Pfizer Inc Q4 2024 Earnings Call Transcript

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

Question: Steve Scala - TD Cowen - Analyst : I have two questions. First, on the danuglipron dose optimization data, it's apparently still on track for the first quarter of this year. What is the range of possible outcomes? And is dropping this version of the compound a possibility? And what would be the next step? Second question is, Chris Boshoff, I assume he's on the line. Under the heading of nothing is perfect, can you share with us two or three things in the Pfizer R&D portfolio or system that you think need to be fixed? New leaders usually say they want to move quicker, but sometimes they also thoroughly go through the portfolio and shed many projects. Is that also a possibility?

Question: Geoff Meacham - Citi - Analyst : Just had a couple of quick ones. So for the COVID franchise, you guys talked about stabilizing revenue for this year. Maybe just give us some level of conviction and your level of investments in this business kind of going forward. I think most investors kind of would like for it to kind of be viewed as just maybe upside to the story. And then from a capital allocation perspective, when you guys think about the appetite for potential BD, as you reprioritize or look at the pipeline and evaluate a lot of the assets in, say, early to mid-development, just want to get a sense from you guys for the appetite for growing out the number of TAs, if you had more optimization to do that can be achieved through BD.

Question: Chris Schott - JPMorgan - Analyst : Just two questions for me. Just coming back to capital deployment. Dave, just to build on those comments, you talked about slightly larger BD transactions. Can you just help size the range of what Pfizer is able to look at from here and how you think about balancing business development versus share repo, which I think you talked about as you started to delever would be part of the story? The second is on the RSV market. Can you talk a little bit about the thinking on the size of the opportunity from here and the potential for growth, given some of the 2024 results, both the US as well as globally? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 3:30PM, PFE.N - Q4 2024 Pfizer Inc Earnings Call

Question: Vamil Divan - Guggenheim Securities LLC - Analyst : Maybe a couple if I could on the pipeline. So Prevnar Valent 25 you mentioned starting Phase 3 in adults this year. Just curious if you can comment on what you've seen so far gives you comfort in moving up for when we might see the data publicly. And also any updates on the pediatric population and when you -- where things stand there. And then the second one is on ponsegromab. And just you have the, obviously, cancer cachexia, which you're starting Phase 3, we also noticed in the Phase 2 heart failure program, you increased the patient enrollment significantly there. Just curious if you can provide any perspective on what drove that change and just maybe your broader views on the heart failure rate opportunity for that product?

Question: Courtney Breen - Bernstein - Analyst : And thanks for the details on kind of how you're thinking about the R&D organization. Just a clarifier, and perhaps you can help us understand the strategy a little bit more here. It sounds like you're shifting into four R&D organizations. I also heard reference though to end-to-end area. So can you talk about whether these are similar or different to how oncology was set up earlier this year -- earlier last 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. FEBRUARY 04, 2025 / 3:30PM, PFE.N - Q4 2024 Pfizer Inc Earnings Call And then additionally, can you talk a little bit about how you're allocating investment across R&D across those four separate engines? How are you making sure that the bar is high in all of those different therapeutic areas and ensuring you've got the right prioritization given the independence of these units?

Question: Evan Seigerman - BMO Capital Markets - Analyst : Congrats on all the progress. So given RFK Jr.'s approval by the Senate Finance Committee this morning, can you walk me through how you plan on working with him as a likely head of HHS, especially with his views on vaccines and general skepticism of the pharma industry?

