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The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

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WMA-2024-Pfizer

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WMAC 2023-Pfizer

The corporations on our annual list of the world’s largest companies delivered a record $41 trillion in aggregate revenues.

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F500-2023-038-Pfizer

The pharmaceutical giant rode its groundbreaking mRNA COVID-19 vaccine and antiviral pill Paxlovid to record revenue in 2022; the $100.3 billion it raked in (up from $81.3 billion in 2021) catapulted the company 40 spots on this year’s Fortune 500 list. 
<ul> 
 	<li>Pfizer is planning to sell its COVID-19 vaccine commercially in 2023, rather than contracting with the U.S. government, with a target price between $110 and $130 per dose.</li> 
 	<li>Still, it expects revenue to drop as the demand for COVID vaccines eases in 2023. Pfizer has a slate of other new drugs in its pipeline, such as the Respiratory Syncytial Virus (RSV) vaccine and medication for migraines.</li> 
 	<li>The company is expected to lose patent protections for some key drugs, including Ibrance, used for breast cancer treatment, between 2025 and 2030.</li> 
 	<li>It has acquired other biotech or smaller pharma companies to bolster its pipeline in the future. Key 2022 deals include the $5.4 billion purchase of Global Blood Therapeutics and the $11.6 billion acquisition of Biohaven.</li> 
</ul>

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WMAC-2022-04-Pfizer

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F500 2022-Pfizer

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<span data-sheets-value="{&quot;1&quot;:2,&quot;2&quot;:&quot;How do you balance being one of the world’s saviors during a pandemic without being perceived as gloating or, more important, gouging a global population in need? That’s the tricky needle Pfizer has had to thread, given the company’s status as one of the most effective coronavirus vaccine manufacturers in the world. Pfizer recorded 2020 revenues of about $42 billion—but that largely excludes the post-winter period, when Pfizer’s COVID vaccine was granted emergency use authorization by the FDA. The company expects to bring in $26 billion in COVID vaccine sales alone this year, about 60% of its total 2020 revenues, thanks to its sprawling relationships with governments and pandemic-focused organizations across the globe. An added benefit? Via its partnership with Germany’s BioNTech, the maker of the “little blue pill” is now synonymous with mRNA vaccine technology that could feed its pipeline in infectious disease treatments and other therapeutics for years to come.&quot;}" data-sheets-userformat="{&quot;2&quot;:12673,&quot;3&quot;:{&quot;1&quot;:0},&quot;10&quot;:2,&quot;11&quot;:4,&quot;15&quot;:&quot;Calibri&quot;,&quot;16&quot;:11}">How do you balance being one of the world’s saviors during a pandemic without being perceived as gloating or, more important, gouging a global population in need? That’s the tricky needle Pfizer has had to thread, given the company’s status as one of the most effective coronavirus vaccine manufacturers in the world. Pfizer recorded 2020 revenues of about $42 billion—but that largely excludes the post-winter period, when Pfizer’s COVID vaccine was granted emergency use authorization by the FDA. The company expects to bring in $26 billion in COVID vaccine sales alone this year, about 60% of its total 2020 revenues, thanks to its sprawling relationships with governments and pandemic-focused organizations across the globe. An added benefit? Via its partnership with Germany’s BioNTech, the maker of the “little blue pill” is now synonymous with mRNA vaccine technology that could feed its pipeline in infectious disease treatments and other therapeutics for years to come.

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F500-2021-77-Pfizer

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G500-2020-215-Pfizer

Pfizer slips 17 spots this year, in large part because of the expiration last year of one of its more lucrative patents, for the fibromyalgia drug Lyrica. That eroded the drugmaker's revenue, which fell 4% overall in 2019. But Pfizer also made some big moves: After years of rumors that it would split up, Pfizer finally slimmed down, announcing over the summer that it would merge Upjohn, its off-patent drug division, with general drug company Mylan. Meanwhile, the pharmaceutical giant found some significant efficiencies in its operations: profits surged some 46%. The company, which is developing a promising COVID-19 vaccine in partnership with German drug company BioNTech, in July announced the U.S. government had ordered $1.95 billion worth of doses of the new treatment—to provide it to Americans for free, if the FDA approves the vaccine.

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F500-2020-064-Pfizer

Pfizer slipped a few spots, in large part because of the expiration last year of one of its more lucrative patents, for the fibromyalgia drug Lyrica. That eroded the drugmaker's revenue, which fell 4% overall in 2019. But Pfizer also made some big moves: After years of rumors that it would split up, Pfizer finally slimmed down, announcing over the summer that it would merge Upjohn, its off-patent drug division, with general drug company Mylan. Meanwhile, the pharmaceutical giant found some significant efficiencies in its operations: profits surged some 46%.

