Q4 2021 Pfizer Inc Earnings Call

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Good day, everyone and welcome to Pfizer's fourth quarter 2021 earnings conference call.

This call is being recorded. At this time I would like to turn the call over to Mr. Chris Stevo, Senior Vice President and Chief Investor Relations Officer. Please go ahead, sir.

Thank you Sylvia and good morning, everyone.

Welcome to Pfizer's fourth quarter earnings call. I'm joined today by Dr. Albert Bourla, our chairman and CEO, Frank Damelio, Our CFO, Michael Dalton, President of worldwide research and development in medical, Angela Hwang, President Pfizer Biopharmaceuticals group.

Aamir Malik, our chief business, and innovation Officer, and Doug Lankler, our general counsel.

We expect this call to last 90 minutes.

The materials for this call and other earnings related materials on the Investor Relations section of pfizer.com.

You'll see our forward looking statements disclaimer on slide three and additional information regarding these statements and our non-GAAP financial measures is available in our earnings release and in our SEC forms 10-K, and 10-Q under risk factors.

Forward-looking statements on the call are subject to substantial risks and uncertainties.

Speak only as of the calls original days.

And we undertake no obligation to update or revise any of these statements.

With that, I'll turn the call over to Albert.

Thank you, Chris. Hello, everyone.

2021 was a watershed year for Pfizer, a year and we said.

At all time highs in all major areas of focus for Pfizer.

We reached an estimated 1.4 billion patients with our medicines and vaccines, that's more than one out of every six people.

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Never before has Pfizer's patient impact been so wide reach.

So why to Richard.

We improved our ranking from fourth to second among large biopharma companies in the patient view global survey.

According to morning consult, 61% of Americans have a favorable view of Pfizer, which is up 33 points since January of 2020.

Just last week.

Fortune ranked us fourth when it's on your awards most admired companies list.

The highest ranking we have ever achieved.

95% of our colleagues said in an internal survey that they are proud to work for Pfizer with ranks among the best in corporate America.

We increased our investments in research and development from $8.9 billion in 2020 to $10.5 billion in 2021.

And we initiated 13 pivotal clinical studies.

The highest number ever for Pfizer.

Last but not least. We grew revenues by 92% operational.

We grew revenues by 92% of Paris two.

To $81.3 billion and adjusted diluted EPS by 92% operationally.

To 4.42.

Our success in leading the fight against COVID-19, driven not only made a positive difference in the world.

We believe that fundamentally changed our company and our culture forever.

Colleagues across Pfizer are inspired by what we have achieved.

And most are more determined than ever to be part of the mix potentially game-changing breakthrough.

[inaudible], we are applying the lights b principles.

Developed for COVID-19 work through all of those therapeutic areas to make sure we continue to move at the speed of science for the benefit of all [paces].

As a result, we believe we can do even better with each of these metrics in 2022.

Each one of them.

Our full-year 2022 financial guidance. For example, includes for the first time ever a forecast the revenue midpoint, but it is triple-digit, 100 billion dollars and an adjusted diluted EPS midpoint of $6.45.

Okay.

Why not describing a significant positive impact on Pfizer's financial performance. It is a tremendous impact on COVID-19 vaccines have had on society.

But it is most important. In the US alone, the COVID-19 vaccination program is

In the U S alone.

COVID-19 vaccination program.

Estimated to have saved more than 1 million lives and prevented more than 10 million hospitalizations. According to a December 2021 Commonwealth Fund report.

The economic impact is equally astonishing. According to a December 2021 heart lung four worked report.

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According to a December 2021 heart lung four worked report.

The rapid deployment and wider availability of COVID-19 vaccines in the US created an estimated economic savings of

$438 billion in 2021 alone.

Which amounted to US GDP being 2.3% higher than it otherwise would have been 2.3 points.

I am proud to say, but Pfizer contributed significantly to these benefits given that approximately six out of 10 doses administered in the US. As of February 6, 2022 were [inaudible].

This is the value of our science, what our cultural has enabled and what drives our people.

Now I would like to speak to three factors that will help drive our growth going forward.

The first is the long term outlook for COVID-19, and why do we believe we are well-positioned to continue to lead the battle against this disease.

Okay.

Second our thoughtful capital allocation strategy and why you believe we can drive our growth.

In the second part of the decade. And third.

And Sir.

How our commitment to ESG principles is designed to create sustainable growth for Pfizer to deliver meaningful value to patients and society.

Let me start with the COVID-19 pandemic.

Our scientists continue to monitor the Sars COV2 virus and believe it is unlikely that it will be fully eradicated in the foreseeable future.

They believe this for several reasons.

The global distribution of the virus makes it difficult to contain.

The virus has shown an ability to mutate [often].

Making it difficult to stay ahead of it.

And the data to show that natural infections do not lead to the type of durable protection mid deep to prevent all transformations and viral mutations.

Not sure all infections do not lead to the type of durable protection mid deep to prevent all transformations and viral mutations.

As a result, people can become reinfected by the same or different strains over time.

That said, we now have the tools in the form of vaccines and treatments, but we believe it will help enable us to not only better manage the pandemic, but also help countries move into an endemic phase.

In other words, we believe these tools will help us.

Allow us to go back to normality and spend time with family and friends, travel, attend indoor dining and concerts and enjoy many other activities.

While lowering the risk of overburden hospitals and healthcare systems around the world.

All of us at Pfizer are extremely proud of the role they have continued to play in bringing these tools to the world.

Throughout 2021, we continued our efforts to bring our COVID-19 vaccine to more populations.

To further ramp up our manufacturing and distribution capabilities.

As a result, the market sell off our commitment the vaccine has continued to grow representing 70% of all doses distributed across the US and EU as of February 6.

When it comes to [inaudible].

We expect to produce 6 million treatment courses during the first quarter of '22.

Overall.

We expect to produce 30 million courses in the first half of 2022.

And 120 million courses for the full year, of course, depending on the global Mi.

Having recently received a conditional marketing authorization from the European Medicines Agency.

Paxlovid has now received emergence or conditional authorization for use with certain populations.

In approximately 40 countries so far.

We are in discussions with governments around the world.

And expect that as the number of authorizations increase.

So will the number of contracts for this treatment, which could truly be a game-changer.

At Pfizer, we are keenly aware of our responsibility to continue to invest in R&D to maintain our leadership in providing these tools and other meaningful solutions to the world.

That's why we continue to develop and test different versions of our vaccine to potentially address variants of concern as they emerge.

And why we are currently working on a new omicron based vaccine candidate.

And on a bivalent COVID-19 vaccine candidate.

It is also why.

Just two months after receiving emergency use authorization from the US food and drug administration for Paxlovid.

We are already working on a potential next generation for our COVID-19 treatment.

Going forward, we are confident in our ability to maintain this leadership position.

Because of our significant investments in R&D combined with our ability to move at the speed of science.

Without compromising quality or safety.

The strong credibility, we have earned with governments, health care providers and consumers.

Combined with our extensive global field presence.

And our unparalleled capabilities for high quality manufacturing scale.

Now the second thing I wanted to touch on is how we think about our capital allocation and to repeat once more our strategy.

We feel that the entirety of our business continues to demonstrate a robust top-line growth trajectory through 2025.

Consensus estimates are beginning to slowly recognize this momentum.

However, consensus estimates currently saw our topline shrinking from 2025 to 2023.

I want to repeat that this is inconsistent with our own plants.

Our goal is to continue to be a growth company from '25 to 2030, despite the impact of [inaudible] expected during that period.

Our confidence in our ability to achieve that.

It is underpinned by the momentum of our business.

The durability of our COVID-19 offerings.

Which as I just described.

We underestimated the strength of our internal pipeline.

And of course, by our ability to deploy capital into growth-focused business development to access external science.

A few words about that.

We leverage business development opportunities to advance our business strategy and objectives.

The strength of our balance sheet and cash flows.

Allow us to pursue new business development opportunities going forward.

That could add at least $25 billion of risk adjusted revenue.

To our 2030 top line expectation.

We expect to do this while still maintaining or growing dividend.

As well as flexibility for other uses of our cash.

The focus of our business development efforts will continue to be on compelling external science in the form of both later stage assets as well as earlier medical innovations, but have the potential to be breakthroughs for patients.

Our focus will largely be in the therapeutic areas and platforms, well recover the scientific skills and acumen to add substantial value and select the most successful targets.

Largely being in the therapeutic areas and platforms, well recover the scientific skills and acumen to add substantial value and select the most successful targets.

In addition.

We feel that we have distinctive attributes such as world class excellence in clinical development, and a surplus of manufacturing and commercial capabilities at scale.

But makes us a very attractive partner.

Across a variety of deal arrangements.

We believe the opportunity is to deliver on this approach exist.

And I will be personally focusing on this execution.

I want to emphasize that despite our significant capital flexibility.

We will never lower the scientific and financial standards we apply in our business development.

As we pursue these opportunities.

We'll continue to be highly disciplined in our evaluation and prioritization processes.

Since 2019.

We have already invested almost 25 billion in business development transactions, adding more than $13 billion in consensus. I repeat in consensus 2020 revenue.

I would point out that the $13 billion of consensus currently includes nothing for the Trillium assets, the biohazard collaborations or the recently announced mRNA deals.

All of which have substantial potential.

I see this pace of business development accelerating going forward and I'm confident it will be an important driver in ensuring Pfizer is a growth company in the back half of this decade.

Decades.

One highly visible example of our approach to business development is the recent investments we are making in mRNA technology and collaborations.

mRNA has emerged as a versatile technology.

With potential application across many infections diseases, cancer, rare genetic disorders, and even autoimmune diseases.

