Slide 1: Third Quarter 2023 Earnings Teleconference
Third Quarter 2023 Earnings Teleconference October 31, 2023 Breakthroughs that change patients' lives ®
Slide 2: Introduction
Introduction Francesca DeMartino Chief Investor Relations Officer, Senior Vice President
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: YTD Q3 2023: Patient Impact
YTD Q3 2023: Patient Impact Breakthroughs that change patients’ lives. >457M Patients Treated1 YTD Q3 2023 with our medicines and vaccines Year over year, we have reached more patients in such areas as oncology, cardiovascular disease and anti-infectives (ex-Paxlovid) 1. See Slides 25-26 for definit
Slide 6: Q3 2023: Continued Strength in Pfizer's Non-COVID Portfolio
Q3 2023: Continued Strength in Pfizer's Non-COVID Portfolio (OA) $375M * op $233M * op $85M * op U.S. $375M, * U.S. $227M, * U.S. $83M, * Int'l —, — Int'l $6M, * op Int'l $2M, * op 1 2 family Prevnar family $892M +47% op $1.9B +15% op U.S. $511M, +55% U.S. $1.3B, +20% Int'l $381M, +36% op Int'l $544
Slide 7: Excellent Progress Toward Expected Commercial Launches
Excellent Progress Toward Expected Commercial 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 2022
Slide 8: Seagen Planning Continuing to Progress Well
Seagen Planning Continuing to Progress Well • Recently gained unconditional antitrust clearance in EU • Raised $31B in acquisition financing so far • Continue to expect Seagen to contribute incremental 2030 risk-adjusted revenues in excess of $10B and expected cost efficiencies of $1B – without impa
Slide 9: Financial Review
Financial Review David Denton Chief Financial Officer, Executive Vice President
Slide 10: Quarterly Statement of Operations Highlights
Quarterly Statement of Operations Highlights Revenues Adjusted2 Cost of Sales Adjusted2 SI&A Expenses $13.2B (41)% op $8.9B 44% op $3.2B (1)% op $11.7B1 10% op 67.3%3 40.6 ppts Primarily reflecting a lower provision for U.S. healthcare reform fees related to Comirnaty2 and Excluding Comirnaty2 and P
Slide 11: Reaffirms 2023 Revenue and Adjusted Diluted EPS Guidance
Reaffirms 2023 Revenue and Adjusted1 Diluted EPS Guidance1,2 One-Time Items 2023 Financial Guidance1 Included in Guidance3 Revenues* $58.0 to $61.0 billion $(4.2) billion Operational1 Decline vs. Prior Year (41%) to (38%) Decline vs. Prior Year (42%) to (39%) Non-cash Inventory Write-offs3 $5.6 bill
Slide 12: 2023 Financial Guidance: Other Components
2023 Financial Guidance1: Other Components 41.0% to 43.0% Adjusted1 Cost of Sales as a Percentage of Revenues (previously 28.0% to 30.0%) $13.3 to $14.3 Billion Adjusted1 SI&A Expenses (previously $13.8 to $14.8 billion) $11.9 to $12.9 Billion Adjusted1 R&D Expenses (previously $12.4 to $13.4 billio
Slide 13: Efficient Cash Deployment Strategy Focused on Three Pillars
Efficient Cash Deployment Strategy Focused on Three Pillars Reinvestment: YTD Q3 Paying/Growing 2023 Dividends: YTD Q3 2023 Share $7.9B $6.9B Repurchases1 in internal R&D returned to shareholders Post-Seagen De-Levering, Expect More Balanced Capital Allocation Between Reinvestment and Returning Valu
Slide 14: Scientific Updates
Scientific Updates Mikael Dolsten Chief Scientific Officer, President, Pfizer Research and Development
Slide 15: Expanding Leadership Across Respiratory Vaccines
Expanding Leadership Across Respiratory Vaccines Bringing the right science to the right pathogen Highly Variant Viruses Invariant / Low Variant Viruses Bacterial mRNA Subunit Conjugate COMIRNATY ABRYSVO PREVNAR 20 Licensed1 COVID-192 RSV (Older Adults and Maternal) Pneumococcal Infection Dev. mRNA
