Pfizer Inc at TD Cowen Healthcare Conference Transcript

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

Question: Steve Scala - TD Cowen - Analyst : Lots to talk about both big picture, and unique and specific to Pfizer. But let's start out at the big picture side of things. What has surprised you most about the new Trump administration, the Cabinet, the Congress? And what of that concerns you the most?

Question: Steve Scala - TD Cowen - Analyst : Okay. I should have mentioned this at the outset, but should you have questions anywhere along the line, just raise your hand, and we'll call on you. Dealing with kind of the Trump methodology and so forth, one of the concerns that's percolating up in the investment community is manufacturing. 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 03, 2025 / 3:30PM, PFE.N - Pfizer Inc at TD Cowen Healthcare Conference So just in broad brush strokes, what percent of drugs that Pfizer manufacturers are manufactured in the US versus outside the US? And the reason why investors are thinking about this is, under the scenario where Trump basically tariffs every country.

Question: Steve Scala - TD Cowen - Analyst : Yeah. And you --

Question: Steve Scala - TD Cowen - Analyst : Just two questions on this point, and then we'll move on to another topic. But you used the word significant when talking about the industry's production of innovative drugs outside the US. So I'm now interested in what the word significant means. Is that a third? Is it 40%? What is significant?

Question: Steve Scala - TD Cowen - Analyst : Okay. And assuming that Pfizer has done this analysis based on your 13 plants and the fact that some are very large and do a lot of production and so forth, assume you've done the analysis, would Pfizer be more kind of immune from tariffs if they were leveraged on a global basis than other companies? Or has that -- is that reading too much into your comments?

Question: Steve Scala - TD Cowen - Analyst : Makes sense.

Question: Steve Scala - TD Cowen - Analyst : Okay. Now on to IRA. So what is the one or two most likely change to occur, and what's the kind of the probability of that? So we'd all like 13 years to prevail across all products. But what is the probability of that if that's one of the things you think may change?

Question: Steve Scala - TD Cowen - Analyst : Okay. What is your level of confidence that Pfizer can grow through the LOE, so deliver growth every year between now and 2030?

Question: Steve Scala - TD Cowen - Analyst : And relative to margins, is this next three-year period the time in which you'll return to pre-pandemic operating margin?

Question: Steve Scala - TD Cowen - Analyst : So the company has said on the Q4 call that you have capacity of $10 billion to $15 billion for business development 2025. Curious, what is that number in '26? Is it higher? Is it the same? Is it lower?

Question: Steve Scala - TD Cowen - Analyst : And the top one or two areas, three areas that you think would be most likely for an acquisition? Is it neurology? Is it oncology? Is it infectious disease?

Question: Steve Scala - TD Cowen - Analyst : Okay. Just dwelling on oncology BD for a second, one of your competitors recently asserted that they got into the ADC space at a fraction of what Pfizer spent. I assume you don't agree with that. So tell us --

Question: Steve Scala - TD Cowen - Analyst : I believe it was AstraZeneca, but I'm -- I wouldn't swear on my own blood on that, but I think it was. But what -- why do you disagree with that assertion? What is unique about Seagen that can't be replicated? I think there's 80 companies in ADC. So what can't be replicated?

Question: Steve Scala - TD Cowen - Analyst : Sure.

Question: Steve Scala - TD Cowen - Analyst : Yeah. So for the webcast benefit, the question was on the cost of combinations of oncology drugs. And how could that be -- ADCs in particular. And Prem mentioned the Seagen deals -- I mean, not the Seagen deal, the Summit deal. So why don't you mention that as well? Why don't you talk about that?

Question: Steve Scala - TD Cowen - Analyst : You used the word mega blockbuster. That's not a word that other companies tend to use so much. So what -- can you define what a mega blockbuster is? And what are the two or three within your pipeline that you're most excited about?

Question: Steve Scala - TD Cowen - Analyst : Okay. Danuglipron may be part of that category someday, I guess. Where does the data currently stand?

Question: Steve Scala - TD Cowen - Analyst : Okay. So it sounds like it's coming on time, but it's going to come at the very fringe of this quarter. Is that a correct interpretation of what you just said?

Question: Steve Scala - TD Cowen - Analyst : It's coming at the very end of this quarter. You don't have -- the data is not in-house now.

Question: Steve Scala - TD Cowen - Analyst : Okay. What was I going to ask you. I'm forgetting. So this was not it, but I'll think of that one. So will you wait for the orforglipron Phase 3 data before designing your own Phase 3 trial? 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 03, 2025 / 3:30PM, PFE.N - Pfizer Inc at TD Cowen Healthcare Conference

Question: Steve Scala - TD Cowen - Analyst : Okay. And you did just say in response to your -- the question before that one, that you'll decide whether to move ahead. But it seemed to us, at least, based on what the company has said so far, that it's kind of fait accompli that you're moving ahead with this asset. It's just that you're going to see the data and then maybe choose the optimal formulation to move forward. But is it still a possibility that you don't move forward at all?

Question: Steve Scala - TD Cowen - Analyst : Okay. Let's move back to oncology and an asset for which we are getting data in the not-too-distant future is vepdegestrant. What do you think the prospects are for an ER degrader like this to succeed in both frontline and the adjuvant setting?

Question: Steve Scala - TD Cowen - Analyst : Okay. Another very successful franchise for Pfizer has been VYNDAQEL. Can you just like walk us through the future? So you have competition coming, but you have underlying market growth that's just phenomenal. But then you have IP issues, which honestly are still not clear to me when those are actually going. So can you just kind of walk us through the future for this very important franchise?

Question: Steve Scala - TD Cowen - Analyst : Okay. So in the US, just to be clear that I understand you correctly, in the US, prior to the LOE, you expect to be the dominant player in terms of new prescription capture despite the new competition?

Question: Steve Scala - TD Cowen - Analyst : Okay. Moving to China for a second, is China an opportunity or a risk to Pfizer?

Question: Steve Scala - TD Cowen - Analyst : Yeah. We are actually out of time, but allow me one more question. And that is, what will be the biggest difference in the Pfizer in 5 to 10 years versus the Pfizer we see today?