Although mRNA is not the Holy Grail, we believe that technology has the potential to have a game-changing impact on global health, which is why we have developed a robust mRNA strategy and are aggressively building our platform.

While the pandemic has demonstrated that it is not that easy to deliberate mRNA vaccines at scale, Pfizer has emerged as the leader in this space.

With decades of experience on our site. We have developed what is arguably the most efficient.

Clinical development and vaccine manufacturing capabilities the world has ever seen.

We also have a rapidly scale and build out new capabilities in record time.

By hiring early 2,400 new colleagues.

By hiring early 2,400 new colleagues.

In these functions in the nine month timeframe.

Going forward.

We plan to continue to invest to capitalize on the leadership we have built in terms of both.

The mRNA R&D and manufacturing.

Yeah.

In addition of course to these internal investments and improvements, we are also making external investments to build out our capabilities in this space.

For example.

Pfizer recently enter into four important business development deals to have advanced our mRNA structures.

We are expanding our collaboration with biotech.

To use the existing platform to co-develop an mRNA vaccine candidate for helps zoster virus.

To protect against singles.

Our agreement with [inaudible] therapeutics expands our mRNA efforts to another core therapeutic area for Pfizer.

A rare disease.

With a 40 year research collaboration for 3 targets for genetic diseases.

Of the liver, muscle and central nervous system.

We believe this will give us the potential to use mRNA to treat diseases not just prevent, treat them.

Our agreement with Acuitas does it gives us the ability to collaborate with.

And license their proprietary lipid nanoparticle technology.

Their proprietary lipid nanoparticle technology.

For up to 10 targets for mRNA vaccines and therapies.

We believe this will give us greater independence in this space.

And we have signed a strategic collaboration and licensing agreement with Codex DNA.

A leader in the development of automated solutions.

For on demand synthesis of genes in mRNA.

Potentially allowing enzymatic assembly of DNA at the front end of the mRNA production process.

This could possibly reduce the time to produce a new vaccine.

From three months down to two months.

If successful, this would be an important differentiator when developing a vaccine for flu, for example, as it would allow us to select the strain much closer to the start of any flu season.

These deals represent only four pieces of a much bigger strategic puzzle.

As we continue executing on our mRNA strategy.

You should expect to see more targeted activity in this area.

Of course, our business development activity in the last quarter went beyond executing on our mRNA strategy.

This is an update of the slide I showed you last quarter.

And I would like to highlight a few of the other recent deals that are marked as new on the slide.

The acquisition of [three Liam builds] on our strong track record of leadership in oncology.

Enhancing our hematology portfolio as we strive to improve outcomes for people living with blood cancers around the globe.

Our strategic collaboration with [Biohaven] leverages our leading commercial capabilities in pain in the women's health.

Our strategic collaboration with [Biohaven] leverages our leading commercial capabilities in pain in the women's health.

With Biohaven's groundbreaking oral CGRP receptor antagonist, the only one approved in the US for both acute and preventative treatment of migraine.

To potentially bring valuable new treatment options to patients living with these.

Debilitating neurological disease outside the US.

And through the proposed acquisition of arena.

We plan to leverage Pfizer's leading research and global development capabilities to accelerate the clinical development of [inaudible] with patients with immunoinflammatory diseases.

Now I would like to share some details about pfizer's enhanced ESG structures.

Okay.

The strategy is focused on six areas.

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We see opportunities to create meaningful and measurable impact over the next decade.

Product innovation.

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I apologize you embark I apologize for taking so I will repeat my script for this last.

Last slide.

And then we go forward so of course, our business development activity in the last quarter went beyond executing on our mrna striping.

This is an update of a slide I showed you last quarter and I would like to highlight a few of the other recent deals you can see them with a vindication Neil.

The acquisition of Trillium builds on our strong track record of leadership in oncology enhancing our <unk> portfolio as we strive to improve outcomes for people living with blood cancers around the globe.

Our strategic collaborations Bioherm and Leverages, our leading commercial capabilities and pain in women's health with bio <unk> groundbreaking oral C. G. R. P receptor antagonist.

The only one approved in the U S for both acute and preventative treatment of migraine.

So that we can potentially bring a valuable new treatment option to patients living with these.

Debilitating neurological disease outside the U S.

And through our proposed acquisition of Arena, we plan to leverage Pfizer's, leading research and global development capabilities.

To accelerate the clinical development of our crushing month or patients with immuno inflammatory diseases.

Now.

I would like to share.

Some details about pfizer's enhanced is disrupted.

The strategy is focused on six areas, where we see opportunities to create a meaningful and measurable impact over the next decade.

Product innovation, equitable access and pricing product quality and safety diversity equity and inclusion.

<unk> and business ethics.

Each quarter going forward I will provide examples of how we are embedding ESG into all core areas of our business.

This quarter I would highlight our efforts to improve clinical trial diversity.

The improved diversity within our colleagues base.

And help ensure equitable access to our COVID-19 vaccine and trip.

Last year, Pfizer published an industry first retrospective analysis of demographic data of U S participants and 213 of our interventional clinical trial that initiated enrollment from 2011 through 22020.

The analysis demonstrated that overall trial participation of blocked or African American individuals' Walsh as the U S census level 14.3 vessels 13.4.

Participation of Hispanic or Latino individuals was below U S sensors 15.9 versus 18.5.

And he made a participation was it U S sensors 51.1 vessels 50 point there.

We publish this analysis to be transparent and for it to serve as the baseline as we measure progress in this area.

We believe that diversity in trials is a matter of equity and good science and are taking decisive steps designed to improve diversity in our trials.

Our goal is to achieve a ratio and ethnically diverse participation at or above your sensors or disease prevalence levels as appropriate in all our trials.

The second item I want to highlight the significant progress we are making in diversifying our colleague base, particularly at more senior level position.

In the last three years for example, we have increased the percentage of women at the vice president level and above globally from 32% to 42%.

Over the same timeframe, we have increased the percentage of minorities at the vice president level and above in the U S from 19 to 25.

The third item I wanted to highlight is the progress we are making to help ensure our COVID-19 vaccine and oral treatment are accessible by everyone. Everyone. I'm thrilled to say that we remain on track to meet or exceed our global or our goal of delivering at least 2 billion doses of a vaccine to low and middle income countries by the.

End of 'twenty to 'twenty two.

Having just met our goal of delivering the first $1 billion by the end of 2021 .

I also want to highlight two data points about our $2 billion commitment.

1 billion of these doses are being provided to the poorest countries completely free of charge.

Thanks to our agreement.

Thanks to our agreement with a U S government Pfizer is providing these doses to the U S government at the known for not for profit price and the government is then providing them to the poorest countries for free.

Also the 1 billion doses, we deliver in 2021 represented 37% of all doses, we deliver this last year.

In terms of our oral COVID-19 treatment, we have signed a voluntary <unk> license agreement with them medicines patent pool.

Which we hope will lead to expanded access spending country regulatory authorization or approval in 95, low and middle income countries that account for approximately 53% of the world population.

Lastly, I am pleased to announce that the compensation committee of our board of directors has been reviewing methods to linking executive compensation with ESG performance, which we expect to begin this year.

For details regarding the impact of Oreo the strategy had on our business in 2021. Please keep an eye out for Pfizer's 2021 ESG report, which will be published online in mid March.

In summary.

2021 was an outstanding year for Pfizer and we look forward to continuing to apply the lessons learned from COVID-19 to deliver breakthroughs for patients across all our therapeutic areas.

We remain focused on being nimble investing in our R&D organization and exploring dynamic partnerships that will enable us to fully realize the power of our science.

None of this is possible without the contributions of our amazingly purpose driven colleagues, who continue to rise to the challenge of addressing the worlds most devastating diseases in 2021 our colleagues exceeding expectation. Therefore, we will once again use.

Part of the bonus pool that the board approved for bonus eligible colleagues in the executive.

To provide a one time special COVID-19 circumstances bonus to our non bonus eligible colleagues across the board to reward them for their hard work and to help them cover personal family and living expenses incurred because of the COVID-19 pandemic.

With that I will turn it over to Michael to update you on our R&D efforts after Michael <unk>, who will provide financial details on the fourth quarter and our outlook for 2020 to do Michael.

Thank you Albert I'm delighted to hear updates from this quarter as we continued to deliver first in class science.

Today, I wish updates from our COVID-19 programs and select other assets in our pipeline.

Let's start with pets low bid.

As the COVID-19 pandemic continues to burden public Hill, we have advanced the science on our novel oral antibiotics therapeutics.

Importantly, we see consistent potent antiviral activity in vitro against all colorant variance of concern.

Clothing, both delta and on the call.

This would be expected from how the compound with design.

On the left you can see a crystal structure, showing how tightly near material here.

Binds to the active side of the only conversion.

History has told us from the HIV protease field at the close of the therapeutic designed to mimic the substrate. The harder it is for resistance to March.

That combined with the essential nature of the protest the short duration of treatment and Nicole dosing would return, albeit to drug exposures that over five to six times the amount of compound needed to kill the virus inanimate Westlake.

Suggest this reduced risk for resistance.

External data support our findings.

In this slide the lower values.

The stronger potency illustrated by new muscle the year being on the lower end of the Y axis on the left having the most potent activity.

No matter, where they are.

Maintained in vitro potency in the low non Homola range as you can see in these graphs that include other authorized or approved therapeutics.

On the left you can get to data from a study done with it I can school of medicine at months' signed Larry and Pfizer.

The months of the year demonstrated potent antiviral activity as measured by a statistic inertia of drug efficacy, indicating the concentration needed to EBIT inflection behalf.

This is consistent with findings from the regain institute a ku Leuven in Belgium shown on the right.

Yeah.