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Global business is back. After limping through a worldwide financial crisis and economic slowdown, the 500 largest companies ranked by revenues shattered all sorts of performance records in 2013: They racked up combined revenues of $31.1 trillion, up 2.5% from 2012, and profits soared 27% to nearly $2 trillion. China’s 95 companies (up from 89 last year) posted $5.8 trillion in revenues. The U.S. has four fewer companies on the list than last year but remains (for now) the country leader, with 128 corporations on the list—including No. 1 Wal-Mart Stores—reporting $8.6 trillion in revenues. 

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

Fastest-growing Companies

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Pfizer is known for developing medications and vaccines, and for manufacturing them at dozens of factories around the world. Its treatments span a broad range of areas including oncology, rare diseases, inflammation and immunology, and vaccines. Oncology has become the company's primary strategic focus, with CEO Albert Bourla committing more than 40% of annual R&amp;D spending to cancer research. Pfizer significantly expanded its cancer portfolio through its 2023 acquisition of Seagen, gaining a suite of antibody-drug conjugate therapies including Padcev for bladder cancer and Adcetris for lymphoma. The company is also making a major push into the obesity market: its late 2025 acquisition of Metsera brought Pfizer back into the obesity space after an earlier internal program was scrapped, positioning it to compete against dominant players Novo Nordisk and Eli Lilly. During the COVID-19 pandemic, Pfizer developed a landmark and highly profitable vaccine in collaboration with the startup BioNTech; it also developed a treatment for COVID infections sold as Paxlovid. Pfizer was founded in 1849 by immigrants in New York City, which remains the site of its global headquarters.

Q2 2026

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Q4 2025

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Q4 2024

Pfizer (PFE): Company Profile, Stock Price, News, Rankings

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Pfizer

pfizer

Good day, everyone, and welcome to Pfizer's Fourth Quarter twenty twenty four Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Francesca DiMartino, Chief Investor Relations Officer and Senior Vice President. Please go ahead, ma'am.

Good morning, and welcome to Pfizer's earnings call. I'm Francesca DiMartino, Chief Investor Relations Officer. On behalf of the Pfizer team, thank you for joining us. This call is being made available via audio webcast at fizer.com. Earlier this morning, we released our results for the and full year 2024 via a press release that is available on our website at pfizer.com.

I'm joined today by doctor Albert Borla, our Chairman and CEO, and Dave Denton, our CFO. Albert and Dave have some prepared remarks, and we will then open the call for questions. Members of our leadership team will be available for the Q and A session. Before we get started, I want to remind you that we will be making forward looking statements and discussing certain non GAAP financial measures. I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning and the disclosures in our SEC filings, which are all available on the IR website at visor.com.

Forward looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date and we undertake no obligation to update or revise any of the statements. With that, I will turn the call over to Albert.

Thank you very much, Francesca. Good morning, everyone. Thank you for joining us today. 2024 was a strong year of execution and performance for Pfizer. We were guided by clear strategic priorities and we met or exceeded our goals for each one, while also delivering on our financial commitments.

I'm pleased with the progress we made in executing transformative changes that strengthened our company. First, we successfully integrated the Seidgen business, one of the largest investments we have made in the past decade, creating one of the best oncology companies in the industry. At the start of 2024, we split our commercial operations into two divisions, U. S. And international, and appointed two senior commercial leaders to increase focus in both.

Amir Malik and Alexandre Tessegaume have done a tremendous job to upgrade our commercial capabilities. They consolidated our external agencies, Tau, to one powerhouse, global advertising company and leverage the power of AI to transform our marketing and selling engine. New data driven deployment of our commercial and medical field resources, precision market retargeting in social media and elevation of the Pfizer brand and commercial communications are some of the strategies that have significantly increased our commercial and medical effectiveness and returns on investment. We are seeing the impact of these actions in our strong financial performance and in the recognition of our market leaders. We earned the top position in the 2024 ranking report and improved our ranking to claim number one or two spot in 70% of the specialties in which we focus.

I'm also proud of our strong year of pipeline progress in 2024, including more than a dozen approvals, seven pivotal study starts and eight key Phase III redoubts. I'm very excited with the changes in our R and D engine under its new leaders. Priscis Bosef moved fast to create four end to end R and D units focused on oncology vaccines, internal medicine and inflammation and immunology. This structure fully empowers research units that can operate with the focus and agility of a biotech company while tapping into our differentiated enterprise wide capabilities such as AI powered drug discovery and development. Our focus on financial discipline also has yielded good results.

We ended the year with expanded margins after a series of actions to realign our cost base. And we strategically deployed capital to enhance shareholder value, investing nearly $11,000,000,000 in support of internal R and D programs, delivering by $780,000,000,0.0 and returning $950,000,000,0.0 directly to shareholders through our dividends. Finally, we also reinforced our commitment to strong governance. Our two new board members bring deep expertise in financial markets and shareholder value creation. All these changes have created a strong foundation and allow us to start the new year from a position of strength.

