Pfizer, Inc. · NYSE:PFE
Pfizer — Citi Investment Research Global Health Care Conference 2008
23 slides from Pfizer's conference presentation, May 21, 2008
Slide 1: Citi Investment Research Global Health Care Conference
Citi Investment Research Global Health Care Conference Frank D’Amelio Chief Financial Officer May 21, 2008
Slide 2: Forward-Looking Statements and Non-GAAP Financial Information
Forward-Looking Statements and Non-GAAP Financial Information Discussions at this meeting will include forward-looking statements. Actual results could differ materially from those projected in the forward- looking statements. The factors that could cause actual results to differ are discussed in
Slide 3: Our Path Forward
Our Path Forward Maximize Revenues from Existing, New & Diverse Sources Take Advantage of Size, Scale of Pfizer Establish a Lower, More Flexible Cost Base Operate with Agility, Speed, Focus of an Entrepreneurial Organization Innovate our Business Model Drive Greater Total Shareholder Return
Slide 4: Our Path Forward: Strategies for Growth
Our Path Forward: Strategies for Growth US Lipitor Post Today LOE Lipitor Optimize the Patent-Protected Portfolio Maximize the Value of New and Inline Products Advance Compounds in the Pipeline Maximize Revenues Capitalize on Established Products Sustainable TSR Growth Grow in Emerging Markets
Slide 5: Optimize the Patent-Protected Portfolio
Optimize the Patent-Protected Portfolio Maximize Revenues
Slide 6: First Quarter 2008 Select Product Highlights
First Quarter 2008 Select Product Highlights ($ millions) Worldwide U.S. International 2008 Change 2008 Change 2008 Change In-Line Products(1) Lipitor $3,137 (7%) $1,751 (18%) $1,386 13% Viagra 460 6% 223 (1%) 237 13% Celebrex 611 2% 464 (2%) 147 20% Lyrica 582 47% 351 45% 231 51% Xalatan/Xalacom 40
Slide 7: Optimize the Patent-Protected Portfolio: Maximize New and In-Line Products
Optimize the Patent-Protected Portfolio: Maximize New and In-Line Products +86% +71% Launched 62 countries Launched 56 countries; expect 20+ in >90% coverage of U.S. third party next 12 months payers Used by 6 million smokers globally Phase 3 trials in breast, lung, colorectal; Refill ra
Slide 8: Optimize the Patent-Protected Portfolio: Advance Compounds in the Pipeline
Optimize the Patent-Protected Portfolio: Advance Compounds in the Pipeline Pipeline as of Feb 28, 2008 Approved More than Selzentry 300 Phase 1 Phase 2 Phase 3 In Reg. Lyrica for Discovery 47 37 16 2 Fibromyalgia Projects fesoterodine (EU) (Pipeline as of July 31, 2007) 38 47 11 3 Goals 15–20 Phas
Slide 9: Optimize the Patent-Protected Portfolio: Disease Area Priorities
Optimize the Patent-Protected Portfolio: Disease Area Priorities Invest to Win First or High Market High Best in Class Growth Unmet Need 9 9 9 Oncology Pain Immunology / Inflammation Diabetes / Obesity Alzheimer’s Disease Schizophrenia Maximize Revenues
Slide 10: Optimize the Patent-Protected Portfolio: Oncology
Optimize the Patent-Protected Portfolio: Oncology The Current Opportunity Opportunity by 2012: = $57.3 B $81 B 7% CAGR Pfizer $2.6 B Pfizer Assets and Advantages: 4% PreClin Phase I Phase II Phase III Market 5 13 6 5 5 Pfizer Strategy: Established Worldwide Oncology Business Unit; recent
Slide 11: Capitalize on Established Products
Capitalize on Established Products Opportunity by 2012: The Current Opportunity = $271 B $523 B 11% CAGR Pfizer Pfizer Assets and Advantages: $12 B Excellent portfolio of products 4% Strong brand recognition for innovation, quality and safety Cutting-edge manufacturing technology Bro
Slide 12: The Market Is Not Homogenous, Three Distinct Market Segments
