Slide 1: Fourth Quarter 2022 Earnings Teleconference
Fourth Quarter 2022 Earnings Teleconference January 31, 2023 Breakthroughs that change patients' lives ®
Slide 2: Introduction
Introduction Christopher Stevo Senior Vice President, Chief Investor Relations Officer
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 that are subject to substantial risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such sta
Slide 4: Opening Remarks
Opening Remarks Albert Bourla Chairman and Chief Executive Officer
Slide 5: 2022 Was an Outstanding Year for Pfizer
2022 Was an Outstanding Year for Pfizer Historic Accelerating Ten 'Best Patients Revenues R&D Employer' Lists Treated $100B+ Maintained >1.3B industry-leading First time in our Patients treated clinical success 174-year history globally with our rates and further medicines and improved cycle vaccine
Slide 6: FY 2022 Revenues: Key Growth Drivers
FY 2022 Revenues: Key Growth Drivers 1 2 Adult $18.9B * op $37.8B +10% op $1.7B * op $6.5B +14% op U.S. $10.5B, * U.S. $8.8B, +12% U.S. $1.7B, * U.S. $3.8B, +21% Int'l $8.4B, * op Int'l $29.0B, +9% op Int'l $38M, * op Int'l $2.7B, +5% op 3 4 4 4 family $2.4B +29% op $213M * op $73M * op U.S. $1.2B,
Slide 7: Anticipated Near-Term Growth Excluding COVID-19 Products
Anticipated Near-Term Growth Excluding COVID-19 Products (2023 Guidance) Expect Strong Revenue Key Recent and Increased SI&A Op Growth ex-COVID* Potential Launches Investments Potential launches: • RSV for older adults • elranatamab • ritlecitinib • Prevnar 20 pediatric 7-9%* Products from recent ~$
Slide 8: Anticipated Long-Term Growth Excluding COVID-19 Products
Anticipated Long-Term Growth Excluding COVID-19 Products Illustrative* ~$84B ~$25B4 $XB5 '25-'30 CAGR 10% ~$52B1 '22-'25 CAGR 6% ~$70B '25-'30 CAGR 6% with new launches ~$20B3 New launches ~$17B2 Current products *For illustrative purposes only and not intended to be at scale. All values at constant
Slide 9: Anticipated Long-Term COVID-19 U.S. Vaccinations
Anticipated Long-Term COVID-19 U.S. Vaccinations COVID Vx Only Impact of COVID/Flu Combo 2022 2023 2024 2025 2026 U.S. Population = ~331M1 Actual2 Expected Expected Expected3,4 Expected3,4 Est. % Population Vaccinated for COVID-19 ~31% ~24% ~25% ~30% ~40% Est. # People Vaccinated for COVID-19 (M) ~1
Slide 10: Anticipated Long-Term Comirnaty U.S. Doses Sold
Anticipated Long-Term Comirnaty U.S. Doses Sold Illustrative and Not to Scale Doses Customer Sold1 inventory build Doses Doses Doses Used Sold3 Used Doses Doses Doses Doses Doses Sold3 Used Customer Used Sold3 Used inventory absorption Doses Sold2 Note: Expected timing; all dates are preliminary, su
Slide 11: Anticipated Long-Term Global COVID-19 Oral Therapies Utilization
Anticipated Long-Term Global COVID-19 Oral Therapies Utilization (Excluding China) 2022 Benchmark 2023 Expected 2024 Expected 2025 Expected 2026 Expected Est. # of Total Reported Symptomatic ~1101 ~112 ~114 ~117 ~119 Infections (M) Est. % of Symptomatic Patients ~12%2 ~17% ~19% ~21% ~22% Treated wit
Slide 12: Anticipated Long-Term Global Paxlovid Treatment Courses Sold
Anticipated Long-Term Global Paxlovid Treatment Courses Sold (Excluding China) Illustrative and Not to Scale Therapies Customer Sold1 inventory build Therapies Therapies Therapies Therapies Sold3 Used Sold3 Used Therapies Therapies Customer Therapies Sold3 Used inventory Used absorption Therapies Us
Slide 13: Increased Demand for Paxlovid in China Since Fiscal 2022
Increased Demand for Paxlovid in China Since Fiscal 2022 Fiscal 20221 Dec 2022 - Mar 2023 From April 2023 New but uncertain Government- Potential for Private market opportunity, Reimbursement Pre- Market Self-Pay Sales shipped only tens of NRDL2; since December* via non-government thousands of cours
Slide 14: Further Strengthening our ROI for R&D
Further Strengthening our ROI for R&D Sustaining Reaching Delivering Accelerating Reducing Industry-Leading Potentially Larger Potentially End-to-End Development Cost End-to-End Opportunities on Higher R&D Cycle Times per Molecule Success Rates1 Average ROIs vs. Past Pfizer Industry 12% 5% Key Drive
Slide 15: Financial Review
Financial Review David Denton Chief Financial Officer, Executive Vice President
Slide 16: Quarterly Income Statement Highlights
Quarterly Income Statement Highlights Revenues Adjusted1 Cost of Sales Adjusted1 SI&A Expenses $24.3B +13% op $9.5B +9% op $4.4B +17% op Primarily driven by Comirnaty1 in dev 39%2 -1.7 ppts markets, Paxlovid ex-U.S., Prevnar family Decrease in COS% primarily due to favorable Primarily driven by incr
Slide 17: 2023 Financial Guidance: Revenues and Adjusted Diluted EPS
