Slide 1: Second Quarter 2023 Earnings Teleconference
Second Quarter 2023 Earnings Teleconference August 1, 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: Q2 2023: Solid Quarter for Financial Performance and Patient Impact
Q2 2023: Solid Quarter for Financial Performance and Patient Impact Strong Financial Performance Breakthroughs that change patients’ lives. ex-COVID Products +5% Operational Revenue Growth ex-COVID Products >356M -53% Patients Treated1 Total Revenues Operational Decline Primarily YTD Q2 2023 with ou
Slide 6: New and Expected Launches: Revenue Contributions Largely Begin in H2 2023
New and Expected Launches: Revenue Contributions Largely Begin in H2 2023* Illustrative* 2023 2024 Q1 Q2 Q3** Q4** New & Pentavalent Expected (Adults 60+) Meningococcal Vaccine2,3 Approvals (Adolescent) mRNA Flu Vaccine (Maternal Indication2,3) (PHAROS) (Peds2) Etrasimod (EMBARK) Anticipated First R
Slide 7: Progress with Longer-term Pipeline Candidates
Progress with Longer-term Pipeline Candidates Recent Milestones for Potential Longer-term Launches Through 2030 and Beyond Vaccine for maternal CDK4, CDK2, and Fidanacogene immunization against Marstacimab KAT6 inhibitors elaparvovec Group B (breast cancer) Streptococcus (GBS) Phase 3 data for a nov
Slide 8: Reinvesting the Profits from our COVID-19 Products
Reinvesting the Profits from our 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 excha
Slide 9: Reinvesting the Profits from our COVID-19 Products
Reinvesting the Profits from our COVID-19 Products Illustrative* Remaining Gap <$5B ~$84B ~$25B4 $XB5 '25-'30 CAGR 10% ~$52B1 '22-'25 CAGR 6% Seagen >$10.0B ~$70B '25-'30 CAGR 6% with new launches ~$20B3 New launches ~$17B2 Completed Current deals products + Seagen have the potential to contribute >
Slide 10: Navigating the Major COVID-19 Uncertainties
Navigating the Major COVID-19 Uncertainties Pfizer-BioNTech COVID-19 Vaccine EC long-term Vaccination rates agreement Infection rates Timing of U.S. ex-U.S. commercialization shipments Severity of rates Treatment disease Renegotiation of EU agreement U.S. vaccination rates Desire for Timing of U.S.
Slide 11: Seagen Planning Progressing Well
Seagen Planning Progressing Well • Seagen shareholders overwhelmingly approved the planned transaction, and we have raised most of the external financing to fund the transaction • We continue to work closely with regulators, including FTC and European Commission • Chris Boshoff joined Pfizer's Execu
Slide 12: Continuing to Build Trust with External Stakeholders
Continuing to Build Trust with External Stakeholders These recognitions strengthen the unprecedented brand equity Pfizer built during the COVID-19 pandemic Second Quarter 2023 Earnings 12
Slide 13: Financial Review
Financial Review David Denton Chief Financial Officer, Executive Vice President
Slide 14: Efficient Cash Deployment Strategy Focused on Three Pillars
Efficient Cash Deployment Strategy Focused on Three Pillars Paying/Growing Reinvestment: H1 2023 Dividends: H1 2023 Share $5.2B $4.6B Repurchases1 in internal R&D returned to shareholders Post-Seagen De-Levering, Expect More Balanced Capital Allocation Between Reinvestment and Returning Value to Sha
Slide 15: Quarterly Income Statement Highlights
Quarterly Income Statement Highlights Revenues Adjusted2 Cost of Sales Adjusted2 SI&A Expenses $12.7B -53% op $3.1B -66% op $3.4B +20% op $11.1B1 +5% op 24%3 -7.0 ppts Primarily driven by increased investments to support recently acquired and launched Excluding Comirnaty2 and Paxlovid, op Decrease i
Slide 16: 2023 Financial Guidance
Narrows 2023 Revenue Range and Maintains Adjusted1 Diluted EPS 2023 Financial Guidance Revenues* Adjusted1 Diluted EPS* $67.0 to $70.0 billion $3.25 to $3.45 1 See Slides 34-35 for definitions and for additional information regarding Pfizer's 2023 financial guidance. *Changes in foreign exchange rat
Slide 17: Scientific Updates
Scientific Updates Mikael Dolsten Chief Scientific Officer and President, Worldwide Research, Development and Medical
Slide 18: Goal: Deliver Next-Generation of ER+ Breast Cancer Therapies
Goal: Deliver Next-Generation of ER+ Breast Cancer Therapies Potential next-generation backbones and combination partners being developed across settings Key Strategic Imperatives Novel MoA’s CDK4i Vepdegestrant (ARV-471) (CDK2i, KAT6i) Establish as Next-Generation Establish as Next-Generation Estab
