Pfizer, Inc. · NYSE:PFE
Pfizer — Investor Day (September 2020)
55 slides from Pfizer's investor day presentation, Sep 14, 2020
Slide 1: Albert Bourla, Chairman & Chief Executive Officer
Albert Bourla Chairman & Chief Executive Officer Pfizer Confidential 1
Slide 2: Forward-Looking Statements and Other Notices
Forward-Looking Statements and Other Notices Our discussions during Pfizer’s Investor Day include forward-looking statements about our anticipated future operating and financial performance, business plans and prospects; expectations for our product pipeline, in-line products and product candidates,
Slide 3: Pfizer's Transformation: A 10-year Journey
Pfizer’s Transformation: A 10-year Journey From “Old” Pfizer … …to “New” Pfizer Diversified Enterprise Focused, Innovative Biopharma Scientific “Fast Follower” “First-in-Class” Science Powerhouse EPS Growth through Large-Scale EPS Growth through Durable, Organic M&A and Share Repurchases Topline Gro
Slide 4: Our Purpose: Bold Moves
Our Purpose: Breakthroughs that Change Patients’ Lives 1. Unleash the 2. Deliver 3. Transform our 4. Win the digital 5. Lead power of our people first-in-class science go-to-market model race in pharma the conversation BOLD MOVES 1.1 Create room for 2.1 Source the best science 3.1 Improve access thr
Slide 5: Business Unit Structure Allows for Agility and Disciplined Capital Allocation
Business Unit Structure Allows for Agility and Disciplined Capital Allocation Capital Allocation Committee (Comprised of Five Pfizer Executive Leaders) Inflammation & Internal Medicine Oncology Rare Disease Vaccines Hospital Immunology Chief Chief Chief Chief Chief Chief Scientific Scientific Scient
Slide 6: Reimagining the Way We Work
Reimagining the Way We Work A Simplify major corporate processes end-to-end Improve Ability to • Becoming more agile Get Things Done B Streamline Enabling Functions • interactions from Reimagining the 15 interact way we to 5 Right-size • Redesigning corporate processes Corporate Cost • Consolidate S
Slide 7: Aligning Incentives with a Culture of Innovation
Aligning Incentives with a Culture of Innovation Annual bonus for ALL bonus-eligible colleagues will now be funded based on both: • Financial performance AND • Success of the pipeline 7
Slide 8: Environmental, Social and Governance (ESG) Principles
Environmental, Social and Governance (ESG) Principles Environmental Social Governance Greenhouse Gas Emissions Equitable pay practices All but one Director independent between 2020 Goal: 20% reduction Achieved: 23% reduction* >50% of Board of Directors Women and Men globally is diverse based on gend
Slide 9: Strong, Diverse and Balanced Board of Directors
Strong, Diverse and Balanced Board of Directors Ron Blaylock Albert Bourla Don Cornwell Sue Desmond-Hellmann, M.D., Ph.D. Joe Echevarria Scott Gottlieb, M.D. Helen Hobbs, M.D. Susan Hockfield, Ph.D. Jim Kilts Dan Littman, M.D., Ph.D. Shantanu Narayen Suzanne Nora Johnson James Quincey Jim Smith 9
Slide 10: Five Highly Accomplished Scientists to Our Board of Directors
Five Highly Accomplished Scientists to Our Board of Directors Ron Blaylock Albert Bourla Don Cornwell Sue Desmond-Hellmann, M.D., Ph.D. Joe Echevarria Scott Gottlieb, M.D. Helen Hobbs, M.D. Susan Hockfield, Ph.D. Jim Kilts Dan Littman, M.D., Ph.D. Shantanu Narayen Suzanne Nora Johnson James Quincey
Slide 11: Time is Right to Pivot to Innovation
Time is Right to Pivot to Innovation • Existing innovative portfolio with • Healthy and increasing dividend strong growth (9% operational income revenue growth in first half 2020) • Pipeline as strong as ever • No significant anticipated LOEs impact until 2026 • Strong balance sheet and financial st
