or more distributions effected as a dividend to all Pfizer
shareholders, one or more distributions in exchange for Pfizer shares or other securities, or any combination thereof. We w ill consider all alternatives to maximize the after-tax return for our shareholders, including a tax-free distribution to our shareholders. If pursued, any disposition w ould be subject to various conditions, including receipt of any necessary regulatory or other approvals and the existence of satisfactory market conditions.
If w e decide to fully separate Zoetis, then, follow ing such separation, Pfizer w ill be a global biopharmaceutical company w ith an innovative core (our Primary Care, Specialty Care and Oncology units) and a value core (our Established Products unit) in developed markets, w ith different cost structures and operating drivers. Our Emerging Markets unit has a geographic focus that includes both the innovative and value cores in those markets. The innovative core includes a portfolio of innovative, largely patent-protected, in-line products and an R&D organization focused on continuing to build a robust pipeline of highly differentiated product candidates in areas of unmet medical needs. The value core includes a portfolio of products that have lost exclusivity or are approaching the loss of exclusivity that help meet the global need for less expensive, quality medicines. In addition, w e have a complementary Consumer Healthcare business w ith several w ell-know n brands.
In response to the challenging operating environment, w e have taken and continue to take many steps to strengthen our Company and better position ourselves for the future. We believe in a comprehensive approach to our challenges—organizing our business to maximize research, development and commercial opportunities, improving the performance of our innovative core, making the right capital allocation decisions, and protecting our intellectual property.
Financial Review
Pfizer Inc. and Subsidiary Companies
We continue to closely evaluate our global research and development function and pursue strategies intended to improve innovation and overall productivity in R&D by prioritizing areas that w e believe have the greatest scientific and commercial promise, utilizing appropriate risk/return profiles and focusing on areas that w e believe have the highest potential to deliver value in the near term and over time. To that end, our research primarily focuses on five high-priority areas that have a mix of small and large molecules—immunology and inflammation; oncology; cardiovascular and metabolic diseases; neuroscience and pain; and vaccines. In addition to reducing the number of disease areas of focus, w e have realigned and reduced our research and development footprint and outsourced certain functions that do not drive competitive advantage for Pfizer. For additional information, see the “Our Financial Guidance for 2013” and “Costs and Expenses—Restructuring Charges and Other Costs Associated w ith Acquisitions and Cost-Reduction/Productivity Initiatives” sections of this Financial Review .
While a significant portion of R&D is done internally, w e continue to seek to expand our pipeline by entering into agreements w ith other companies to develop, license or acquire promising compounds, technologies or capabilities. Collaboration, alliance and license agreements and acquisitions allow us to capitalize on these compounds to expand our pipeline of potential future products. In addition, collaborations and alliances allow us to share risk and to access external scientific and technological expertise.
For information about our pending new drug applications (NDA) and supplemental filings, see the “Revenues—Product Developments— Biopharmaceutical” section of this Financial Review .
We continue to build on our broad portfolio of businesses through various business development transactions. See the “Our Business Development Initiatives” section of this Financial Review for information on our recent transactions and strategic investments that w e believe complement our businesses.
We continue to aggressively defend our patent rights against increasingly aggressive infringement w henever appropriate (see Notes to Consolidated Financial Statements— Note 17. Commitments and Contingencies ), and w e w ill continue to support efforts that strengthen w orldw ide recognition of patent rights w hile taking necessary steps to ensure appropriate patient access. In addition, w e w ill continue to employ innovative approaches to prevent counterfeit pharmaceuticals from entering the supply chain and to achieve greater control over the distribution of our products, and w e w ill continue to participate in the generics market for our products, w henever appropriate, once they lose exclusivity. We remain focused on achieving an appropriate cost structure for the Company. For information regarding our cost-reduction and productivity initiatives, see the “Costs and Expenses—Restructuring Charges and Other Costs Associated w ith Acquisitions and Cost-Reduction/Productivity Initiatives” section of this Financial Review .
Our strategy also includes directly enhancing shareholder value through dividends and share repurchases. On December 17, 2012, our Board of Directors declared a first-quarter 2013 dividend of $0.24 per share, an increase from the $0.22 per-share quarterly dividend paid during 2012. Also, on November 30, 2012, a new $10 billion share repurchase plan, to be utilized over time, became effective.