Slide 1: Third Quarter 2024 Earnings Teleconference
Third Quarter 2024 Earnings Teleconference October 29, 2024 1
Slide 2: Introduction
Introduction Francesca DeMartino Chief Investor Relations Officer, Senior Vice President Third Quarter 2024 Earnings 2
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 Third Quarter 2024 Earnings 4
Slide 5: Q3 2024: Disciplined Execution Drives Strong Performance
Q3 2024: Disciplined Execution Drives Strong Performance Breakthroughs that change patients’ lives. Revenue Op Growth Q3 2024 vs Q3 2023 >271M +32% Op Patients Impacted1 Total Revenues YTD Q3 2024 with our medicines and vaccines +14% Op Ex-COVID Products 1. See slides 30-31 for definition. Third Qua
Slide 6: 2024 Key Priorities
2024 Key Priorities Executing with excellence against our strategic goals • Achieve world-class Oncology leadership • Deliver the next wave of pipeline innovation • Maximize performance of our new products • Expand margins by realigning our cost base • Allocate capital to enhance shareholder value T
Slide 7: Achieve World-Class Oncology Leadership
Achieve World-Class Oncology Leadership Q3 2024: 1H 2024: Oncology Revenues 3rd Largest +31% Op Biopharma Company in Oncology in U.S. by Revenue Third Quarter 2024 Earnings 7
Slide 8: Q3 2024: Genitourinary Cancer
Q3 2024: Genitourinary Cancer 1 1 +28% Op2 +77% Op2 >50% of Rx in 1L la/mUC (U.S.) 1. Jointly developed and commercialized with Astellas Pharma Inc. 2. Revenue operational growth in Q3 2024 vs. Q3 2023. 1L=first line; la/mUC=locally advanced/metastatic urothelial cancer Third Quarter 2024 Earnings 8
Slide 9: Q3 2024: Thoracic Cancer
Q3 2024: Thoracic Cancer 1 +31% Op2 +32% Op2 1. We have exclusive rights to Braftovi and Mektovi in the U.S., Canada and certain emerging markets, and Ono Pharmaceutical Co., Ltd., Medison and Pierre Fabre Laboratories have exclusive rights in all other markets. 2. Revenue operational growth in Q3 2
Slide 10: Q3 2024: Multiple Myeloma
Q3 2024: Multiple Myeloma st +80% op >2x 1 4 sequential revenue new patient starts to-market BCMA ongoing growth Q3 2024 vs. YTD 2024 in U.S. bispecific in Japan registrational Q2 2024 studies BCMA=B cell maturation antigen Third Quarter 2024 Earnings 10
Slide 11: Select Pipeline Advancements in Oncology
Select Pipeline Advancements in Oncology* Oncology • Lung Cancer • Genitourinary Cancer • Breast Cancer – BRAFTOVI + MEKTOVI1 – Disitamab vedotin2 – Atirmociclib (CDK4i) – Sigvotatug vedotin (IB6) – Mevrometostat – Vepdegestrant3 – PD-L1 ADC Strategic focus on portfolio prioritization and continued
Slide 12: Select Pipeline Advancements in Vaccines
Select Pipeline Advancements in Vaccines* Vaccines • 4th-generation • 5th-generation • C. diff vaccine • Lyme disease pneumococcal pneumococcal candidate vaccine candidate1 vaccine candidate vaccine candidate – Updated formulation – In Phase 3 – In Phase 2 in adults – In pre-clinical in Phase 2 – Po
Slide 13: Select Pipeline Advancements in Anti-Infectives
Select Pipeline Advancements in Anti-Infectives* Anti-Infectives • Ibuzatrelvir – Next-generation investigational oral anti-viral candidate for COVID-19 – Robust anti-viral activity at all doses in Phase 2b, without need for ritonavir boosting – Phase 3 start expected in coming months Strategic focu
Slide 14: Select Pipeline Advancements in Inflammation and Immunology
Select Pipeline Advancements in Inflammation and Immunology* Inflammation and Immunology • Ritlecitinib • Trispecific antibodies – In Phase 3 for non-segmental vitiligo, a – In Phase 2 for atopic dermatitis, with potential indication expansion for LITFULO potential for improved efficacy over existin
Slide 15: Select Pipeline Advancements in Internal Medicine
Select Pipeline Advancements in Internal Medicine* Cachexia1 Obesity • Ponsegromab • Danuglipron – Weight increases at all doses in Phase 2 – Expected 1Q25 update will inform registration cancer cachexia study, with improvements enabling studies in appetite, cachexia symptoms, physical activity, mus
Slide 16: Maximize Performance of New Products
Maximize Performance of New Products In oral CGRP class: 1 • ~28% TRx growth vs. prior year +45% Op • ~85% of new CGRP primary care writers 1. Revenue operational growth in Q3 2024 vs. Q3 2023. CGRP=calcitonin gene-related peptide Third Quarter 2024 Earnings 16
Slide 17: Maximize Performance of New Products
