Q1 2024 Pfizer Inc Earnings Call

May 1, 2024

Operator: Good day, everyone, and welcome to Pfizer's first quarter 2024 earnings conference call. Today's call is being recorded. At this time, I would like to turn the call over to Francesca DeMartino, Chief Investor Relations Officer and Senior Vice President. Please go ahead, ma'am.

Operator: Good day, everyone, and welcome to Pfizer's First Quarter 2024 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Francesca DeMartino, Chief Investor Relations Officer and Senior Vice President. Please go ahead, ma'am.

Operator: Good day, everyone and welcome to the Pfizer's 1st Quarter 2024 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Francesca DeMartino, Chief Investor Relations Officer and Senior Vice President. Please go ahead, ma'am.

Good day, everyone and welcome to Pfizer's first quarter 'twenty 'twenty four earnings conference call. Today's call is being recorded at this time I would like to turn the call over to Francesca Demartino, Chief Investor Relations Officer, and senior Vice President.

Francesca Demartino: Please go ahead ma'am.

Francesca DeMartino: Good morning and welcome to Pfizer's earnings call. I'm Francesca DeMartino, Chief Investor Relations Officer. On behalf of the Pfizer team, thank you for joining us. This call is being made available via audio webcast at pfizer.com. Earlier this morning, we released our results for the first quarter of 2024 via a press release that is available on our website at pfizer.com. I'm joined today by Dr. Albert Bourla, our Chairman and CEO, and Dave Denton, our CFO. Albert and Dave have some prepared remarks, and we will then open the call for questions. Joining for the Q&A session, we also have Dr. Chris Boshoff, EVP and Chief Oncology Officer; Alexandre de Germay, EVP and Chief International Commercial Officer; Dr. Michael Dolsten, Chief Scientific Officer and President of R&D; Doug Lankler, EVP and General Counsel; and Aamir Malik, EVP and Chief U.S. Commercial Officer.

Francesca DeMartino: Good morning and welcome to Pfizer's Earnings Call. I'm Francesca DeMartino, Chief Investor Relations Officer. On behalf of the Pfizer team, thank you for joining us. This call is being made available via audio webcast at pfizer.com. Earlier this morning, we released our results for the first quarter of 2024 via a press release that is available on our website at pfizer.com. I'm joined today by Dr. Albert Bourla, our Chairman and CEO, and Dave Denton, our CFO. Albert and Dave have some prepared remarks, and we will then open the call for questions. Joining for the Q&A session, we also have Dr. Chris Boshoff, EVP and Chief Oncology Officer; Alexandre de Germay, EVP and Chief International Commercial Officer; Dr. Mikael Dolsten, Chief Scientific Officer and President of R&D; Doug Lankler, EVP and General Counsel; and AAamir Malik, EVP and Chief US Commercial Officer.

Francesca Demartino: Good morning and welcome to Pfizer's Earnings Call. I'm Francesca DeMartino, Chief Investor Relations Officer. On behalf of the Pfizer team, thank you for joining us. This call is being made available via audio webcast at Pfizer.com. Earlier this morning, we released our results for the 1st quarter of 2024 via a press release that is available on our website at Pfizer.com. I'm joined today by Dr. Albert Bourla, our Chairman and CEO and Dave Denton, our CFO. Albert and Dave have some prepared remarks, and we will then open the call for questions. Joining for the Q&A session, we also have Dr. Chris Boshoff, EVP and Chief Oncology Officer, Alexandre Germay, EVP and Chief International Commercial Officer, Dr. Michael Dolsten, Chief Scientific Officer and President of R&D, Doug Lankler, EVP and General Counsel, and Aamir Malik, EVP and Chief U.S. Commercial Officer. Before we get started, I want to remind you that we will be making forward-looking statements and discussing certain non-GAAP financial measures.

Francesca Demartino: Good morning, and welcome to Pfizer's earnings call and French SVP Marciano, Chief Investor Relations Officer.

Francesca Demartino: Albert and Dave have some prepared remarks, and we will then open the call for questions. Joining for the Q&A session, we also have Dr. Chris Boshoff, EVP and Chief Oncology Officer, Alexandre Germay, EVP and Chief International Commercial Officer, Dr. Michael Dolsten, Chief Scientific Officer and President of R&D, Doug Lankler, EVP and General Counsel, and Aamir Malik, EVP and Chief U.S. Commercial Officer. Before we get started, I want to remind you that we will be making forward-looking statements and discussing certain non-GAAP financial measures.

Speaker Change: Behalf with the Pfizer team. Thank you for joining US this call is being made available via audio webcast at Pfizer.

Speaker Change: Earlier. This morning, we released our results for the first quarter of 'twenty 'twenty four via a press release that is available on our website at Pfizer Dot com.

Speaker Change: I'm joined today by Dr. Albert boiler, our chairman and CEO and Dave Denton our CFO.

I'm joined today by Dr. Albert Bourla, our Chairman and CEO and Dave Denton, our CFO. Albert and Dave have some prepared remarks and we will then open the Call for questions. Joining for the Q&A session, we also have Dr. Chris Boshoff, EVP and Chief Oncology Officer; Alexandre de Germay, EVP and Chief International Commercial Officer; Dr. Mikael Dolsten, Chief Scientific Officer and President of R&D; Doug Lankler, EVP and General Counsel and Aamir Malik, EVP and Chief U.S. Commercial Officer. Before we get started, I want to remind you that we will be making forward-looking statements and discussing certain non-GAAP financial measures.

Speaker Change: And Dave have some prepared remarks, and we will then open the call for questions joining for the Q&A session. We also have Doctor Crystal ball shop, EVP and Chief Oncology Officer, Alexander is your mate EVP and Chief International Commercial Officer, Dr. Michael Goldstein, Our Chief Scientific officer, and President of R&D.

