Pfizer Inc Q1 2025 Earnings Call Summary

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

Question: Vamil Divan - Guggenheim Securities LLC - Analyst : Great. Thanks so much for taking the questions. Maybe two if I could. So one, just, appreciate your prepared remarks. Mentioned the dividend. Your commitment to maintaining and growing the dividend over time. But I think we've just gotten sort of increasing questions about this from investors over the last few months, especially with some of the tariff uncertainty and how that might impact cash flows. And obviously, you're now talking about maybe getting more active on the business development side. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 2:00PM, PFE.N - Q1 2025 Pfizer Inc Earnings Call So maybe just to reinforce that if even one more time and nothing else just like the level of commitment you have there. And even if there's an impact from the tariff side, you still feel comfortable in being able to maintain and growth. And then my second question is -- Okay, yes, I just had one other, if I could. Just on the COVID business and just your views obviously understand the nuances around the Paxlovid sales this quarter. And obviously vaccine sales will come late in the year. But do you still see that business being relatively stable this year relative to last year, or has that changed from what your expectation for at the beginning of the year? Thank you.

Question: Evan Seigerman - BMO Capital Markets - Analyst : Hi guys, thank you so much for taking my question. And I don't want to touch on the reasons for the danu discontinuation. But I more want to look forward, as you think about a potential obesity asset, what are some key aspects of the profile that you're looking for, either from an internal perspective or potentially externally? Thank you so much.

Question: Evan Seigerman - BMO Capital Markets - Analyst : Good to know.

Question: Tim Anderson - BofA Global Research - Analyst : Thank you. I have a question on tariffs. I figured, if anyone is close to this, it's probably Pfizer, Albert, seeing as you're Chairman of PhRMA. If sector-specific tariffs come through, do you think that's likely to be through the 232 investigation route? Or do you think it could still happen somehow through the IEPA route. To me, it seems like it would be 232, but not everyone agrees. And your best sense of timing for when everyone might have more information from the Administration. And then last question, is it an absolute pipe dream to think that sector-specific tariffs might really only be applied to countries that could, in fact, pose a threat to national security like China. It's hard to see Ireland being an enemy of the country.

Question: Steve Scala - TD Cowen - Analyst : And two questions. The first one is very similar to the one that Tim just asked. And that is, Albert, given your unique insights into the thinking in Washington do you think MFN legislation is only the most remote of possibilities or even simply not going to happen? And then secondly, what is the percent utilization of the US plants? It's great to have this vast network in the US, but if there's little or no excess capacity or flexibility, then it's a more limited advantage?

Question: Umer Raffat - Evercore ISI - Analyst : I have two here, if I may. First is on dividend and second is a follow-up to something Albert mentioned. Perhaps first on dividend. I know there's obviously LOEs coming up over the next three to four years with net income and free cash flow pressures. How much of that pressure could be offset by potential OpEx cuts that you're taking underway? I guess said differently, can you hold net income at or near the current levels? That's part one of the question. And then also, if a tariff impact approaching, I don't know, 15% to 20% of bottom-line kicks in, can you still confirm your commitment to dividend? And finally, Albert, you mentioned the distinction between friendly versus unfriendly countries, but in the initial tariff announcement, that didn't necessarily seem to hold true, so why should that apply in the case of pharma?

Question: Chris Schott - JPMorgan - Analyst : Just my first question on guidance. Pfizer's gross margins for this year, are we -- should we still think about full year gross margins in the mid-70s range? Or has that changed following some of the upside with 1Q? And maybe just a second part of that, I'm just interested in the level of conservatism that's baked into the guidance here. It seems like the year is off to a very strong start, particularly on the cost side. And just as we think about the progression in the rest of the year, should we think about any offsets from the upside we saw this quarter?

Question: Geoff Meacham - Citi - Analyst : I had two quick ones. Albert and Andrew, just from a strategy perspective, what would you say ranks as a higher priority just with respect to how you tier what would be multiple BD actions? Is it the TAM? Is it sales through LOE? Is it peak sales after? I wasn't sure how much that's evolved in the current macro backdrop? And then I guess a question for Albert, what incentives would you want to see in tariff negotiations that would maybe tip the balance for Pfizer to increase manufacturing investments here in the US?

