Annual Report 2023 – 24

Index

Corporate

Information

REGISTERED OFFICE

PFIZER LIMITED

The Capital, 1802/1901, Plot No. C-70, G Block, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051.

Tel: +91 22 6693 2000

Fax: +91 22 2654 0274

Website: www.pfizerltd.co.in

E-mailID: contactus.india@pfizer.com

CIN: L24231MH1950PLC008311

REGISTRAR AND SHARE TRANSFER AGENT

KFIN TECHNOLOGIES LIMITED

UNIT: PFIZER LIMITED,

Karvy Selenium Tower B, Plot No. 31 & 32,

Gachibowli, Financial District, Nanakramguda,

Serilingampally, Hyderabad, Telangana - 500032.

Tel: +91 40 6716 2222

Fax: +91 40 2300 1153

Toll Free No: 1800-309-4001

E-mailID: einward.ris@kfintech.com

SOLICITORS AND ADVOCATES

Veritas Legal

Crawford Bayley & Co.

COMPANY SECRETARY

Prajeet Nair

STATUTORY AUDITOR

B S R & Co. LLP

BANKERS

JP Morgan Chase Bank N.A

Deutsche Bank AG

ICICI Bank

State Bank of India

COST AUDITOR

Kishore Bhatia & Associates

SECRETARIAL AUDITOR

Annual Report 2023-24

Committed to

What Matters Most

At Pfizer, our commitment to what matters most shapes everything we do. We are deeply dedicated to supporting patients, their family and the community with access to best-in-class healthcare. As a company that has delivered innovative therapies for decades, we believe that quality healthcare is essential for all, and we strive to make this belief a reality through innovation, cutting-edgetechnology, sustainability, and social responsibility.

With a strong local manufacturing base contributing ~70% of our business operations, including ~ 4 billion tablets being produced annually from our award-winning Goa plant, we ensure that essential medicines are always accessible.

Our dedication to environmental stewardship is evident in the innovations at our Goa plant, like 26% reduction in conventional power consumption in the FY 2024, setting benchmarks for sustainability. As part of our ESG and CSR initiatives, we play the role of a responsible corporate citizen by improving quality of life through community development, health initiatives, employment and education.

Driven by patient-centric innovation, we adhere to global safety standards and develop therapies that prevent, treat, and cure diseases, consistently placing patients' well-being at the forefront.

With this holistic approach,

Pfizer remains Committed to

What Matters Most

Corporate Overview

Statutory Reports

Financial Statements

Annual Report 2023-24

Commitment to India: A Legacy Since 1950

Our Values

To fully realise Pfizer's purpose, we have established a clear set of expectations regarding "what" we need to achieve for patients and "how" we will go about achieving those goals.

The "how" is represented by four simple, powerful values-courage, excellence, equity, and joy-that define our company and our culture.

Our parent company, Pfizer Inc., is one of the world's leading biopharma companies. Present in more than 125 countries, Pfizer has a portfolio of innovative drugs that addresses some of the most difficult diseases of our time. Pfizer's portfolio of breakthrough therapies reflects the pinnacle of global research and development.

Our commitment extends beyond medicines,

focusing on improving health outcomes.

For over seven decades, Pfizer has been proud to be part of providing healthcare solutions in India. We continue to innovate and expand our impact in India by delivering cutting-edge therapies and best-in-class healthcare solutions through our world-class manufacturing facility. Our focus is accelerating access to medicines and vaccines, striving for health equity, and delivering the best-in-class science by understanding the patient's journey.

We are driven by trust, integrity, and Pfizer Values, as we act swiftly and effectively to address unmet needs.

FY 2024 Highlights

Equity

We believe that every person deserves to be seen, heard and cared for. This happens when we are inclusive, act with integrity, and reduce healthcare disparities.

Joy

We give ourselves to our work, but it also gives to us. We find joy when we take pride, recognise one another, and have fun.

Living Our Purpose

Breakthroughs that change patients' lives

Research confirms what intuition tells us: that purpose-driven companies perform better, are more innovative, attract and retain the best people, and know how to unleash the power of those people. Pfizer's purpose- Breakthroughs that change patients' lives-fuels everything we do and reflects our passion for building on our legacy as one of the greatest contributors of good to the world.

