Slide 1: Second Quarter 2022 Earnings Teleconference
Second Quarter 2022 Earnings Teleconference July 28, 2022 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: Q2 2022 Key Highlights
Q2 2022 Key Highlights Strong Financial Key Growth Drivers Performance $8.1B * op $8.8B 20% op $1.7B +23% op U.S. $4.5B, * U.S. $1.1B, -47% U.S. $1.1B, +28% Int'l $3.7B, * op Int'l $7.8B, +43% op Int'l $681M, +16% op +53% $1.4B +18% op $552M +16% op Prevnar (3) Operational Revenue Growth Family(2) U
Slide 6: COVID-19: Where Do We Go From Here?
COVID-19: Where Do We Go From Here? COVID-19 Pfizer Pfizer's science likely to remain a well-positioned to continue continues to address global healthcare concern commercial leadership in battle against highly mutative for years to come virus COVID-19 Second Quarter 2022 Earnings 6
Slide 7: Comirnaty: Continued Leadership In the Fight Against COVID-19
Comirnaty: Continued Leadership In the Fight Against COVID-19 Cumulative Share of Doses(1) More than (2) (3) 3.6B doses shipped to (4) 180 countries and territories to date(5) (1) Market share data includes only those markets in which Pfizer operates and that report market share data (2) Incl. all m
Slide 8: Omicron-Adapted COVID-19 Vaccine Candidates for Fall 2022 Boosters
Omicron-Adapted COVID-19 Vaccine Candidates for Fall 2022 Boosters Submitted data to EMA(1) FDA requests BA.1 Bivalent Omicron-modified BA.4/BA.5 Bivalent Omicron-modified Because of our robust manufacturing capabilities, we are planning to deliver both variant vaccines in the fall, pending regulato
Slide 9: Paxlovid: Expanding Access in U.S.
Paxlovid: Expanding Access in U.S. On July 6, FDA revised EUA to authorize state-licensed pharmacists to prescribe sites with Paxlovid supply as of July Paxlovid under certain >41K 15 (increase of >7K since early-May) conditions Second Quarter 2022 Earnings 9
Slide 10: Paxlovid: Nearly Five-Fold Growth in U.S. Utilization Since Q1
Paxlovid: Nearly Five-Fold Growth in U.S. Utilization Since Q1(1) U.S. Estimated Utilization (NPA)(2) vs. Cases(3) U.S. Market Share(4) (%) Data from Q1 earnings Data from Q1 earnings HCPs using more Paxlovid, as number of Paxlovid is prescribed more than any other reported COVID-19 cases rises COVI
Slide 11: Paxlovid: Expanding Access in International Developed Markets
Paxlovid: Expanding Access in International Developed Markets Recent wave of BA.4/BA.5 resulting in increased hospitalizations, ICU admissions and deaths(1) Average daily deaths increased from 6/24 - 7/24 ~116% increase (3) Europe(2): ~2x (0.6 1.15 per 1M people) in usage across international deve
Slide 12: Prevnar 20 Adult: Market-Leading U.S. Performance
Prevnar 20 Adult: Market-Leading U.S. Performance Successful Market Routine Strong U.S. Launch Share Recommendation Uptake Q2 U.S. Adult Revenue(1) 19-64 Years Simplicity of 1-shot 337% op vs prior year 97% quarter, to $431M with underlying medical condition (1) Prevnar 13 and Prevnar 20 Adult reven
Slide 13: Ibrance: Encouraging U.S. Trends
Ibrance: Encouraging U.S. Trends Q2 U.S. Total Q2 U.S. Revenues Volume Demand(1) First quarterly Up 1% Up 3% uptick in U.S. vs prior year quarter vs prior year quarter revenues since Q4 2020 despite continued increase in proportion of patients accessing Ibrance through our Patient Assistance Program
Slide 14: ESG: Turning Commitment into Action
ESG: Turning Commitment into Action Equitable Access and Affordability Climate Change Business Ethics Accord for a Healthier World(1) Net-Zero Standard(2) Support for Ukraine(3) • All current and future Pfizer patented • Goal to achieve Net-Zero Standard • Donating equivalent of all profits from med
Slide 15: MSCI ESG Rating Upgrade