We anticipate a new drug application decision by the FDA in the high risk population and second hall for 'twenty, two pivotal readouts of our household contact and standard risk studies in the second quarter and second half of 'twenty two respectively.

And the study start in children six to eight years old in the first quarter of 'twenty two.

In the standard risk study, we're expanding enrollment by 750 non hospitalized patients with symptomatic COVID-19, and vaccinated standard risk patients know what's ability though.

Provided a loss Sars cov, two vaccine dose less receive at least 12 months prior to screening.

This expansion will allow us to further evaluate the secondary end points in an interim analysis.

Which showed a 70% reduction in hospitalization and no deaths in.

In the treated compared to placebo.

We are also advancing work on a potential next generation saw SKU antiviral with the aim of achieving similar high clinical efficacy in PON Corona virus assigned properties that maintain activity with a favorable safety profile and counter potential viral resistance, but without the need for returnable.

Boosting.

Our first in human study is expected in the second half of 'twenty two.

Now we also continue to advance vaccine development.

And have achieved emergency use authorization for use in children as young as eight five.

Effectiveness data for three doses of the vaccine for 12 people 12 years and older and early laboratory data observed with Delta and other buyers of concern including Omicron.

Suggests that people vaccinated with three doses come in Australia. They have a high degree of protection against both symptomatic and severe outcome compared to two primary doses.

Informed by these data in addition to the new unit breaking data we are evaluating a third 30 microgram dose in a study of children six months to four years of age with the belief that the third dose may be optimal for this age group.

However, as pediatric cases, and hospitalization are at an all time high.

F D. A urge us to start the rolling EUA authorization submission with a two dose efficacy immunogenicity and safety data, we have accumulated that for.

While we continue to collect data, including third dose administration.

We plan to submit third dose data once they are available.

In the meantime, if they have scheduled an advisory committee meeting prepare bar of 15 to consider the two dose pediatric data collected today.

If emergency use authorization of two doses is granted and the CDC recommend usage parents will have the opportunity to begin their COVID-19 vaccination series for the children between six months and four years of age while awaiting potential authorization of a third dose.

Turning to the adult population.

In the wake of charging only Crump cases in January we completed a lab analysis of the effect of a third dose boost of commonality on live virus Mutualization.

Encouragingly there was a more than 20 file fivefold increase in owner can live virus neutralization titers.

Observed between the day of dose three and one month post two three.

We observed a moderate four months post two three antibody decay for wild type and the omicron barrier.

Between one months and four months post two three metallic taste neutralizing titers were 162 for lower for wild type and the on the call volume respectively.

We are now starting to see effects of a third dose booth in maintaining a high level of protection against on the corn in the real world.

These data from Kaiser Permanente, Southern California show only corn related emergency department visits with our posted presentation on top and hospitalization on the bottom.

Three doses of commonality provided better vaccine effectiveness against all the content to those.

And it was high vaccine effectiveness of three doses again omicron related hospitalization similar to delta related hospitalization.

We did see some waning of effect and the nets against the emergency Department and Michele you to own the crown three months or more of the third dose.

Which suggest the potential need for another boost of the current vaccine or in on the corn based vaccine.

We have started in on recon based vaccine candidate trial in adults 18 to 55 years of age.

This study will evaluate more than 1400 participants across three cohorts.

Those who have already received due to deliveries of the current vaccine 90 to 180 days prior to enrollment will receive one or two doses of the omnicom basically.

Those who have already received three doses of the current vaccine 90 to 180 days prior to enrollment will.

We will receive one dose of the current the claim or the omnicom based vaccine and those who are vaccine naive will receive three doses of the on the chrome based vaccine.

This study is part of our science based approach to develop a variant based vaccine that will achieve a similar level of protection against normal corn as the current vaccine has we'd both wild type and earlier volume was it potentially longer duration of protection.

Now, let's turn to our next generation CDK inhibitors for cancer.

Most patients with advanced or metastatic breast cancer eventually develop resistance to both endocrine and CD for K six inhibitor therapy, despite third transformative efficacy.

Inhibition of syndicate, two delivered with our CDK selective active drug.

Or a trip elective CDK to four 6 million may prevent delay or reverse resistance and prolonged survival.

DSO data from a subset in the CDK <unk> inhibitor phase one dose escalation.

And antitumor activity study of heavily pre treated patients with hormone receptor positive metastatic breast cancer.

The most improvement in terms of tumor size reduction was seen in patients treated with monotherapy or in combination with pollo restaurants.

We observed three confirmed partial responses and three patients with stable disease for more than 12 months.

One patients have been receiving ongoing treatment for more than 28 months.

There's been an acceptable safety profile at the recommended phase two dose, which is 25 milligrams twice daily.

We plan to conduct the phase one dose expansion and expect to complete it in the fourth quarter of this year.

Selective CDK to inhibition.

With the.

Dedicate to only inhibitor may allow dose titration and has the potential to be used in combination with approved.

CDK inhibitors, such as pulp recyclable or other next generation CDK selective inhibitors.

There were two confirmed partial responses in the phase one study of our selective <unk> inhibitor in patients with advanced or metastatic hormone receptor. Her two negative breast cancer, who had received progressed on prior CDK, four and six inhibition and endocrine therapy.

One patient had a maximum tumor shrinkage or 54% following CDK <unk> inhibitor treatment for approximately eight months.

And the second at 100% shrinkage of all target lesion lesions.

Patients following treatment per oxalate in nine months.

We have shown scans of the first patient at baseline and eight weeks.

There was an acceptable safety profile as a monotherapy and we are currently exploring combination we expect the phase one two study to be completed in the second quarter of 'twenty three.

Now, let's turn towards six valent Lyme disease vaccine candidate, which we are developing in partnership with a well neither.

We have received prouder positive data from our phase two proof of concept study and expect to start phase III in the third quarter of this year with a dosing regimen of zero, two and six months to prime followed by routine boots, just before the start of alliances.

Our phase II studies continue and includes a pediatric population ages five to 17 years.

Since Lyme disease is seasonal.

Our goal is to establish a regimen that result in high antibodies at the beginning of each season, we'd have to look at the booth one year after the primary series.

We saw a substantial boost antibody response in phase II to all seek serotype present in North America, and Europe Europe , followed the three dose primary serious vaccination schedule.

With a 14 to 31 fold rise in season, one and a 51 to 69 fold rights and season to.

The vaccine candidate was generally well tolerated at all dose levels tested and we are excited about further development and the potential to help prevent this debilitating disease.

Last quarter, we told you that we saw robust dystrophin expression out to one year in our Duchenne muscular dystrophy gene therapy phase one B study.

I will show you encouraging functional note the data in a moment.

We recently shared some very sad news that the DMD patients with advanced disease in the non ambulatory cohort of the phase one be a trial passed away of the presenting with hypovolemia and cardiogenic shock.

Patients with 60 years old and the first in the Nonambulatory cohort treated will wrap up June along with steroids steroids as part of the units suppressed the read that regimen.

Wrapper Moon is not used in the phase III ambulatory study like most non ambulatory DMD patients. He had more advanced disease with underlying cardiac dysfunction. There is evidence of an active viral infection and we're investigating how this may have contributed to the outcome.

The additional assessment will be required to define next steps to restart that phase one biggest study nonambulatory patients who are more progressed in their disease.

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Mr from this study.

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The.

The ambulatory cohort.

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19 patients were enrolled in this study.

Six to know whom received the dues select if our phase III program and three of whom received a previously studied lower dose.

At one year post treatment there was a five six point improvement in ambulatory function as measured by Northstar ambulatory assessment.

Compared to an external control matched for age and baseline function.

This is particularly encouraging given that patients with these agents stage of disease.

Typically experienced a considerable decline in ambulatory function as illustrated by the external control.

On the right we show timing study with six participants nearing or more than three years and treatment.

The ambulatory cohort in a pace lumpy is similar but slightly older on average to the population in the place we see profile.

Considering the favorable benefit to risk profile in this study.

And observed in the ambulatory patient population and in consultation with the data monitoring Committee. We believe the safety profile of our DMD gene therapy is manageable in this patient group.

Additional mitigation of being added to our study in consultation with AMC and other medical expert pending.

Pending regulatory feedback, we anticipate phase III study site to begin reopening in the next few months with the potential to report topline results and subject to clinical trial success submit their BLA by the end of 'twenty three.

Turning now to internal medicine.

And PON sacrum up our candidate for <unk> due to cancer.

It targets <unk> 15.

Nearly 15 is frequently elevated in cancer patients drives the reduction of appetite and body weight loss.

And is associated with poor outcomes.

There may also be a potential to treat cachexia associated with other chronic diseases.

Such as heart failure and COPD.

We have encouraging phase one data, which I would show next.

On sacral Mab was evaluated in 10 cancer patients, who are undergoing antitumor treatments and had more than 5% body weight loss in the last six months.

For more than 2% body weight loss with a boarder met index of less than 20 kilogram per meter squared or diagnosed stock opinion.

Pawn segment map administration was found to suppress circulating G. D. F 15 levels in cancer Cachexia page them below the level observed in healthy subjects.

Preliminary data from their phase one B trial show pawn sacral mab treatment resulted in significant body weight gain compared to historical placebo.

You can see the nice trend and body weight increase remained even after dosing was stopped at week 12.

The gray dotted line indicates the historical cutoff associated with improved survival.

We are co developing a companion diagnostic with Roche diagnostics designed to enable precision medicine, and we expect to start the phase two study in cancer cachexia in the fourth quarter of this year.

Injectable blip one receptor agonist.

Author potent lowering of glucose in weight in diabetic obese patients with proven cardiovascular benefit, but this drug classes underutilized due to its injectable administration route.