So now let me speak about our 2025 priorities. Last year, we had a significant emphasis on improving our commercial effectiveness. In 2025, the emphasis will move to improving R and D productivity while maintaining focus on margin expansion, commercial excellence and shareholder lending capital allocation. Let me start with R and D. Across our pipeline, we believe we have a strong year of catalyst ahead of us and expect our new R and D organization to achieve multiple key milestones, including the possibility of at least four regulatory decisions, up to nine potential Phase III readouts and 13 potential pivotal program starts.

For example, with at tirmusiklub, our next generation highly selective CDK4 inhibitor candidate, yesterday, we dosed our first patient in a Phase III study in first line metastatic breast cancer. We also anticipate starting an additional first line study in combination with the Dengestran, the ER degrader, we are co developing with Arvivas. Our ADC, sigglotatab, vedotin, continues its Phase III study in second line non small cell lung cancer. And this year, we expect to start a Phase III study in first line non small cell lung cancer. Our PD L1VADC candidate, a potential first in class PD L1 targeting adcoc, is expected to begin two Phase III studies this year: One in first line metastatic head and neck squamous cell carcinoma and one in second line plus non small cell lung cancer where the unmet need is significant.

We have a robust clinical development program aimed in expanding eurexial indications in multiple myeloma. And this year, we anticipate the readout of a Phase III study in double class exposed relapsed refractory multiple myeloma that if successful and approved, will triple the addressable population versus the currently approved indication. In vaccines, we expect to start the Phase III study this year for our PCV25 candidate, covering 25 serotypes. This is important foundational work that could help us bridge to and accelerate progress with our fifth generation PCV candidate covering more than 30 serotypes. This year, we also expect to start a Phase III study for our CIDDET vaccine candidate.

In internal medicines, we remain on track to provide an upgrade of our dose optimization studies of dalguilper in the For parcegroma, we expect to start a pivotal study this year in cancer CACXI. And Ibusatrelvir, our second generation COVID-nineteen oral antiviral candidate continues its Phase III study. Within IAI, we continue to progress a portfolio of medicines that include two potential first in class tri specific antibodies currently in Phase II. Now let's discuss our commercial strategy. 2024 was a strong year of commercial execution, and we are pleased with our progress in improving performance of our newly launched products and gaining and maintaining market share for several of our core brands.

I would start by highlighting the strength and impact of our oncology portfolio. PADCEB plus pembrolizumab is an important growth driver as it has already become the number one prescribed first line treatment for locally advanced metastatic urothelial cancer in The U. S. We are expecting potential registrational interim data this year from ongoing pivotal studies in muscle invasive bladder counts, which if successful and approved, would nearly triple the total addressable patients in The U. S.

BRAFTOVI, MEKTOVI achieved a 27% year over year worldwide operational growth and expanded its leadership position in multiple BRAFT tumors, which are some of the hardest to treat cancers. Yesterday, we announced that BRAFTOVI in combination with cetuximab and M4 FOX6 showed statistically significant and clinically meaningful improvement in progression free survival and overall survival in patients with metastatic colorectal cancer with BRAF V600E mutation. We are very excited with the robust improvement in PFS and OS and are looking forward to presenting this data in a scientific conference. LORBRAVENA, a treatment for adults with ALKi ALK positive metastatic non small cell lung cancer achieved thirty seven percent worldwide year over year operational growth and is emerging as a potential standard of care in the first line setting. Following unprecedented CROWN trial data showing sixty percent of patients were alive without disease progression after five years, LORBRANA has seen a double digit share increase in the first line in both new patient starts and new prescribers.

ELEXVIO had a strong performance in 2024 with more than $130,000,000 in full year revenues and increasing overall share within a class of BCMA directed biospecific antibodies for patients with triple class exposed relapse or refractory multiple myeloma in The United States. I also want to comment about our COVID-nineteen portfolio. We continue to see stabilizing patterns in the disease burden with a strong correlation between the COVID-nineteen burden of disease and Paxlovid utilization. We see the same stabilizing patterns in U. S.

Vaccination rates at relatively low levels. Our assumptions for 2025 are on par with these 2023 and 2024 patterns. And with the multiyear contracts we have secured in international markets, we are confident that our COVID-nineteen portfolio will continue to be a predictable and durable contributor to our business. In another key category, our Vintracal family of products achieved continuing momentum with 90% year over year growth in The U. S.

And 32% operational growth in international markets. We drove progress in diagnosing more patients and improving access to this treatment from for transthyretin amyloid cardiomyopathy. Eliquis is a core brand for Pfizer with 10% worldwide year over year operational growth. It is prescribed to millions of patients and we continue to strengthen its leadership position in a growing oral and coagulant market. We are also pleased with the ongoing positive momentum for Nurtec with 36% worldwide year over year operational growth, driven by strong commercial execution.

