Pfizer Inc at Jefferies Global Healthcare Conference Transcript

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

Question: Akash Tewari - Jefferies LLC - Analyst : Yeah, absolutely. You know what you mentioned the BD deals. Why don't we start with that? And I'll go from this perspective. Whenever your team has talked about and we'll start with Metsera, Pfizer and obesity. Historically, it was when we think about the global obesity market, you're never going to be able to reach so many patients using the injectable approach, it was really an oral small molecule angle that I think your team was particularly interested in. But over time, I think your team did start to talk about other forms of differentiation. And I think one of the things that stood out about Metsera was even though they were a SMID-cap, they did look at obesity with kind of a global approach, and they were looking at it from a health economic perspective. What did you see in that asset that really let your team say, even if we might get in a bit of a bidding war with our friends on this side of the Atlantic, it was really worth it for Pfizer?

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. And just to be clear, you mentioned it's monthly. When you thought about the value add for Metsera and you thought about dosing, was being a monthly kind of combination approach really critical when you were evaluating that portfolio?

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. And it's interesting. I've -- whenever companies do ask me, should we enter into the obesity space. I've always said, absolutely, I mean, tezepertides, the world's biggest drug in two years. I think that says something. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2025 / 9:00AM, PFE.N - Pfizer Inc at Jefferies Global Healthcare Conference But it's funny when you think about entering into obesity, I think especially a year ago, two years ago, it's always -- I need to spend $20 billion in CapEx. I need to catch up with Lilly and Novo. And I think we're seeing that, that's not necessarily the framework we should be thinking about. When you think about CapEx necessary to really compete in obesity, what do you feel like is the adequate amount of investment for Pfizer?

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. Maybe actually, on the TrumpRx deal and the announcement, I mean, obviously, Pfizer is putting products there already, but I can't help but think you're going to have an obesity portfolio entering into the market in the next couple of years. How -- first of all, what do you think about that TrumpRx deal in terms of suddenly, Medicare now has access to obesity treatments? And really, is that an avenue that Pfizer would be interested in entering with the Metsera portfolio?

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. And maybe just finally, again, I can't help but think the oral small molecule part for Pfizer in terms of entering obesity and the global potential is still something your team is interested in exploring. But you also are in terms of your piggy bank for M&A this year, you set out $15 billion in terms of what you were comfortable with spending. A, is Pfizer still interested in adding an oral small molecule as a part of their obesity approach. And also, given you do have some capital constraints now, should we think about maybe China as an avenue where you could potentially explore adding that product into your portfolio?

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. Now maybe stepping back and the deal that Albert was really in the forefront in terms of securing a deal with the Trump administration and removing the regulatory overhang. I think on the Q3 call, your team had mentioned, this deal will be dilutive to a certain extent to '26 EPS. Can you kind of put some guardrails in terms of where the pushes and pulls? And I know, obviously, you can't give guidance, but how impactful from a ballpark perspective, this would be?

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. And I can't help but think with the guardrails you just kind of set that seems like modestly incremental but not a major framework shift in terms of how you were thinking about next year's guidance.

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. Now Dave, you had mentioned Pfizer becomes a growth company as we kind of exit the decade. But I think another part of that, which maybe doesn't get as appreciated. I have the pleasure of hosting the Bristol team earlier in the conference. Bristol obviously talks about trough earnings and then kind of a return to growth. I've never sensed that Pfizer, it's not a trough earnings type of story for Pfizer. It almost seems like it's more -- your team has shown an ability to have earnings north of $3. And it seems like state stability when we think about earnings power towards the end of the decade with the potential to growth. How would you characterize that? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2025 / 9:00AM, PFE.N - Pfizer Inc at Jefferies Global Healthcare Conference

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. Now I think we're all work in progress. I can say that for myself. When you look at Pfizer and what you just laid out as a company that returns to meaningful growth, exiting the decade, how much of a work in progress are you that with your current portfolio? Are there assets that you still need to acquire externally to really achieve that?

Question: Akash Tewari - Jefferies LLC - Analyst : Understood.