Our small molecule oral <unk>, one receptor agonist lupron could potentially offer a convenient oral alternative to injectables and is being evaluated for the treatment of type two diabetes obesity and Nash.

It has been developed in our internal Medicine research group with a vision to expand the use of these put them easily administratively one broke lab to a primary care setting.

Here, our data from the phase II study in type two diabetes.

We recorded strong dose dependent reduction in both HBA, one see a mixture of long term blood sugar levels and body weight compared to the marginal effect noted with placebo after.

After 12 weeks of treatment with the 200 milligram twice daily dose HBA once he decreased by almost one 6% and body weight decreased by 5.4 kilograms.

The safety and Tolerability profile is consistent with at least one class and the most frequent adverse event rate with G O related.

We expect to start a phase to be titration optimization study mid 'twenty two with doses up to 200 milligram twice a day and complete the phase <unk> study in non diabetic subjects with obesity in the first quarter of next year.

Finally here are select recent and upcoming milestone from across the pipeline the solid blue dots represent milestones achieved and the open blue dots represent anticipated milestones.

Programs in bold or major anticipated events some of the programs under Reits have already been designated as nice speed, meaning they have accelerated development time lines or are being considered for lightspeed designation.

Finally, I would like to take a moment to thank Maureen.

Our outgoing Chief scientific officer, with internal medicine with a home.

So it's a men's contribution over the last seven years and welcome Bill Sessa, who joins US from Yale School of Medicine. Following a decades long career in academia, including service as Vice chair of Pharmacology Professor of Medicine, and director of the basket of OLED <unk> Therapeutics program at Yale.

Bill is an eminent lead in the field of groundbreaking scientists and our celebrated innovator and I know he will bring his tremendous vision and insights are in litigation of cardiovascular metabolic diseases. Thank you for your attention I look forward to your question now let me turn it over to Fran.

Thanks, Thanks, Michael I know you've seen our release so let me provide a few highlights regarding the financials. The COVID-19 vaccine once again had a positive.

The impact on our quarterly results and Albert and Michael have already addressed the key points on the COVID-19 landscape.

Turning to the income statement revenue increased 106% operationally in the fourth quarter of 'twenty, one driven by COVID-19 vaccines vaccine sales and strong performance from a number of our other key growth drivers.

Looking at the revenue excluding the COVID-19 vaccine direct sales and alliance revenues and tax law with contribution fourth quarter was slower than the first nine months of the year declining by 2% operationally as we discussed during our third quarter call. There was a 4% negative impact or approximately 500 million times fewer cell.

<unk> days in the U S and international.

Excluding that impact operational growth would have been 2%, which is still lower than the mid to high single digit growth. We had experienced during the rest of the year.

This was factored into our forecast for the year, but let me briefly walk you through this in our Biopharma business.

Remember that the fourth quarter of 'twenty, one faced a tough comp from the fourth quarter of 2020 for Premier as Pneumococcal vaccinations were strong and if COVID-19 vaccine availability.

Excluding vaccines from the current and comparable period, where they had five percentage points to the growth.

Adjusting for the unusual comp period differences related to vaccines and selling days our revenue growth would have been approximately 7%, which is similar to what we've been delivering lately.

For the year operational revenue growth was 92%.

Excluding commonality direct sales and alliance revenues and tax low mid 2021 operational revenue growth was 6%.

This is consistent with our projected revenue CAGR of at least 6% from 2020 through the end of 2025 horse.

Be some variability in quarterly and annual growth rates due to a variety of factors, but we continue to expect at least a 6% CAGR through 2025.

The adjusted cost of sales increase shown here reduced this quarter's gross margin by approximately 16 percentage points compared to the fourth quarter of 2020, which is almost entirely driven by the impact of the COVID-19 vaccine.

Adjust that adjusted SG&A expenses in the fourth quarter increased primarily due to increased product level spending, including commonality and higher health care reform sales based fees.

The increase in adjusted R&D expense. This quarter was primarily driven by increased investments and late stage pipeline projects, including additional spending related to our oral COVID-19 treatment.

Okay.

Okay.

Yeah.

Okay.

Yeah.

Yeah.

Yeah.

Oh.

He's back in now.

Yeah.

Frank I think you were disconnected.

Okay.

Yeah.

Yeah.

Yeah.

Yeah.

Yeah.

Yeah.

Chris.

Yes, we can hear you Frank go ahead.

Okay.

Sure I left off but I think what I'll do is start with a 22 financial guidance. So.

So we've again provided total company guidance, which includes the business with the COVID-19 vaccine.

We will continue to provide insight into our expected revenues for commentary and now for the first time, we'll also provide some color on our expected revenues for backlog. However, note that will no longer be providing EPS guidance for the business is clearly commentary.

Ali who won't provide EPS guidance for packs love it.

Our revenue guidance represents a record for Pfizer and we expect total company revenue to be in a range of 98 to 102 billion, representing an operational growth rate of 24% a point.

These considered at this revenue range reflects approximately $1 $1 billion of anticipated negative impact from changes in foreign currencies and also the impact of the loss of Meridian sales of approximately $300 million both of which your models may not take into account.

Regarding our Covid related revenues, we now expect the COVID-19 vaccine revenue for the year to be approximately 32 billion an increase of approximately 1 billion compared to our prior guidance provided on December 17, the Pax love. It we expect sales of approximately $22 billion.

This means that excluding the COVID-19 related revenues, we expect sales to be 46 billion at the midpoint representing operational growth of 5%.

This is slightly below the 6% CAGR and we continue to expect between 2020 2025, I would remind you that there will be volatility along the way.

Let me give you some detail on our cost and expense guidance for adjusted cost of sales. We are expecting a range of 32 point to 34, 2%.

Given that we are now more than 12 months past the launch of commonality expected negative impact on our cost of sales margins to be less than it was in 2020 , one assuming a similar level of revenues.

<unk> is expected to have a very positive impact on cost of sales as a percentage of revenues in 2022.

On adjusted SG&A, We expect 12, five to $13 5 billion, an increase of $900 million at the midpoint.

We.

Our adjusted R&D guidance range to be 10, five to $11 5 billion at the midpoint that is about 500 million higher than last year.

We expect an adjusted effective tax rate for the year somewhat higher than 2021 and approximately 16%.

These assumptions yield an adjusted diluted EPS range of 635 to 655 or 47% operational growth at the midpoint compared to 21, excluding an expected six cents negative impact from foreign exchange.

I'd like to point out some additional information, which may be helpful. For your models you will note that our guidance assumes a weighted average share count of approximately $5 8 billion, which represents an increase of approximately 100 million shares over 2021 .

This accounts for the number of shares that we normally issue for employee compensation annually.

The increase of 100 million shares over 'twenty, one decreases our EPS by about 10 cents at the midpoint and noticed that most of your miles instead assume a flat share count for 22 as compared to 21.

From the first quarter of 'twenty, two and going forward, we've made a decision to modify our adjusted financial treatment of amortization of intangibles previously, we only excluded amortization related to large mergers and acquisition our exclude all intangible asset amortization expense.

This is anticipated to contribute six cents to our 2022 adjusted diluted earnings per share helps improve our comparability with our peers.

2022 guidance once again assumes no share repurchases, we will note that Pfizer did not repurchase shares many of the 'twenty 'twenty four 2021 and we continue and while we continue to have outstanding unused authorization to repurchase another $5 3 billion of stock can be opportunistic.

Given the potentially value enhancing business development opportunities, which are available to us we do not expect to repurchase shares.

'twenty two.

Our and in our 32% stake in the consumer joint venture with GSK.

You know GSK has announced its intention to engage in the demerger transaction for at least 80% of its 68% stake in the JV in the summer of 2022.

We talked about our stake is a noncore asset whose value we will seek to realize over time.

While we have determined neither the manner no timing of how we will do so there are a number of possible alternatives and we will attempt to monetize this asset in the manner, which will create the most value for our shareholders.

We receive approximately $600 million in pre tax income from the JV annually and this will not change as a result of the merger transaction and our guidance assumes that this will continue throughout 2022 with no change to our 32% stake.

Let me quickly remind you of some assumptions and context on our projected COVID-19 vaccine contribution and our collaboration agreement.

To five biotech COVID-19 vaccine collaboration cash graph is a 50 50 gross profit split Pfizer books, the vast majority of the global call. It collaboration revenue, except for Germany, and Turkey, where we receive a profit share for biotech and we do not participate in the China region.

We continue to expect that we can manufacture 4 billion doses in total by the end of 2022.

The $1 billion increase in expected Covid vaccine revenues to approximately 32 billion in 2022, primarily represents the impact of contracts signed since medicine since mid December which the cutoff for our prior guidance, while we cannot predict what may be needed due to army chronar of the variance I would also caution you that there is less potential upsell.

To this guidance through the year compared to the situation. We faced in 2021 when the vaccine was newly available to people have received any doses of the vaccine.

As you will remember our cost of sales for the COVID-19 vaccine revenue includes manufacturing and distribution cost applicable royalty expenses and payments of ion tech representing 50% gross profit.

Split.

We expect that the adjusted income before tax margin for the COVID-19 vaccine contribution to be slightly higher than the high twenty's as a percentage of revenue that we had in 2021.

Unlike the situation for commonality demand for tax law, which should have upside from these levels, depending on the outcomes of discussions with certain government and potential purchases for stockpiling against future.

Rona virus Pandemics.

If we remove the projected COVID-19 vaccine and Pacs law with contribution from both periods you will see that we expect the 2021 2022 revenue range to be 45 to 47 billion, representing approximately 5% operational revenue growth at any point. Please.

