Slide 1: Second Quarter 2020 Earnings Teleconference
Second Quarter 2020 Earnings Teleconference July 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: Q2 2020 Biopharma Revenues Grew 6% Operationally
Q2 2020 Biopharma Revenues Grew 6% Operationally Biosimilars $1,349M +9% op $195M +89% op $277M; $145M U.S.(1) $289M +36% op U.S. $927M, +11% U.S. $132M, +120% >15K patients diagnosed; >10K got Oncology: $139M +120% op, Int'l $422M, +3% op (+18% volume) Int'l $63M, +48% op prescription; >6,200 recei
Slide 6: Adapting to a COVID-19 Environment
Adapting to a COVID-19 Environment Promotional Activities Patient-Physician Engagement Quickly increased the scale of remote customer Significant decreases in office visits and physician engagement using our existing digital capabilities engagement this quarter, particularly in the U.S. ◦ All U.S. r
Slide 7: Upjohn Q2 2020 Performance
Upjohn Q2 2020 Performance Revenues $2,006M (31%) op Decline driven primarily by Lyrica LOE in the U.S. Excluding U.S. Lyrica, revenues declined 6% op China Revenues +17% op Driven by Lipitor and Norvasc Upjohn-Mylan Updates Mylan shareholders approved the combination; Upjohn raised debt to pay requ
Slide 8: Updates on COVID-19 Vaccine Collaboration with BioNTech
Updates on COVID-19 Vaccine Collaboration with BioNTech Initiated Phase 2/3 Trial on July 27 - BNT162b2 selected to advance to pivotal study ◦ 30µg dose; 2-dose regimen ◦ BNT162b2 has FDA Fast Track designation ◦ Encodes optimized full length spike glycoprotein BNT162b2 vs. BNT162b1 Decision - Both
Slide 9: Other Selected Pipeline Updates
Other Selected Pipeline Updates VACCINES RARE DISEASE • Initiated four new Phase 3 studies • Duchenne Muscular Dystrophy gene therapy ◦ 20vPnC: 2 studies of a 4-dose series in infants, ◦ Presented encouraging preliminary data from 9 starting at 2 months of age ambulatory boys at the American Society
Slide 10: Other Selected Pipeline Updates (Continued)
Other Selected Pipeline Updates (Continued) INFLAMMATION & ONCOLOGY INTERNAL MEDICINE IMMUNOLOGY • Oral GLP-1 • Abrocitinib (JAK1) • Bavencio ◦ Presented encouraging Phase 1 ◦ Consistently shown meaningful ◦ FDA approved for first-line (1L) data at the American Diabetes efficacy across adolescents a
Slide 11: Financial Review
Financial Review Frank D'Amelio Chief Financial Officer and Executive Vice President, Business Operations & Global Supply
Slide 12: Quarterly Income Statement Highlights
Quarterly Income Statement Highlights TOTAL COMPANY BIOPHARMA UPJOHN REVENUE REVENUE REVENUE $11.8B (9%) op $9.8B +6% op $2.0B (31%) op Excluding the impact of Consumer, Op. growth reflects +8% volume and (2%) price; Declines driven by the LOE of Lyrica in the total revenue declined 3% op U.S. growt
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, vaccination rates and elective surgical procedures will gradually increase from Q2 2020 levels, beginning in Q3 2020 New-to-brand prescription trends for certain key products will gradually impro
Slide 14: 2020 Financial Guidance for Total Company
2020 Financial Guidance for Total Company(1) $48.6 to $50.6 billion Revenues (previously $48.5 to $50.5 billion) Adjusted Cost of Sales(1) as a Percentage of Revenues 19.5% to 20.5% Adjusted SI&A Expenses(1) $11.5 to $12.5 billion Adjusted R&D Expenses(1) $8.6 to $9.0 billion Adjusted Other (Income)
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 $40.8 to $42.4 billion $40.7 to $42.3 billion +$0.1 billion Adjusted IBT Margin(1) Approximately 37.0% Approximately 37.0% No Change Adjusted Diluted EPS(1) $2.28 to $2.38 $2.
Slide 16: Key Takeaways
Key Takeaways Delivered a solid quarter in Q2 2020, highlighted by 6% operational revenue growth from our Biopharma business Raised Revenue and Adjusted Diluted EPS(1) guidance for Total Company(1) and New Pfizer(1); Upjohn(1) guidance reiterated Upjohn raised sufficient funding to pay the required
Slide 17: Second Quarter 2020 Earnings Teleconference Q&A Session
Second Quarter 2020 Earnings Teleconference Q&A Session July 28, 2020
Slide 18: Footnotes (1 of 2)
Footnotes (1 of 2) Financial Definitions Footnotes (1) The following acquisitions and other business development activity impacted financial results for the periods presented: • On June 8, 2020, Valneva SE (Valneva) announced that the antitrust-related condition precedent was met and, consequently,
Slide 19: Footnotes (2 of 2)
Footnotes (2 of 2) Financial Definitions (continued) (8) Adjusted Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) is defined as reported U.S. GAAP net income(2), and its components, adjusted for interest expense, provision for taxes on income and depreciation and amortization,