Slide 1: Fourth Quarter 2019 Earnings Teleconference
Fourth Quarter 2019 Earnings Teleconference January 28, 2020
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations
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 about, among other things, our anticipated future operating and financial performance, expectations for our product pipeline, in-line products and produ
Slide 4: Opening Remarks
Opening Remarks Albert Bourla Chairman and Chief Executive Officer
Slide 5: FY 2019 Performance Highlights - Biopharma
FY 2019 Performance Highlights - Biopharma $4,961M +23% op $4,220M +26% op $473M +225% op Sterile Injectables Approved in more than 90 countries; Now the oral anti-coagulant leader in ATTR-CM diagnosis rate in U.S. at 9%; Made good progress on supply in '19; Nearly 90% share of CDK class in U.S. 12
Slide 6: FY 2019 Performance Highlights - Upjohn
FY 2019 Performance Highlights - Upjohn Revenues $10,233M (16%) op Decline driven primarily by Lyrica LOE in the U.S. China growth +7% op Driven by Viagra and Celebrex, as well as Lipitor in provinces that had not yet implemented the volume-based procurement program Upjohn-Mylan Combination Integrat
Slide 7: Key Pipeline Highlights to Watch for 2020
Key Pipeline Highlights to Watch for 2020 Ibrance in Early Abrocitinib in Atopic Gene Therapy Breast Cancer Dermatitis Platform PENELOPE-B and PALLAS Phase 3 JADE COMPARE top line results Planning for potential Phase 3 starts in readouts expected in late 2020 and expected in the coming months, with
Slide 8: Financial Review
Financial Review Frank D'Amelio Chief Financial Officer and Executive Vice President, Business Operations & Global Supply
Slide 9: Quarterly Income Statement Highlights
Quarterly Income Statement Highlights TOTAL COMPANY BIOPHARMA UPJOHN REVENUE REVENUE REVENUE $12.7B (8%) op $10.5B +9% op $2.2B (32%) op Excluding the impact of Consumer, Driven primarily by Eliquis, Vyndaqel & Ibrance; Driven primarily by U.S. Lyrica LOE; China total revenue declined (1%) op 2nd st
Slide 10: Quarterly Performance of Key Growth Drivers
Quarterly Performance of Key Growth Drivers $1,283M +15% op $1,099M +22% op $607M +11% op Retained 80% share of 1L CDK U.S. U.S. +20%; EM +40% op U.S. +1%; DevEU +58% op patient starts $244M +29% op $213M +443% op $161M +125% op Ex-U.S. royalties of $104M $104M in U.S. in 2nd full quarter since laun
Slide 11: 2019 Financial Guidance
2019 Financial Guidance Guidance Results Revenues $51.2 to $52.2 billion $51.8 billion Adjusted Cost of Sales(1) as a Percentage of Revenues 19.3% to 19.8% 19.4% Adjusted SI&A Expenses(1) $13.5 to $14.0 billion $14.0 billion Adjusted R&D Expenses(1) $7.7 to $8.1 billion $8.0 billion Adjusted
Slide 12: 2020 Revenue and Adjusted Diluted EPS Guidance Bridge
2020 Revenue and Adjusted Diluted EPS(1) Guidance Bridge Total Company(1) 2019 Revenues 2019 Results Impact of Mid- 2020 Total Full-Year 2019 Generated from Excluding 2020 Financial January 2020 Company(1) Results Consumer Consumer Guidance at FX Rates Financial Healthcare(1) Healthcare(1) 2019 FX R
Slide 13: 2020 Financial Guidance for Total Company
2020 Financial Guidance for Total Company(1) Revenues $48.5 to $50.5 billion Adjusted Cost of Sales(1) as a Percentage of Revenues 19.9% to 20.9% Adjusted SI&A Expenses(1) $12.0 to $13.0 billion Adjusted R&D Expenses(1) $8.1 to $8.5 billion Adjusted Other (Income)/Deductions(1) Approximately $800 mi
Slide 14: 2020 Financial Guidance for New Pfizer
2020 Financial Guidance for New Pfizer(1) Revenues $40.7 to $42.3 billion Adjusted IBT Margin(1) Approximately 37.0% Adjusted Diluted EPS(1) $2.25 to $2.35 Operating Cash Flow $11.0 to $12.0 billion Financial Targets Guidance Impact of Shift Impact of Mid- Operational Reflecting in Reporting of Guid
Slide 15: 2020 Financial Guidance for Upjohn
2020 Financial Guidance for Upjohn(1) Revenues $8.0 to $8.5 billion Adjusted EBITDA(1) $3.8 to $4.2 billion Financial Impact of Shift in Impact of Mid- Targets Provided Guidance Reporting of Guidance January 2020 FX 2020 Upjohn(1) in July 2019 Unchanged Meridian and Including Rates Compared Financia
Slide 16: Key Takeaways
Key Takeaways Delivered a strong quarter, with our Biopharma business growing 9% operationally; this represents the base business that will remain with Pfizer after the pending combination of Upjohn and Mylan is completed Biopharma growth was driven primarily by Eliquis, Vyndaqel, Ibrance, Inlyta,
Slide 17: Fourth Quarter 2019 Earnings Teleconference Q&A Session
Fourth Quarter 2019 Earnings Teleconference Q&A Session January 28, 2020
Slide 18: Footnotes (1 of 2)
Footnotes (1 of 2) Financial Definitions Footnotes (1) The following acquisitions and divestitures impacted financial results for the periods presented: • On July 31, 2019, Pfizer and GlaxoSmithKline plc (GSK) completed a transaction that combined the two companies’ respective consumer healthcare bu
Slide 19: Footnotes (2 of 2)
Footnotes (2 of 2) 2020 Financial Guidance Footnotes (10) 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-looki