2023 Financial Guidance1: Revenues and Adjusted1 Diluted EPS 2022 Actual Results 2023 Financial Guidance Revenues $100.3 billion $67.0 to $71.0 billion Operational1 Growth/(Decline) vs. Prior Year 30% (33%) to (29%) Growth/(Decline) vs. Prior Year 23% (33%) to (29%) Adjusted1 Diluted EPS $6.58 $3.25
Slide 18: 2023 Financial Guidance: Other Components
2023 Financial Guidance1: Other Components Adjusted1 Cost of Sales as a Percentage of Revenues 28.0% to 30.0% Adjusted1 SI&A Expenses $13.8 to $14.8 Billion Adjusted1 R&D Expenses $12.4 to $13.4 Billion Acquired IPR&D Expenses1,2 Approximately $0.1 billion Adjusted1 Other (Income)/Deductions Approxi
Slide 19: 2023 Financial Guidance: Key Assumptions (1 of 2)
2023 Financial Guidance: Key Assumptions (1 of 2) Key Assumptions for 2023 Guidance Commentary Operational revenue growth compared to 2022 excluding COVID-19 Growth expected to be split among each of three categories: launch, 7% to 9% products acquired and in-line products Incremental SI&A spend to
Slide 20: 2023 Financial Guidance: Key Assumptions (2 of 2)
2023 Financial Guidance: Key Assumptions (2 of 2) Comirnaty - 2023 Guidance Assumptions Commentary Compared to ~31%† in 2022; Decrease due to fewer primary vaccinations and lower Estimated proportion of U.S. population that receives a vaccine ~24% compliance Estimated number of doses per vaccinated
Slide 21: Scientific Updates
Scientific Updates Mikael Dolsten Chief Scientific Officer and President, Worldwide Research, Development and Medical
Slide 22: Driving Change From A Position of Strength
Driving Change From A Position of Strength Delivering potential breakthroughs on a new scale Honing Internal Focus Pursuing External Innovation Focus where our scientific and business Leverage the best external and capabilities are unique internal science to reach the most patients, as quickly as po
Slide 23: Transformative Potential in Inflammation & Immunology
Transformative Potential in Inflammation & Immunology Near-term potential blockbusters and early-stage multispecific monoclonal antibody platform innovation Potential Blockbuster Launches Phase 1 Tri-specific mAb Candidates: Anti-IL-4/-13/TSLP and Anti-IL-4/-13/-33 and Pivotal Starts Phase 1 IV PK P
Slide 24: Strengthening Leadership in Hematology
Strengthening Leadership in Hematology In-line portfolio and pipeline with blockbuster potential Study Phase: Preclinical Phase 1 Phase 2 Registrational Oncology Multiple Myeloma – Elranatamab Lymphomas, MM – TTI-622 Sickle Cell Disease VOC – Inclacumab Sickle Cell Sickle Cell Disease – GBT-601 Sick
Slide 25: Elranatamab: Potential BCMA Leadership in Multiple Myeloma
Elranatamab: Potential BCMA Leadership in Multiple Myeloma Transformative potential based on Phase 2 MagnetisMM-3 data at ASH 20221 80 Objective Response Rate Potential Differentiation in Bi-specific mAb Class in Efficacy & Safety2 60 Early and Deep Responses Manageable Safety Profile sCR (13.0) ≥CR
Slide 26: GBT-601: Transformative Potential in Sickle Cell Disease
GBT-601: Transformative Potential in Sickle Cell Disease Phase 1 data support potentially best-in-class profile of once-daily, oral, next-generation candidate Phase 1 Study: Multiple ascending doses to reach a >30% Hb occupancy with maintenance doses of 50mg, 100mg and 150mg % Hb Occupancy After Mul
Slide 27: Expanding Leadership in Breast Cancer
Expanding Leadership in Breast Cancer Next-generation oral CDK4i: Potential to address unmet needs in hormonally driven cancers CDK4i PF-07220060 Phase 1 Dose Escalation Potential to Improve Upon Current Standard of Baseline CDK4i + LET Week 24 Care by Maximizing CDK4 Target Coverage * * Early effic
Slide 28: Strong Execution and Next Wave Candidates
Strong Execution and Next Wave Candidates Anticipating a milestone rich 18 months across potential launches and key pipeline catalysts Oncology: Breast Cancer Inflammation & Immunology IBRANCE PATINA HER2+ Ph 3 Data Etrasimod UC Launch ARV-471 Ph 3 Study Start Ritlecitinib AA Launch CDK4i Ph 2 Data
Slide 29: Footnotes (Page 1 of 4)
Footnotes (Page 1 of 4) (1) As used in this document, “Comirnaty” refers to, as applicable, and as authorized or approved, the Pfizer-BioNTech COVID-19 Vaccine, the Pfizer-BioNTech COVID-19 Vaccine, Bivalent (Original and Omicron BA.4/BA.5), the Comirnaty Original/Omicron BA.1 Vaccine, and Comirnaty
Slide 30: Footnotes (Page 2 of 4)
Footnotes (Page 2 of 4) ▪ Exchange rates assumed are as of mid-January 2023. Financial guidance reflects the anticipated unfavorable impact of approximately $0.2 billion on revenues and approximately $0.02 on Adjusted diluted EPS(3) as a result of changes in foreign exchange rates relative to the U.