Dorte is a leader in the oral CGRP class used for treating and preventing migraine with about 49% market share, and we see opportunities for continued growth. Our respiratory vaccines, Abrasivore and PREVNA20 also are key products in our commercial portfolio. We have achieved a market leadership position for the season in sick dose for Abrasivore with an approximately 13 percentage points increase in market share and remain confident in our ability to retain our position through strong commercial execution even as we see a decrease in the total adult RSV market volume driven by a reduction in vaccination rates in The U. S. For the older adult indication.

We have seen positive momentum in key regions such as Europe and Latin America and are also seeing a strong demand for our maternal indication. A business season today cumulative maternal vaccination rate nearly tripled compared to last season. With Prevnar, we are confident that we are well positioned for strong sustained leadership with over 87% market share in The U. S. Across indications.

Globally, the pediatric market accounts for approximately two thirds of our Prevnar revenues, and we also continue to make progress for the adult indication in key international markets. We are encouraged by opportunities to maintain our leadership in the PCV space with our next generation PCV25 candidate mentioned earlier. In Phase I, we demonstrated potentially improving immunogenicity for serotype three, one of the largest contributors of disease, at approximately twenty percent of infectious disease in adults aged 65 and older in The United States and Europe. Across our commercial portfolio, in 2025, we are confident that we are in a strong position to build in our 2024 success and achieve commercial excellence in our key categories of oncology, cardiovascular, migraine, vaccines and INR. With that, I will turn it over to David.

Thank you, Albert, and good morning, everyone. I'll build on Albert's comments by reinforcing that we are very pleased with the financial results for both the as well as the full year of 2024. These results demonstrate that our focus and execution against our strategic priorities are driving both positive patient outcomes as well as financial and operational strength. In addition to our strong top line performance, our cost reduction programs are creating a more efficient organization driving operating margin improvement. And as we move into 2025, these efforts will continue to lay the groundwork for potential increased capital returns and reinforce our commitment to maintaining and growing our dividend while enhancing long term shareholder value.

With that said, let me start with our full year and results, then I'll touch on our capital allocation priorities. I'll finish up with a few comments on our 2025 guidance, which we are reaffirming today and our near term expectations that will continue to drive our growth potential in the latter half of the decade. For the full year of 2024, we recorded revenues of $6,360,000,000,0.0 versus $5,960,000,000,0.0 last year. Importantly, our operational revenue growth when excluding contributions from our COVID products was 12% exceeding our expectations of 9% to 11%. Full year 2024 adjusted gross margins expanded to 74% as we continue to drive cost improvements across our manufacturing network.

On the bottom line, we reported full year 2024 diluted EPS of $1,.41 versus 0.37 last year and adjusted diluted earnings per share of $3,.11 versus $1,.84 last year, significantly ahead of expectations due to our overall strong P and L performance. Now turning to the performance versus the same period of LY, let me walk down the P and L. Total company revenues were $1,780,000,000,0.0 versus $1,460,000,000,0.0 in the Once again, our non COVID-nineteen products exhibited robust performance with revenues of $1,370,000,000,0.0 reflecting 11% operational year over year growth. This performance continues to show that a refined commercial approach is working. We continue to focus on key products and geographies.

We've refined how we allocate our commercial field resources globally and we further optimizing our marketing resources into key priority areas. We saw strong contributions across our product portfolio, primarily driven by the Vindicel family, PADCEV, Aliquis and Nurtec, partially offset by declines in Brisvo and Xeljanz. Adjusted gross margin in the was approximately 68%, primarily the result of a net unfavorable mix related to our COVID-nineteen products, primarily due to the Comirnaty profit split with BioNTech and applicable royalty expenses. This was partially offset by an ongoing focus on cost management across our manufacturing network as I previously mentioned. And as we previously communicated, long term improvements in gross margin will remain a key focus for the company over the next few years.

We expect to begin to achieve initial savings from phase one of our manufacturing optimization program in the latter part and continue to expect approximately $150,000,000,0.0 in savings from this first phase by the We continue to evaluate other strategies to improve our network structure and as well as our product portfolio and we plan to share more information on those components of the program once it becomes available. Total adjusted operating expenses are essentially flat operationally at 7300000000.0 in the And I will note that this amount includes spending acquired via our CGen transaction. Looking at the component specifically, adjusted SI and A expenses decreased 4% operationally driven primarily by a decrease in marketing and promotional spend for various products including both Comirnaty and Paxlovid partially offset by an increase in spending for certain oncology and recently launched and acquired products. Adjusted R and D expenses increased 8% operationally, driven primarily by a net increase in spending mainly to develop certain product candidates acquired from Seagen, partially offset by lower spending on certain ongoing vaccine programs and certainly as a result of our cost realignment program. We continue to be disciplined with our operational expense management and delivered on our goal of at least $4,000,000,000 in net cost savings from our cost realignment program.

