Slide 1: First Quarter 2023 Earnings Teleconference
First Quarter 2023 Earnings Teleconference May 2, 2023 Breakthroughs that change patients' lives ®
Slide 2: Introduction
Introduction Christopher Stevo Senior Vice President, Chief Investor Relations Officer
Slide 3: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Our discussions during this conference call will include forward-looking statements that are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such sta
Slide 4: Opening Remarks
Opening Remarks Albert Bourla Chairman and Chief Executive Officer
Slide 5: Q1 2023: A Solid, Foundational Quarter
Q1 2023: A Solid, Foundational Quarter Strong Financial Key Growth Drivers ex-COVID Products Performance ex-COVID Products $167M * op $71M * op $320M +64% op U.S. $163M, * U.S. $71M, * U.S. —, — Int'l $4M, * op Int'l —, — Int'l $320M, +64% op +5% Operational Revenue Growth 2 $1.9B +7% op U.S. $1.3B,
Slide 6: Expected 7-9% Op Growth ex-COVID in 2023 on Track
Expected 7-9% Op Growth ex-COVID1 in 2023 on Track Driven by Large Number of Launches Expected in Second Half Q1 Q2 Q3 Q4 • Cibinqo (Adolescent) • Ritlecitinib • RSV Adults (60+) Vaccine2 • Zavzpret (intranasal) • RSV Maternal Vaccine2, 3 • Talzenna + Xtandi (TALAPRO2) • Pentavalent Meningococcal Va
Slide 7: New Launches / Co-promotions and Potential Product Launches
New Launches / Co-promotions and Potential Product Launches1 ~$20B Potential Revenue ~$25B Potential Revenue expected for NME and expected from new new indications by 20302 BD deals by 20303 Vaccines Inflammation/Immunology Oncology Rare Disease Internal Medicine New Molecular Entity (NME) Launches
Slide 8: Excellent Progress toward Expected Product Launches
Excellent Progress toward Expected Product Launches ~$20B Potential Revenue ~$25B Potential Revenue expected for NME and expected from new 2023 new indications by 2030 20232 BD deals 2023**by 20303 Zavzpret (intranasal) Vaccines Cibinqo Inflammation/Immunology Oncology Rare Disease Prevnar 20 Peds I
Slide 9: COVID-19 Revenue Expectations Remain Unchanged
COVID-19 Revenue Expectations Remain Unchanged Pfizer-BioNTech COVID-19 Vaccine, Bivalent Anticipated Long-Term Global Paxlovid Treatment Anticipated Long-Term COVID-19 U.S. Vaccinations Courses Sold* Impact of COVID/Flu Illustrative and Not to Scale COVID Vx Only Combo 2022 2023 2024 2025 2026 U.S.
Slide 10: Accelerating Pfizer's Battle Against Cancer
Accelerating Pfizer's Battle Against Cancer Combination of Pfizer and Seagen will have the potential to: • Enhance Pfizer’s position as a leading company in the important oncology space • Help bring Seagen's category-leading ADC technology to more patients with cancer, more quickly • Contribute more
Slide 11: Continuing to Build Trust in Our Brand
Continuing to Build Trust in Our Brand First Quarter 2023 Earnings 11
Slide 12: Financial Review
Financial Review David Denton Chief Financial Officer, Executive Vice President
Slide 13: Efficient Cash Deployment Strategy Focused on Three Pillars
Efficient Cash Deployment Strategy Focused on Three Pillars Paying/Growing Share Reinvestment Dividends Repurchases1 Post-Seagen De-Levering, Expect More Balanced Capital Allocation Between Reinvestment and Returning Value to Shareholders 1 Current financial guidance does not anticipate any share re
Slide 14: Quarterly Income Statement Highlights
Quarterly Income Statement Highlights Revenues Adjusted2 Cost of Sales Adjusted2 SI&A Expenses $18.3B -26% op $4.7B -51% op $3.3B +37% op $11.1B1 +5% op 26%3 -12.8 ppts Excluding Comirnaty2 and Paxlovid, op Primarily driven by increased growth primarily driven by Nurtec investments to support Paxlov
Slide 15: Reaffirms 2023 Revenues and Adjusted Diluted EPS Guidance
