Pfizer Inc to Host Full-Year 2025 Guidance Call Transcript

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

Question: Chris Schott - JPMorgan - Analyst : Great. Thanks so much for the question here. I guess my question was really centered around gross margins. You're targeting mid-70s this year. But as we look past 2025, how much additional opportunity is there for improvement as we consider maybe not just Phase 1 of the restructuring, but some future opportunities you've highlighted as well? I guess I'm trying to get a sense of, like, are upper 70s a realistic target for longer-term gross margins? And if I can slip in a second quick question just on capital allocation. I know delevering has been a priority. Do we think about 2025 as a year? Or we should think about maybe potential for acceleration of BD and capital return? Or is that more 2026 and beyond? Thank you.

Question: Geoff Meacham - Citi - Analyst : Morning, guys. Thanks for the question. Dave, Ihad another one on capital priorities. I know you guys are committed to the dividend. I did note that you said raising it is also a priority. But would you say delevering is by far the main focus for 2025? And I know there's been a lot of market chatter on potential spinoff of your Hospital business. Wanted to get maybe any comments on that with respect to strategy and potential use of proceeds. Thank you.

Question: Steve Scala - TD Cowen - Analyst : Thank you so much. Dave, you used the term revenue stability. Does that mean flat revenue through the end of the decade or a consistent revenue growth rate? And if the latter, then is Pfizer considering reinstating the 6% longer-term revenue aspiration that was pulled a year ago? And if not, what are your reservations? So that's the first question. And second, if Pfizer were planning to co-develop danuglipron with an established obesity company, would any financial implications of that be in the 2025 guidance? And would you need to call that out? Thank you.

Question: Tim Anderson - Bank of America - Analyst : Well, thank you, Albert. I think you met with Donald Trump recently. Has Pfizer met with others from his administration, including RFK Jr., and any color you're willing to provide on how any of those discussions have been going? I think there's obviously uncertainty on the vaccine front, what the downside risk could be to COVID if they directly target COVID vaccines. And maybe on that latter point, what would be a realistic downside scenario to COVID revenues in the US in 2025?

Question: Chris Shibutani - Goldman Sachs - Analyst : Thank you very much. If I could just ask you, Albert, to follow on and potentially address the topic of drug pricing, particularly in the US with IRA implementation. But also internationally, I think there's been some talking points that have been out there in the media and amongst investors about most favored nation, whether or not there's potential to perhaps potentially increase pricing outside the US. Any commentary that you can share, perhaps stemming from the discussion that you had with the president-elect would be helpful. Thank you.

Question: Trung Huynh - UBS - Analyst : Hi, guys. Two questions, please. Just firstly, can you outline some of the Part D impact per drug? Your commentary was super useful here. So you said that there's a volume uplift, but you're also going to have an impact for the high-priced products. Just quantify that impact for the key products. We're not surprised for the year. And are there going to be any winners from Part D? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Vamil Divan - Guggenheim Partners - Analyst : Great. Thanks for taking my questions. I have two, if I could. One is a follow-up on COMIRNATY. And I know you commented that your guidance assumes no major policy changes around vaccines. I'm curious how you just thought about maybe just the rhetoric around vaccines and if there's more discussion about the vaccine and maybe more anti-vaccine or anti-COVID vaccine sentiment, how that could impact use of the product, even if there is no actual policy changes. And then my second question, maybe just as we're thinking about 2025, I'm curious maybe, I guess, Albert, just what you'd point to as sort of key data events that we should be focused on. Obviously, a lot of attention on danu in the first quarter, but just other sort of key pipeline events that you think maybe are underappreciated right now that investors should be focused on. 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.

Question: Evan Seigerman - BMO Capital Markets - Analyst : Hi, guys. Thank you so much for taking my question. And congrats on the really reasonable and clear guidance. So a year into the Seagen acquisition closing, and it's mostly being integrated now, how do you see the growth profile of the assets from this acquisition contributing to the broader planned revenue growth going forward? How significant of an accelerant are these assets beyond Padcev? And where do you see the greatest growth coming from the acquisition? Thank you, guys.