Please remember our guidance excludes the former revenue contribution of approximately 300 million to meridian in all 21 quarters have been recast to exclude meridian as discontinued operations accounting for its divestiture.

Going forward, we will not give earnings guidance, excluding the estimated income.

Commodity direct sales and alliance revenues and packs Logan However to help you with your forecasting a couple of minutes ago. I gave you my view on 2022 commonality pretax margins per Pax loaded I would think about its margins as being typical for small molecule drug and unlike commonality. It is expected not to be dilutive to pretax earnings.

To help you further several years ago before COVID-19 existed I spoke about our business being on a path to a 40% plus pre tax margin.

Level in 2022, the business, excluding commonality and Pacs law.

Going forward, we will continue to be prudent in our capital allocation activities with the opportunities for deployment show here on this slide.

In summary, exceptionally strong quarter and year based on continued strong performance for our growth drivers during the year, we raised guidance for the year, we met or exceeded our guidance in all key metrics.

Our pipeline continues to advance and we have invested record amounts to support that advance.

Last week arena shareholders voted to approve Pfizer's acquisition of the company.

We look forward to a targeted closing of the arena acquisition soon as the first half of 2022 subject to the satisfaction of closing conditions, including antitrust approvals.

We continue to expect to be active in regards to business development throughout 2022, as we continue to get access to the best external science and bring breakthroughs to patients in 2025 and beyond with that let me turn it over to Chris to start the Q&A session.

Thank you Frank apologies, everyone for those technical difficulties I'm just want to remind you. We do have the prepared remarks posted to the website. So if theres anything you missed because of difficulties. Please refer to the prepared remarks and given the technical difficulties, we are going to try to let the Q&A session ran a little.

Longer to answer People's questions. Sylvia first question. Please.

Thank you. Your first question comes from the line of Jetblue Kim from Bank of America Securities.

Hey, guys. Thanks for taking the question.

I'd just add to the first one tax level guidance I know you guys are factoring in only signed agreements, but could you give us a general sense as to agreements or doses, perhaps that are under discussion.

Is that dependent on supply ramping.

The second question on external BD Albert I understand the strategy I think the uncertainty is really the ability to scale some of the products that you've brought in so.

If COVID-19 is less of a long term contributor then you assume what's the appetite.

To do higher impact larger deals you clearly have the capacity. Thank you.

Thank you Andrew.

And I know you want to take care of it it'll be the box caloric.

Sure.

So currently we are in active discussions with over 100 countries and governments around the world I'd say that you know the D and the discussions are going really well and intend to have where we are with the app with the contracting and every day you know we've included some of the debt that the contract that we already are.

And that we have but of course this number changes every day and Dan and contactor being secured and distribution agreement indicate you know literally on a day to day basis. So I think that this is the number to watch out for and how do we do continue to expect movement and I think that there is a tremendous amount of interest for our <unk>.

And then secondly, as the clinical program continues to develop and emerge as you know we only have a study right now we can have a candidate in a prophylaxis, that's coming up and I think that would be at that full clinical program will also be another point of indicate and fallout four for contracting in ordering and so I think.

Dan, it's going really well and damage to come on this one.

Thank you Amir maybe some comments on the BD.

Sure. Thanks for the question, Jeff I think in terms of the top line, we're going to be incredibly flexible.

We have said repeatedly that we are most interested and compounds that have potential to be real breakthroughs.

And this can take the form of later stage clinical development as well as earlier stage medical innovation, we're going to bias to the Tas oncology ini rare vaccines internal medicine and hospital, where we've got the scientific chops to make good choices and add real value.

And we're gonna be flexible and on the deal types of acquisitions are obviously very much in the cards.

But strategic partnerships and alliances are well and in fact, some of our best successes have come from some capital light collaborations if.

If we see a larger opportunity that strategic and creates value and meets the criteria that I. Just described we've obviously got the balance sheet to utilize to do that so we certainly will look at those.

But we're going to talk about and focus on the priorities that I described more so than synergy driven deals per se.

Thank you Jeremy.

To add to both points because I'm sure that both will be asked their logs on robots drove it clearly.

Our numbers will become a way bigger than what we have right now, but this is not something that we have done in the partners. We can plan to do right now to give based on what could be the potential as a guidance. We are giving guidance based on what it is more or less secure either assigned ddos or already agreed but not signed yet.

Deal, but a great price and volumes.

So.

Clearly.

If you remember when we started with the vaccine.

In the beginning we had a guidance of between $15 billion in the first quarter or something like that eventual roommates rugger shakes here started even stronger.

Our first production batch, Florida, so and that's why we manufacture and to move ahead with our plans and already around 820 million treatments and which have the ability to go higher.

Or are the discussions that youre, having materialize all.

In terms of also via business development I just want to.

Emphasize that because I'm getting a lot discretion on the Sars.

We are agnostic to size, where we our bias at this.

Ill.

In order to justify the premium we will have to do significant cost synergies. This is not these are could be very profitable deals for other let's say periods of the history of the company not Mount right now the companies having their manufacturing machine whether it is performing.

At its best and R&D machine, but it's performing at its best a commercial machine, but keeps being the leader in the industry in terms of their ability to execute and deliver so the last thing I want to do it is to do a deal but in order to justify the premium to the shareholders of the other company, we will have to shut down.

Manufacturing sites and to consolidate research sites and consolidates reinforces showboat, who can justify.

So it gives you an idea of a question of just this is not the time to disrupt the momentum of the company. This is the time to bring into this manufacturing machine. The research the machine the commercial machine more substrate in additional to what we produce organically ourselves ambitious wire the business development is aiming English areas. So let's.

Go to the next one.

Your next question comes from Mohit Bansal from Wells Fargo.

Great. Thanks, Thanks for taking my question.

Maybe one on the backlog. So there have been some news reports talking about logistical can access tissue, so slowly and I understand their supply tight for now but would love to get your thoughts on how you are working on the launch of an improving the logistics and the supply is no longer an issue, especially Nevada their home testing will become a norm.

One needs to take this drug within five years of diagnostic thank you.

I'm going to say look you have a logistical issue of supply, but the Angela would you like to take that please.

Sure.

First of all you know again, I'll add deliveries and Ala and allocations for the telcos have gone extremely well and anyway and just to give you some context and 265000 doses have been allocated by the U F Canon, Inc. And Dan you can see E rate was approved.

And off that 265, 85% of all data is had been ordered Salon and you know we see a range of ordering patents from the state and state or in 100% of the allocation other not 80, 70% zone and so forth.

Really only a handful that haven't really audit update allocation, but I would temper that north park and the weekly orders are going up and increasing week by week and they had a very strong placement of orders I would say that the draw down right up there at the doses and the utilization is going really well and again it differs by state.

Like the allocation dine, how that fab and how that's going and then as Albert said I don't know that we have and logistical knight logistical issues I think initially and what was difficult with that and it was not clear where that Delta is we're being located because every state has a different system for where tier one.

One we had to actually distribute Pac slowed it down and that there are number of tools now that have gone up online both and at the at the state level as well as in final website, we've taken the state governmental and locked and loaded it on our website.

Both HCP and patients can see web Pacs love it has been and.

Where it's available and where the orders as well as prescription can be played go on I think in that regard and now that all being ironed out I think looking forward into the future I mean, clearly and having a seamless set of end to end from diagnosis in a positive result to then being able to and can prescribe quickly and having to pay.

And be able to acquire the trial quickly is on is our goal and I think on all of those fans who are working and you know with a number of partners. Both on the testing in a diagnostics perspective, but also from a telemedicine perspective and from a policy perspective to ensure that we have as fast and efficient.

A young and I can say you know a patient journey back on diagnosis <unk> treatment.

And all of that is in place and then and Daniel here Mark you'll continue to hear more about that as Dan as the launch and as the utilization increases.

So again, two to punctuate and give it a little bit of context to what Angela said, the 85% that each was already been order from the quantities that we are making available to our government is a very very high number for example, the same number in the first month for vaccines, if you remember well if you're.

Remember from from Buckeye was dramatically lower than that because it takes time for the states to get their act together and it is really variable on a state by state some of our states right now, but once the quantities are made to them available they are ordering immediately.

And there are states that takes their time until they get their act together before the distribution in general way way way more efficient than what used to be the first muscles of the vaccine and also what is extremely important when it is that every week very constant replenishment, which although we do not have right now data for our scripts because it's too early.

What we do have a piece of it.

The quantities that the states are accumulating they're disappearing and then immediately they are placing orders so I would say.

We have let's say, we are pretty happy with the way the first months of collaboration with the U S. Government work in terms of allocating doses and there is dramatic I'll also improvement in the tools as Angela described but the bigger improvement will come from the fact that the second month, we'll make available way more quantities from that Fairmount way more quant.

It is because of the issues right now for people trying to find it. It is what it is in a few places in the state because you can't expand.

The network of places that it is a valuable when you have smaller quantity so that will be very very different in the smartphone.

Basically all over the place I think in the FERC malware significant quantities will be delivered.

Okay, I think Oh, let's go to the next question.

Your next question is from Evan <unk> from BMO capital markets.

Hi, guys. Thank you so much for taking my question I was wondering if you could provide an update on the FTC review process for the arena deal I'm not mistaken there was a recent procedural move where you an arena withdrew the with jewelry filed the HSR Act filing essentially to allow the FTP an additional 30 days for a review and then it also luxury to walk me through your assumptions on how you forecast.

13 billion in revenue per BD transactions that would imply do you have specific targets in a combination of targets in mind any color here that you could provide would be very helpful. Thank you.

Yeah. Thank you very much.

And the last one just to make sure what though this is not our assumption our assumption is way higher over 13 billion.

What are you just gave you. It is what is the consensus of the deals that we have a signed so far but on the FTC review I would like to ask Dr.