Question: Akash Tewari - Jefferies LLC - Analyst : Now I also cover BioNTech, and obviously, both you and that company got an influx of cash from what happened during the pandemic, which again, was well deserved. But even BioNTech thought about when we're developing a PD-1 VEGF and we're thinking about the costs associated REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2025 / 9:00AM, PFE.N - Pfizer Inc at Jefferies Global Healthcare Conference with running these novel, novel combinations, they were looking at Bristol as a partner to really space out that cost. You have the 3SBio asset. And you can tell how excited your team is. But I feel like, to a certain extent, who's going to win this race. Is it really a battle of BD and running the right trials and also finding the right partners. When you think about the costs associated to really make that product reach its potential, how much of that spend do you think will be done by Pfizer versus thinking about external partners to really spread out the OpEx spend?

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. Now maybe stepping back and we go again with that $15 billion external capital commitment, you're kind of towards the tail end of that right now. Let's put it this way, and I think we hear this from a lot of our companies. If we find the right asset, we will do what's necessary to externally acquire it. And then number two is, again, your team has also been very disciplined in terms of your BD approach. So given some of your more limited capital constraints now, what areas is your team most focused on building out for the rest of the year or into '26? And then number two, let's put it this way, how much of a hard line is that $15 billion number that your team communicated at the start of the year?

Question: Akash Tewari - Jefferies LLC - Analyst : Interesting. And when you think about I&I, there's kind of, I think, two angles that we're seeing in terms of differentiation going forward. You have your trispecifics, you're already in that -- you finish your contribution of components angle, you can get products relatively quickly into the clinic. There's also the oral side, right? And you've seen Lilly, really, I think, look at I&I targets with an eye towards getting oral molecules. When you think about differentiation in I&I going forward and you think, a, combinations of novel targets with -- that are potentially biologics versus an oral approach what kind of fits best into Pfizer's internal capabilities?

Question: Akash Tewari - Jefferies LLC - Analyst : Understood. Now, This is, I think a question that just kind of occurred to me now and I, tafamidis has been, such a remarkable product and I think it has really changed the amyloidosis space and I just can't, we will hear this from investors too, you are just modeling tafamidis revenues going off patent towards the end of the decade and it kind of feels wrong, right? Like you have built out a sales force there in specialty cardiovascular, you have really started to make inroads into the community care setting. How do you think about when you think about external BD, not letting that go to waste, right? What are you seeing in the specialty cardiovascular realm which is still interesting to your team and could we think about other developments in ATTR for Pfizer?

Question: Akash Tewari - Jefferies LLC - Analyst : Okay. Understood. Now it's interesting. Your team laid out different OpEx cuts in kind of waves. And I think when the initial wave came out maybe two years ago, I feel like there was and your team kind of also hinted at this, there could be more to come. There was more operating leverage flexibility that your team had depending on how the portfolio approach, how the portfolio played out and then also what you're comfortable with doing. You're now as we go in towards the end of the decade, thinking about $7 billion in either cuts that have already occurred or are planned to occur going forward, should we still have that sense that there's maybe a bit left in the tank for Pfizer in terms of operational efficiencies. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. NOVEMBER 19, 2025 / 9:00AM, PFE.N - Pfizer Inc at Jefferies Global Healthcare Conference

Question: Akash Tewari - Jefferies LLC - Analyst : Maybe just last thing, Dave. I think this is one of the more underappreciated parts of this year for Pfizer. I know two years ago, you're always getting questions that I think you probably still might get some of, will Pfizer cut the dividend, et cetera, et cetera. Your team had a very significant working capital improvement on free cash flow in 2025, I think of like $3 billion to $4 billion, which I don't think a lot of people appreciated. Can you talk about how you're able to achieve that for this year? And then going forward, how much more efficiencies you can get on working capital as we think towards the end of the decade?

Question: Akash Tewari - Jefferies LLC - Analyst : $3 billion to $5 billion. I mean--

Question: Akash Tewari - Jefferies LLC - Analyst : Understand. That's very helpful. Thank you so much. I really appreciate it.