Slide 1: First Quarter 2020 Earnings Teleconference
First Quarter 2020 Earnings Teleconference April 28, 2020
Slide 2: Introduction
Introduction Chuck Triano Senior Vice President, Investor Relations
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 about, among other things, our anticipated future operating and financial performance, business plans and prospects, expectations for our product pipeli
Slide 4: Opening Remarks
Opening Remarks Albert Bourla Chairman and Chief Executive Officer
Slide 5: Pfizer's Role in the Fight Against COVID-19
Pfizer's Role in the Fight Against COVID-19 Maintaining the Supply of Medicines Finding Medical Solutions With hospitals and global healthcare systems under Multiple projects are underway to potentially develop tremendous strain, supply of medicines is critical novel approaches to prevent and treat
Slide 6: Biopharma Revenues Grew 12% Operationally
Biopharma Revenues Grew 12% Operationally Sterile Injectables $1,248M +11% op $1,300M +29% op $451M +8% op $1,407M +15% op U.S. $852M, +15% U.S. $805M, +34% U.S. $286M, (4%) COVID-19 causing higher demand; Int'l $396M, +5% op (+25% volume) Int'l $495M, +23% op Int'l $166M, +38% op >90% of products c
Slide 7: Upjohn Q1 2020 Performance
Upjohn Q1 2020 Performance Revenues $2,022M (37%) op Decline driven primarily by Lyrica LOE in the U.S. China Revenues (41%) op Primarily driven by Lipitor and Norvasc declines due to the implementation and expansion of the volume-based procurement program Upjohn-Mylan Combination Anticipated close
Slide 8: Pipeline Updates Since Previous Earnings Call
Pipeline Updates Since Previous Earnings Call PCV20 Adults Abrocitinib ACC/DGAT2 DMD Gene Therapy Phase 3 top line results Top line results from third Positive preliminary results in Preliminary Phase 1b announced; U.S. filing Phase 3 trial (COMPARE) proof-of-concept study for results support Phase
Slide 9: Incremental Factors Impacting FY 2020 Financial Guidance
Incremental Factors Impacting FY 2020 Financial Guidance Other Operational and COVID-19-Related Expectations R&D Investments Q2 expected to be Product impacts expected to vary Increasing projected R&D negatively impacted expenses for FY 2020 by $500M • New vs. continuing patients for COVID-19 resear
Slide 10: Financial Review
Financial Review Frank D'Amelio Chief Financial Officer and Executive Vice President, Business Operations & Global Supply
Slide 11: CFO Comments on COVID-19
CFO Comments on COVID-19 Business Fundamentals Demand for our innovative medicines and vaccines remains strong Balance sheet and cash flow strength expected to allow us access to capital markets, as needed Manufacturing and Supply Recognizing our Colleagues Have not experienced any significant disru
Slide 12: Quarterly Income Statement Highlights
Quarterly Income Statement Highlights TOTAL COMPANY BIOPHARMA UPJOHN REVENUE REVENUE REVENUE $12.0B (7%) op $10.0B +12% op $2.0B (37%) op Excluding the impact of Consumer, Driven primarily by Eliquis, Vyndaqel, Ibrance & Driven primarily by U.S. Lyrica LOE, as well as total revenue declined 1% op In
Slide 13: Key Assumptions Related to COVID-19 in FY 2020 Financial Guidance
Key Assumptions Related to COVID-19 in FY 2020 Financial Guidance(1) Patient visits with physicians, vaccinations and elective surgical procedures will rebound starting in 2H 2020 and align more closely with historical levels New-to-brand prescription trends for certain key products and vaccinat
Slide 14: 2020 Financial Guidance for Total Company
2020 Financial Guidance for Total Company(1) Revenues $48.5 to $50.5 billion 19.5% to 20.5% Adjusted Cost of Sales(1) as a Percentage of Revenues (previously 19.9% to 20.9%) $11.5 to $12.5 billion Adjusted SI&A Expenses(1) (previously $12.0 to $13.0 billion) $8.6 to $9.0 billion Adjusted R&D Expense
Slide 15: 2020 Financial Guidance for New Pfizer and Upjohn
2020 Financial Guidance for New Pfizer(1) and Upjohn(1) NEW PFIZER(1) Current Guidance Previous Guidance Difference Revenues $40.7 to $42.3 billion $40.7 to $42.3 billion No Change Adjusted IBT Margin(1) Approximately 37.0% Approximately 37.0% No Change Adjusted Diluted EPS(1) $2.25 to $2.35 $2.25 t
Slide 16: Key Takeaways
Key Takeaways Delivered a strong start to 2020, including 12% operational revenue growth from our Biopharma business, despite the challenges of operating in the midst of the current global health crisis All of our manufacturing facilities around the world are operational and product supply has not
Slide 17: Q&A Session
First Quarter 2020 Earnings Teleconference Q&A Session April 28, 2020
Slide 18: Footnotes (1 of 2)
Footnotes (1 of 2) Financial Definitions Footnotes (1) The following acquisitions and divestitures impacted financial results for the periods presented: • On July 31, 2019, Pfizer and GlaxoSmithKline plc (GSK) completed a transaction that combined the two companies’ respective consumer healthcare bu
Slide 19: Footnotes (2 of 2)
Footnotes (2 of 2) 2020 Financial Guidance Footnotes (9) Pfizer does not provide guidance for GAAP Reported financial measures (other than revenues) or a reconciliation of forward-looking non-GAAP financial measures to the most directly comparable GAAP Reported financial measures on a forward-lookin