Slide 16: First Ever Demonstration of Efficacy for an mRNA Flu Vaccine Candidate
First Ever Demonstration of Efficacy for an mRNA Flu Vaccine Candidate Primary endpoints achieved in Ph 3 trial’s 18-64 yrs. cohort; ≥65 yrs. cohort readout anticipated in 2023 First-Generation modFlu mRNA Vaccine Candidate • Non-inferiority and superiority vs. licensed influenza vaccine achieved at
Slide 17: Positive Phase 1/2 Influenza + COVID-19 Combination Vaccine Data
Positive Phase 1/2 Influenza + COVID-19 Combination Vaccine Data1 Next-generation mRNA flu + COVID-19 combo candidates met all criteria for advancement to Ph 3 Phase 1/2 Combo Study Topline Phase 1/2 Results on Next-Gen Reformulated mRNA Flu in Adults Ages 18 – 64 + COVID-19 Combination Candidates G
Slide 18: Flu Program: Potential Anchor for Seasonal Vaccine Franchise
Flu Program: Potential Anchor for Seasonal Vaccine Franchise Only seasonal respiratory vaccine franchise with approved mRNA and protein subunit vaccines Seasonal Respiratory Vaccine Programs1 Preclinical Phase 1 Phase 2 Phase 3 Influenza (Flu) Ph 3 primary endpoints met in 18-64 yrs. cohort2; ≥65 yr
Slide 19: PREVNAR: Only PCV with FDA Adult Pneumonia Indication
PREVNAR: Only PCV with FDA Adult Pneumonia Indication1 PCV naïve population & proprietary assay enabled landmark trial supporting pneumonia indication Addressing the Burden of Pneumococcal Pneumonia Prevalence of Nonbacteremic Pneumococcal Pneumonia >15-fold Greater than that of IPD in US Adults >50
Slide 20: 4th Generation PCV Program: Potential to Solidify Leading Position
4th Generation PCV Program: Potential to Solidify Leading Position Leveraging cutting-edge toolkit to potentially increase valency and improve serotype immunogenicity Phase 1 Data Show Improved Single Serotype Increase valency Increase protection while maintaining Immunogenicity with Next-Gen Techno
Slide 21: Strong Launch Execution and Next Wave Pipeline Candidates
Strong Launch Execution and Next Wave Pipeline Candidates Over 25 milestones recently achieved or anticipated through 20241 Vaccines Internal & Genetic Medicines Oncology ABRYSVO Older Adult Launch ZAVZPRET Nasal Acute Migraine Launch PREVNAR 20 Pediatric Launch ELREXFIO RRMM Launch Marstacimab Hemo
Slide 22: Appendix
Appendix
Slide 23: Q3 2023 Summary Figures (1 of 2)
Q3 2023 Summary Figures (1 of 2) Revenue by Customer Group1 ($M) Top 7 Products by Revenue1 ($M) 3 2 4 Total Total 5 $13,232 $13,232 6 % Operational Growth % Operational Growth Primary Specialty Business Prevnar Vyndaqel Care Care Oncology Innovation2 Total family3 Eliquis4 Comirnaty5 Ibrance family
Slide 24: Q3 2023 Summary Figures (2 of 2)
Q3 2023 Summary Figures (2 of 2) Revenue by Customer Group, Ex-COVID1 Revenue by Geography3 ($M) ($M) 2 Total $11,723 Total 89% of Total $13,232 Revenue % Operational Growth Ex-COVID1 % Operational Growth Primary Specialty Business Care Care Oncology Innovation2 Total U.S.4 EM Dev EU Dev ROW Total 2
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), Comirnaty (COVID-19 Vaccine, mRNA, 2023-2024 Formula), the
Slide 26: Footnotes (Page 2 of 2)
Footnotes (Page 2 of 2) ▪ Reflects expected impacts from certain short-term headwinds, such as the U.S. approval for the Talzenna plus Xtandi combination for the treatment of adult patients with HRR gene-mutated mCRPC, versus an approval in the all-comers population; a shared-clinical decision-makin