Reported diluted earnings per share was $0,.07 and our adjusted diluted earnings per share was $0,.63 benefiting from our top line performance as well as our efficient operating structure, partially offset by a higher effective tax rate driven primarily by jurisdictional mix. In support of our goal to enhance R and D productivity and to focus on high impact medicines, our GAAP results reflect strategic decisions in our development plans and updated long range revenue forecasts for several medicines. And as a result, we recorded approximately $290,000,000,0.0 in non cash intangible asset impairments related to several medicines in development as well as several in line products. These decisions reinforce our focus on future growth as well as innovation. Now let me quickly touch upon our capital allocation strategy which is designed to enhance long term shareholder value.

Our strategy consists of maintaining and growing our dividend over time, reinvesting in our business at an appropriate level of financial return, and finally making value enhancing share repurchases after delivering our balance sheet. In 2024, we returned $950,000,000,0.0 to shareholders via our quarterly dividend, invested $1,080,000,000,0.0 in internal R and D, and as expected completed business development activity was minimal. Our commitment to delivering our capital structure to a gross leverage target of 3.25 times by the remains a key priority. In support of that goal in 2024, we delivered by approximately $780,000,000,0.0 paying down approximately $230,000,000,0.0 in maturing debt and approximately $550,000,000,0.0 in commercial paper. And in we monetized another tranche of our Halion shares, which for reporting purposes is a event.

We received approximately $3,000,000,000 in net cash proceeds and now our ownership in Halion was reduced from approximately 15% to approximately 7%. We intend to monetize our remaining Halion investment in a prudent fashion during 2025. Overall in we generated robust operating cash flows, which combined with the most recent Halion net sales proceeds of approximately $3,000,000,000 resulted in significant free cash flow generation as we enter 2025. Our objective remains to deliver and return to a more balanced allocation of capital between reinvestments and direct return to shareholders over time. Given we issued our full year 2025 financial guidance on let me just hit a few highlights.

We expect total company full year '25 revenues to be in the range of $61,000,000,000 to $64,000,000,000 and full year '25 adjusted diluted earnings per share to be in the range of $2.8 to $3 a share, which reflects our expectation of strong contributions across our product portfolio as well as our focus on disciplined cost management. Importantly, we believe the steps taken to right size our cost base will put us on a strong footing towards increased operational efficiency and support our goal to return to pre pandemic operating margins. In further support of this initiative, we now expect to deliver overall net savings of $450,000,000,0.0 from our ongoing cost relying programs by the while continuing to advance programs that will improve cost of goods sold in the years to come. As a reminder, the impact of the IRA Medicare Part D redesign is expected to be a net headwind to the company's revenue of approximately $1,000,000,000 across our product portfolio, dampening growth by approximately 1.6% versus 2024. The impact of catastrophic coverage is expected to exceed the potential volume benefit from the reduction of a patient out of pocket cap, leading to a negative impact beginning in early in the year, while the positive impact of lower patient out of pocket costs is expected to build throughout this year.

As the IRA is felt more acutely in higher priced medicines, we expect Vindical, Ibrance, Xandy, and Xeljanz to reach catastrophic coverage much earlier in the year. And due to these changes, we expect a higher gross to net impact on our revenues for all drugs in the that is expected to moderate throughout the remainder of the year when compared to 2024. And lastly, I will mention that we continue to monitor currency fluctuation as the year progresses. So in closing, let me just emphasize several key aspects of our business. We believe our financial targets for 2025 are both reasonable and achievable reinforcing our commitment to operational excellence.

We also believe our revenue volatility is largely in the past as covid related uncertainties have diminished. Additionally, our cost improvement programs have set the stage for ongoing margin expansion. We will continue our focus and execution to maximize the commercial value of our product portfolio and our new R and D leadership is committed to driving value creating innovation and strengthening our pipeline. And lastly, we have a clear path to reloading our balance sheet, enabling enhanced capital deployment and pursuit of additional opportunities to strengthen our business and create value for our shareholders. We are dedicated to maintaining and growing our dividend and meeting our delivering targets by the providing for a more balanced capital allocation.

And with that, I'll turn it back to Albert to start the Q and A session.

Yeah. Thank you, David. But before we turn to the questions, I would like to close the year with one comment. Pfizer knows how to execute well when we set our focus on something. We saw what we could do in 2020 when we rapidly developed and prepared to manufacture billions of doses of the COVID-nineteen vaccine, in 'twenty one when we repeated the same with Paxlovid and in 'twenty two when with successful commercialization we exceeded 100,000,000,000 in full year.