Doug link learn EVP, and general counsel, and a mere Malik EVP and Chief commercial officer.

Francesca DeMartino: Before we get started, I want to remind you that we will be making forward-looking statements and discussing certain non-GAAP financial measures. I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning, and our disclosures in our SEC filings, which are all available on the IR website on pfizer.com. Forward-looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date, and we undertake no obligation to update or revise any of the statements. With that, I will turn the call over to Albert.

Before we get started, I want to remind you that we will be making forward-looking statements and discussing certain non-GAAP financial measures. I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning, and our disclosures in our SEC filings, which are all available on the IR website on pfizer.com. Forward-looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date, and we undertake no obligation to update or revise any of the statements. With that, I will turn the call over to Albert.

Speaker Change: Before we get started I want to remind you that we will be making forward looking statements and discussing certain non-GAAP financial measures I encourage you to read the disclaimers in our slide presentation. The press release, we issued this morning, and our disclosures in our SEC filings, which are all available on the IR website on Pfizer.

Before we get started, I want to remind you that we will be making forward-looking statements and discussing certain non-GAAP financial measures. I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning and our disclosures in our SEC filings, which are all available on the IR website on Pfizer.com. Forward-looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date and we undertake no obligation to update or revise any of the statements.

Francesca Demartino: I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning, and our disclosures in our SEC filings, which are all available on the IR website on Pfizer.com. Forward-looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date, and we undertake no obligation to update or revise any of the statements. With that, I will turn the call over to Albert. Thank you, Francesca. Good morning, everyone.

I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning, and our disclosures in our SEC filings, which are all available on the IR website on Pfizer.com. Forward-looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date, and we undertake no obligation to update or revise any of the statements.

Speaker Change: Forward looking statements on this call are subject to substantial risks and uncertainties and speak only as of the calls original date and we undertake no obligation to update or revise any of these statements with that I will turn the call over to Albert.

Albert Bourla: Thank you, Francesca. Good morning, everyone. Thank you for joining our call. In the first quarter, we had a solid start to the year, and we are cautiously optimistic about what we will achieve in 2024. I'm pleased and appreciative of how our Pfizer colleagues are executing with discipline as they focus on the patients and others we serve. This helped us deliver a strong performance during the quarter in our non-COVID product portfolio, drive progress towards our oncology leadership, advance our pipeline, and continue to strengthen our business. Today, we'll discuss highlights from the quarter and provide updates about how we are continuing to make progress with the five strategic priorities we shared with you at the start of the year. We are proud of the positive impact we achieved around the world with our deep capabilities and global scale.

Albert Bourla: Thank you Francesca was wondering again, everyone. Thank you for joining our call in the first quarter, we had a solid start to the year and we are cautiously optimistic about what we will see.

With that, I will turn the call over to Albert. Thank you, Francesca. Good morning, everyone.

With that, I will turn the call over to Albert.

Albert Bourla: Thank you, Francesca. Good morning, everyone. Thank you for joining our call.

Albert Bourla: Thank you for joining our call. In the first quarter, we had a solid start to the year, and we are cautiously optimistic about what we will achieve in 2020. I'm pleased and appreciate... How our Pfizer colleagues are executing with discipline as they focus on the patients and others we serve. This helped us deliver a strong performance during the quarter in our non-COVID product portfolio, drive progress towards our oncology leadership, advance our pipeline, and continue to strengthen our business.

Thank you for joining our call.

In the 1st quarter, we had a solid start to the year and we are cautiously optimistic about what we will achieve in 2024. I'm pleased and appreciative, how our Pfizer colleagues are executing with discipline as they focus on the patients and others we serve. This helped us deliver a strong performance during the quarter in our non-COVID product portfolio, drive progress towards our oncology leadership, advance our pipeline and continue to strengthen our business.

Albert: I'm pleased to push it.

Albert: Our Pfizer colleagues executing with discipline as they focus on the patients and others we serve.

Albert: This helped us deliver strong performance during the quarter in our non coffee product portfolio right progress towards all of them Cordless leadership.

Albert: Our pipeline and continue to strengthen our business.

Albert Bourla: Today, we will discuss highlights from the quarter and provide updates about how we are continuing to make progress with the five strategic priorities we shared with you at the start of the year. We are proud of the positive impact we achieved around the world with our deep capabilities and global scale. Through the first three months of the year, we reached more than 119 million patients with our medicines and vaccines. We will continue to build on Pfizer's 175-year history of driving medical and pharmaceutical breakthroughs, as we maximize the opportunities in front of us. Our confidence in the year ahead comes from our focus on executing the strategic priorities that we believe will deliver operational, commercial and financial success across our business. The priorities are: achieve world-class oncology leaders, deliver the next wave of pipeline innovation, maximize performance of our new products, expend margins by realigning our cost base and allocate capital to enhance shareholder value.

Today, we will discuss highlights from the quarter and provide updates about how we are continuing to make progress with the five strategic priorities we shared with you at the start of the year. We are proud of the positive impact we achieved around the world with our deep capabilities and global scale. Through the first three months of the year, we reached more than 119 million patients with our medicines and vaccines. We will continue to build on Pfizer's 175-year history of driving medical and pharmaceutical breakthroughs, as we maximize the opportunities in front of us.

Albert: Today, we'll discuss highlights from the quarter then provide updates about how we are continuing to make progress with the five strategic priorities. We set this.

Speaker Change: Thank you.

Speaker Change: We are proud of the positive impact we see around the globe with our deep capabilities and global scale.

Albert Bourla: Through the first three months of the year, we reached more than 119 million patients with our medicines and vaccines. We will continue to build on Pfizer's 175-year history of driving medical and pharmaceutical breakthroughs as we maximize the opportunities in front of us. Our confidence in the year ahead comes from our focus on executing the strategic priorities that we believe will deliver operational, commercial, and financial success across our business. The priorities are: achieve world-class oncology leadership, deliver the next wave of pipeline innovation, maximize performance of our new products, expand margins by realigning our cost base, and allocate capital to enhance shareholder value. In the first quarter, we made notable progress with each one, and I will share some highlights.