Doug to provide much maybe a better view on what Doug longer Bennett, our general counsel.

Yes.

As you pointed out.

We dig fast to re file which is not.

Unusual.

Under under.

It's the DLA is of course subject to customary closing conditions.

And typical antitrust clearance and share.

Shareholder approval, which you as you know we've received we don't expect a significant break in time from our our proposed sense that the deal will close in the first half.

This year, we still expect it to close in the first half.

This year.

Thank you and our Miro very I.

I did explain that this is consensus numbers are not our numbers you want to make any other comment on the 13 billion of 'twenty therapy revenues or what consensus forecast for the auto care side.

Yeah. The only thing I would add is we feel very good about the progression of all of the substrate and the deal since 2019 that Albert outlined we've seen a significant number of approvals in the U as in that group submissions as well as quite a few phase III starts. So we think that back substrate is progressing well and a 13 billion is the consensus.

Our expectations of what there are are materially higher and there are a number of transactions, we spoke to trillium by a haven and even some of the recent things that we've done an mrna that are not yet factored in the consensus forecast on those transactions.

Thank you next question please.

Next question comes from Omar Saad from Evercore ISI.

Hi, guys. Thanks, so much for taking my questions, perhaps too on vaccines today, if I may.

First on <unk>.

On the flu vaccine I know you've had a trial ongoing on your Mod Arnie since September and I noticed you just initiated a new trial of a self amplifying mrna for flu and I Wonder if the decision to progress a second mrna program and flu was triggered by any emerging data from your first Gen flu phase one that's been ongoing.

And then secondly on the conspecific booster, perhaps in light of some of the emerging data on immunogenicity differences or lack thereof versus regular COVID-19 vaccine I guess my question is what's your confidence on our ability to show superiority of genomic around specific booster versus regular and what would be the regulatory criteria. Thank you.

Thank you. Thank you very much I think Michael can can beg. The question on the flu vaccine just to make sure I clarify the plan was always to initiate NSA mrna for flu and around the two programs in parallel networks. We showed data that forced us to do is saying that it was always the block we are advancing new forms of mrna technology in SA.

It is one of the most promising next generation of our RNA technology.

But the Michael any comments on vodka and going beyond the growth specific.

Our comprehensive or superiority.

Okay.

Yes, we are accumulating first of all from our modem RNA data trial.

Data on various regimens.

And on the.

Multivalent construct.

We remain.

Of the view that we aspire to develop a flu vaccine.

Currently the most aggressive timelines all focused on the modem on a.

Our plans is to develop something that have differentiation versus the current.

Charter Valens standard of care I know other companies have spoken about being similar while at this moment, we still see opportunities to possibly differentiate.

With an mrna based on modest mrna as Albert alluded to we are actually filing our NDA for the self amplified I think the protocol and they have gone up already own team try look god, but dosing is going to be within the next couple of months or so and.

It's entirely based on us aiming to develop that platform, which has particular relevance for combinations vaccine.

Given that possibly we expect to have much lower mrna burden and Ken over time build.

Vaccine combination of several different pathogen, we'll keep you updated on progress with the modern Marino flu and we certainly see data that suggests that this is a feasible path and we are working to refine our approach to aim for a differentiated vaccine.

Right about how confident we are about the superiority.

Yes, the regulatory path is that we expect to.

Heather it's successful and Omnicom boost would show higher neutralizing antibodies for omicron versus a similar boost by the wild type vaccine and acceptable titers too.

The other previously available strains.

To provide.

Preserve broad protection, but possibly with higher omicron.

I really think we should let the science play out here. We are talking about you know number of weeks before we get data and as I alluded to it a three different dorms.

On top of a three doses.

OMA Congresses.

A wild type or that was on top of three previous doses on top of the two previous vaccine doses, one or two omicron that will be very interesting data set and then omar cone or naive.

So I think it's a really interesting trial and will extract a lot of data and we'll report where do we can get that superiority it but in any case somebody else wanted to punctuate that our current vaccine.

<unk> active after three doses and raise relevant neutralizing antibodies and the T cell responses that we see are likely to one that contribute in real world evidence to provide.

Effective protection of the current vaccine against hospitalization and deaths on the Con vaccine is an interesting opportunity that we'll learn more about but our sciences progressing against several dimensions on how to further improve over time emana vaccines, although theyre all pretty good one.

So you should expect Pfizer to continue to be a leader in these fields through multiple approaches together with biotech.

Thank you Michael next.

Next question please.

Your next question comes from Louise Chen from Cantor.

Hi, Thanks for taking my questions. So my first question for you is what are the key pushes and pulls to your underlying business, excluding COVID-19 and what gives you confidence that you can still meet that top line sales guidance that you gave through 2025. Despite some of the volatility that we're seeing right now and then just wanted to ask you on your <unk>.

Chiao, one a <unk> antibody and where you are with development of that product and the reporting of data have you changed any of the timelines for when you were part data. Thank you.

Great. Thank you very much on the six is on the 6% what gives us confidence is that we are we keep meeting where the goal as I said without the we said the Golar 19 for a 6% all the way at CAGR and then we had the year to date, we are at a 6% right now.

They the year, particularly is it five or the underlying business, but.

But the there is a little bit of a volatility throughout all wish we knew that this will be a year or two we are losing some of the revenues of our transaction there compared to previous year, which affects required significantly service deal with them. As we are launching new products that are coming up maybe I will ask Angela to give a little bit.

More details on the AR on the inputs and the how.

How they serve you should progressing industrial Michael on the.

The antibody question Angela.

Thank you Louise and you know I think the 6% confidence is really driven by two things and first of all our launches right that will take place between now and 2025, which will continue to drive growth but.

But also importantly in our in line portfolio Louise every single one of our products you will have opportunities to grow.

They can grow from a number of different ways right, Eric Underdiagnosed and patients sell land from new diagnosis, you can continue to drive a tremendous amount of broken eloquent and then decal and in many of our products. We still have class growth. When you think about you know the CDK four sector think about it and do you think.

The vast <unk>. These are all and therapy that our scale I think under utilized from a class perspective that there's growth there and then finally, if all of them. There's the opportunity to grow internment market share just given the strong clinical profile and strong lifecycle support that we have on that product. So I.

Thank you now we see tremendous economical scale, we just have not capped out of growth in our core inline brands and then you add on top of that the launch brand. This is where we're going to get our growth plan.

Okay.

My umbrella on the tier one a as you remember the previous earnings call. We showed some really strong data in the range of 34% endoscopic improvement and with a biomarker for the 8%.

In patients were way above expected standard of care.

Fire has enrolled very fast it's fully enrolled.

Full trial readout will be Q poor, we are obviously considering based on the encouraging data in the previous trialed or opportunity for interim analyses that are pending data could allow us to accelerate development of the program towards potential pivotal study so all in.

It's moving very well in their class.

Thank you next question please.

Yeah.

Your next question comes from Steve Scala from Cowen.

Thank you very much just to be absolutely clear I understand that Pfizer once to be conservative on Pax loaded, but it seems that Pfizer has merely scratched the surface on its 2022 potential and that scratching of the surface is what's in 2022 packs low with guidance. So please.

Just tell me if you disagree with that statement secondly.

And just to be clear once again do you not see growth for Pfizer overall, and 25 through 30 without business development.

And then lastly on Daniel Glib, Pran Slide 39 shows some very good data.

I'm curious what was the discontinuation rate in this study.

Can the dose be increase further.

And despite her expect additional weight loss beyond 12 weeks. Thank you very much.

Yes.

So let me take the first question was on the micro can take the.

Or a research one.

It's not that we are giving conservative guidance, what we do we have principles that we follow because otherwise you can be launched and the principal look we are following it is that we are only giving guidance for conduct that have been signed or they are very close to be sign because we have a grid critical terms probably.

Right.

So this is why do you prefer about exploring clear.

Clearly this is only a very small fraction of the 120 million treatments.

But we are right now preparing to manufacture.

And it is a small fraction of things that we are discussing.

Discussing right now.

With different governments, but we are not banking for example, and a broad so if we take all of the discussions that we're having with the different governments, we risk adjust for them to see how many things can go part through and then we give a guidance. This is not what we do we are in the game and this is the same with a vaccine things.

<unk> been signed or are already agreed by the time.

In a specific deadline and I think Frank said it was the last week I think vis vis vis the deadline. So clearly there is a lot of potential but it is not that we are putting a little bit of all of our own concern about gives me. The numbers. We are following appreciable show that we can always be clear with what we say and why.

I would say so about some of the.

And then what about the study dose.

And at the end of 12 weeks delay Michael.

On the download Lupron.

I'm pleased that you were happy and impressed with our data and indeed, I would say the glucose lowering through each day when C and aboard with docs are probably.

Or among the best in such a short treatment period.

Total ability and discontinuation rates improved versus previous study because we extended the dose titration from <unk>.

A week to two weeks and overall.

Safety adverse event.

I think are very much in line with what you see comps.

Comparable titration approaches with injectable given that we see that we can improve scalability and.

And these continuations.

This medium titration right. We have the next studies coming up will be a part of this low dose.

Titration, maybe up to a month or so and we think that may even bring readouts of the efficacy further above deals.

So we are very pleased with the profile and I think the next study will nail down for us.

Dose regimen and will help us to move with a strong profile.

Into a potential pivotal study.

Alright next question please.

Your next question comes from Tim Anderson from Wolfe Research.

Alright. Thank you a few questions. The RSV vaccine data previously said early 'twenty, two narrow, saying first half 'twenty two.

Does that imply there's been some slippage because early to me I always felt that meant you know January and February something like that.