The Market Is Not Homogenous, Three Distinct Market Segments Dispensing Drivers: Payers and Pharmacy Channel, with Physician Branded Emerging Markets and Pharmacy Influence Branded Traditional Markets IP-Driven Markets Brand: Moderately Important 2012 Size: $130B LOE Cliff: Moderate Dispensing
Slide 13: Grow in Emerging Markets
Grow in Emerging Markets Opportunity by 2011: The Current Opportunity $225 B = $149 B 11% CAGR Pfizer Pfizer Assets and Advantages: $5 B Ability to leverage global scale, 3% product breadth and growing oncology portfolio Increasing R&D focus, including R&D incubator and Asian investment
Slide 14: The Emerging Asian Markets Opportunity
The Emerging Asian Markets Opportunity Today 2012 Projection 2017 Projection 7–9% 6% 4% $47B $79B $111B Market Pfizer Source: Projections based upon IMS Market Prognosis March 2007 & Internal Analysis (excludes Japan, Australia, New Zealand) Maximize Revenues
Slide 15: Why Pfizer Expects to Succeed in Established Products and Emerging Markets
Why Pfizer Expects to Succeed in Established Products and Emerging Markets Pfizer has Unique Competitive Advantages Large Diversified Portfolio Tremendous Brand Recognition for Quality Strong Presence in the Right Geographies Experienced Local Talent Close to the Operations Maximize Revenues
Slide 16: Proven Track Record of Managing Costs
Proven Track Record of Managing Costs 12/31/04(1) 3/30/08 Change Manufacturing Sites 78 57 (27%) Outsourced Manufacturing (%) 9% 17% 8 pts. R&D Sites 15 10 (33%) Total Real Estate Sq. Footage 80 54 (33%) (in millions) Sales Force 36,300 28,000 (23%) Total Headcount 110,000(2) 85,000 (23%) (1) In the
Slide 17: Plans for Continued Cost Management
Plans for Continued Cost Management Manufacturing Research and Development Increasing outsourced manufacturing to Utilizing Enhanced Clinical Trial Design 30%, while maintaining quality Applying Biotech Investment Paradigm Reducing network of manufacturing plants Using Centers of Emphasis
Slide 18: Innovate the Business Model: Pharmaceutical Operations
Innovate the Business Model: Pharmaceutical Operations Change Benefits Realized Reduced the field force by about 20% Launched Lyrica fibromyalgia indication 2 months 5 U.S. Business earlier than would have been done under the prior Units model Formation of highly-trained, razor sharp field for
Slide 19: Innovate the Business Model: Research and Development
Innovate the Business Model: Research and Development Change Benefits Realized Instituted Accelerated 20 high value programs and terminated 23 New programs Compound Review Identified 6 key disease areas to ‘Invest to Win’ Process Initiated Phase 3 starts of the following: Moved to IGF-1R
Slide 20: 2008 Financial Guidance
2008 Financial Guidance Guidance(3) Revenues $47.0 to $49.0 Billion Decrease of at least $1.5–$2 Billion Adjusted Total Costs(1) versus 2006 on a constant currency basis(2) Adjusted Cost of Sales(1) as a 14.5% to 15.5% Percentage of Revenue Adjusted R&D Expenses(1) $7.3 to $7.6 Billion Adjusted SI&A
Slide 21: Cash Flow from Operations
Cash Flow from Operations ($ billions) $17.6 $17.0 to $18.0 $14.7 $13.4 2005 2006 2007 2008 Guidance Continued Strong Cash Flow from Operations Financial Metrics
Slide 22: Our Path Forward
Our Path Forward Maximize Revenues from Existing, New & Diverse Sources Take Advantage of Size, Scale of Pfizer Establish a Lower, More Flexible Cost Base Operate with Agility, Speed, Focus of an Entrepreneurial Organization Innovate the Business Model Drive Greater Total Shareholder Return
Slide 23: Slide 23
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