Each word in our purpose has meaning and reflects the value we strive to bring to patients and society.

Annual Report 2023-24

Breakthroughs

These are the innovations, scientific and commercial, that we seek to deliver every day. All colleagues, regardless of role, level or location, strive for breakthroughs every day.

Change

We want to do more than simply improve patients' medical conditions; we want to dramatically change their lives for the better.

Patients' lives

We consider not only patients, but everyone they touch-including their families, caregivers, and friends-and everything they love to do. It's an intentionally holistic view.

Our purpose ensures that patients remain at the centre of all we do. We live our purpose by sourcing the best science in the world; partnering with others in the healthcare system to improve access to our medicines; using digital technologies to enhance our drug discovery and development, as well as patient outcomes; and leading the conversation to advocate for pro-innovation/pro-patient policies.

Every decision we make and every action we take is done with the patient in mind-and to nurture an environment where breakthroughs can thrive.

Message from the Managing Director

Dear Shareholders,

Growth has always been a very important measure of performance for us at Pfizer. Growth means we can benefit many more patients and their families with our medicines. But you will agree with me that holding the ground and sticking to our core purpose through challenging times is an equally important key success factor. As we reflect on the year under review, I can proudly share that despite the challenges we faced, we stayed true to our commitment to what matters most - supporting our patients in our country with high quality, best in class, innovative medicines.

As we review the performance of the past year, I want to address the challenges that we have faced, demonstrate how we showed resilience and took the necessary actions during these difficult times, and share the growth stories that underlie our performance for the year 2023-2024.

At Pfizer, we place utmost emphasis on patient safety and product quality at every step in the Manufacturing and Supply Chain process. As you are aware, during the year under review, the Company out of an abundance of caution, had initiated a voluntary recall of Magnex, Zosyn and Magnamycin injections manufactured by Astral SteriTech Private Limited. This was on account of an intimation received from the manufacturer, that it had observed an out-of-specification during a routine environmental monitoring of its manufacturing block. I am happy to state that, our single-minded focus to restore supplies of Magnex has paid off. We tapped into the breadth of our Global Supply Chain and were able to bring one of the SKUs back into the market during 2023-24 and now have secured supply for Magnex Forte, the largest SKU, to fulfil the patient demand for the rest of the financial year 2024-25. A huge shout out to our Manufacturing and Supply Chain teams, globally and in India who have come together to make it happen. And a very big thank you to our customers who continue

to believe in the quality and benefits that the Magnex portfolio brings.

The year under review also witnessed the full impact of reduction in prices of essential drugs consequent to the revision of National List of Essential Medicines (NELM) starting February 2023. We have been able to convert these price reductions into volume growth opportunities evidenced by the positive performance in Q4 FY 2023-24 vs Q3 2023-24.

The bright spots in our performance were our key brands, Prevenar, Minipress, and Eliquis delivering remarkable double-digit growth, significant volume growth in our hospital anti-infective products like Meronem, and our established brands such as Becosules, Corex, and Gelusil sustaining their growth momentum. Our focus on Prevenar 13 has been pivotal in protecting children as well as adults against pneumococcal disease. We have been recognized with several awards, including the Best Digital Campaign for Prevenar and the Industry Award for Sales Force Excellence. Our "Life Course Vaccination" initiative has raised awareness and educated stakeholders about vaccine-preventable diseases, enhancing healthcare provider confidence and establishing Centers of Excellence in hospitals.

We launched Betrecep (Tofacitinib), in July 2023 for the treatment of Rheumatoid arthritis, Psoriatic Arthritis, Ankylosing Spondylitis, and Ulcerative Colitis. Betrecep is an India-specific access solution with an objective to ensuring easy access and empower patients with rheumatic diseases by helping them gain access to original Tofacitinib. As per the IQVIA MAT March 2024 data, Betrecep has climbed to 6th rank within the first nine months of launch.

We are fully focused on addressing some of the key challenges that will lay a solid foundation for a more resilient performance for FY 2024-25. This includes

1. expanding our sales and distribution footprint wherever possible to reach more doctors and thus benefit more patients with our medicines; (2) launching new SKUs to bring innovation to our established portfolio. Becosules Syrup and Gelusil Raft preparation

which we launched in February 2024; (3) sharpening our marketing initiatives to focus where it matters; (4) adjusting our internal structures to reflect the needs of the market, e.g. creating a focused adult vaccination team and a core team to focus on adult vaccination awareness in corporates, etc.