Through the first three months of the year, we reached more than 119 million patients with our medicines and vaccines. We will continue to build on Pfizer's 175-year history of driving medical and pharmaceutical breakthroughs as we maximize the opportunities in front of us. Our confidence in the year ahead comes from our focus on executing the strategic priorities that we believe will deliver operational, commercial, and financial success across our business. The priorities are: achieve world-class oncology leadership, deliver the next wave of pipeline innovation, maximize performance of our new products, expand margins by realigning our cost base, and allocate capital to enhance shareholder value. In the first quarter, we made notable progress with each one, and I will share some highlights.

Speaker Change: Through the first three months of the year, we reached more than 119 million patients without medicines and vaccines.

Albert Bourla: We will continue to build on Pfizer's 175-year history of driving medical and pharmaceutical breakthroughs as we maximize the opportunities in front of us. Our confidence in the year ahead comes from our focus on executing the strategic priorities that we believe will deliver operational, commercial, and financial success across our board. The priorities are, World Class Oncology Leaders deliver the next wave of pipeline innovation. Maximize performance of our new product. Spend margins by realigning our costs, and Allocate Capital to Enhance the Holder Value.

Speaker Change: We will continue to build on Pfizer under 75 year history.

Speaker Change: <unk> medical and pharmaceutical breakthroughs as we maximize the opportunities before them.

Speaker Change: Our confidence in the year comes from our focus on executing our strategic priorities.

Our confidence in the year ahead comes from our focus on executing the strategic priorities that we believe will deliver operational, commercial and financial success across our business. The priorities are: achieve world-class oncology leadership, deliver the next wave of pipeline innovation, maximize performance of our new products, expend margins by realigning our cost base and allocate capital to enhance shareholder value.

Speaker Change: Personal commercial and financial success across our business.

Speaker Change: The priorities are.

Speaker Change: C one plus oncology leaders.

Speaker Change: And we worked that next wave of pipeline English.

Speaker Change: Maximize performance of our new products.

Speaker Change: Expand margins by realigning our cost base.

Speaker Change: And allocate capital to enhance shareholder value.

Albert Bourla: In the first quarter, we made notable progress with each one and I will share some highlights. Many of you joined us in our Oncology Innovation Day in February and I hope you found it to be a valuable opportunity, to see how we are well-positioned to achieve world-class oncology leadership. We are pleased with the excellence we have been able to achieve in both integration and commercial execution. With a strong mix of Pfizer and Seagen colleagues in the newly combined team, we believe we have one of the most experienced and talented groups of oncology leaders in the industry.

Speaker Change: In the first quarter, we made notable progress with each one and I will share some highlights.

Albert Bourla: Many of you joined us in our Oncology Innovation Day in February, and I hope you found it to be a valuable opportunity to see how we are well-positioned to achieve world-class oncology leaders. We are pleased with the excellence we have been able to achieve in both integration and commercial execution. With a strong mix of Pfizer and Seagen colleagues in the newly combined team, we believe we have one of the most experienced and talented groups of oncology leaders in the industry. We are also already seeing the benefit of strong commercial execution with our newly cross-trained sales and field medical teams.

Many of you joined us in our Oncology Innovation Day in February, and I hope you found it to be a valuable opportunity to see how we are well-positioned to achieve world-class oncology leaders. We are pleased with the excellence we have been able to achieve in both integration and commercial execution. With a strong mix of Pfizer and Seagen colleagues in the newly combined team, we believe we have one of the most experienced and talented groups of oncology leaders in the industry. We are also already seeing the benefit of strong commercial execution with our newly cross-trained sales and field medical teams.

Speaker Change: Many of them joined us in our oncology innovation day in February and I Hope you found it to be a valuable opportunity to see how we are well positioned to achieve world class oncology leaders.

Speaker Change: We are pleased with the excellent you could be able to lets evening, both integration and commercial execution.

Speaker Change: With a strong mix of fire season and colleagues in the newly combined team.

Speaker Change: We believe we have one of the most experienced and talented groups of oncology leaders.

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Albert Bourla: We are also already seeing the benefit of strong commercial execution with our newly cross-trained sales and field medical teams. In the first quarter of 2024, our Oncology revenues grew 19% operationally over the same quarter a year ago, driven in part by the acquisition of the four in-line products of legacy Seagen and, in particularly, the strong ongoing launch of PADCEV in frontline, locally advanced metastatic urothelial cancer, regardless of CISPLATIN [inaudible], following FDA approval based on the groundbreaking EV-302 [inaudible]. We have an increased demand for XTANDI, which continues to be a backbone therapy across the prostate cancer treatment continuum. And we have continued growth from LORBRENA, which could emerge as a potential first-line standard of care in ALK-positive, metastatic non-small cell lung cancer. Earlier this week, we also announced the full FDA approval of TIVDAK to treat recurring or metastatic cervical cancer. TIVDAK is the first antibody-drug conjugate to have positive overall survival data for patients with previously treated recurring or metastatic cervical cancer.

We are also already seeing the benefit of strong commercial execution with our newly cross-trained sales and field medical teams. In the first quarter of 2024, our Oncology revenues grew 19% operationally over the same quarter a year ago, driven in part by the acquisition of the four in-line products of legacy Seagen and, in particularl, the strong ongoing launch of PADCEV in frontline, locally advanced metastatic urothelial cancer, regardless of CISPLATIN eligibility, following FDA approval based on the groundbreaking EV-302 data.

Speaker Change: We are also already seeing the benefit of strong commercial execution with all of you.

Speaker Change: Cross trained sales and medical teams.