In 2023, despite the difficulties with the rebase COVID-nineteen expectations, we invested in our future with a big bet in oncology with the acquisition of Seatsheet. And last year, we exceeded expectations repeated with four consecutive quarters of strong financial performance from our disciplined commercial execution. Now as we are directing similar focus and our proven ability to execute on our R and D pipeline, we are confident that we are well positioned to drive meaningfully improved productivity. And with that, operator, please assemble

We'll go first to Steve Scala with TD Cowen. Please go ahead.

Thank you so much. I have two questions. First, on the Danaglupron dose optimization data, it's apparently still on track for the first quarter of this year. What is the range of possible outcomes and is dropping this version of the compound a possibility and what would be the next step? Second question is Chris Boshoff.

I assume he's on the line. Under the heading of nothing's perfect, can you share with us two or three things in the Pfizer R and D portfolio or system that you think need to be fixed? New leaders usually say they want to move quicker, but sometimes they also thoroughly go through the portfolio and shed many projects. Is that also a possibility? Thank you.

So we start with Daniel. So for Daniel, just to be clear, we as we stated previously, we're now targeting to update from the ongoing dose optimization and formulation study, the PK study and we're on track to deliver that in And we haven't seen the data yet, but obviously that data will then determine decisions for the future of Danagloprone. On your second question, as we've recently announced, we already focused our portfolio further. We've now established four end to end therapeutic areas, oncology, vaccines, internal medicine and INI. And part of that will be to focus on those opportunities that could provide the biggest value both for patients but also for Pfizer.

So you will see during the coming months that we further focus and execute and accelerate those medicines we believe could be potential future blockbusters.

Thank you, Chris. And Steve, you're right that usually new leaders are taking their time to assess. But the good news with Chris is that he knew really the Pfizer organization and I'm very impressed with the speed and faultfulness that he's deploying his changes. Already he announced the new organizations that selected a lot of leaders and refocused our pipeline in collaboration with Andrew Bog. So next question, please.

We'll go next to Jeff Meacham with Citibank. Please go ahead.

Good morning everyone. Thanks for the question. Just had a couple of quick ones. So for the COVID franchise, you guys talked about stabilizing revenue for this year. Maybe just give us some level of conviction and your level of investments in this business kind of going forward?

I think most investors kind of would like for to kind of be viewed as just maybe upside to the story. And then from a capital allocation perspective, when you guys think about the appetite for potential BD as you reprioritize or look at the pipeline and evaluate a lot of the assets and say early to mid development. Just want to get a sense from you guys for the appetite for growing out the number of TAs, if you had more optimization to do that can be achieved through BD. Thank you very much.

So, Jeff, on COVID, maybe I'll start with PAXLOVID. You saw Albert describe, we have multiple years now of reference where Paxlovid utilization tracks directly to the level of disease outbreak. And the year 2024 was was no different. So we know that to be the case and we've also put in place a very effective commercial model in PAXLOVID that allows us to deliver on that and continue to improve.

In fact, if you look at 2024, we had higher physician treatment rates, than '23, and we also had gains in market share versus, versus '23. So we know we have a model that works. And with regards to resource allocation, we have targeted our resource modeling for PAXLOVID so that we are investing the places where it's relevant when it's relevant. So we have a very, very tailored model. And I think you see that in the results.

We had a very big summer and early fall wave of COVID in '24, and then we had a milder and shorter winter wave. And you see that reflected in Paxlovid utilization. And we've also ensured that we have the right pricing model in place and put in place a new agreement with the US government on our Paxlovid contract that defines the eligibility for the USG path going forward. So there's clarity on that for Jan. 0, Feb.

0, and going into March 0. And as with regards to vaccinations on, on Comirnaty, again, we saw a pattern in, '24 that very closely mirrored '23. So rep vaccination rates were quite stable. Again, here, we also saw saw an improvement in our market share position for Comirnaty. And we are confident that our commercial execution both with regards to the retail setting and the non retail setting will continue to put us in good stead as we move forward.

Thank you. And of course, in international, to save time here, we have contracts with our multi year contracts that they are covering not only this year, but the year after. So all of that makes us feel that this is a very stable and predictable revenue stream. Why don't we go to capital allocation and then Dave, maybe also Andrew, you can comment on the BTD?

So just Albert, I'll be real quick. From a capital allocation perspective, I'm very pleased with the company's cash flow generation throughout 2024 as we've continued to enhance our cash flow yield, number one. Number two, continue to aggressively delever. And now as we enter 2025, we'll be in a position from a cash and a delevering perspective to have a more balanced capital allocation strategy, allowing us to do slightly bigger business development programs if so desired in 2025. And with that, maybe I'll pass it over to Andrew to give some context around how we're thinking about that.

Yes. So to recap what Chris says, we've narrowed our current therapy of scarriers to the fourth. So oncology, vaccines, INI and internal medicine. Now it's fair to say that those are fairly broad areas. They're big buckets that you can put lots of therapeutic indications in.