Maximize Performance of New Products • 83% market share in pediatric • 53% market share of shipped volume • 97% market share in adults • 43% market share of retail administration1 1. Through the middle of October. Third Quarter 2024 Earnings 17
Slide 18: Paxlovid: Steady, Consistent Utilization Tracks with COVID-19 Waves
Paxlovid: Steady, Consistent Utilization Tracks with COVID-19 Waves COVID-19 Burden of Disease & PAXLOVID Utilization 2024 Year-to-Date Performance Metrics1 (versus same period 2023) Burden of Disease PAXLOVID Utilization Patients Treated Fulfillment Rate Treatment Rate with Paxlovid 4.9M 81% 57% (5
Slide 19: Maximize Performance of New Products
Maximize Performance of New Products family1 • Progress in expanding healthcare provider base 2 +63% Op • Improving patient access, adherence 1. Vyndaqel family includes global revenues from Vyndaqel, as well as revenues for Vyndamax in the U.S. and Vynmac in Japan. 2. Revenue operational growth in
Slide 20: Maximize Performance of New Products
Maximize Performance of New Products +74% Op1 +27% Op2 • Continued progress with • First and only FDA approved pill expanding patient access for both adults and adolescents 12+yrs for severe alopecia areata 1. Year-over-year revenue operational growth in Q3 2024 vs. Q3 2023. 2. Sequential revenue op
Slide 21: Financial Review
Financial Review David Denton Chief Financial Officer, Executive Vice President Third Quarter 2024 Earnings 21
Slide 22: Quarterly Statement of Operations Highlights
Quarterly Statement of Operations Highlights Revenues Adjusted2 Cost of Sales Adjusted2 SI&A Expenses $17.7B 32% op $4.9B (45)% op $3.2B 1% op $13.6B1 14% op Excluding Paxlovid and Comirnaty , op 2 27.5%3 38.5 ppts Primarily driven by an increase in marketing and promotional expenses for recently la
Slide 23: YTD Q3 2024: Allocating Capital to Enhance Shareholder Value
YTD Q3 2024: Allocating Capital to Enhance Shareholder Value Driving a balanced capital allocation strategy to reinvest in our business and return value to shareholders Maintain and De-lever Our Reinvest in Share Grow Our Balance Sheet Business Repurchases2 Dividend $7.1B $4.4B1 $7.8B None planned R
Slide 24: 2024 Financial Guidance
2024 Financial Guidance1: Raises 2024 Revenue Range and Adjusted1 Diluted EPS Range $61.0 to $64.0 Billion Revenues (previously $59.5 to $62.5 billion) Adjusted1 SI&A Expenses $13.8 to $14.8 Billion Adjusted1 R&D Expenses $11.0 to $12.0 Billion Effective Tax Rate on Adjusted1 Income ~13.0% 1 $2.75 t
Slide 25: Modeling Considerations
Modeling Considerations 2024 Non-Recurring Items • 2024 benefit from one-time Paxlovid USG true-up and stockpile build (~$1.2B Revenue) • Haleon equity income to be removed from Adjusted earnings in 2025 • 2024 tax rate favorably impacted by Pillar 2 timing, and, to a lesser extent, audit settlement
Slide 26: Q&A Session
Q&A Session Questions Answers Third Quarter 2024 Earnings 26
Slide 27: Selected Illustrative Updates to Pipeline YTD 2024
Selected Illustrative Updates to Pipeline YTD 2024 Regulatory Decisions Phase 3 Readouts Pivotal Program Starts Compound Indication Compound Indication Compound Indication Tivdak (US)* 2L mCC ü Abrysvo OA Second Season RSV Vaccine ü Xtandi (EU) nmCSPC (EMBARK) ü Gene Therapy for Gene Therapy for Ati
Slide 28: Summary Updates to Pipeline Progress
Summary Updates to Pipeline Progress Late-Stage Development Pipeline Progress July 30 to October 29, 2024 Advanced to Advanced to Advanced to Approved Phase 2 Phase 3 Registration Focus Area Compound Indication Compound Indication Compound Indication Compound Indication Inflammation and Immunology •
Slide 29: Glossary: Select Pipeline Assets
Glossary: Select Pipeline Assets Phase of Compound Name Mechanism of Action Target Indication Development Submission Type BRAFTOVI® (encorafenib)+ BRAF V600E-mutant Metastatic Non-small Cell Approved BRAF kinase inhibitor and MEK inhibitor Product Enhancement MEKTOVI® (binimetinib)1 Lung Cancer (Ong
Slide 30: Footnotes (Page 1 of 2)
Footnotes (Page 1 of 2) (1) Pfizer does not provide guidance for GAAP Reported financial measures (other than revenues) or a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP Reported financial measures on a forward-looking basis because it is unable
Slide 31: Footnotes (Page 2 of 2)
Footnotes (Page 2 of 2) (5) The targeted $4 billion in net cost savings from our cost realignment program is calculated versus the midpoint of Pfizer’s 2023 SI&A and R&D expense guidance provided on August 1, 2023. As an additional reference, see the ‘2024 Financial Guidance’ section of Pfizer’s fou