Pfizer, Inc.

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 Pfizer.com. Earlier this morning, we released our results for the first quarter of 2024 via a press release that is available on our website at Pfizer.com. I'm joined today by Dr. Albert Bourla, 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. Joining for the Q&A session, we also have Dr. Chris Boshoff, EVP and Chief Oncology Officer, Alexandre Desjardins, EVP and Chief International Commercial Officer, Dr. Michael Dolston, Chief Scientific Officer and President of R&D, Doug Lankler, EVP and General Counsel, and Amir Malik, EVP and Chief U.S. Commercial Officer. 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 our disclosures in our SEC filings, which are all available on the IR website on Pfizer.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, Francesca. Good morning, everyone. Thank you for joining our call. In the first quarter, we had a solid start to the year and we are cautiously optimistic about what we will achieve in 2024. I'm pleased and appreciative of how our Pfizer colleagues are executing with discipline as they focus on the patients and others we serve. This helped us deliver a strong performance during the quarter in our non-COVID product portfolio, drive progress towards our oncology leadership, advance our pipeline, and continue to strengthen our business. Today, we'll discuss highlights from the quarter and provide updates about how we are continuing to make progress with the five strategic priorities we serve with you at the start of the year. We are proud of the positive impact we achieve around the world with our deep capabilities and global scale. Through the first three months of the year, we reached more than 119 million patients without medicines and vaccines. We will continue to build on Pfizer's 175-year history of driving medical and pharmaceutical breakthroughs as we maximize the opportunities in front of us. Our confidence in the year ahead comes from our focus on executing the strategic priorities that we believe will deliver operational, commercial, and financial success across our business. The priorities are achieve world-class oncology leaders, deliver the next wave of pipeline innovation, maximize performance of our new products, expand margins by realigning our cost base, and allocate capital to enhance their value. In the first quarter, we made notable progress with each one, and I will share some highlights. Many of you joined us in our Oncology Innovation Day in February, and I hope you found it to be a valuable opportunity to see how we are well positioned to achieve world-class oncology leaders. We are pleased with the excellence we have been able to achieve in both integration and commercial execution. With a strong mix of FISA and citizen colleagues in the newly combined team, we believe we have one of the most experienced and talented groups of oncology leaders in the industry. We are also already seeing the benefit of strong commercial execution with our newly cross-trained sales and feed medical teams. In the first quarter of 2024, our oncology revenues grew 19% operationally over the same quarter a year ago, driven in part by the acquisition of the four inline products from this legacy season, and in particular the strong ongoing launch of Patsy, in front-line locally advanced metastatic urothelial cancer, regardless of cisplatin LHP, following FDA approval based on the groundbreaking EV302 data. We have an increased demand for Xtandem, which continues to be a backbone therapy across the prostate cancer treatment continuum. And we have continued growth from Lorbren, which could emerge as the potential first-line standard of care in all positive metastatic non-small cell lung cancer. Earlier this week, we also announced the full FDA approval of TIFTAC to treat recurring or metastatic cervical cancer. TIFTAC is the first antibody drug conjugate to have positive overall survival data for patients with previously treated recurrent or metastatic cervical cancer. Going forward, we are guided by a strategy focusing on our greatest opportunities to make a difference for patients with cancer. With the power of our deep expertise, broad and diverse portfolio, and global scale, we are confident we are well on our way toward our 2030 goal of doubling the number of patients treated with our innovative cancer medicines, increasing the number of blockbuster medicines in our portfolio from five a day to eight or more, and driving an anticipated tenfold increase in the proportion of revenue from biologics. This is important because it brings the potential to provide more durable revenue based on several factors, including Inflation Reduction Act considerations and the greater challenges of copying complex biologics. We will look forward to sharing continued updates with you on the progress in accelerating oncology breakthroughs. Now I'll turn to our progress with delivering the next wave of pipeline innovation. In oncology, during the quarter, we had three pivotal phase three study starts, including the first phase three trial for our selected CDK4 inhibitor, atinbocytin, integrating beta-6-directed ADC, sigvota-2, the BODIN-SV, and the fourth phase pre-trial for Erlexvio in multiple mieloma. At the upcoming American Society of Clinical Oncology annual, we will present data spanning each of our tumor areas of focus and core scientific modalities, including new