Question: Kripa Devarakonda - Truist Securities - Analyst : Congratulations on the progress. I have a question on your breast cancer franchise. You recently announced a strategy for developing your CDK4 in frontline -- first-line breast cancer as a monotherapy and also in combination with vepdeg, the ER PROTAC. As the landscape evolves with other CDK4/6 inhibitors, different combinations, how do you see Pfizer's portfolio in breast cancer evolve over the next few years? Do you see this as the strategy is getting a piece of the broader pie? Or are there areas with your CDK4 and your -- with vepdeg where you think you could establish a niche? And also with the Phase 3 data from vepdeg expected any time in first quarter, what needs to happen with these data for it to be considered competitors? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 3:30PM, PFE.N - Q4 2024 Pfizer Inc Earnings Call

Question: Terence Flynn - Morgan Stanley - Analyst : Great. Maybe two for me on the pipeline. On Elrexfio first, just on the commercial side, can you talk about what you're seeing in terms of uptake at the academic versus community centers? Are you seeing any broadening out into the community setting? Or is that really going to be contingent on getting some of the earlier line data that you're expecting later this year from the Phase 3 trial? And then on danuglipron, on the dose optimization study, can you just kind of clarify how much data you're going to share later this quarter? Will we get weight loss data? Will we get tolerability data? How much data will be in the initial press release?

Question: Mohit Bansal - Wells Fargo Securities, LLC - Analyst : Maybe if you can talk a little bit about Prevnar. How are you seeing Prevnar share? You did talk about the market share here, but in terms of peds versus adults, how are you seeing the market share evolving, now that also Capvaxive has an expansion in the next few years. There is also a lower added eligibility in terms of age. So can you talk a little bit about these dynamics? And how do you see market evolving here?

Question: Dave Risinger - Leerink Partners - Analyst : Yes. So my question is just going back to RFK Jr. So assuming he is confirmed as HHS Secretary, and given his history of suing manufacturers and his commentary on lawsuits in the hearings last week, could you just help us understand his ability as HHS Secretary to remove US vaccine liability protections that manufacturers currently benefit from and allow manufacturers the freedom to develop and sell vaccines that save lives?

Question: Trung Huynh - UBS Equities - Analyst : Just two from me. So firstly, going back to Abrysvo, I think Aamir noted potential policy changes in RSV. So do you have any insight if there's going to be a discussion from ACIP on revaccination or cohort expansion this year? I guess that could be a positive for your guide. And then two, on Padcev's potential registrational muscle invasive bladder cancer trial, in general, I think cystectomy is used to cure patients in this setting. So just wondering how you're going to position this, and how quick could you penetrate this population if approved?

Question: Akash Tewari - Jefferies - Analyst : Just on QD danuglipron, it looks like you're using a bi-layer immediate release and matrix technology here. But you don't actually test your bilayer formulation until the second half of your weight loss trial. Is that what your team is waiting on before you make a formal update? Or is it perhaps the Lilly orforglipron data that's also going to factor into this decision?

Question: Chris Shibutani - Goldman Sachs - Analyst : A quick one on the pipeline and another on business development strategy. On the pipeline, I noticed in Phase 2, you've advanced the GIP antagonist. Is that something that you'll be continuing to share data on, particularly as a monotherapy? And do you have any efforts on going to do a combination? In terms of business development strategy, I think the vocabulary you used included a capacity of perhaps in the $10 billion to $15 billion ZIP code. And I'm curious to know what you're solving for. And I asked this in part because, historically, there had been a view of using cash to acquire $25 REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 04, 2025 / 3:30PM, PFE.N - Q4 2024 Pfizer Inc Earnings Call billion in revenue by the end of the decade. But now when we think about where we are in this decade, and we think could be solving for structurally, there seem to be approaches sourcing assets from China, for instance. Many of your competitors are doing this. Are you solving for near current revenues, or are you looking to use other methods, including perhaps partnerships over M&A? That would be helpful.

Question: Alex Hammond - Wolfe Research - Analyst : On Vyndaqel, with new competitors on the market and on the way, can you walk us through how we should think about the near-term commercial dynamics? Where can we see the largest share impact newly prescribed patients or switches?

Question: Tim Anderson - BofA Global Research - Analyst : I have a question on just obesity strategy. So to me, late entrant companies with one lead asset might struggle unless they have real clinical differentiation. It could be in a better position if they have a collection of assets. There's naturally turnkey solutions out there in terms of companies that any larger company could either partner with or acquire outright. How is Pfizer looking at its BD efforts in this regard, either partnership or acquisition, that could bring you one or more assets that aren't far away from being in Phase 3?