Through all of this, on the financial front, we have implemented rigorous discipline and controls, ensuring that we prudently invest in our people and expand wherever necessary. In doing so, we make sure that none of our cost optimization programs impact the quality of our medicines or impact our sales colleagues who help deliver essential medicines to the patients.

We are proud to have served our country for over seven decades, bringing scientific breakthroughs, cutting edge therapies and vaccines that have transformed the lives of millions of patients. With the support

of a dedicated team of over 1,700 colleagues, our world-class manufacturing facility at Goa, our partner manufacturing sites and the trust of our 1.1 lakh shareholders, we continue to serve our country and help people live longer and healthier lives.

While the challenges during the year under review impacted our profits, we have continued a trajectory of yielding good returns to our shareholders by recommending an optimum dividend of ₹35/- (350%) per equity share.

Building a sustainable future for all

We recognize that we operate in an ever-changing world and that our stakeholders expect us to address threats to human health and the health of our planet. At Pfizer, we believe it is our obligation to streamline our resources and efforts to address such issues-whether from extreme weather events caused by climate change, inequality, or other external factors. Pfizer's track record in the Environmental, Social, and Governance (ESG) space is strong globally, and we are committed to continuing to build on this foundation.

One such initiative is towards green energy. We are proud to state that now approximately 38% of the total energy demand for manufacturing operations at our Goa plant comes from renewable sources. With the completion of solar project that was initiated in 2019 and recent introduction of high efficiency packing lines and machineries, our total carbon footprint has reduced by 2,430 tonnes. The carbon footprint per million tablets has also reduced significantly from 0.98T to 0.72T.

Colleague Engagement & Diversity

An engaged team that shares the value of the organization as their own is a strong determinant of the success of an organization. We deeply value our people and have a dedicated People Experience (PX) team focused on enhancing every employee's skill to support his / her personal growth while working towards achieving organization's goals. We are proud

to share that our annual employee Pulse Survey reflects that 89% of our colleagues feel engaged and share pride in being a part of Pfizer in India, with 90% of the participants demonstrating their belief and conviction in our organization's Value and Purpose.

We emphasize collective talent ownership, diverse experiences, and opportunities for employee growth. Our comprehensive benefits package helps ensure our employees thrive. One of the key factors of our Diversity Equity & Inclusion ("DEI") initiatives is to make our workplace truly diverse and inclusive.

Annual Report 2023-24

At Pfizer our Purpose and Values guide us on our ethical decision-making and the way we work. Integrity is the cornerstone of our culture and everything

that we do in Pfizer. As such, we fully support the recently introduced Uniform Code for Pharmaceutical Marketing Practices (UCPMP) 2024 that governs the promotional practices of pharmaceutical products to healthcare professionals and have declared our full adherence to it. This Code aligns perfectly with our internal code of practice and will also ensure a level playing field in pharmaceutical marketing.

Before I conclude, I take this opportunity to thank you for your continued encouragement and look forward to your constant support. I would also like to express my deepest gratitude to our committed colleagues, our customers, and our value chain partners in our journey of charting success. Together, we will continue to stay committed to securing a healthier future for all.

Meenakshi Nevatia

Managing Director, Pfizer Limited

Key Performance

Indicators

Financial Statements

Our partnerships make us stronger

Our CSR initiatives - built with our partners - address some of the most pressing healthcare priorities of the country. Pfizer INDovation looks to bring many compelling start-ups and their unique healthcare solutions to the market. The Aastha cancer care helpdesk in government hospitals is making it easier for patients to access treatment. Our collaboration with Tata Trust is helping screen thousands of patients for all cancer and Non Communicable Diseases while our Parivartan and Open AMR projects are demonstrating positive impact of infection prevention and control practices in reducing Anti-Microbial Resistance

in hospitals.

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Annual Report 2023-24

Innovative Solutions for What Matters Most:

Our portfolio in India includes over 125 products across 15 therapeutic areas, organised into key business categories as follows:

Financial Statements

Our Business Verticals

At Pfizer, we bring the very best of our science to India, offering over 125 products that transform patients' lives. Our extensive portfolio reaches over 200,000 Healthcare Providers, ~1,800 Government & Private Hospitals, and over 250,000 retail pharmacies, touching ~300 million patient lives annually.