<unk> flu second question Whats a realistic timeframe for a potential regulatory filing of a product like that assuming you find success in your trials.

And then last question I brands sell soft you say, it's due to patient assistant programs, we haven't seen that impact other CDK for sectors and I Havent generally heard about those programs impacting other brands either at Pfizer or other companies. So I'm wondering what else may be putting pressure on ibrutinib or you're having to cut.

Price to maintain access.

What was your question on furlough team.

Are there a realistic timeframe for filing for approval of the mrna flu vaccine.

So why don't we go my God, what about RSV.

If you can speak about both who have both now adult and maternal in them or the mrna and then Angela.

Forget about Iraq.

Yeah on the RSV, we have enrolled very well my terminal in adult and are basically.

I would say a fully enrolled so it's entirely to ensure we have the number of events that we were looking for and we expect.

Both trials to readout you know.

Whether it's.

Somewhere between.

Q1, Q2 or at the later part of Q2, we'll just see and as events accumulate but its gone very well, so I feel very optimistic with RSV.

Ah study to conclude and looking forward to that data.

Mrna of flu, we are right now accumulating.

Immunogenicity.

From several different type of dose regimens.

And if we are able to come.

Conclude with the optimal dose regimen using the modem RNA.

Potential phase II phase III study could certainly be initiated this year, but of course, it's a little bit early to speculate before you have identified the right space.

Two three dose regiment.

If we would.

And Balkan such a study.

This year, we expect it can conclude very fast even our experience to run.

Very large trials in this sector in this population of adults and.

So we're talking about.

Possible conclusion, then William.

Next year, but it's a I would say one step at a time, we'll keep you informed we are encouraged so far.

And we'll go from there.

Thank you Michael and then what about the umbrella on the eye brands.

I can confirm that the patient assistance program is indeed, the primary reason for the decline and in NAND in volume that you've seen on Iva and just to give you. Some perspective in Q4 of 2021, a pet prescriptions were up 30.

<unk>, 2% compared to where it was in Q4 of 2020 and all of this is 53% more than what it was pre COVID-19 and sell and this is really what it cost US you know a tremendous amount of paid.

Paid prescriptions and I can.

That's really the primary reason, we also and so on and throughout the year and this has been something that we've been watching quarter over quarter and slowdown in new patient start.

And Dan and we've seen that sort of phenomenon across multiple product in our portfolio now is a small contribution from that at that large the largest contribution by far is truly the phenomenon. We're seeing here in terms of pack.

Playing Gonzales before removed a restoration I realized that I didn't answer one of the questions that Steve made Steve Scala about if we believe that we.

We need business development to grow in the theater 25 to 30 and clearly this is not a we believe right now we think that we have a clear alloy number, but we estimate around 17 billion and we have a pipeline that delivers more than the alloys. So in only organically with RASM cover right now in <unk>.

Our our calculation, we had a positive growth trajectory. The 25 billion I, just mentioned needs to be on top of or everything.

The balance between the alloys and develop our light dust everything new that will be embedded into them in time and of course, the COVID-19 trajectory through 2030, but we don't need right now business development at all to grow what remains business developer wish to maintain high level of 6% growth top line.

All the way to end the therapy for a job.

Let's go now to the next question please.

Your next question comes from Andrew Baum from Citi.

Thank you couple of questions.

First what are your expectations that you'll need two shots of omicron as opposed to one the reason I ask is recently published animal models suggest that one omicron mrna vaccine actually generates lower levels of neutralizing antibody against Omicron, then the ancestral spike.

Presumably G to antigenic sin.

He obviously has implications for both.

Revenues in terms of two shops, but also compliance and then second perhaps you could comment on the outlook for <unk> 47, and talk to the differences between your molecule and Gilead, which obviously has run into some safety issues with that trial suspensions. Many thanks.

Yes, I will take that first of all I'm very quickly withdraw but I can give time to michel to speak about.

The second one look we have to wait to see the results, but I don't think it is all mrna vaccines are the same so I don't think we should extrapolate preclinical data for one effort to what will be the clinic all let's say the results of the other effort. We are testing both one software testing to show.

We are testing pretty soon.

Our exchange, but everything what we have seen so far give us confidence.

But we will have a very strong reaction.

Immunogenicity of a nomogram against Omidria, but of course, that's based on preclinical we need to wait to see the first clinical.

Ida solve a visa assumption or it can be.

The validated.

Without Microwatt Dibaba Dahlia.

Yes, and by the way also Andrew you said was above your expectations. Our expectations are not based on one sort or discharge or five short artist records as I said it is conduct sign as for last week with Camila, who saw what world assign their own will be in addition.

So whatever we have given so far.

I call on the Giulia.

Yeah, the interest in our <unk>.

Product from Trillium was triggered by its unique design.

It is what we call.

Receptor fusion.

Blocker protein Qantas us too.

Mcgraw the Mab that you referred to that's on hold the Gilead antibody it bind with a lower affinity to the target and that was by Parker's to allow it particularly to accumulate on high expressing.

Cancer cells and less <unk>.

Accumulate on red blood cells to cause not to cause anemia, or hemolytic anemia, and indeed in our studies that have UN rated proof of concept. We have seen single agent activity in blood cancers, we basically negligible effect on the red blood cells. So this is.

Playing well out we don't know do not know why mogul above is on clinical hold but of course. This differentiation that we have in our molecule may be one example of why our molecule as we do so well this for a.

While we initially focus on lymphoid malignancies of the B cell type.

We think we also may become increasingly interested in to go to the myeloid space Roma broiler mammoths be in AML and Mds, particularly of our profile now may be superior and we're waiting readouts on such studies also so for us the Trillium deal is delayed.

Wearing on all what we expected and may actually have upside Youtube more unique profile.

Thank you Michael next question please.

Your next question comes from Chris Schott from J P. Morgan.

All right great. Thanks, so much for the questions maybe just to start with on on just some clarification around our guidance.

No youre not giving a lot of details around core versus corporate related related earnings. This year makes a lot of questions on that front, but if I just take the low end of your sales range at 45 billion apply a 40% margin tax adjust that I think I'm getting a number somewhere around $2.60 per share at the low end is there any issues with that math I'm doing.

I'm in the right ballpark there if I just want to get out of low end of core guidance for this year Mike.

My second question was on <unk> and you're referencing your typical small molecule I guess gross margins for this one just help us frame that a bit more.

I guess, it's something in the mid Eighty's, a reasonable level to think about for gross margins for this product or is it substantially higher or lower I'm trying to better understand profitability. As you maybe think about some of these contracts coming forward this year and maybe that tax a little bit number moving and then just a final one just to wrap up I'm still trying to get my hands around the BD side of the.

Business in kind of the approach I guess should we be thinking about a significantly different approach to business development for Pfizer today versus what the company was doing two or three years ago. Prior to the Covid upside or is this more just a continuation of I guess the focus and what you were looking at if we're thinking back to like 2019 as an example, thanks so much.

Yes, I'll take very quickly the third one number merrie frankel to take the first two questions and.

I wasn't sure if I would say it is a continuation but the width.

A more accelerated pace I don't think we're changing what we're saying since 2019, we are going into the science as Amin said, we are going into areas that we feel will make fewer mistakes in selecting the right targets. We will be more successful show, we will be able to meet at least the success rates of the industry. Our aim is to exceed them.

We're selecting assets, we prefer to go to areas that we can add value and there are significant areas that we can add value by becoming the preferred partner of several by biotech and also we have seen is on you said that the.

But some of the best deals because of that we're not the most capital intensive deals right. So there are so all of that.

We are learning we are not going to relax.

There's a decent window through or having a selective about who we are going to intensify a lot our activity in that area. Because of course, we we think that now is the time science is at the stage that we can find enough targets to be able to add value and create value. So that's on the BD side now Frank.

A lot of financial questions for margins guidance et cetera.

Sure So Chris on the walk through you did on on the I'll call. It the business, excluding commonality impacts loaded I would use the mid point on the revenue you used I think a 40% income before tax margin and then he got a tax effect that I didn't hear you say tax affected. So if you do the math you do the walk through in the new tax affected you know obviously.

We see you're dividing that by shares outstanding that will give you I think you know a number that's in the ballpark on on Pax Logan gross margin. Let me let me answer the question this way one that.

Because you know we don't give margin information by individual product right. It's something that you know for many reasons, we don't do it the way to think about it as one.

That the income before tax margin on that the margin profile is similar to US are other solid oral dose products and remember when you look at the gross margin is going to be S. I N. A investment impactful over this year, because we're launching that product as additional R&D investment product that year, because we're continuing obviously to evolve that product.

All of that obviously is captured in the income before tax margin on that business, which is similar to our other solid oral dose products.

It's all factored in our guidance to one place where you can really see the impact and hopefully. This is helpful. You look at our cost of sales as a percentage of revenue last year for the full year 37, 7%.

Look at our guidance this year of 32.2 to 34, 2% to midpoint is 33, 2% that's down at the midpoint four 5%.

Most of which is being driven by the tax law with revenue. This year. So maybe that's the way to help you in terms of just how to work the numbers.

Thank you Frank next question please.

Your next question comes from Chris Monte from Goldman Sachs.

Thank you very much two questions. One again just to make sure I understand clearly, they're thinking about what underpins the intermediate a growth expectation through 25 I believe when that was originally issued back in 2019 that did not assume contribution from business development to achieve.

That CAGR of 6% to 25 is that still the case that would be the first question and then the second question relates to tax love. It we have the standard risk study that you've modified expanding can you talk about what kind of result, we would need to see in order to.

Influenced the kinds of decisions and discussions that Angela is having with governments in particular, the primary endpoint, which just missed statistical significance on the alleviation of symptoms do you need to hit that or are the discussions been guided around the ability to meet the secondary endpoint, which was the decrease risk of hospitalized.