Slide 12: Growth Outlook Beyond 2026
Growth Outlook Beyond 2026 • Internal forecasts roughly in line with consensus estimates of $18-$20B in lost revenue due to patent expirations, beginning in 2026 • We believe our current pipeline will at least replace those lost revenues* * Expectations are risk-adjusted, exclude any COVID-19 revenu
Slide 13: Pfizer of the new Decade
Pfizer of the new Decade Pfizer Confidential 13
Slide 14: Mikael Dolsten
Mikael Dolsten Chief Scientific Officer and President, Worldwide Research Development and Medical (WRDM) 14
Slide 15: Pfizer's R&D Turnaround Journey
Pfizer’s R&D Turnaround Journey 2010 10 104 Large Number of High Volume Narrow Located Away Siloed Key Therapeutic Areas of NMEs Modality Base from Major Bio Hubs Decision Making Current 5 54 Focused on Areas High Quality Broad & Deep Strategically located Integrated Where We Can Win of NMEs Modalit
Slide 16: Creation of Scientific Powerhouse Led to Step Change in Ph 2 Success Rate
Creation of Scientific Powerhouse Led to Step Change in Ph 2 Success Rate Phase 2 Success Rates (NMEs1, 3 Year Rolling Average at Year End) 53% 47% (n=15) (n=15) ~30% Industry Average2 38% (n=16) 17% (n=24) 2017 2018 2019 2020 YTD (Aug) 1. % of NMEs (New Molecular Entity); transitioning from Phase 2
Slide 17: Pfizer's FIH to Approval Rate Increased by >75%
Pfizer’s FIH to Approval Rate Increased by >75% & Surpassed Industry Average1 2015 2019 ~5% >75% ~9% ~11% ~8% Industry 1 2019 compared to 2015. 3 yr rolling cohort for Phase 1 and 5 yr rolling for later phases; FIH (First in Human) 17
Slide 18: Deep Expertise in Biological Drivers of Human Diseases
Deep Expertise in Biological Drivers of Human Diseases INFLAMMATION RARE INTERNAL ONCOLOGY VACCINES & IMMUNOLOGY DISEASE MEDICINE Cancer Vulnerabilities and Selective and Novel High Impact Bacterial & Molecular Pathology of Metabolic Dysfunction & Drug Resistance Cytokine Modulators Viral Vaccines G
Slide 19: Diversified Technologies Balanced Across Core & Emerging Areas
Diversified Technologies Balanced Across Core & Emerging Areas Core Technology Platforms Small Molecules Monoclonal Antibodies Conjugate & AAV Clinical Supply Precision Design Precision Design Engineered Vaccines Gene Therapies Accelerations Emerging Technology Platforms Protein Multi-Specific RNA G
Slide 20: High Caliber R&D Talent Strategically Located at Biomedical Hubs
High Caliber R&D Talent Strategically Located at Biomedical Hubs Therapeutic Area Hubs ONCOLOGY I&I, RARE DISEASE, INTERNAL MEDICINE VACCINES La Jolla, CA Boulder, CO Cambridge, MA Pearl River, NY Science & Technology Centers Groton, CT Sandwich, UK St. Louis, MO Andover, MA Kit Creek/Sanford, NC 20
Slide 21: Up to 25 Breakthroughs in Patients Hands by 2025 to Drive Growth
Up to 25 Breakthroughs in Patients Hands by 2025 to Drive Growth Select examples only 25 by 2025 2026 – 2028 Opportunities 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Xtandi BRAF Combo Lorbrena Talzenna+Xtandi Ibrance CDK2/4/6 sasanlimab CDK2 Selective KAT6 HER2 ADC ARCHES CRC 2L/3L 1L ALK
Slide 22: Up to 25 Breakthroughs by 2025: Internal & External Partnerships
Up to 25 Breakthroughs by 2025: Includes Internal & External Partnerships Business Development and Bolt on M&A Select examples only 25 by 2025 2026 – 2028 Opportunities 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Xtandi BRAF Combo Lorbrena Talzenna+Xtandi Ibrance CDK2/4/6 sasanlimab CDK2 Selec
Slide 23: Up to 25 Breakthroughs by 2025: Programs to be Discussed During R&D Day