Albert Bourla: In the first quarter of 2024, our oncology revenues grew 19% operationally over the same quarter a year ago, driven in part by the acquisition of the foreign line products from legacy Seagen, in particular, the strong ongoing launch of Padcev in frontline locally advanced metastatic urothelial cancer, regardless of cisplatin eligibility, following FDA approval based on the groundbreaking EV-302 data. We have an increased demand for Xtandi, which continues to be a backbone therapy across the prostate cancer treatment continuum. We have continued growth from Lorbrena, which could emerge as the potential first-line standard of care in ALK-positive metastatic non-small cell lung cancer. Earlier this week, we also announced the full FDA approval of Tivdak to treat recurring or metastatic cervical cancer. Tivdak is the first antibody-drug conjugate to have positive overall survival data for patients with previously treated recurrent or metastatic cervical cancer.

In the first quarter of 2024, our oncology revenues grew 19% operationally over the same quarter a year ago, driven in part by the acquisition of the foreign line products from legacy Seagen, in particular, the strong ongoing launch of PADCEV in frontline locally advanced metastatic urothelial cancer, regardless of cisplatin eligibility, following FDA approval based on the groundbreaking EV-302 data. We have an increased demand for XTANDI, which continues to be a backbone therapy across the prostate cancer treatment continuum. We have continued growth from LORBRENA, which could emerge as the potential first-line standard of care in ALK-positive metastatic non-small cell lung cancer. Earlier this week, we also announced the full FDA approval of TIVDAK to treat recurring or metastatic cervical cancer. TIVDAK is the first antibody-drug conjugate to have positive overall survival data for patients with previously treated recurrent or metastatic cervical cancer.

Speaker Change: First quarter of 2024 hour oncology revenues grew 19% with the rest and I over the same quarter a year ago.

Speaker Change: In part by the acquisition.

Speaker Change: Of the 40 life projects like this to season and in particularly the strong ongoing launch.

Speaker Change: In frontline locally advanced metastatic urothelium concept, regardless of Latinos.

Albert Bourla: Following FDA approval based on the groundbreaking EV-302 test. We have an increased demand for Xtandi, which continues to be a backbone therapy across the prostate cancer treatment continuum. And we have continued growth from Lorbrena, which could emerge as a potential first-line standard of care in all positive metastatic non-small cell lines. Earlier this week, we also announced the full FDA approval of TIFTA to treat recurring or metastatic cervical cancer. PIFTA is the first antibody drug conjugate to have positive overall survival data for patients with previously treated recurrent or metastatic cervical cancer.

Speaker Change: Following FDA approval based on the ground breaking <unk>.

Speaker Change: To date.

We have an increased demand for XTANDI, which continues to be a backbone therapy across the prostate cancer treatment continuum. And we have continued growth from LORBRENA, which could emerge as a potential first-line standard of care in ALK-positive, metastatic non-small cell lung cancer. Earlier this week, we also announced the full FDA approval of TIVDAK to treat recurring or metastatic cervical cancer. TIVDAK is the first antibody-drug conjugate to have positive overall survival data for patients with previously treated recurring or metastatic cervical cancer.

Speaker Change: We have an increased demand for extent, which continues to be a backbone therapy across the prostate cancer treatment continue.

Speaker Change: And we had continued growth from our Brent which embarks. Thanks.

Speaker Change: Joe first line standard of care in all positive.

Speaker Change: I think non small cell lung.

Speaker Change: Earlier this week.

Speaker Change: We also announced this full FDA approval to treat the recurrent or metastatic et cetera outcomes.

Joe: Hey, Scott.

Speaker Change: The first antibody drug conjugate positive overall survival data for patients with previously treated or current orebody.

Speaker Change: Cervical cancer.

Albert Bourla: Going forward, we are guided by a strategy focusing on our greatest opportunities to make a difference for patients with cancer. With the power of our deep expertise, broad and diverse portfolio, and global scale, we are confident we are well on our way toward our 2030 goal of doubling the number of patients treated with our innovative cancer medicines, increasing the number of blockbuster medicines in our portfolio from five today to eight or more, and driving an anticipated tenfold increase in the proportion of revenue from biologics. This is important because it brings the potential to provide more durable revenue based on several factors, including inflation reduction considerations, and the greater challenges of coping with complex biologics. We will look forward to sharing continued updates with you on the progress in accelerating oncology breakthroughs. Now, I'll turn to our progress in delivering the next wave of pipeline innovations.

Going forward, we are guided by a strategy focusing on our greatest opportunities to make a difference for patients with cancer. With the power of our deep expertise, broad and diverse portfolio, and global scale, we are confident we are well on our way toward our 2030 goal of doubling the number of patients treated with our innovative cancer medicines, increasing the number of blockbuster medicines in our portfolio from five today to eight or more, and driving an anticipated tenfold increase in the proportion of revenue from biologics. This is important because it brings the potential to provide more durable revenue based on several factors, including inflation reduction considerations, and the greater challenges of coping with complex biologics. We will look forward to sharing continued updates with you on the progress in accelerating oncology breakthroughs. Now, I'll turn to our progress in delivering the next wave of pipeline innovations.

Albert Bourla: Going forward, we are guided by a strategy focusing on our greatest opportunities to make a difference for patients with cancer. With the power of our deep expertise, growth in diverse portfolio and global scale -- we are confident, we are well on our way toward our 2030 goal of doubling the number of patients treated with our innovative cancer medicines, increasing the number of robust [inaudible] medicines in our portfolio from 5 today to 8 or more and driving an anticipated ten-fold increase in the proportion of revenue from Biologics. This is important because it brings the potential to provide more durable revenue based on several factors, including inflation reduction market considerations and the greater challenges of copying complex biologics. We will look forward to sharing continued updates with you on the progress in accelerating oncology breakthroughs.