Reaffirms 2023 Revenues and Adjusted1 Diluted EPS 2023 Financial Guidance Revenues* Adjusted1 Diluted EPS* $67.0 to $71.0 billion $3.25 to $3.45 1 See Slides 25-26 for definitions and for additional information regarding Pfizer's 2023 financial guidance. *Changes in foreign exchange rates have had a
Slide 16: Scientific Updates
Scientific Updates Mikael Dolsten Chief Scientific Officer and President, Worldwide Research, Development and Medical
Slide 17: Building Upon Standard of Care in Prostate Cancer
Building Upon Standard of Care in Prostate Cancer Advancing potential blockbusters across the treatment continuum CASTRATION SENSITIVE CASTRATION RESISTANT Non-metastatic Metastatic Non-metastatic Metastatic Approved Phase 3 EMBARK TALAPRO-3 TALAPRO-2 Next-Generation Candidates with Potential to Tra
Slide 18: TALZENNA + XTANDI Improves Final rPFS in Phase 3 mCRPC Study
TALZENNA + XTANDI Improves Final rPFS in Phase 3 mCRPC Study1 37% reduction in risk of disease progression irrespective of HRR gene mutation status TALAPRO-2 Phase 3 Primary Endpoint: rPFS by BICR 1.0 0.8 • TALZENNA plus XTANDI showed significant and Probability of rPFS clinically meaningful improve
Slide 19: TALZENNA + XTANDI Improves ORR in Phase 3 mCRPC Study
TALZENNA + XTANDI Improves ORR in Phase 3 mCRPC Study1 Higher rates of complete response suggest cooperative effect of TALZENNA plus XTANDI treatment TALAPRO-2 ORR by BICR P = 0.005 • Statistically significant improvement in ORR by BICR • PSA response ≥50%, and time to PSA progression and use of sub
Slide 20: XTANDI + Leuprolide Improves MFS in Phase 3 nmCSPC Study
XTANDI + Leuprolide Improves MFS in Phase 3 nmCSPC Study1 Potential to expand utility of XTANDI to non-metastatic, castration-sensitive population EMBARK Phase 3 Primary Endpoint: Metastasis Free Survival • Phase 3 EMBARK study met its primary endpoint with a statistically significant and clinically
Slide 21: PF-06821497: Potential First-in-Class EZH2i in Prostate Cancer
PF-06821497: Potential First-in-Class EZH2i in Prostate Cancer Potential to overcome multiple resistance mechanisms to XTANDI Phase 1 Dose Escalation in 2L mCRPC with prior abiraterone and/or XTANDI (N=47) PF-06821497 + XTANDI PF-06821497 + XTANDI (XTANDI experienced, N=35) (XTANDI naïve, N=12) rPFS
Slide 22: Potential Near-Term Growth in Respiratory Vaccines
Potential Near-Term Growth in Respiratory Vaccines Sustained leadership leverages established platforms and emerging technology Pediatrics Adolescents Younger Adults Older Adults Prevnar 20 High Risk if recommended in pediatrics Influenza if development successful, Future Studies approved and recomm
Slide 23: Potent and Selective 2nd Generation Oral COVID-19 Antiviral
Potent and Selective 2nd Generation Oral COVID-19 Antiviral Phase 1 results show potential for anti-viral activity without ritonavir boost and associated DDIs ‘833 and CYP3A4 Substrate Midazolam Coadministration PK Data • Preliminary Phase 1 data to date indicate PF-07817883 is well tolerated with n
Slide 24: Strong Launch Execution and Next Wave Pipeline Candidates
Strong Launch Execution and Next Wave Pipeline Candidates Over 25 milestones recently achieved or anticipated through 1H 20241 Vaccines Internal & Genetic Medicines Oncology: Breast Cancer ZAVZPRET Nasal Acute Migraine Launch Danuglipron (GLP-1) Ph 2b Data IBRANCE PATINA HER2+ Ph 3 Data MenABCWY Lau
Slide 25: Footnotes (Page 1 of 2)
Footnotes (Page 1 of 2) (1) As used in this document, “Comirnaty” refers to, as applicable, and as authorized or approved, the Pfizer-BioNTech COVID-19 Vaccine, the Pfizer-BioNTech COVID-19 Vaccine, Bivalent (Original and Omicron BA.4/BA.5), the Comirnaty Original/Omicron BA.1 Vaccine, and Comirnaty
Slide 26: Footnotes (Page 2 of 2)
Footnotes (Page 2 of 2) (5) Pfizer’s fiscal year-end for international subsidiaries is November 30 while Pfizer’s fiscal year-end for U.S. subsidiaries is December 31. Therefore, Pfizer’s first quarter for U.S. subsidiaries reflects the three months ended on April 2, 2023 and April 3, 2022 while Pfi