Up to 25 Breakthroughs by 2025: Programs to be Discussed During R&D Day Programs to be Discussed During R&D Day Select examples only 25 by 2025 2026 – 2028 Opportunities 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Xtandi BRAF Combo Lorbrena Talzenna+Xtandi Ibrance CDK2/4/6 sasanlimab CDK2 Sele
Slide 24: Up to 25 Breakthroughs by 2025: Projected Approvals by 2021
Up to 25 Breakthroughs by 2025: Projected Approvals by 2021 Projected Approvals by 2021 Select examples only 25 by 2025 2026 – 2028 Opportunities 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Xtandi BRAF Combo Lorbrena Talzenna+Xtandi Ibrance CDK2/4/6 sasanlimab CDK2 Selective KAT6 HER2 ADC ARCH
Slide 25: Up to 25 Breakthroughs by 2025: Projected Pivotal Readouts by 2021
Up to 25 Breakthroughs by 2025: Projected Pivotal Readouts by 2021 Projected Pivotal Readouts by 2021 Select examples only 25 by 2025 2026 – 2028 Opportunities 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Xtandi BRAF Combo Lorbrena Talzenna+Xtandi Ibrance CDK2/4/6 sasanlimab CDK2 Selective KAT6
Slide 26: Up to 25 Breakthroughs by 2025: Projected Early Stage Readouts by 2021
Up to 25 Breakthroughs by 2025: Projected Early Stage Readouts by 2021 Projected Early Stage Readouts by 2021 Select examples only 25 by 2025 2026 – 2028 Opportunities 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Xtandi BRAF Combo Lorbrena Talzenna+Xtandi Ibrance CDK2/4/6 sasanlimab CDK2 Select
Slide 27: Our Chief Scientific Officers
Our Chief Scientific Officers Oncology – La Jolla Oncology – Boulder Inflammation & Immunology Jeffrey Settleman, PhD Nicolas Saccomano, PhD Michael S. Vincent, MD PhD • PhD: Yale School of Medicine • PhD: Columbia University • MD-PhD: Indiana University • Sr. Dir., Oncology, Genentech • CSO Array B
Slide 28: Rod MacKenzie
Rod MacKenzie Chief Development Officer & Executive Vice President, Global Product Development
Slide 29: From Bottom Quartile in 2015…
From Bottom Quartile in 2015… Industry Ranking Industry Ranking Industry Ranking Days 180 #14 80 #16 #7 350 160 70 300 140 60 250 120 50 100 200 40 80 150 30 60 20 100 40 20 10 50 0 0 0 Final Approved Protocol Primary Completion Date Primary Completion Date to First Subject First Visit to Database R
Slide 30: To Top Quartile in 2019…
To Top Quartile in 2019… Industry Ranking Industry Ranking Industry Ranking Days 180 #14 to #1 80 #16 to #2 #7 to #3 350 160 70 300 140 60 250 120 50 100 200 40 80 150 30 60 20 100 40 30 days 39 days 140 days 20 10 50 (18%) (54%) (44%) 0 0 0 Final Approved Protocol Primary Completion Date Primary
Slide 31: Aspiring to Improve through 2021 and Beyond
Aspiring to Improve through 2021 and Beyond Projected 49 days 44 days 167 days 29% 60% 52% Days 180 80 350 160 70 300 140 60 250 120 50 100 200 40 80 150 30 60 20 100 40 20 10 50 0 0 0 Final Approved Protocol Primary Completion Date Primary Completion Date to First Subject First Visit to Database
Slide 32: Improving Operational Performance Along 3 Dimensions
Improving Operational Performance Along 3 Dimensions 2016-2020 Organization & Operational Excellence Rigorous Focus Culture & Capabilities on Cycle Times Integrated global Excellence across Focus on development organization processes and systems operationally-addressable cycle times Patient centric
Slide 33: Global Product Development: New Late-Stage Development Division
Created a New PFE Division for Late-Stage Development in 2016 Consolidated 4 Existing Organizations- 2 from Commercial & 2 from Worldwide R&D to Create Unified Discipline of Excellence Oncology Clinical I&I, IM, Global Global Global Product Product Development Rare Disease, Regulatory Development &
Slide 34: Patient Centricity and Equity in Clinical Trials