Going forward, we are guided by a strategy focusing on our greatest opportunities to make a difference for patients with cancer. With the power of our deep expertise, growth in diverse portfolio and global scale -- we are confident, we are well on our way toward our 2030 goal of doubling the number of patients treated with our innovative cancer medicines, increasing the number of robust [inaudible] medicines in our portfolio from 5 today to 8 or more and driving an anticipated ten-fold increase in the proportion of revenue from Biologics.

Speaker Change: Going forward, we are guided by our strategy focusing on our greatest opportunity is to make a difference for patients with cancer.

Speaker Change: With the power of our deep expertise.

Speaker Change: It's been diverse portfolio and global scale. We are confident we are well on our way toward our 2030 goal.

Speaker Change: The number of patients with our innovative cancer medicines.

Speaker Change: Increasing the number of blockbuster medicines in our portfolio from five or more.

Speaker Change: And driving and anticipating tenfold increase in the proportion of revenue from biologics.

Speaker Change: This is important because it brings the potential to provide more durable revenue base from several factors, including inflation reduction occupancy durations and the great solid this conflict of Kobe complex biologics.

This is important because it brings the potential to provide more durable revenue based on several factors, including Inflation Reduction Act considerations and the greater challenges of copying complex biologics. We will look forward to sharing continued updates with you on the progress in accelerating oncology breakthroughs.

Albert Bourla: We will look forward to sharing continued updates with you on the progress in accelerating oncology breakthroughs. Now, I'll turn to our progress in delivering the next wave of pipeline innovation. In Oncology, during the quarter, we had three people that faced three study starts, including the first phase 3 trial for our selected CDK4 inhibitor adenoside. Integrin Beta-6 Directed ADC.

We will look forward to sharing continued updates with you on the progress in accelerating oncology breakthroughs.

Speaker Change: We will look forward to sharing continued updates with you on that progress in accelerating oncology drugs.

Now, I'll turn to our progress in delivering the next wave of pipeline innovation. In Oncology, during the quarter, we had three pivotal Phase III study starts -- including the first Phase III trial for our selective CDK4 inhibitor, ATIRMOCICLIB; our integrin-beta-6-directed ADC. SIGVOTATUG VEDOTIN, SV; and the 4th Phase pre-trial for ELREXFIO in multiple myeloma. At the upcoming American Society of Clinical Oncology Annual, we will present data spanning each of our tumor areas of focus and core scientific modalities, including new five-year progression-free survival data for LORBRENA, Phase III data for ADCETRIS in diffused large B cell lymphoma and additional developments from across our deep and diverse pipelines.

Speaker Change: Now I'll turn to our progress in delivering the next wave of pipeline movements.

Albert Bourla: In oncology, during the quarter, we had three pivotal phase three study starts, including the first phase three trial for our selective CDK4 inhibitor, atimoside, our integrating beta-6 directed ABC, sigvotatug vedotin SV, and the fourth phase three trial for Elrexfio in multiple myeloma. At the upcoming American Society of Clinical Oncology annual meeting, we will present data spanning each of our tumor areas of focus and core scientific modalities, including new five-year progression-free survival data for Lorbrena, basic data for Adcetris in diffuse large B-cell lymphoma, and additional developments from across our deep and diverse pipeline. We are also driving continued execution beyond oncology, with a sharpened focus on key value drivers expected to build potential multi-billion dollar product portfolios. Through the first quarter, we are on track with delivering on our anticipated milestones and have important updates in both our growing respiratory and hematology portfolios.

In oncology, during the quarter, we had three pivotal phase III study starts, including the first phase III trial for our selective CDK4 inhibitor, atimoside, our integrating beta-6 directed ADC, sigvotatug vedotin SV, and the fourth phase III trial for ELREXFIO in multiple myeloma. At the upcoming American Society of Clinical Oncology annual meeting, we will present data spanning each of our tumor areas of focus and core scientific modalities, including new five-year progression-free survival data for LORBRENA, basic data for ADCETRIS in diffuse large B-cell lymphoma, and additional developments from across our deep and diverse pipeline. We are also driving continued execution beyond oncology, with a sharpened focus on key value drivers expected to build potential multi-billion dollar product portfolios. Through the first quarter, we are on track with delivering on our anticipated milestones and have important updates in both our growing respiratory and hematology portfolios.

Speaker Change: During the quarter, we had safety with a phase III study results, including the first phase III trial for our selected CDK inhibitor.

Speaker Change: Right.

Speaker Change: Integrity.

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Albert Bourla: Sigvoda2, Bodil, SV, and the fourth phase pre-trial for Elrexfio in multiple myeloma, at the upcoming American Society of Clinical Oncology Annual. We will present data spanning each of our two more areas of focus and core scientific modalities, including new five-year progression-free survival data for Lorbrena. Trace this data for Xetris in diffused large-scale cell lymphoma and additional developments from across our deep and diverse pipelines.

Speaker Change: But both U S b.

Speaker Change: Fourth phase III trial for <unk>.

Speaker Change: In multiple myeloma.

Speaker Change: At the upcoming American Society of clinical oncology annual.

Speaker Change: We will present data spanning each of our two more areas.

Speaker Change: Photos and core scientific Kinsey.

Speaker Change: The new five year progression free survival data for Lora.

Speaker Change: Basic data set.

Speaker Change: The fuselage b cell lymphoma, and additional developments from across our deep and diverse pipeline.

Albert Bourla: We are also driving continued execution beyond Oncology, with a sharpened focus on key value drivers expected to build potential multi-billion dollar product portfolio. Through the 1st quarter, we are on track with delivering on our anticipated milestones and have important updates in both our growing respiratory and hematology portfolios. With ABRYSVO, we believe we have the opportunity to further expand what is currently the broadest approved range of patients for the RSV vaccine, including adults 60 years and older and infants from birth to six months via maternal immunization.

Speaker Change: We are also driving continued execution.

