Pfizer, Inc. · NYSE:PFE

Pfizer — Investor Presentation (November 2008)

18 slides from Pfizer's investor presentation, November 2008

1. Slide 1: Medication Access and Vulnerable Populations — What's Changing?

   Medication Access and Vulnerable Populations — What’s Changing?

2. Slide 2: Medicare Part D: How Has the Program Affected Beneficiaries Over the 3 Years Since Its Inception?

   2 Medicare Part D: How Has the Program Affected Beneficiaries Over the 3 Years Since Its Inception? Verdicts on Part D to date tend to be positive – but a few areas of concern have emerged X More PCPs rate Part D favorably overall, but opinions vary across patient subgroups X Part D has increased ut

3. Slide 3: Almost Half of Physicians Surveyed Expressed Favorable Overall Opinion of Medicare Part D

   3 Almost Half of Physicians Surveyed Expressed Favorable Overall Opinion of Medicare Part D 3% No opinion Neither favorable nor unfavorable 13% Favorable 48% 37% Unfavorable Results represent percent of responses to a 4-state, Web-based, Values do not total to self-administered survey of primary car

4. Slide 4: Enrollee Status Affects Physicians' Opinions of Effect of Part D on Access

   4 Enrollee Status Affects Physicians’ Opinions of Effect of Part D on Access Changes in access after Part D (% of responses) Improved Worsened 80 70 60 55% 49% 50 40 30 27% 20% 20 10 0 Medicare only Dual eligible* * Versus Medicaid prior to 2006. Results represent percent of responses to a 4-state,

5. Slide 5: Medicare-Only Enrollees: Patient Characteristics Influence Physicians' Opinions of Effect of Part D

   5 Medicare-Only Enrollees: Patient Characteristics Influence Physicians’ Opinions of Effect of Part D Improved access Worsened access Change in access after Part D (% of responses) 90 80% 80 70 60 50 44% 42% 42% 40 30 29% 20 14% 11% 10 5.2% 0 With coverage Without coverage Sickest Minority prior to

6. Slide 6: Dual-Eligible Enrollees: Opinions of Effect of Part D Less Negative in States With Restrictive Medicaid Formularies

   6 Dual-Eligible Enrollees: Opinions of Effect of Part D Less Negative in States With Restrictive Medicaid Formularies* 100 Restrictive Medicaid Generous Medicaid formulary* formulary* 90 78% Worse after Part D (% of responses) 80 74% 72% 70 60% 60 49% 50 42% 41% 41% 40 30 23% 23% 20 10 0 Access Pati

7. Slide 7: Implementation of Medicare Part D Increased Utilization and Decreased Out-of-Pocket Costs for Elderly Patients

   7 Implementation of Medicare Part D Increased Utilization and Decreased Out-of-Pocket Costs for Elderly Patients Days Number of patients Out-of-pocket supplied filling Rx costs +20 Relative change from 2005 through 2007* (%) +9% +10 3% 0 –10 –20 –22% –30 *Effect in elderly patients compared with a c

8. Slide 8: Pattern of Change Over Time in Utilization: Day's Supply per Capita Increased

   8 Pattern of Change Over Time in Utilization: Day’s Supply per Capita Increased Medicare Part D starts January 2006 Day’s supply per capita by month and age 25 20 15 10 5 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2004 2005 2006 2007 Under 65 Over 65 Differen

9. Slide 9: Pattern of Change Over Time in Out-of-Pocket Costs: Cost per Day's Supply Decreased

   9 Pattern of Change Over Time in Out-of-Pocket Costs: Cost per Day’s Supply Decreased 0.75 Medicare Part D starts January 2006 OOP cost per day’s supply ($) 0.70 0.65 0.60 0.55 0.50 0.45 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 2004 2005 2006 2007 Under 65

10. Slide 10: Nonmedical Therapeutic Switching in the Long-term Care Setting Leads to Negative Consequences

    10 Nonmedical Therapeutic Switching in the Long-term Care Setting Leads to Negative Consequences Most Common Negative Consequences of Nonmedical Therapeutic Switching Nurses Physicians Pharmacists (n=354) (n=112) (n=103) 100 90 83% 83% 79% 80 Percentage of respondents 68% 66% 70 62% 60 51% 49% 50 40

11. Slide 11: Many Providers Say That a Change Back to the Original Medication Is Likely After a Nonmedical Therapeutic Switch

    11 Many Providers Say That a Change Back to the Original Medication Is Likely After a Nonmedical Therapeutic Switch Percentage of respondents who have seen Part D patients changed back to their original medication 1.5% Not enough information to answer Most common Yes 44% reasons for change back: 54.

12. Slide 12: A Substantial Proportion of Plans Have Changed Their Unrestricted Drug Lists Since Inception of Part D

    12 A Substantial Proportion of Plans Have Changed Their Unrestricted Drug Lists Since Inception of Part D Changes to Unrestricted Drug Lists in Relation to Percentage of Renewing Plans From 2006 to 2008 50 Plans renewing from 2006 40 34% 30 26% 26% to 2008 (%) 20 14%* 10 0 Stable 3+ 3 to 6 7+ unrest

13. Slide 13: Formulary Changes Are Common, Underscoring the Importance of Reviewing Formulary Access

    13 Formulary Changes Are Common, Underscoring the Importance of Reviewing Formulary Access, Especially for Dual-Eligible Enrollees Problem Solution X Changes in formulary X Enrollees need to take access had little effect on advantage of the opportunity enrollment levels in PDPs to move to Part D pla

14. Slide 14: Evaluations of Drug Management Tools Are Rarely Comprehensive

    14 Evaluations of Drug Management Tools Are Rarely Comprehensive Percentage of studies Percentage of studies that that reported an reported a clinical or 100 economic end point humanistic end point 90 Percentage of studies reviewed 80 68% (52/77) 70 60 50 43% (33/77) 40 30 2/3 did not include a clin

15. Slide 15: Defining and Assessing Optimal Drug Management Tools

    15 Defining and Assessing Optimal Drug Management Tools Drug management tools should: X Deliver good value (in terms of both cost and health outcome) X Improve or have a neutral effect on patient outcomes X Not reduce pharmacy costs if doing so worsens patient outcomes or increases total medical cos

16. Slide 16: States Show Substantial Variation in PDL Design

    16 States Show Substantial Variation in PDL Design 50 40 Percentage of drugs covered 34% 30 28% 18% 20% 20 10 0 Unanimous 1 state 2–3 states 4-5 states coverage* disagrees disagree disagree * 0 or 10 states in agreement Majority of drugs (54%) had moderately inconsistent coverage (1-3 states in disa

17. Slide 17: Greater Dissimilarity Than Similarity of Drug Coverage Across States by Therapeutic Class

    17 Greater Dissimilarity Than Similarity of Drug Coverage Across States by Therapeutic Class *0 or 10 states cover. Unanimous* Antidepressants 22% Antipsychotics 16% Inhaled steroids 0% Anticonvulsants 33% Analgesics-narcotics 13% Antiulcerants 0% Antihyperlipidemics 17% 0 10 20 30 40 50 60 70 80 †4

18. Slide 18: Discussion

    Discussion Slides are available at: www.pfizer.com/medicare CBU12208A © 2008 Pfizer Inc. All rights reserved. Printed in USA/December 2008

Pfizer — Investor Presentation (November 2008) on 6ix