Pfizer U.S. All Stars Conference

Great. Well, thanks everyone for joining us today. I am Chris Schott, and Alexandre, thanks for joining us for a lot of different topics we can dig into here. I thought I might just start the conversation bigger picture on Pfizer, and then we will dig into the international business. The company obviously has gone through a period of significant change the past few years. Portfolio has evolved beyond the COVID assets, the pipeline is maturing, you have got new commercial structure. Can you just talk a little bit about your confidence in the overall Pfizer portfolio and pipeline today, and its ability to address some of the patent expirations and grow over time?

Sure. Yes. Thank you for having me. It is a great pleasure to be here. Yes, I mean, the past three years, we have been through major changes at Pfizer. It is probably just interesting to step back and remember. We went out of our saving the world moments with COVID and the incredible job that the team has done. After that very transformative moment, we needed to actually refocus on our portfolio, pipeline, and understand where we can win and redeploy the resources behind those territories and behind those products. That is when we started to refocus on new product. If you remember, back in 2024, we already had a vast majority of the new product. We just have finalized the acquisition of Seagen, so we had the Seagen product. We had launched a bunch of new product and vaccines into the market.

But we were fragmenting our resources and inability to actually deploy those product and vaccines appropriately to the market. What we did is we cut some of our investments that were unproductive because we were spending too much in some area. They were in point of diminishing return. We reallocated those resources in our key country. In my world, the top four country make 40% of my business, and spreading the resources everywhere makes no sense. We have stopped launches, we stopped organization commercial structure so that we can reallocate those things into the right spot. Amir did the same thing in this portfolio in the U.S., reallocating the product, the efforts behind the future growth. The outcome is actually quite remarkable.

If you think about, in my world, the new product and new reacquired product were making $0.5 billion in 2023. Now they do $4 billion. At the same time, we cut OpEx quite significantly because we were spending inappropriately. We had a real problem of efficiency in commercial execution. We were able to really look at every dollar we spend, where is it returning returns, where is it not, and reallocate. We stop, as I said, some clinical study in some small product, in some small countries, reallocated those resources in key markets and where we could grow. You see that those new launches product is now the platforms, the base for future growth. The reason why I am confident is because once you establish a commercial model that works, you build muscles in commercial effectiveness.

We will use those muscles for the pipeline, because at the same time, of course, we reduce our COVID franchise quite significantly during those periods. Just remember, 2024, we are making $11 billion on COVID between the vaccines and the antivirals. 2025, we made about $6.7 billion. 2026, we guide for $4 billion. So at the same time where we were extracting the most potential out of a new product, we also reallocated out of our COVID franchise so that we could double down on our new product. So I feel like we have less exposure on COVID. We have platforms on new product and acquired product that is growing extremely well, and there is room there. It is not like we all depend on the pipeline. We know we are going into a phase of LOE product, but at the same time, we have built this platform.

Of course, at the same time, the pipeline is maturing. I mean, if you think about we have 31 phase III clinical study happening right now. I often get the questions of are you drying your business by actually making all those efficiency? We are not, because we were inefficient in the way we were deploying our capital. By having more rigorous and more focused approach, you have much better impact. If I just look at what we did in internationals, the productivity of our sales organization triples in three years, just by having this very focused deployment of resources in key market on key product. Those key products are very different. When you are in Brazil, we had almost no vaccine business, which makes zero sense. Brazil is one of the most efficient in deploying vaccine and protecting their population. It is extremely impressive. We had almost no business, no Prevnar, no ABRYSVO.

Now Prevnar 20 is in, and we have vaccination rate of 80% of those 2.5 million babies in Brazil. But of course, it is different when you are in China. I do not have the new generation of pneumococcal vaccine yet, but I have 1 million case of non-small cell lung cancer in China. So guess what? I mean, the LORBRENA has huge potential because there is unfortunately a high prevalence. So picking the winner, deploying capitals behind those winners solidify our base, and we have significantly improved our commercial model. Aamir in the U.S. does the same thing with his DTC and also with sales force deployment. So I am very confident we have rebuilt our excellence in commercial deployment, and now we are maturing our pipeline. The pipeline is coming where we have the strengths.

Yeah. In oncology, we are very strong in oncology.

It is coming in vaccine, it is coming in primary care with our internal medicine. So we have the skills and the capabilities to actually optimize this portfolio. So I feel good. Great.

When I think about the company returning to growth as we look out to 2029 plus, I guess how much of that is going to be driven by the pipeline, as you mentioned, versus commercial execution against products we are already seeing today? And maybe as part of that, when you look at how we are all sell-sides modeling the business, are there any particularly large disconnects that you see versus how Yeah we are all thinking about the company?

Yeah, there is quite a bit.

Dig into all those separate pieces.

Exactly. Yeah. The first one is where the growth is coming.

The growth is coming on the new baseline that we've discussed, right? If you look at the Q2 earnings release, we show that we were producing $3.2 billion on the new acquire at the global level, $3.2 billion on the quarter, growing 18% after a 22% growth in the first quarter. If you just take that as the totality of new acquire and new launch product, that's about $13 billion right there, right? That's a very strong foundation. It's not like we are done with this portfolio. I'm going to give you a couple of examples. In vaccination, so we go back to vaccine, for instance, in older adults, both on Prevnar and ABRYSVO, it was very striking. I was looking at the numbers before coming to London.