Slide 19: Encouraging Data on Next-Generation ER+ Breast Cancer Portfolio
Encouraging Data on Next-Generation ER+ Breast Cancer Portfolio Data presented at ASCO demonstrate anti-tumor activity in heavily pre-treated populations CDK4i + Endocrine Therapy in Post-CDK4/6i Breast Cancer1 Phase 1 Dose Escalation in HR+/HER2- Breast Cancer Novel MoA’s Phase 1 Dose Escalation CD
Slide 20: Established Strategy to Grow Leadership in Blood Cancers
Established Strategy to Grow Leadership in Blood Cancers ELREXFIO has potential to anchor franchise with potential for $4B PYS1 Potential Blood Cancer Franchise Growth ELREXFIO Strategy 1 Clinical Programs to Support Potential Expand to Additional Lines of DLBCL, MM, AML Indications Therapy with Ong
Slide 21: ELREXFIO: Potential New Foundational Treatment for MM
ELREXFIO: Potential New Foundational Treatment for MM BCMAxCD3 bispecific antibody granted Priority Review with FDA decision expected in 2023 Highly Meaningful OS with ELREXFIO Monotherapy in Monotherapy CR Rate of 35% in Triple Class Refractory Triple Class Refractory MM1 MM with Potential for Impr
Slide 22: Marstacimab: Pivotal Hemophilia Trial Met Primary Endpoints
Marstacimab: Pivotal Hemophilia Trial Met Primary Endpoints Regulatory submission for treatment of hemophilia A and B without inhibitors expected in 2H 2023 Marstacimab Efficacy and Safety in Ph 3 Trial in People Differentiated MoA and Dosing Regimen Living with Hemophilia A or B without Inhibitors1
Slide 23: LITFULO: FDA Approved for Severe Alopecia Areata
LITFULO: FDA Approved for Severe Alopecia Areata First-of-its-kind kinase inhibitor with unique MoA: dual selectivity for TEC family kinases / JAK3 LITFULO: Unique Kinase Inhibitory Profile (In Vitro Data) In vitro IC50 (nM)* In vitro IC50 (nM)* First and only treatment for severe alopecia TEC 403 J
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 ZAVZPRET Nasal Acute Migraine Launch ELREXFIO RRMM Launch2 ABRYSVO Older Adult Launch Marstacimab Hemophilia Ph 3 Data IBRANCE
Slide 25: Appendix
Appendix
Slide 26: Excellent Progress Toward Expected Commercial Launches
Excellent Progress Toward Expected Commercial Launches1 ~$20B Potential Revenue ~$25B Potential Revenue expected for NME and expected from new new indications by 20302 BD deals by 20303 Vaccines Inflammation/Immunology Oncology Rare Disease Internal Medicine New Molecular Entity (NME) Launches 2022
Slide 27: Q2 2023 Summary Figures (1 of 2)
Q2 2023 Summary Figures (1 of 2) Revenue by Customer Group1 ($M) Top 7 Products by Revenue1 ($M) 3 2 4 Total Total 5 $12,734 $12,734 6 % Operational Growth % Operational Growth Primary Specialty Business Prevnar Vyndaqel Care Care Oncology Innovation2 Total Eliquis3 Comirnaty4 family5 Ibrance family
Slide 28: Q2 2023 Summary Figures (2 of 2)
Q2 2023 Summary Figures (2 of 2) Revenue by Customer Group, Ex-COVID1 Revenue by Geography ($M) ($M) 2 Total $11,103 Total 87% of Total $12,734 Revenue % Operational Growth Ex-COVID1 % Operational Growth Primary Specialty Business Care Care Oncology Innovation2 Total U.S.3 Dev EU Dev ROW EM Total 6%
Slide 29: 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 30: 2023 Financial Guidance: Key Assumptions (1 of 2)
2023 Financial Guidance: Key Assumptions (1 of 2) Key Assumptions for 2023 Guidance Commentary Reduction from previously stated 7% to 9% expectation reflects Operational revenue growth compared to 2022 excluding COVID-19 certain short-term headwinds related to specific new product 6% to 8% products
Slide 31: 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 32: 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 33: 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 (oral GLP1) Type 2 Diabetes, Obesity >2024 Anti-IFN-β Antibody (PF’3859) Dermatomyositis, Polymyo
Slide 34: 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 35: Footnotes (Page 2 of 2)
Footnotes (Page 2 of 2) ▪ Guidance for Adjusted(3) diluted EPS assumes diluted weighted-average shares outstanding of approximately 5.72 billion shares, and assumes no share repurchases in 2023. (5) Pfizer’s fiscal year-end for international subsidiaries is November 30 while Pfizer’s fiscal year-end