Pfizer Inc To Host Pfizer Pflash A Spotlight on IRA Part D Redesign and its Impact in 2025 Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Timothy Anderson - BofA Global Research - Analyst : Thank you. A question on commercial spillover. So different companies have different points of view on whether negotiated prices will spill over to the commercial book. And I know that's not relevant to 2025 because it's just the impact of redesign that you're primarily talking about, but I'm wondering if you can comment on that and Pfizer's views, whether you think there's going to be some commercial spillover. And then just a second question, formulary changes. Have you seen any formulary changes in 2025 related to IRA ahead of the first products going into that negotiated price bucket in 2026? Thank you. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 28, 2025 / 2:00PM, PFE.N - Pfizer Inc To Host Pfizer Pflash A Spotlight on IRA Part D Redesign and its Impact in 2025

Question: Anastasia Parafestas - Jefferies - Analyst : Hi, this is Anastasia on for Akash Tewari. Good to speak with you guys again. I think the last time we spoke, you talked about potentially flatlining at 15% instead of recognizing the 10% and 20% in the movement. Are you still anticipating flatlining 15% for 2025 or are you doing something similar to Bristol, where you're closer to the actual rule change? And then just on the volume benefit, is that anticipated for every single drug or is it more so on your low or your high price drugs? Thanks.

Question: Anastasia Parafestas - Jefferies - Analyst : Yeah. So for the volume benefits, do you anticipate that for every single drug or is that more on a composite or more towards like higher or lower price drugs?

Question: Nishant Gandhi - Citi - Analyst : Hey, guys. This is Nishant on for Geoff. Thanks for taking the question. Just a couple from us. I know you mentioned the distribution, like the impact is about $1 billion for the whole year. But can you provide color as to what the proportion of that between the first and second half? I know you mentioned it's more first half heavy. And in terms of your analysis for this, I know you mentioned you use the third party. But can you really talk about your confidence level in this analysis and -- considering the various uncertainties that you highlighted today? Thank you.

Question: Nishant Gandhi - Citi - Analyst : Yeah, it's regarding this overall impact. Maybe in terms of your analysis of this overall $1 billion impact in 2025, can you maybe talk about your confidence level, considering the various uncertainties you highlighted today, like regarding the various aspects of this Part D redesign?

Question: Conor MacKay - BMO Capital Markets - Analyst : Hello. This is Conor on for Evan. Thanks for taking our question. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 28, 2025 / 2:00PM, PFE.N - Pfizer Inc To Host Pfizer Pflash A Spotlight on IRA Part D Redesign and its Impact in 2025 I guess maybe just taking a step back here, as you look at consensus today, can you maybe highlight for us where you see the biggest disconnects between what the Street is modeling now and what we discussed on the call today? Thank you.

Question: Steve Scala - TD Cowen - Analyst : Thank you very much. Thank you for doing this call. It's very helpful. I have two questions which are related. First, once a generic of a product enters the market, are you still subject to the Part D redesigned discount program on your branded version? And once MFP goes into effect, is it correct that the product is no longer subject to the discount program? Thank you.

Question: Courtney Breen - Bernstein - Analyst : Hi, Francesca and Cecile. Thanks for taking the question. You spoke a little bit about the lower price scripts and specifically called out that shift in contribution from 17% to 14%. And noting that you then also made the statement that patients may be taking more than one medication which accelerates the rate at which they achieve that relative catastrophic phase. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 28, 2025 / 2:00PM, PFE.N - Pfizer Inc To Host Pfizer Pflash A Spotlight on IRA Part D Redesign and its Impact in 2025 As we're thinking about perhaps the older patients that tend to be taking more than one medication, can you talk about how much that changes the 2024 scenario versus the 2025 scenario, i.e., does the delta get bigger or smaller between '24 and '25 if a patient on a lower price product is taking more medications that push them into catastrophic earlier?

Question: Trung Nguyen - UBS - Analyst : Hi, guys. Thanks for putting this on. So just one question for me. I appreciate you can't go through every drug. But for your highest revenue products in the portfolio, can you just give us the revenue Part D split for those? Thank you.

Question: Dave Risinger - Leerink Partners - Analyst : Yes. Thank you. And thanks, Francesca, for hosting this call. So there was a comment that there could be increased rebate demands from Part D plan managers due to their own financial pressures. Was this already factored into the guidance? And when will you learn more, since you said there could be increased demands from the insurers?

Question: Kerry Holford - Berenberg - Analyst : Oh, hi there. Thank you for taking my questions and for hosting the call. A couple. Firstly, can you confirm the payers split across your US portfolio today if we're thinking about the channels, commercial, Medicare Part B, Part D, Medicaid? And then just following on from Steve's earlier question, will you confirm that once MFP takes place for a drug, it's no longer subject to this new party structure? Could you indicate even more than that? Could it ever be a positive for a drug in the year that MFP effectively takes place, and that core share element did not apply? Thank you.

Question: Kerry Holford - Berenberg - Analyst : Okay. Let me see. Is this better quality? Can you hear me? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 28, 2025 / 2:00PM, PFE.N - Pfizer Inc To Host Pfizer Pflash A Spotlight on IRA Part D Redesign and its Impact in 2025

Question: Kerry Holford - Berenberg - Analyst : Okay, let's try. Can you confirm the payer split across your US portfolio today, thinking about the channels, commercial, Medicare Part B, Part D, Medicaid?

Question: Kerry Holford - Berenberg - Analyst : Yeah. I wonder if you have the split for the other channels, if you could comment on those.

Question: Kerry Holford - Berenberg - Analyst : Sure. And apologies for the line here. So the question was following on from Steve's earlier question with regard to once MFP takes place, no longer being subject to the Part D cost share, is it theoretically possible that in the year that MFP takes place for a drug, that could ever be a positive when you lose that cost share element?

Question: Kerry Holford - Berenberg - Analyst : Okay, don't worry. I'll follow up with an email, maybe, Francesca. Thank you, and apologies for the line.

Question: Vamil Divan - Guggenheim Securities LLC - Analyst : Great. Thanks for taking the questions again. Sorry, my line dropped because I was trying to ask what's then (inaudible) But my question is, I think, two. So one, obviously, it seems like this first quarter -- second quarter, in fact, being more pronounced in the second half of the year is part of the issue here. And so while you're hosting the call, I'm trying to get everything aligned before the quarter. I understand other companies, I think Johnson & Johnson, for example, are smoothing out the impact on their own end from an accounting perspective, so they're not feeling this quarterly dynamic shift, so a more smooth quarterly impact throughout the four quarters. I'm wondering if Pfizer thought about this and for some reason, Pfizer decided not to do that just to make things maybe a little easier this first time through this process. And then the second question is -- I know you can't get too specific on a product-by-product basis. But that $1.5 billion net negative number that you have goes into the $1 billion net number. Can you just quantify how much of that's coming from a high-priced product basket and how much is coming from a low-priced basket, just percentage-wise, directionally, just to have a sense of where the impact is being most pronounced?