If we were to explore adjacencies or indeed therapeutic areas where historically Pfizer hasn't been active. I think firstly, we'll be looking for truly breakthrough science that's tractable with a drug. Second, an unmet medical need that we feel that can be monetized. And thirdly and most importantly, we have to have the talent with it in order to develop those assets if we go into a therapeutic area that is one that is unfamiliar to us or we don't have historically that backbone of talent.

Thank you very much, Andrew. And Dave, next question, please.

We'll go next to Chris Schott with JPMorgan. Please go ahead.

Great. Thanks so much. Just two questions for me. Just coming back to capital deployment. Dave, just to build on those comments, you talked about slightly larger BD transactions.

Can you just help size the range of what Pfizer is able to look at from here and how you think about balancing business development versus share repo, which I know I think you talked about as you started to delever would be part of the story. The second is on the RSV market. Just talk a little bit about the thinking and the size of the opportunity from here and the potential for growth given some of the 2024 results, both The U. S. As well as globally.

Great. Yes. So as far as capital deployment goes, Chris, I think the good news is the company has a very robust cash flow generation capabilities. And over time, we'll be able to do both dividends as well as BD as well as value enhancing share repurchases. Specifically, as we come into 2025, given the strength of the company from a cash flow perspective, we have the capacity in the $10,000,000,000 to $15,000,000,000 zip code from a business development perspective, within 2025 if we chose to focus in that area.

So very quickly in The U. S, firstly, the market did decrease in 2024 and that's something that we have been signaling for quite some time. This was because of shifts in ACIP as well as, the early adopters of the vaccine in 2023. The important thing for us, the things that we can control, the strength of our commercial execution led us to the leading market share of the doses shipped the doses shipped to end customers at 50% for 2024 and an improvement in the shots in arms market share by 18 percentage points versus last year. And our maternal indication also performed very well tripling, the uptake from from last season.

Now as we look forward, in the absence of any major policy or ACIP change in '25, the RSV market without that is likely not to grow, but there are a lot of catalysts for midterm growth. One is any policy updates to year round vaccination. Second, age expansion for 18 50 nine year olds at at risk where we have great data as well as potential revaccination recommendations as data becomes more available. So those are midterm growth catalysts. And in the meantime, we remain confident in our ability to execute as that evolves.

So on the international front, Chris, the, what we see in this quarter is the beginning of financial impact of the work we've done in approving and getting through the VTC and the payers for Abrasbo. And in the countries where we received positive VTC and got reimbursement, we start to see great execution working hand in hand with the authority and HCP. Let me give you two example in maternal immunization. So in The UK, after winning the exclusive tender, ASCO professional vaccinated with a BRIBO over sixty percent of the eligible pregnant women in just one quarter in In France, in a competitive setting, a Briscoe was administered to over forty percent of the eligible pregnant woman in alone. So clearly, we see a potential as we move into 2025 in the MI, a great opportunity to expand usage and to expand the vaccination.

And of course, that is not just in the developed market, but also in emerging market. And for instance, as you know, Abreizvo was listed at the Pan America Health Organization. And so starting this year, we can have Latin American country to start contracting Abreizvo. Now in the OA, we start also to to see some traction and, the vaccination campaign in The UK already reached forty four percent of the eligible population and regional vaccination was granted in about half of the German population. And we're expecting to get the full German population access in So again, on both maternal immunization and older adults, plenty of opportunity to grow.

We'll go next to Vamil Divan with Guggenheim Securities.

So maybe a couple I could on the pipeline. So Prevnar, the '25 valent, you mentioned starting Phase three in adults this year. Just curious if you can comment on what you've seen so far, it gives you comfort in moving up for when we might see the data publicly and also any updates on the pediatric population and when you where things stand there? Then the second one is on ponzekromab. And just you have the obviously cancer KAKXI, which you're starting Phase III.

We also noticed in the Phase II heart failure program, you increased the patient enrollment significantly there. Just curious if you can provide any perspective on what drove that change and just maybe your broader views on the heart failure opportunity for that product? Thanks.

So first for PCV25, as Albert mentioned, this is an ongoing Phase two study with potential best in class vaccine. The phase two study is ongoing in both adults and in pediatrics. As we've mentioned earlier, serotype three is very important and is emerging as a very important serotype with up to twenty to thirty percent of the population actually developed serotype three. So we're very pleased that we're now seeing what looks like best in class immunogenicity against serotype three.

On the pediatric fund, as you mentioned, the study is ongoing so we hope to provide additional data later this year but everything we've seen so far suggests to us that we've got improved immunogenicity of PCV25 versus our current vaccine. Just a reminder as well, we do have a first generation vaccine 30 plus that's also now preclinical development that we hope to launch in phase one later this year. On ponsonlebac, very quickly, we're excited about the data for cancer catexia. And the cancer catexia study should start later this year in a Phase three experience. We stopped the development of the cardiovascular study.