Slide 31: Footnotes (Page 3 of 4)
Footnotes (Page 3 of 4) • On June 9, 2022, Pfizer announced the completion of its acquisition of ReViral Ltd., a privately held, clinical-stage biopharmaceutical company focused on discovering, developing and commercializing novel antiviral therapeutics that target respiratory syncytial virus, for a
Slide 32: Footnotes (Page 4 of 4)
Footnotes (Page 4 of 4) (9) Paxlovid and emergency uses of the Pfizer-BioNTech COVID-19 Vaccine or the Pfizer-BioNTech COVID-19 Vaccine, Bivalent (Original and Omicron BA.4/BA.5), have not been approved or licensed by the FDA. Paxlovid has not been approved, but has been authorized for emergency use
Slide 33: Appendix
Appendix
Slide 34: Q4 2022 Summary Figures (1 of 2)
Q4 2022 Summary Figures (1 of 2) Revenue by Therapeutic Area ($M) Top 7 Products by Revenue1 ($M) 2 Total Total $24,290 $24,290 5 4 3 % Operational Growth % Operational Growth Primary Specialty Prevnar Vyndaqel Care Care Oncology PC1 Total Comirnaty2 Paxlovid family3 Eliquis4 Ibrance family5 Xeljanz
Slide 35: Q4 2022 Summary Figures (2 of 2)
Q4 2022 Summary Figures (2 of 2) Revenue by Therapeutic Area, Ex-COVID1 Revenue by Geography ($M) ($M) Total $11,127 Total 46% of Total $24,290 Revenue % Operational Growth Ex-COVID1 % Operational Growth Primary Specialty Care Care Oncology PC1 Total US2 Dev EU Dev ROW EM Total 22% -3% -3% 1% 5% 10%
Slide 36: Key Products Included in the Expected ~$17 Billion in LOE Revenue Declines
Key Products Included in the Expected ~$17 Billion in LOE Revenue Declines from 2025-2030 2021 WW 2021 U.S. 2021 Dev. EU Year of Year of Revenues Revenues Revenues Expected U.S. Expected EU Product ($ millions) ($ millions) ($ millions) LOE LOE Eliquis1 $5,970 $3,160 $1,520 2026* 2026 Inlyta $1,002
Slide 37: New Launches / Co-promotions and Potential Product Launches
New Launches / Co-promotions and Potential Product Launches1 ~$20B Potential Revenue ~$25B Potential Revenue expected for NME and expected from new new indications by 20302 BD deals by 20303 Vaccines Inflammation/Immunology Oncology Rare Disease Internal Medicine New Molecular Entity (NME) Launches
Slide 38: Additional Pipeline Potential Launches Through 2030 – Selected Examples
Introduction Additional Pipeline Potential Launches Through 2030 – Selected Examples Product Candidate Anticipated Indication(s) Expected Potential Launch New Molecular Entity (NME) Launches Danuglipron or PF’1532 (oral GLP1s) Type 2 Diabetes, Obesity >2024 Anti-IFN-β Antibody (PF’3859) Dermatomyosi
Slide 39: 2022 Financial Guidance vs. Results
2022 Financial Guidance vs. Results Guidance Results Revenues $99.5 to $102.0 billion $100.3 billion Adjusted1 Cost of Sales as a Percentage of Revenues 33.0% to 34.0% 34.0% Adjusted1 SI&A Expenses $12.8 to $13.3 billion $13.0 billion Adjusted1 R&D Expenses $11.5 to $12.0 billion $11.4 billion Acqui
Slide 40: Bolstering the Pipeline with Recent Business Development Opportunities
Bolstering the Pipeline with Recent Business Development Opportunities Select Examples Year Therapeutic Area Organization Asset/Indication Status Since Close BRAFTOVI & MEKTOVI – Cancer; LMNA – Cardiomyopathy Approvals: 1; Pivotal Starts: 2; FIH: 31 Cardiomyopathy discontinued GTx – Wilson Disease F
Slide 41: Bolstering the Pipeline with Recent Business Development Opportunities
Bolstering the Pipeline with Recent Business Development Opportunities Select Examples Year Therapeutic Area Organization Asset/Indication Status Since Close RSV antiviral therapeutics Sisunatovir (Ph2); RV299 (N-protein inhibitor) (Ph 1) Nurtec ODT, zavegepant, 5 pre-clinical CGRP assets – Migraine