MSCI ESG Rating Upgrade Toxic Product Emissions Access to Human Safety & Corporate Corporate Rating & & Waste Health Care Capital Quality Governance Behaviour Trend July Pfizer Inc. A 2022 BBB BB June B 2021 Quartile Key: Bottom Quartile Top Quartile Rating Trend Key:
Slide 16: Scientific Updates
Scientific Updates Mikael Dolsten Chief Scientific Officer and President, Worldwide Research, Development and Medical
Slide 17: Leading the Way to Breakthroughs
Leading the Way to Breakthroughs Deep expertise and successful track record in COVID-19 and infectious disease Annaliesa Anderson, Ph.D., FAAM Charlotte Allerton Senior Vice President and Head, Chief Scientific Officer, Anti-Infectives Vaccine Research & Development Head of Medicine Design Second Qu
Slide 18: The Pandemic Continues to Evolve
The Pandemic Continues to Evolve New variants emerging in shorter time intervals COVID-19 Global Cases/Deaths Global Circulating Strains Trend ~565M Global Cases ~6.4M Global Deaths As of July 19, 2022: John Hopkins University Covid-19 site: https://coronavirus.jhu.edu/ GISAID data as of July 22, 20
Slide 19: Advancing Omicron Variant-modified Vaccine Candidates
Advancing Omicron Variant-modified Vaccine Candidates Evaluated safety & immunogenicity of mono- and bivalent Omicron (BA.1)–modified vaccine candidates in ~1,920 participants >55 years Monovalent BNT162b2 Bivalent BNT162b2 + BNT162b2 BNT162b2 Omi (BA.1) BNT162b2 Omi (BA.1) or or Dose 4 administered
Slide 20: Advancing Omicron Variant-Modified Vaccine Candidates
Advancing Omicron Variant-Modified Vaccine Candidates In sub-study evaluating BA.1-modified vaccine BA.4/BA.5 response to BA.1-modified vaccine candidate candidates compared to wild type vaccine, Participants WITHOUT Evidence of Infection up to 1 Month After First results for Omicron BA.1 demonstrat
Slide 21: Omicron BA.4/5 Monovalent and Bivalent Boosters in Mice
Omicron BA.4/5 Monovalent and Bivalent Boosters in Mice Substantial increase in Omicron neutralization responses to all Omicron variants BNT162b2 Omicron BA.1 Monovalent Omicron BA.4/5 Monovalent Omicron BA.4/5 Bivalent n=8. Mice preimmunized with 2 doses of BNT162b2; boosters given at day 104 pVN =
Slide 22: Bivalent Booster Strategy to Adapt to Pace of Virus
Bivalent Booster Strategy to Adapt to Pace of Virus Potential to enable a more rapid response to changing variant landscape Variant Vaccine Regulatory Update Pathway USA Circulating Omicron Strains Trend • Omicron BA.1 • Omicron BA.2 • Omicron BA2.12.1 • Omicron BA.4 • Omicron BA.5 • Overall respons
Slide 23: Strategies Aiming to Provide Durable Disease Protection Against Emerging Variants
Strategies Aiming to Provide Durable Disease Protection Against Emerging Variants Next-generation SARS-CoV-2 Spike Antigen • Phase 1/2 study initiated with bivalent vaccine candidate (WT and Omicron BA.2) • Next-generation spike protein engineering aims to: • Increase prefusion stability • Expose mo
Slide 24: Continued Expansion of PAXLOVID Clinical Studies
Continued Expansion of PAXLOVID Clinical Studies High Risk Immunocompromised Hospitalized Study EPIC-HR1 EPIC-IC EPIC-Hos4 Trial Size 2,246 150 279 Milestone PDUFA Date Expected Q1 20232, 3 Planned Study Start 2H 20222 Planned Study Start 2H 20222 Long COVID Retreatment Pregnancy Study NCT05386472 M
Slide 25: Current Flu Vaccines are Suboptimal in Addressing Unmet Need
Current Flu Vaccines are Suboptimal in Addressing Unmet Need mRNA platform shortens timelines potentially enabling quicker response to flu evolution 3–5M 5-20% US population becomes infected Elderly account for Up to with ≥ 200K hospitalizations and 70–85% $25B Severe cases/yr globally1 up to 79K de
Slide 26: Quadrivalent modRNA Flu Vaccine Candidate: Ongoing Phase 2 Study
Quadrivalent modRNA Flu Vaccine Candidate: Ongoing Phase 2 Study First evidence of substantial induction of both CD4+ and CD8+ responses Phase 2 Expansion Study in Subjects 65+ Years of Age (n=118) ≥ 2-fold qRNA GMFRs for all 4 strains > QIV at Day 7 ≥ 2-fold qRNA GMFRs for B/Victoria and H3N2 > QIV