Patients with severe disease and that standard risk study. Thank you.

And maybe I can take both in the interest of time.

Time, I can confirm about the our guidance for 6% was excluding BD silver towards from 19, all the way to 25, 6% CAGR from the things that we had at that time.

As regards the the standard risk of primary endpoint I think most of the governments if not all they are focusing right now all of their purchases under the discussions that you're having on the ability to reduce course realization.

And by the way most of the MTA for example has already approved vaccinated and unvaccinated switches.

Included VAT means that includes also people that work in the in the foundries population because the cheiroscope relation where all unvaccinated. So.

Sure.

If we go.

And the restructuring will contribute but I think everybody is moving with your assumption that we'd give it to all people to prevent hospitalization. That's the main.

And that's that's the main.

I think that everybody's looking now the in house conduct if he severity of roundabout can say, it's very what's the landscape. There are no discussions around that right now, but if it comes positive clearly that could be used also in preventing infections and highest correlation as one family the household or the senior house or.

And in other let's say business in other let's say settings that people are living together.

One is getting affected but this is something that will come on top of any discussions that we're having right now if it is positive.

Let's go to the next question please.

Your next question comes from Neil Devine from <unk> Securities.

Hi, great. Thanks for taking my questions I guess I'll stick with the same theme around accelerating. This is the government is the first impacts of it just to make sure. We're all starting on the same page I guess can you comment on exactly how many doses.

Are included in the guidance that Youre, giving right now you mentioned will release, the $20 million to the U S. I think two points and Ikea U K and some other cause.

Contracts that had been trying to I mean, if you can give us a number or a range just to get a sense of kind of whats included right now and then.

Business development I, just thought one thing it's sort of interesting when.

When you're talking about slide 13, Albert you mentioned the strength of your balance sheet and cash flows allow you to pursue new BD opportunities going forward that could add at least 25 billion of risk adjusted revenues with 2030 and I'm just curious at 25 billion.

Number I'm wondering about as you go to this in your prepared.

Remarks, so I'm sure well thought out so I'm, just curious what sort of growth in the club.

Much smaller than probably a lot bigger depending on what you do but over the next few years. So maybe you can give some clarity on why are you worried that the way you did thank you.

Why we selected twenty-five to speak about 25, you mean.

Yeah, the thing at least $25 million adjusted.

Okay.

Frank would you like to take the parks chloride.

And the doses.

Of course silver meal on on the tax law with Guy to surety Angela mentioned before.

Where are you now and we're very active right now 100, plus negotiations with the different governments, we don't want to put any information out there that could I'll call. It lead to misleading assumptions and those assumptions being detrimental to two arm to those contract negotiations, but now you mentioned a couple of contracts that had been announced.

Publicly and where the dose information was included he mentioned in the U S $20 million of UK to $75 million. If you look at everything we've announced publicly give or take it's around 30 about 30 million treatments and so that 30 million treatments is clearly included in the guidance that we provided and the 22 billion of revenue.

Thank you Amir are why we selected twenty-five billions.

Sure.

A couple of thoughts one we obviously between the strength of our balance sheet and the cash flows we have.

The ability to deploy significant capital and going beyond our growing dividend, we think that those cash flows deployed into business development are going to give us an attractive return. So that's one piece of it. The second is we think that this is frankly, a great time for scientific advancement in our industry.

As you look across academia venture biotech big small there's no shortage of external substrate that we think can complement what we're doing internally and we're going to be thoughtful and disciplined about the science that that we that we want to pursue and the combination of those two things combined with the capabilities that we have we think that there is significant.

Both that we can add to our business through business development going forward.

Yeah.

So it is a very important also to understand revenue that.

We believe that once you put a target you better extra good way better when you have a target in front of you and actually believe that the target is to Republic, because we're a public company and we don't have a problem to do it. So also we went into to analyze the substrate and the opportunity and as always we are providing at least 25.

Because there's always we like to have targets that we're putting out there and we're bidding them, but we believe that the wafer recurrent our all our analytics that we have done this is a very reasonable target to achieve.

With our glittery utilizing all of our cash for all of our firepower right now so that will allow us to do dividend and other users of capital and still doable and we are confident to put it out there. So that people can start measuring it against it. Thank you very much next question.

Your next question comes from Kerry wholesale holford from bearing Barrick.

Thank you.

Actually just only oral G P y.

And I Wonder if you can send the nameplate shows today your.

Your views.

In your phase <unk> study.

200 <unk>.

Thanks.

And Whatsapp so buried in the highest case.

So when a D C.

Okay, but do you have just stays to H <unk>.

Michelle.

And I think Jamie.

Thanks.

So you need to know that.

G O P. One molecule into the clinic.

Okay.

Okay.

Hum.

Sure.

And then lastly, just on the guidance and thinking about your $4 billion.

The range.

Guidance.

Given you've given us a point estimate that within about four and vaccines.

Should I assume the majority of the slacks.

Remaining relates to the base business and shale.

Understand the key moving parts for them.

Switch drugs maybe.

Netflix thank you.

No I'm talking about let me take very quickly in the interest of time, there last one no the flagship flavor around everything. So you should assume for example in the 31 or four in the therapy that we gave for a therapy for it right on the on the on the vaccines were 500.

500 downloads a billion on the Maxwell with 500 of our 100, that's another billion and then on the business as always we gave a billion oven down so whatever your fingers them at point 1 billion up one bigger up which is consistent with what we were doing all of these years for that level of business and the Ah.

Michael on the Oreo.

Yes, do you want done done a glib zone is.

B I D a drug.

The pill burden will be relatively low.

You also asked for the additional the blip one drug we're having clinical develop them that's a once a day drug.

As we have now I think really defined or what will be soon optimal titration for an oral <unk> one.

And we were you know of course pioneering that there isn't really a date on it.

We may actually consider to take the.

For the once daily in the same study is done a blip rone given that we have now this unique opportunity to book through what seems to be too great dogs, but currently I believe done a blip Ron has all what it takes to.

Go forward to a potential pivotal study based on this.

Study that we shared with you.

But it's of course, a unique situations that have more than one molecule.

And it gives us the very best option for us going into phase three year quite rapidly after concluding that phase to be pending of course expected outcome. Thank.

Thank you Michael and the last question. Please.

Your final question comes from the line of Carter Gould from Barclays.

Good morning, Thanks for taking the question I'll keep it to 1% towards the end.

And at the risk of not getting an answer on an O U S pricing for pack slow, but I understand the underlying aspects driving sort of your pricing strategy.

And GDP and volume based discount but and.

In practice.

How consistent has the pricing been across geographies any color at a high level would be helpful and as we think about potentially the standard risk stated profit data kind of playing out over the course of the year should we anticipate that pricing will be relatively consistent per course in the second half relative to the first half any color there would be helpful. Thank you and our pricing and for Baxter.

It is a tier pricing. So there is a tier four high income countries.

And the advantage more or less in line with what you have seen published for merits for example product protection provinces ourselves and the only exception was whether you ever they got a very special apprised because of higher higher orders, but.

The rest of them are more or less consistent and then there's of course.

Second tier for our middle income countries and for the lower income countries. We are going to provide it at cost but also for the low income ground. As an addition to our own providing of course of course, we have also initiated the process.

A very big number of generic.

Competition will start manufacturing for the low income countries, which will be 53% of the global population not even the prize will remain consistent and clear which is mapping through to comment here, we will not or let's say, commenting on how prices may or may not evolve in the future.

Thank you very much now for some closing comments very quickly we have generated strong results of course, we're both patient impact and financial performance and we look forward to continue to evolve in 2022.

I wanted to speak a little bit about a few changes and people are gradually.

Speaking about that we continue to attract visionary purpose driven leaders with a track record of delivering breakthrough results for patients.

Asian point last week, we announced that our Doctor William Powell will joined Pfizer as executive Vice President Chief Development Officer.

March 21st of all this year, Dr. Paul brings more than 25 years of experience as an oncologist and scientist she joins us from Roche, where he most recently served as the head of pharma research and early development. He oversaw the discovery and early development of our portfolio of new molecular entities to treat diseases related to concert.

We're a science ophthalmology rare diseases and don't go on and on and not of course concert is a very big part of his alts portfolio.

Clearly I want to mention the dogs are Paul succeed Rod Mckenzie legendary metering, Pfizer, who recently announced his intent to retire after 35 years of Pfizer I want to thank Rob Key's incredible contribution from Pfizer, including the outstanding leadership in helping bring com will not be impacted globally to the world.

Chocolate.

Of course also I wanted to touch base on something that everybody has in mind I want to take a moment to recognize my trusted colleague and friend Frank Dominion Walter has announced his intention to retire from Pfizer after an incredibly impactful decade at the half with a company as CFO .

Frankly, as one of the smartest more respected than most.

<unk> leaders I have ever heard the good fortunate to work with and the positive impact he has had on Pfizer.

All in all.

Or all stakeholders is immeasurable.

Isn't going anywhere yet just to clarify.

Sure.

Agreed to stay on board and as we search for his successor.

And also to serve in a consulting role through the transition.

I wanted to take the opportunity to thank them publicly for all because some men to Pfizer and to me personally and Frank on behalf of our 80000 colleagues around the World I wish you. Good health every happiness is you'll begin and you have to stop there when we spun cramps, because theres not yet.

Wherever lives journey takes you I'm sure it will be directional correct.

That will bring and then through our call. Thank you for joining us have a great rest of your day.

Ladies and gentlemen, this does conclude.

Fourth quarter 2021 earnings Conference call you May now all disconnect.

[music].