Speaker Change: Oncology with a sharpened focus on key value drivers are expected to be a potential multibillion dollar product portfolio.

Speaker Change: Through the first quarter, we are on track with delivery on our anticipated milestones important updates and both are growing respiratory and dermatology portfolio.

Albert Bourla: With Abrysvo, we believe we have the opportunity to further expand what is currently the broadest approved range of patients for the RSV vaccine, including adults 60 years and older, and infants from birth to six months via maternal immunization. We recently reported positive results from the phase three MONITOR trial evaluating Abrysvo in adults aged 18 to 59 at increased risk for RSV disease. The trial met its primary endpoints, and we intend to submit this data to regulatory agencies. We believe Abrysvo has the potential to become the first and only RSV vaccine for adults 18 years and older. Hematology is another priority area. With the progress of recent and near-term milestones, we are confident that we could establish a potential multi-billion dollar product portfolio across hemophilia and sickle cell disease.

With ABRYSVO, we believe we have the opportunity to further expand what is currently the broadest approved range of patients for the RSV vaccine, including adults 60 years and older, and infants from birth to six months via maternal immunization. We recently reported positive results from the phase III MONeT trial evaluating ABRYSVO in adults aged 18 to 59 at increased risk for RSV disease. The trial met its primary endpoints, and we intend to submit this data to regulatory agencies. We believe ABRYSVO has the potential to become the first and only RSV vaccine for adults 18 years and older. Hematology is another priority area. With the progress of recent and near-term milestones, we are confident that we could establish a potential multi-billion dollar product portfolio across hemophilia and sickle cell disease.

Speaker Change: We believe we have the opportunity to Starwood expand what is currently the broadest range of patients for the RSV vaccine.

Speaker Change: Including adults 60 years and older and influence from birth to six months via maternal immunization.

Albert Bourla: We recently reported positive results from the Phase III MONeT trial, evaluating ABRYSVO in adults aged 18 to 59 at increased risk for RSV disease. The trial met its primary endpoints and we intend to submit this data to regulatory agencies. We believe that ABRYSVO has the potential to become the first and only RSV vaccine for adults 18 years and older. Hematology is another priority area. With the progress of recent and near-term milestones, we are confident that we could establish a potential multi-billion dollar product portfolio across hemophilia and sickle cell disease. We recently received the first U.S. FDA gene therapy approval for Pfizer with FDA approval of BEQVEZ, a one-time gene therapy for adults with hemophilia B.

We recently reported positive results from the Phase III MONeT trial, evaluating ABRYSVO in adults aged 18 to 59 at increased risk for RSV disease. The trial met its primary endpoints and we intend to submit this data to regulatory agencies. We believe that ABRYSVO has the potential to become the first and only RSV vaccine for adults 18 years and older. Hematology is another priority area. With the progress of recent and near-term milestones, we are confident that we could establish a potential multi-billion dollar product portfolio across hemophilia and sickle cell disease.

Speaker Change: We recently reported positive results from the phase III monitored trial.

Speaker Change: Agent up recently in adults, aged 18 to 59 at increased risk for RSV disease.

Speaker Change: Trial met its primary endpoints and we intend to submit these data that's the regulatory.

Speaker Change: We believe reasonable pace the potential to become the first and only.

Speaker Change: RSV vaccine for adults 18 years.

Albert Bourla: Hematology is another priority. With the progress of recent and near-term milestones, we are confident that we could establish a potential multi-billion dollar product portfolio across hemophilia and sickle cell disease. We recently received the first USMDA gene therapy approval for Pfizer with MDA approval of Vecnax, a one-time gene therapy for adults with hemophilia B.

Speaker Change: And my follow suit.

Hematology is another priority area. With the progress of recent and near-term milestones, we are confident that we could establish a potential multi-billion dollar product portfolio across hemophilia and sickle cell disease. We recently received the first U.S. FDA gene therapy approval for Pfizer with FDA approval of BEQVEZ, a one-time gene therapy for adults with hemophilia B. This program builds upon our growing presence in the hemophilia. We expect an FDA decision before year-end for MARSTACIMAB, which has the potential to become the first once-weekly subcutaneous treatment for the hemophilia B market and the first treatment delivered as a flat dose for both hemophilia A and hemophilia B. Moving to sickle cell, we recently started the Phase III study of OSIVELOTOR, our potentially best-in-class, next-generation hemoglobin S polymerization inhibitor. We are committed to addressing the undeserved needs of the sickle cell disease community. And we are leveraging our capabilities for potential breakthroughs for this page.

Speaker Change: Other priorities.

Speaker Change: With the progress on recent and near term milestones. So a coincidence, but we could establish a potential multibillion dollar product portfolio across <unk> and sickle cell disease.

Albert Bourla: We recently received the first US FDA gene therapy approval for Pfizer with FDA approval of Beqvez, a one-time gene therapy for adults with hemophilia B. This program builds upon our growing presence in hemophilia. We expect an FDA decision before year end for marstacimab, which has the potential to become the first once-weekly subcutaneous treatment for the hemophilia B market, and the first treatment delivered as a flat dose for both hemophilia A and hemophilia B. Moving to sickle cell, we recently started the phase three study of GBT601, our potentially best-in-class next-generation hemoglobin S polymerization inhibitor. We are committed to addressing the underserved needs of the sickle cell disease community, and we are leveraging our capabilities for potential breakthroughs for this patient. Now, I will turn to our strategic priority of maximizing performance of our new products.

We recently received the first US FDA gene therapy approval for Pfizer with FDA approval of BEQVEZ, a one-time gene therapy for adults with hemophilia B. This program builds upon our growing presence in hemophilia. We expect an FDA decision before year end for marstacimab, which has the potential to become the first once-weekly subcutaneous treatment for the hemophilia B market, and the first treatment delivered as a flat dose for both hemophilia A and hemophilia B. Moving to sickle cell, we recently started the phase III study of osivelotor, our potentially best-in-class next-generation hemoglobin S polymerization inhibitor. We are committed to addressing the underserved needs of the sickle cell disease community, and we are leveraging our capabilities for potential breakthroughs for this patient. Now, I will turn to our strategic priority of maximizing performance of our new products.