Question: Trung Huynh - UBS Equities - Analyst : Just another one on costs and guidance and one on BD. So on your cost realignment program, you announced an additional $1.2 billion saving by $27 million. How much of that can come out in '25? And how should we think about the step-up of costs for the rest of the year following what seems to be you guys exceeding savings targets, but also reiterating a guide? And then on BD, you've mentioned external opportunities. How much is the macro environment impacting your decision in the timing of BD given the volatility and unknowns? And then on the other side of the table, do you think sellers are hesitating given valuations are meaningfully lower than the start of the year? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 2:00PM, PFE.N - Q1 2025 Pfizer Inc Earnings Call

Question: Kerry Holford - Berenberg - Analyst : Firstly, in the context of US tariffs and the debate there, I wonder if you might tell us what proportion of your US drug sales are

Question: Akash Tewari - Jefferies - Analyst : I realize there's a lot of uncertainty on tariffs, but hearing Merck give color on Q1, it seems like some of your peers are hinting the bottom line impact of tariffs could be manageable. So let's say the tariffs are broadly 25% on your transfer price, which I'm sure is a scenario your teams planned for. Would it be fair to say that the bottom-line earnings impact would be a single-digit percent basis with reasonable mitigation steps.

Question: Terence Flynn - Morgan Stanley - Analyst : Great. Maybe two for me. Another one on tariffs. I know Scott Gottlieb is on your Board referenced a Grand Bargain on the news a couple of weeks ago. And you've given a lot of color here, Albert, in terms of your discussions with the Administration. So can you confirm if something along those lines is in the works? And the second question is on the pipeline that you guys and your partner Arvinas recently reported some Phase 3 data for Vepdeg from the VERITAC-2 study. Just wondering how that data change or impact your strategy for this drug in the frontline setting.

Question: Dave Risinger - Leerink Partners - Analyst : Thanks very much, and thank you for all the updates. So I have two questions, Albert. First, current Washington leadership is very supportive of the traditional technology sector, but it's taking the opposite approach towards biotechnology. So not withstanding a few of the things that you mentioned that might be marginally positive, such as the pill penalty. Washington is actively degrading proven medical science, collapsing the NIH, and driving reduced investments in the biotechnology sector in the United States. Could you please comment on that? And how you and other biopharma companies are responding when you engage with Washington? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 2:00PM, PFE.N - Q1 2025 Pfizer Inc Earnings Call And then separately, with respect to the 232 investigation, since we can't see what's going on outside, could you just explain exactly how that investigation is progressing? How Pfizer is engaging on the 232 investigation front? And what we should watch? And when should we see news on 232?

Question: Mohit Bansal - Wells Fargo Securities, LLC - Analyst : And I'll have one more for you. So pharmaceutical manufacturing is a little bit more complex. There are layers of API, manufacturing of drug substances as well as fill finish. And to my understanding, a fill finish majority of part is already in the US, but I would love to understand from your conversations, is there a specific focus of the Administration to bring the API part of it or the drug substance manufacturing part of it to the US? And how feasible it is to bring API or move into some friendly countries if not Americas? Would love to get your perspective on that.

Question: Courtney Breen - Bernstein - Analyst : A couple that we had, one clarification on tariffs. And apologies if we missed it. But this was just kind of if you can provide any comments on inventory and kind of work that you're doing already to bring inventory into the US. And then the second question is just on the pipeline. I know kind of you can ask some details about the things that you're looking to prioritize. But can we expect an R&D Day through -- at some point this year that will help us better understand the overall pipeline strategy and help us understand that reallocation and perhaps even better assess and evaluate that pipeline in our sell-side models?

Question: Asad Haider - Goldman Sachs - Analyst : Thanks for all the color on the macro and tariff side. I'll ask a couple of product-specific questions. First, on Vyndaqel, can you just double-click on how competitive dynamics are playing out in that market relative to your own expectations? Second, on the internal oral GIPR agonist, can you remind us of the timelines on when we'll start to see more data? And then third, on these nine Phase 3 readouts that you're highlighting other than Elrexfio, which you've highlighted in the past, where do you see the biggest disconnect in analyst models relative to your own internal expectations? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. APRIL 29, 2025 / 2:00PM, PFE.N - Q1 2025 Pfizer Inc Earnings Call