Patient Centricity and Equity in Clinical Trials Our Goal: Design clinical trials so that enrollment can reflect the racial and ethnic diversity of the countries in which we operate First Subject First Visit First Subject First Visit First Approved Regulatory Approval Protocol and to the epidemiolog
Slide 35: Our Chief Development Officers
Our Chief Development Officers Jim Rusnak, MD, PhD Bill Gruber, MD Mike Corbo, RPh, PhD Brenda Cooperstone, MD Chris Boshoff, MD, PhD Internal Medicine & Hospital Vaccines Inflammation & Immunology Rare Disease Oncology • MD: University of Pittsburgh • MD, Residency, Chief Residency, • PhD: Rutgers
Slide 36: Focus on Operational Excellence and Capabilities
Focus on Operational Excellence and Capabilities 44 Workstreams, 700+ Colleague Volunteers, & 12 Months of Work Leading to: Excellence Across Processes & Systems Cost Efficiencies Better Data Quality & Partner Experience ~$750M Reinvested in Portfolio Adoption of clinical trial data standards Elimin
Slide 37: First-In-Industry Innovations are Transforming our Clinical Trials
First-In-Industry Innovations are Transforming our Clinical Trials Innovations to Accelerate Trials, Improve Quality, and Drive Efficiencies Breakthrough Site-Less Digitally Source Automated Clinical Change Accelerator Clinical Trial Clinical Data Document Creation Crowd-source innovative Improve th
Slide 38: External Collaborations Are Improving Clinical Trial Productivity
External Collaborations Are Improving Clinical Trial Productivity Focus is on Improving Data Quality & Patient Experience, Expanding Access and Speeding Patient Recruitment Creating faster, increased patient access Deploying digital technology Helping doctors and clinics become to clinical trials an
Slide 39: Removing 2.5 Years from First-in-Human to Approval
Removing 2.5 Years from First-in-Human to Approval Development Cycle Times 9.4 Years Operationally Addressable White space, strategy development, 5.2 planning, decision-making time, time to recruit our clinical studies and other areas in our control Operationally Fixed Regulatory review periods, 4.2
Slide 40: FIH to Approval Clinical Operational Cycle Times Expected to Decrease by 2.5 Years
FIH to Approval Clinical Operational Cycle Times Expected to Decrease by 2.5 YEARS by 2021 Cycle Times (years ) 2.5 Years 5.2 4.8 4.3 3.5 2.7 2017 2018 2019 2020 2021 40 40
Slide 41: Cycle Time Improvements are Demonstrated in ALL Phases of Clinical Development
Cycle Time Improvements are Demonstrated in ALL Phases of Clinical Development Source of Cycle Time Savings Cycle Time Savings Expected Earlier Investment in Clinical Supplies 8 months Streamlined Study Start Up 2 months Targeted Clinical Trial Recruitment 5.5 months Rapid Database Release 3 months
Slide 42: COVID-19 Vaccine Trial Accelerated Development Timeline
COVID-19 Vaccine Trial Accelerated Development Timeline First Approved Regulatory Approval First Subject First Visit First Subject First Visit Protocol to for Phase 2b/3 to to 6K Dosed To 20K Dosed First Subject First Visit First Subject First Visit in Phase 2b/3 12 Days 2 Hours 18 Days 35 Days 42
Slide 43: Non-Small Cell Lung Cancer 2L: First in Human to Approval in 4.8 years
For Non-Small Cell Lung Cancer 2L First in Human to Approval in 4.8 years US Approval: November 2, 2018 Positive CROWN Study Results in 1L: August 2020 Previous Pfizer Median: 9.8 years Industry Median: 7.8 years 43 43
Slide 44: Angela Hwang
Angela Hwang Group President, Pfizer Biopharmaceuticals 44
Slide 45: Biopharma Positioned for Continued Growth