We recently received the first U.S. FDA gene therapy approval for Pfizer with FDA approval of BEQVEZ, a one-time gene therapy for adults with hemophilia B. This program builds upon our growing presence in the hemophilia. We expect an FDA decision before year-end for MARSTACIMAB, which has the potential to become the first once-weekly subcutaneous treatment for the hemophilia B market and the first treatment delivered as a flat dose for both hemophilia A and hemophilia B. Moving to sickle cell, we recently started the Phase III study of OSIVELOTOR, our potentially best-in-class, next-generation hemoglobin S polymerization inhibitor.

Speaker Change: We recently received its first U S. S E T therapy.

Speaker Change: For Pfizer with FDA approval of <unk>.

Speaker Change: It's a one time therapy for adults with MLC really upbeat.

Albert Bourla: This program builds upon our growing presence in the Mojito. We expect an FDA decision before year-end for MERS-Cas9, which has the potential to become the first once-weak subcutaneous treatment for the hemophilia B mark, and the first treatment delivered as a flat dose for both hemophilia A and hemophilia B. Moving to sickle cell, we recently started the phase 3 study of Osivella, are potentially best-in-class next-generation hemoglobin-S polymerization.

Speaker Change: This program builds upon our growing presence in animals.

This program builds upon our growing presence in the hemophilia. We expect an FDA decision before year-end for MARSTACIMAB, which has the potential to become the first once-weekly subcutaneous treatment for the hemophilia B market and the first treatment delivered as a flat dose for both hemophilia A and hemophilia B.

This program builds upon our growing presence in the hemophilia.

Speaker Change: We expect an FDA decision before year end for much specialty.

We expect an FDA decision before year-end for MARSTACIMAB, which has the potential to become the first once-weekly subcutaneous treatment for the hemophilia B market and the first treatment delivered as a flat dose for both hemophilia A and hemophilia B. Moving to sickle cell, we recently started the Phase III study of OSIVELOTOR, our potentially best-in-class, next-generation hemoglobin S polymerization inhibitor. We are committed to addressing the undeserved needs of the sickle cell disease community. And we are leveraging our capabilities for potential breakthroughs for these patients.

Speaker Change: Which has the potential to be.

Speaker Change: The first once weekly subcutaneous treatment for the <unk> market.

Speaker Change: And the first treatment believer as they select the dose for both hemophilia a and most immediately.

Speaker Change: Moving to single cell, we recently started a phase III study of <unk>.

Moving to sickle cell, we recently started the Phase III study of OSIVELOTOR, our potentially best-in-class, next-generation hemoglobin S polymerization inhibitor. We are committed to addressing the undeserved needs of the sickle cell disease community. And we are leveraging our capabilities for potential breakthroughs for this page. Now I will turn to our strategic priority of maximizing performance of our new products. Why it may take a year to realize the full benefit of the changes we put in place as we speak to bring a more efficient structure to a commercial operation.

Speaker Change: Our potentially best in class next generation mobile B S polymerization.

Albert Bourla: We are committed to addressing the undeserved needs of the sickle cell disease community. And we are leveraging our capabilities for potential breakthroughs for this page. Now I will turn to our strategic priority of maximizing performance of our new products. Why it may take a year to realize the full benefit of the changes we put in place as we speak to bring a more efficient structure to a commercial operation.

Speaker Change: We are committed to addressing the undeserved needs or the sickle cell disease community and we are leveraging our capability to support potential breakthroughs northeast pace.

Now, I will turn to our strategic priority of maximizing performance of our new products. While it may take a year to realize the full benefit of the changes we put in place, as we speak, to bring a more efficient structure to a commercial operation -- we are pleased by the impact we are already seeing from our sharpened focus and Pfizer colleagues embracing our high-performance culture. Earlier, I mentioned the momentum of our Oncology products. Our Pfizer U.S. Commercial, Pfizer International Commercial organizations are also moving ahead in driving progress with growth in their respective markets.

Speaker Change: Now I will turn to US is it priority maximizing performance of our new products.

Albert Bourla: While it may take a year to realize the full benefit of the change we put in place as we speak to bring a more efficient structure to a commercial operation, we are pleased by the impact we are already seeing from our sharpened focus, and Pfizer colleagues embracing our high-performance culture. Earlier, I mentioned the momentum of our oncology product. Our Pfizer US commercial, Pfizer International commercial organizations are also moving ahead in driving progress with growth in their respective markets. We have several potential key growth drivers for this year and into year 2025. With Abrysvo, we are very pleased with the positive data in the 18 to 59 age group that differentiates our product, and we are encouraged by the opportunities to continue increasing overall RSV market growth and market share.

While it may take a year to realize the full benefit of the change we put in place as we speak to bring a more efficient structure to a commercial operation, we are pleased by the impact we are already seeing from our sharpened focus, and Pfizer colleagues embracing our high-performance culture. Earlier, I mentioned the momentum of our oncology product. Our Pfizer US commercial, Pfizer International commercial organizations are also moving ahead in driving progress with growth in their respective markets. We have several potential key growth drivers for this year and into year 2025. With ABRYSVO, we are very pleased with the positive data in the 18 to 59 age group that differentiates our product, and we are encouraged by the opportunities to continue increasing overall RSV market growth and market share.

Speaker Change: Why is it may take a year to realize the full benefit of the teams.

Speaker Change: We put in place as we speak.

Speaker Change: To bring a more efficient structure to a commercial.