Slide 27: PF-07081532: Potential Best-In-Class Once-Daily Oral GLP-1 Profile
PF-07081532: Potential Best-In-Class Once-Daily Oral GLP-1 Profile Upcoming EASD Phase 1 data show rapid, robust reduction in glucose and body weight1 99 mg/dL Reduction in Mean Daily Glucose after 6 weeks1 5kg Reduction in Body Weight after 6 weeks1 Placebo PF-07081532 Placebo PF-07081532 0 0 Bodyw
Slide 28: Anti-IFN-β: Potential to Address Key Driver of Autoimmunity
Anti-IFN-β: Potential to Address Key Driver of Autoimmunity • IFN-β is one of ~20 Type I interferons which are important for normal immune function • Administration of IFN-β can lead to autoimmunity in people • Patients with dermatomyositis show elevated Type I IFN gene signature in blood, skin and
Slide 29: Anti-IFN-β: Updated Phase 2 Dermatomyositis Positive Data
Anti-IFN-β: Updated Phase 2 Dermatomyositis Positive Data Efficacy Phase 2, Placebo Controlled Study Skin Predominant Disease Skin Muscle • Both doses (600mg and 150mg) met primary efficacy endpoint as assessed by Cutaneous Dermatomyositis Disease Area Stage 1 Stage 2 Amended Stage 2 Stage 3 and Sev
Slide 30: Follow-up Phase 1 MagnetisMM-1 Trial of elranatamab for MM
Follow-up Phase 1 MagnetisMM-1 Trial of elranatamab for MM ASCO1 results show confirmed ORR of 64% in patients with RRMM Duration of Treatment and Best Overall Response for All Patients Efficacy: • Confirmed ORR was 64% among 55 patients • 35% of patients (19/55) achieved sCR or CR • 54% (7/13) of p
Slide 31: Follow-up Phase 1 MagnetisMM-1 Trial of elranatamab for MM
Follow-up Phase 1 MagnetisMM-1 Trial of elranatamab for MM ASCO1 results show durable MRD negativity MRD Negativity: Duration of Treatment and Molecular Response for CR/sCR Patients • 100% (13/13) of evaluable CR/ sCR patients (including unconfirmed) achieved MRD negativity at a sensitivity of 1x10-
Slide 32: Select 2022 Milestones
Select 2022 Milestones Regulatory ● CIBINQO atopic dermatitis Jan-US ● PAXLOVID High Risk CMA Jan-EU Decisions ● NGENLA growth hormone deficiency Feb-EU ● VYDURA acute and prophylactic treatment of migraine Apr–EU ● COMIRNATY 6 month through 4 yr. old EUA 1H-US ○ PAXLOVID High Risk NDA PDUFA 1Q23 US
Slide 33: Financial Review
Financial Review David Denton Chief Financial Officer, Executive Vice President
Slide 34: Generating Significant Free Cash Flow
Generating Significant Free Cash Flow(1) Free Cash Flow ($B) 183% Free Cash Flow Has Increased by $19.3 Billion(2) Over the Last Three Years (1) See Slides 41-43 for definitions. (2) Amounts may not add due to rounding. Second Quarter 2022 Earnings 34
Slide 35: Efficient Cash Deployment Focused on Three Pillars: 2019-2021
Efficient Cash Deployment Focused on Three Pillars: 2019-2021 Capital Deployment for Enhancing Shareholder Value and Returning Capital ~$86 Billion Internal External Paying/Growing Share R&D(1) BD(2) Dividends Repurchases ~$27B(1) ~$25B(2) >$25B ~$9B in spend returned to shareholders of capital retu
Slide 36: Efficient Cash Deployment Focused on Three Pillars: YTD 2022
Efficient Cash Deployment Focused on Three Pillars: YTD 2022 Capital Deployment for Enhancing Shareholder Value and Returning Capital ~$19 Billion Internal External Paying/Growing Share R&D(1) BD(2) Dividends Repurchases $5.1B(1) >$7B(2) $4.5B $2.0B in spend returned to shareholders of capital retur
Slide 37: Quarterly Income Statement Highlights
Quarterly Income Statement Highlights Revenues Adjusted(1) Cost of Sales Adjusted(1) SI&A Expenses $27.7B +53% op COS$ $8.6B +35% op $2.9B +7% op COS Margin 31% -5.7 ppts Primarily driven by Paxlovid, Primarily driven by higher spending on Comirnaty(1), Eliquis, Prevnar family in Increase in COS$ pr