Thank you. And I want also to emphasize that the development strategy on PCV30 plus involves the development of PCV25. So we define the strategy, which is development and regulatory that will allow us to accelerate the 30 plus by investing now in '25, which will come earlier, of course, to the market. And I think there was a question also on the penetration of PCA. But right now, both pediatric and adult, we have very, very high market share.

We reported actually 87% market share. Next question please.

We'll go next to Courtney Green with Bernstein. Please go ahead.

Hi, everyone. Thanks for taking my call today. And thanks for the details on kind of how you're thinking about the R and D organization. Just a clarifier and perhaps you can help us understand the strategy a little bit more here. It sounds like you're shifting into four R and D organizations.

I also heard reference though to end to end areas. So can you talk about whether these are similar or different to how oncology was set up earlier this year earlier last year? And then additionally, can you talk a little bit about how you're allocating investment across R and D across those four separate engines? How are you making sure that the bar is high in all of those different therapeutic areas and ensuring you've got the right prioritization given the independence of these units?

Thank you. That's a great question. So Chris, start and then Andre can sign it.

Yes. So thank you very much for the question. So for oncology, as you stated, since the beginning we had an end to end organization covering discovery, early stage development, late stage development, as well as medical. And we already had that in vaccines since 02/9 and now we build the same structure for INI and internal medicine. So essentially, all four of those will be end to end organizations for quicker decision making and quicker handover between discovery phase one and then from early development into late phase development.

Andrew, regarding the Yes, Courtney, you hit upon that critical question. So historically, when

you look back, there's no shortage of first in class breakthrough molecules that we've successfully shepherded through development. However, some of those really have not delivered in terms of financial revenues and therefore to shareholders. And the key issue is really ensuring that we have successful portfolio prioritization, bringing that commercial lens to much earlier during the process and having estimates that are derived in an unbiased way and a dynamic subject to continued revision. So as in my role as Chair of the PNT since I joined Pfizer, partnering with Chris, we have been working through that pipeline starting with the late stage assets, but then moving earlier to make sure the decisions we make drug by drug, indication by indication are ones that are going to deliver value for shareholders as well as to patients.

Thank you for the question, Kartna. And I want also to chime in and say that PRD organization that we have right now, I think has very, very, very strong capabilities and is proven with the number of approvals. But we have 13, right, last year and even same number in '23, no one even had even close to this number. If you see our success rates are at 17 compared to ten, eleven of the industry, very few that have these success rates. And in time to the market, we are having approximately five point six years when most of the industry is in seven, eight years after improvements.

However, looking back, I don't think that we necessarily we could have done way better in choosing the right products to focus our R and D capabilities, which is I think what now Chris and Andrew with the commercial assessments will try to do. The good news is that if it was a question of capabilities to improve our R and D productivity, that would be a multiyear undertake. When it is a question of refocusing your investments, that's way more quick. And I'm very optimistic that the results will come out very, very quickly. With that, let's go to the next question.

We'll go next to Evan Sigerman with BMO Capital Markets. Please go ahead.

Hi guys. Thank you so much for taking my question. Congrats on all the progress. So given RFK Jr. Approval by the Senate Finance Committee this morning, can you walk me through how you plan on working with him as a likely head of HHS, especially with his views on vaccine and general skepticism of the pharma industry?

Yes. I was also informed that the Senate Committee voted in favor of him. So I think his confirmation is pretty much secure right now. Of course, we will see what the full Senate will do. Look, I mean, we have with the Trump administration as a pharma industry, in particular, I will speak as Pfizer, a very good relations.

Personally, myself, I have very long lasting relationship with the president, but was cemented during the operational worst week when we developed the vaccine for COVID. And I know that the president is very proud of what he was able to accomplish and he has made public statements on that. We met with Mr. Ken and the actually the President introduced me to him and to have dinner all three together and we try to understand his reduce. I focus more not on the things that we clearly disagree like the vaccines, but on the things that we can agree and we can do things together.

And those are things in chronic diseases, in cardiovascular diseases, and more importantly, cancer, which is something that is very, very high in the mind of the president. And it is also very high in the mind of mister Kennedy. I met him few times also after that, and we expect that we will have a collaboration. It's not my do I expect that we will agree on everything on vaccines? I don't know, but I think probably as I hear all the statements that have been done by him and by the administration, he will have a way more tempered view on how to interact in the vaccines.

But I don't want to speak about him. I think there are a lot of opportunities that probably outweigh the risks that we have with the radical change that we will see from the Trump administration, actually that we are seeing now with the Trump administration. So I'm cautiously optimistic. Now let's move to the next question.

Pfizer (PFE) Q4 2024 Earnings Call Transcript

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