Slide 27: Appendix
Appendix
Slide 28: Q1 2023 Summary Figures (1 of 2)
Q1 2023 Summary Figures (1 of 2) Revenue by Customer Group ($M) Top 7 Products by Revenue2 ($M) 1 Total Total 3 $18,282 $18,282 6 4 5 % Operational Growth % Operational Growth Primary Specialty Business Prevnar Vyndaqel Care Care Oncology Innovation1 Total Paxlovid Comirnaty3 Eliquis4 family5 Ibranc
Slide 29: Q1 2023 Summary Figures (2 of 2)
Q1 2023 Summary Figures (2 of 2) Revenue by Customer Group, Ex-COVID1 Revenue by Geography ($M) ($M) 2 Total $11,149 Total 61% of Total $18,282 Revenue % Operational Growth Ex-COVID1 % Operational Growth Primary Specialty Business Care Care Oncology Innovation2 Total U.S.3 EM Dev EU Dev ROW Total 8%
Slide 30: 2023 Financial Guidance: Other Components
2023 Financial Guidance1: Other Components Adjusted1 Cost of Sales as a Percentage of Revenues 28.0% to 30.0% Adjusted1 SI&A Expenses $13.8 to $14.8 Billion Adjusted1 R&D Expenses $12.4 to $13.4 Billion Acquired IPR&D Expenses1,2 Approximately $0.1 billion Adjusted1 Other (Income)/Deductions Approxi
Slide 31: 2023 Financial Guidance: Key Assumptions (1 of 2)
2023 Financial Guidance: Key Assumptions (1 of 2) Key Assumptions for 2023 Guidance Commentary Operational revenue growth compared to 2022 excluding COVID-19 Growth expected to be split among each of three categories: launch, 7% to 9% products acquired and in-line products Incremental SI&A spend to
Slide 32: 2023 Financial Guidance: Key Assumptions (2 of 2)
2023 Financial Guidance: Key Assumptions (2 of 2) Comirnaty - 2023 Guidance Assumptions Commentary Compared to ~31%† in 2022; Decrease due to fewer primary vaccinations and lower Estimated proportion of U.S. population that receives a vaccine ~24% compliance Estimated number of doses per vaccinated
Slide 33: Anticipated Long-Term Growth Excluding COVID-19 Products
Anticipated Long-Term Growth Excluding COVID-19 Products Illustrative* ~$84B ~$25B4 $XB5 '25-'30 CAGR 10% ~$52B1 '22-'25 CAGR 6% ~$70B '25-'30 CAGR 6% with new launches ~$20B3 New launches ~$17B2 Current products *For illustrative purposes only and not intended to be at scale. All values at constant
Slide 34: Key Products Included in the Expected ~$17 Billion in LOE Revenue Declines
Key Products Included in the Expected ~$17 Billion in LOE Revenue Declines from 2025-2030 2022 WW 2022 U.S. 2022 Dev. EU Year of Year of Revenues Revenues Revenues Expected U.S. Expected EU Product ($ millions) ($ millions) ($ millions) LOE LOE Eliquis1 $6,480 $3,822 $1,459 2026* 2026 Inlyta $1,003
Slide 35: Additional Pipeline Potential Launches Through 2030 – Selected Examples
Additional Pipeline Potential Launches Through 2030 – Introduction Selected Examples Product Candidate Anticipated Indication(s) Expected Potential Launch New Molecular Entity (NME) Launches Danuglipron or Lotiglipron (oral GLP1s) Type 2 Diabetes, Obesity >2024 Anti-IFN-β Antibody (PF’3859) Dermatom
Slide 36: Bolstering the Pipeline with Recent Business Development Opportunities
Bolstering the Pipeline with Recent Business Development Opportunities Select Examples Year Therapeutic Area Organization Asset/Indication Status Since Close BRAFTOVI & MEKTOVI – Cancer; LMNA – Cardiomyopathy Approvals: 1; Pivotal Starts: 2; FIH: 31 Cardiomyopathy discontinued GTx – Wilson Disease F
Slide 37: Bolstering the Pipeline with Recent Business Development Opportunities
Bolstering the Pipeline with Recent Business Development Opportunities Select Examples Year Therapeutic Area Organization Asset/Indication Status Since Close RSV antiviral therapeutics Sisunatovir (Ph2); RV299 (N-protein inhibitor) (Ph 1) Nurtec ODT, zavegepant, 5 pre-clinical CGRP assets – Nurtec O