Biopharma Positioned for Continued Growth Expect At Least 6%+ • Strong In-Line Performance 1 2020-2025E Revenue CAGR • Already Generating 9% Growth in 1H20* • No significant LoEs anticipated until 2026 • Ibrance • Vyndaqel Confidence behind near- • Xtandi 2 term growth drivers • Oncology Biosimilars
Slide 46: Biopharma Business Units: $41.6B 2020 Revenue
Biopharma Business Units: $41.6B 2020 Revenue (2020 Guidance midpoint) Inflammation & Internal Medicine Vaccines Immunology Michael Gladstone, Global President Nanette Cocero, Global President Richard Blackburn, Global President • Up to 2 Primary Care launches by 2025 • Up to 6 Innovative Vaccines b
Slide 47: At Least 6%+ 2020-2025E CAGR Supported By In-Line and Selected Pipeline Growth Drivers
At Least 6%+ 2020-2025E CAGR Supported By In-Line and Selected Pipeline Growth Drivers Potential Potential Pipeline non-risk Non-risk adjusted Potential adjusted Revenue Revenue In-line Incremental ~$64.6B Mid-Point Revenue $15B+ $55.7B 6%+ CAGR Guidance >$3B Potential Peak: Abrocitinib, $8B+ Vupano
Slide 48: Select Launches by 2025
Select Launches by 2025 vupanorsen (SHTG) sasanlimab (NMIBC) Talzenna Braf/Mek (mCRPC) (1L mCRC) tanezumab Lorbrena Xtandi BCMA + CD3 LMNA-related (OA) (1L ALK+ NSCLC) (EMBARK) (MM) Dilated CM Braf/Mek abrocitinib ritlecitinib marstacimab recifercept DMD GTx (CRC 2L/3L) (AD) (Alopecia) (Pan Hem) (ac
Slide 49: Commercial Excellence Case Studies
Commercial Excellence Case Studies What We Learned Today to Enable Tomorrow 49
Slide 50: Vyndaqel: Suspicion and Detection of ATTR-Cardiomyopathy
Vyndaqel: Suspicion and Detection of ATTR-Cardiomyopathy Building Capabilities in Diagnosis Diagnosis† 15% Capturing New Patients Through Education Leading to Diagnosis Treatment† 85% Estimated Cumulative US Diagnosis Vyndaqel Vyndaqel: 76.6% Rate of ATTR-CM Market Share† Vyndaqel: 80% 25% 20% Hub +
Slide 51: Xeljanz: Positioned for Continued Growth in 2021+
Xeljanz: Positioned for Continued Growth in 2021+ With Strong Fundamentals to Lead Our JAK Pipeline In 2021+ TRx Growth Expected to Continue with a Entrench in Rheumatology with Significantly Lower Offset from Price Ankylosing Spondylitis (AS) in 2021 % US Xeljanz Lives with Xeljanz US Annual TRx RA
Slide 52: Significant 2021 Opportunity for Pfizer's Oncology Biosimilar Portfolio
Significant 2021 Opportunity for Pfizer’s Industry-Leading Oncology Biosimilar Portfolio Growing Role for Oncology Biosimilars and Pfizer Oncology Biosimilars: Recognition of Pfizer’s Portfolio Portfolio Expectations >$1B Potential Global Revenue in 2021 Broadest Portfolio, with #1 6 Approved Oncolo
Slide 53: Ibrance: A Standard of Care in Metastatic Breast Cancer
Ibrance: A Standard of Care in Metastatic Breast Cancer (mBC) Building a Portfolio of Next-Gen CDK Inhibitors HCPs Continue to See Ibrance Remaining the Ibrance Continued Confidence in mBC Market Leader in mBC post-PALLAS Leadership Supported By Real-World Data B PSM Median OS (months) “Not really,
Slide 54: Best in Class Commercial Organization
Best in Class Commercial Organization Unique Breadth & Depth Setting New Standards Partner Throughout of Therapeutic Areas for Launch Development • Resource Sharing and • Delivering Breakthroughs • Unique Triad structure for Stronger Capital Allocation seamless partnership • Industry leading capabil
Slide 55: Biopharma Positioned for Significant Growth to 2025 and Beyond
Biopharma Positioned for Significant Growth to 2025 and Beyond Commercial Excellence to Maximize Value Focused on 7 Key In-Line Growth Exciting Late-Stage Pipeline Drivers ~$8B Growth by ~$15B Growth by 2025 2025 (non-risk adjusted) Delivering An Expected 6%+ 2020-2025E Revenue CAGR 55