Vaccines

Vaccines play a pivotal role in revolutionising infectious disease prevention, significantly contributing to public health by controlling, eradicating, and reducing once- deadly infectious diseases.

Pfizer's Vaccines Division focuses on Prevenar 13, a Pneumococcal Conjugate Vaccine approved for administering to individuals of all ages against pneumococcal disease, a severe infection caused by streptococcus pneumoniae bacteria.

Prevenar 13:

Pioneering

Pneumococcal

Vaccination in India

Widely trusted for its efficacy, Prevenar 13 is India's first and only approved conjugated vaccine for all age groups. Prevenar-13 is administered against the

13 most common serotypes of Streptococcus pneumoniae.

Pfizer's Vaccine Division has been recognised for its efforts, receiving accolades such as the India Book of Records and the Integrated Health & Wellbeing ('IHW') Patient First Award. Pfizer is committed to establishing "Life Course Vaccination" in India, raising awareness and educating stakeholders about vaccine- preventable diseases across all age groups.

Adult Vaccination

We are committed to enhancing public health by promoting healthy aging and increasing adult vaccination rates. Through strategic partnerships, we address gaps in the adult vaccination ecosystem, emphasising the critical role of adult vaccination in disease prevention.

Duty@50 Initiative

Our Duty@50 initiative raises awareness about pneumococcal vaccination for adults aged 50 and above, engaging over 800 healthcare professionals through Continuing Medical Education (CME) sessions and leveraging celebrities via the Lung Star Show.

>190,000

Adults Vaccinated

Partnerships with

20+ Corporates

benefiting 1,000+ lives

Collaboration with 2 Insurers

enhancing accessibility

250+ Corporate Stakeholders

engaged through a white paper with The Economic Times

10+ Hospitals partnered

to establish Centres of Excellence

650+ Healthcare Workers

Vaccinated under 'Pehle Aap' initiative

Internal Medicine

At Pfizer, our Internal Medicine business is committed to transforming healthcare in India by enhancing patient and Healthcare Professional (HCP) reach through innovative models. We focus on three pillars: productivity enhancement, enhanced customer reach, and improved distribution.

Productivity

Enhancement

• In-clinicexcellence
• Tailored engagements
• Improved segmentation, targeting and expansion

Enhanced Distribution and Customer Reach

• Omnichannel promotion
• Innovative digital channels to spread awareness about women's health
• Virtual connection with 10,000 HCPs via tele-calling

Annual Report 2023-24

Patient support for improved treatment outcomes

• Support maternal health with pills and support throughout the pregnancy journey.
• Improve disease diagnosis and awareness in areas like stroke, hypertension, anemia, bone health, mental health etc.
• Therapy awareness through consumer outreach, through conventional and out-of-home routes.

Key Products:

Eliquis (Apixaban): A leading oral anticoagulant for managing atrial fibrillation and venous thromboembolism.

Neuroscience and Cardiovascular: Brands like Pacitane, Ativan, and Minipress XL lead their respective markets, driven by continuous awareness and engagement initiatives.

Respiratory Portfolio: Corex Dx and Corex LS dominate the cough segment, with strong HCP engagement and prescription growth.

Women's Healthcare: The portfolio spans pregnancy, menopause, and contraception. We maintain market leadership, with innovative digital support initiatives on Pregnancy care for to-be-mothers.

Gastric Portfolio: Brands like Gelusil, Mucaine and Neksium lead the gastroenterology segment with focused HCP engagement and educational Programs.

Pain and Inflammation: Legacy brands Dolonex and Wysolone lead their categories with expanded offerings.

Vitamins Portfolio: Becosules, a household name, continues to be the most prescribed vitamin B-Complex brand, with new line extensions to meet evolving consumer needs.

Hospitals Business

Pfizer Hospital Business Unit focuses on providing advanced anti-infectives to institutions such as hospitals and nursing homes. This business unit emphasizes innovative healthcare solutions, driving significant growth and awareness of antimicrobial resistance through global campaigns and partnerships with subject matter experts.