five-year progression-free survival data for Lorbrenum. Plastic data for at-set risk in diffuse large B-cell lymphoma and additional developments from across our deep and diverse pipelines. We are also driving continued execution beyond oncology with a sharpened focus on key value drivers expected to build potential multi-billion dollar product portfolios. Through the first quarter, we are on track with delivering on our anticipated milestones and have important updates in both our growing respiratory and hematology portfolios. With Abris, we believe we have the opportunity to further expand what is currently the broadest approved range of patients for the RSV vaccine, including adults 60 years and older and infants from birth to six months via maternal immunization. We recently reported positive results from the Phase III MONATI trial, evaluating abrisvoi in adults aged 18 to 59 at increased risk for RSV disease. The trial met its primer and points and we intend to submit this data to regulatory agencies. We believe abrisvoi has the potential to become the first and only RSV vaccine for adults 18 years and older. Hematology is another priority area. With the progress of recent and near-term milestones, we are confident that we could establish a potential multi-billion-dollar product portfolio across hemophilia and sickle cell disease. We recently received the first U.S. FDA gene therapy approval for Pfizer with FDA approval of Vecubus, a one-time gene therapy for adults with hemophilia B. This program builds upon our growing presence in hemophilia. We expect an FDA decision before year-end for Marstasin, which has the potential to become the first once-weekly subcutaneous treatment for the hemophilia B market. And the first treatment delivered has a flat dose for both hemophilia A and hemophilia B. Moving to sickle cell, we recently started the phase 3 study of Ocivelator. our potentially best-in-class next-generation hemoglobin S polymerization inhibitor. We are committed to addressing the undeserved needs of the sickle cell disease community, and we are leveraging our capabilities for potential breakthroughs for this pace. Now, I will turn to our strategic priority of maximizing performance of our new products. While it may take a year We realize the full benefit of the change we put in place as we speak to bring a more efficient structure to a commercial operation. We are pleased by the impact we are already seeing from our sharpened focus and Pfizer colleagues embracing our high-performance culture. Earlier, I mentioned the momentum of our ecology project. Our Pfizer U.S. commercial, Pfizer International Commercial Organization, are also moving ahead in driving progress with growth in their respective markets. We have several potential key growth drivers for this year and into year 2025. With Aboriginal, we are very pleased with the positive data in the 18-59 age group that differentiates our product and we are encouraged by the opportunities to continue increasing overall RSV market growth and market share. Another example is our enthusiasm for the potential of Nurtek to help the more than 1 billion people living with migraine worldwide. With all of CGRP penetration leaving room for potential significant growth, we will continue to focus on reducing access barriers for healthcare professionals and patients, as well as on education through direct-to-consumer marketing. With Oxbride, will continue to educate healthcare professionals and patients on the importance of proactively treating the underlying cause of sickle cell disease by reframing treatment goals to chronic and proactive treatment. WellSipping is coming off its annual loans, and we are focused on ensuring patient access as a first-line advanced therapy or a lotion for moderate to severe ulcerative colitis. And I will mention Litfullo. we will work toward continuing to accelerate the consideration of advanced systemic treatments for appropriate patients with alopecia areata and further unlock access to it further. Additionally, we continue to protect and grow our core brands and key blockbusters, including Prevner, Fintechel, and Evelyn's. In a moment, Dave will provide updates on how we are also making progress with two other strategic priorities, expanding margins by realigning our cost base and allocating capital to enhance shareholder value. When we consider what we achieved in the first quarter, along with our continued progress in executing our five strategic priorities, we are cautiously optimistic about the year ahead. We are continuing to focus on commercial execution, protecting and growing our products and driving strong starts with new commercial loans. With the progress we are making in advancing our cost realignment program, as well as our confidence in the underlying strength of our business and our continued execution, we have raised our outlook for 2024 adjusted earnings per share by 10 cents. We have confidence in our company. With some of the most experienced and talented colleagues in the industry, we have demonstrated many times before that we are very good at execution. And we expect to continue delivering life-changing medicines for hundreds of millions of patients globally and meaningful value for our circle. Now I will turn it over today to discuss the financial performance during the quarter, as well as our progress in strengthening our business. and enhancing shareholder value. Thank you.