Slide 38: 2022 Financial Guidance: Revenues and Adjusted Diluted EPS
2022 Financial Guidance(1): Revenues and Adjusted Diluted EPS Impact of Changes Previous Guidance in Foreign Current Guidance (as of May 3, 2022) Operational Changes Exchange Rates (as of July 28, 2022) Revenues $98.0 to $102.0 billion ~$2 billion (~$2 billion) $98.0 to $102.0 billion Operational Gr
Slide 39: 2022 Financial Guidance: COVID-Related Revenues
2022 Financial Guidance(1): COVID-Related Revenues As a % of 2H guidance for product 1H Actuals Q3 Q4 FY Guidance ($B) Estimated Estimated ($B) Comirnaty(1) $22.1 25% 75% $32.0 Paxlovid $9.6 60% 40% $22.0 (1) See Slides 41-43 for definitions and for additional information regarding Pfizer's 2022 fin
Slide 40: 2022 Financial Guidance: Other Components
2022 Financial Guidance(1): Other Components Adjusted(1) Cost of Sales as a Percentage of Revenues 32.0% to 34.0% $12.2 to $13.2 Billion Adjusted(1) SI&A Expenses (previously $12.5 to $13.5 billion) $11.5 to $12.0 Billion Adjusted1) R&D Expenses(1) (previously $11.0 to $12.0 billion) Acquired IPR&D
Slide 41: Footnotes (Page 1 of 3)
Footnotes (Page 1 of 3) (1) Comirnaty includes direct sales and alliance revenues related to sales of the Pfizer-BioNTech SE (BioNTech) COVID-19 vaccine, which are recorded within Pfizer’s Vaccines therapeutic area. It does not include revenues for certain Comirnaty-related manufacturing activities
Slide 42: Footnotes (Page 2 of 3)
Footnotes (Page 2 of 3) ▪ Reflects an anticipated incremental negative impact of $0.11 on Adjusted diluted EPS(3) related to the inclusion of all acquired IPR&D expenses that have been incurred or are expected to be incurred for transactions signed as of mid-July 2022, which would have been excluded
Slide 43: Footnotes (Page 3 of 3)
Footnotes (Page 3 of 3) ▪ On November 17, 2021, Pfizer acquired all outstanding shares, warrants, options and deferred shares not already owned by Pfizer of Trillium Therapeutics Inc. (Trillium), a clinical-stage immuno-oncology company developing therapies targeting cancer immune evasion pathways a
Slide 44: Appendix
Appendix
Slide 45: Q2 2022 Summary Figures (1 of 2)
Q2 2022 Summary Figures (1 of 2) Sales by Therapeutic Area ($M) Top 7 Products by Revenue(1) ($M) (2) Total Total (3) $22,439 $27,742 81% of Total Revenue % Operational Growth % Operational Growth Internal Rare Vaccines Hospital Oncology Medicine Disease I&I PC1 Total Prevnar Vyndaqel/ Comirnaty(1)
Slide 46: Q2 2022 Summary Figures (2 of 2)
Q2 2022 Summary Figures (2 of 2) Sales by Therapeutic Area, Ex-COVID(1) ($M) Sales by Geography ($M) Total $10,778 Total 39% of Total $27,742 Revenue % Operational Growth Ex-COVID(1) % Operational Growth Internal Rare Oncology Medicine Vaccines Hospital Disease I&I PC1 Total US EM Dev EU Dev ROW Tot
Slide 47: Strong Portfolio Progression Anticipated in Next 18 Months
Strong Portfolio Progression Anticipated in Next 18 Months Up to Up to Up to 15 14 14 Potential Projected Potential Approvals Pivotal Readouts Proof of Concept Readouts (1) As of July 22, 2022, represents expected timing, subject to change, and subject to clinical trial and regulatory success, timef
Slide 48: 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: 3(1) GTx – Wilson Disease Fast Track Designation (FDA
Slide 49: 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) (Ph1) 2022 NEW CGRP programs (Rimegepant, Zavegepant, 5 pre-clinical
Slide 50: New Commercial Structure to Optimize COVID & Other Products
New Commercial Structure to Optimize COVID & Other Products Old Reporting Framework for Pfizer New Reporting Framework for Pfizer Biopharmaceuticals Group (through 2Q22) Biopharmaceuticals Group (from 3Q22 onwards) 6 Therapeutic Areas 3 Broad Therapeutic Areas Internal Medicine Primary Care Internal