Advanced Anti-Infectives:

• Zavicefta: Indicated for HAP/VAP, cIAI, cUTI, and
  Bacteremia secondary to these infections; significant impact in India.
• Meronem: Achieved 71% unit growth, expanded in new hospitals.
• Magnex 1 gm: Reintroduced for mild to moderate gram negative infections.
• KNOW AMR: GUINNESS WORLD RECORDS™ for 11,251 oaths

Key Focus Areas:

• Knowledge Dissemination: Facilitating educational programs at hospitals to boost diagnostic capabilities.
• Innovative Partnerships: Collaborating with clinicians and microbiologists to drive the early and appropriate use of anti-infectives.
• Digital Campaigns: Leveraging online channels to raise awareness and reach a wider audience.

Inflammation and

Immunology

At Pfizer, we are global leaders in discovering and developing novel therapeutics for chronic autoimmune diseases. Our Inflammation & Immunology vertical focuses on next-generation therapies, including advanced treatments for conditions like Rheumatoid Arthritis, Psoriatic Arthritis, Ankylosing Spondylitis, Juvenile Idiopathic Arthritis, Psoriasis, and Ulcerative Colitis.

Key Products:

Betrecep

Launched in July 2023, Betrecep (Tofacitinib), addresses Rheumatoid Arthritis, Psoriatic Arthritis, Ankylosing Spondylitis, and Ulcerative Colitis. It aims to improve affordability and access for patients in India, ranking 6th in the segment, within nine months of launch.

Enbrel

Enbrel is the first TNF inhibitor for chronic indications, including Rheumatoid Arthritis and Psoriatic Arthritis. Available in pre-filled pen and syringe forms, it has impacted over 6 million patients worldwide and is supported by extensive clinical research and publications.

Annual Report 2023-24

Commitment to Quality: Excellence in

Our Manufacturing & Supply Chain Operations

Our manufacturing operations in India have a robust network comprising our own site and 18 partner sites, collectively producing a substantial 6.8 billion pills and vials annually. Notably, ~70% of Pfizer's business operations is locally manufactured, 75% of API and raw & packing material sourced locally.

Manufacturing Operations

Pfizer is deeply committed to its local manufacturing operations, at our Goa site, which is pivotal in our journey towards sustainability and operational excellence through initiatives like the Integrated Manufacturing Excellence Program. Collaborating closely with Contract Manufacturing Organisations and partner sites, we prioritise

local pharmaceutical production while upholding our rigorous global standards in quality, compliance, and environmental health and safety.

Goa Plant

Established in 2002, our Goa plant is a cornerstone of Pfizer's manufacturing capabilities in India. With a dedicated team of over 100 full-time employees, the Goa Plant specializes in internal medicine portfolio, producing over 18 products and 186 million Standard Dosage Units (SDUs) across 25 SKUs.

Warehousing and Distribution

For our last-mile operations, we collaborate with 15 warehousing partners, ensuring timely distribution of our pharmaceuticals. This robust logistical infrastructure supports handling 6.8 billion units annually, highlighting our commitment to delivering high-quality healthcare products efficiently to those who need them.

At Pfizer, we proudly serve patients and healthcare providers nationwide with a state-of-the-art Pfizer manufacturing site, 18 partner manufacturing sites, and 15 warehouse centers, ensuring our healthcare solutions impact lives far and wide.

Contract Manufacturing

We collaborate with 18 Contract Manufacturing Organizations (CMOs) in producing Pfizer's innovative products. Together, these CMOs manufacture an impressive 1.94 billion units annually across 70 different SKUs, which include top brands such as Becosules,

People

Our Colleague Resource Group (CRG) at Goa, actively promotes diversity, equity, and inclusion (DEI), with various initiatives and training programs supporting a DEI culture.

Key Highlights

26%

Reduction in conventional power consumption in FY 2024 compared to the last year

3.6 billion

Tablets produced each year at Goa Plant

3 lakhs sq. ft.

Of warehousing space handling 35,000 to 38,000 transactions per month

~70%

Of the manufacturing operations are "Made in India"

3 out of 4

API and raw material suppliers are based in India

125+

Products

Gelusil, Corex DX, and Mucaine.

Integrity and Compliance

At Pfizer, all our operations are steadfastly committed to compliance, integrity, and excellence. The Compliance Champions awards at our Goa Plant reinforces this dedication, ensuring we uphold the highest data integrity standards.