Albert Bourla: We are pleased by the impact we are already seeing from our sharpened focus and Pfizer colleagues embracing our high-performance outcome. Earlier, I mentioned the momentum of our colleges. Our Pfizer U.S. commercial, Pfizer International commercial organization, are also moving ahead in driving progress with growth in their respective markets.

Speaker Change: We are pleased by the in fact, we are already seen from our sharpened focus and Pfizer colleagues embracing our high performance culture.

Speaker Change: Earlier, I mentioned the momentum of our callers.

Speaker Change: Our U S commercial Pfizer international commercial organizations.

Speaker Change: So moving ahead in driving progress with growth in their respective markets.

Albert Bourla: We have several potential key growth drivers for this year and into year 2025. With ABRYSVO, we are very pleased with the positive data in the 18-59 age group that differentiates our product and we are encouraged by the opportunities to continue increasing overall RSV market growth and market share. Another example is our enthusiasm for the potential of NURTEC to help the more than one billion people living with migraine while worldwide. With oral CGRP penetration leaving room for potential significant growth, we will continue to focus on reducing access barriers for healthcare professionals and patients, as well as on education through direct-to-consumer marketing. With OXBRYTA, we'll continue to educate healthcare professionals and patients on the importance of proactively treating the underlying cause of sickle cell disease by reframing treatment goals to chronic and proactive treatment.

We have several potential key growth drivers for this year and into year 2025. With ABRYSVO, we are very pleased with the positive data in the 18-59 age group that differentiates our product and we are encouraged by the opportunities to continue increasing overall RSV market growth and market share. Another example is our enthusiasm for the potential of NURTEC to help the more than one billion people living with migraine while worldwide. With oral CGRP penetration leaving room for potential significant growth, we will continue to focus on reducing access barriers for healthcare professionals and patients, as well as on education through direct-to-consumer marketing.

Speaker Change: We have several potential key growth drivers.

Speaker Change: And each.

Speaker Change: Year to 95.

Speaker Change: Great.

Speaker Change: We are very pleased with the positive data in the <unk> 59, H group, but differentiates our product and we are encouraged by the opportunities to continue increasing overall RSV market growth and market share.

Albert Bourla: Another example is our enthusiasm for the potential of Nurtec to help the more than one billion people living with migraine worldwide. With all of CGRP penetration leaving room for potential significant growth, we will continue to focus on reducing access barriers for healthcare professionals and patients, as well as on education through direct-to-consumer market. With Oxbryta, we will continue to educate healthcare professionals and patients on the importance of proactively treating the underlying cause of sickle cell disease by reframing treatment goals to chronic and proactive treatment. Velsipity is coming off its annual launch, and we are focused on ensuring patient access as a first-line advanced therapy oral option for moderate to severe ulcerative colitis. I will mention Litfulo. We will work toward continuing to accelerate the consideration of advanced systemic treatments for appropriate patients with alopecia areata, and further unlock access to Litfulo.

Another example is our enthusiasm for the potential of NURTEC to help the more than one billion people living with migraine worldwide. With all of CGRP penetration leaving room for potential significant growth, we will continue to focus on reducing access barriers for healthcare professionals and patients, as well as on education through direct-to-consumer market. With OXBRYTA, we will continue to educate healthcare professionals and patients on the importance of proactively treating the underlying cause of sickle cell disease by reframing treatment goals to chronic and proactive treatment. VELSIPITY is coming off its annual launch, and we are focused on ensuring patient access as a first-line advanced therapy oral option for moderate to severe ulcerative colitis. I will mention LITFULO. We will work toward continuing to accelerate the consideration of advanced systemic treatments for appropriate patients with alopecia areata, and further unlock access to LITFULO.

Speaker Change: Another example is our enthusiasm for the potential.

Speaker Change: The more than 1 billion people living with migraine.

Speaker Change: With all of them since ERP penetration of leaving room for potentially significant growth.

Albert Bourla: We will continue to focus on reducing access barriers for healthcare professionals and patients as well as on education through direct-to-consumer, Dr. Oxbryta will continue to educate healthcare professionals and patients on the importance of proactively treating the underlying cause of sickle cell disease by reframing treatment goals to chronic and practical.

Speaker Change: We will continue to focus on reducing excess failures or house.

Speaker Change: Gift professionals and patients as well as on education direct to consumer market.

With OXBRYTA, we'll continue to educate healthcare professionals and patients on the importance of proactively treating the underlying cause of sickle cell disease by reframing treatment goals to chronic and proactive treatment. VELSIPITY is coming off its annual launch and we are focused on ensuring patient access as the first-line advanced therapy oral option for moderate to severe ulcerative colitis. And I will mention LITFULO. We will work toward continuing to accelerate the consideration of advanced systemic treatments for appropriate patients with alopecia areata and further unlock access to LITFULO. Additionally, we continue to protect and grow our core brands and key blockbusters, including PREVNAR, VYNDAQEL, and ELIQUIS.

Speaker Change: We will continue to educate healthcare professionals and patients on the importance of proactive you're treating the underlying cause of sickle cell disease by Reframing treatment involves the chronic and proxy statement.

Albert Bourla: WellSipping is coming off its annual launch and we are focused on ensuring patient access as the first line of advanced therapy or an option for moderate to severe ulcerative colitis, and I will mention Linfullo. We will work toward continuing to accelerate the consideration of advanced systemic treatments for appropriate patients with alopecia areata and further unlock access to it. Additional, we continue to protect and grow our core brands and key blockbusters, including Prevnar, Fintecho, and Elixir.

Speaker Change: CP is coming off its launch and we are focused on ensuring patient access is at first alignment bumps therapy oral option for moderate to severe <unk>.

Speaker Change: Highlights.

Speaker Change: And when we.

Speaker Change: We will work to work continuing to accelerate their consideration of advanced treatments for appropriate patients with alopecia wrapup and further unlock access to food.

Albert Bourla: Additionally, we continue to protect and grow our core brands and key blockbusters, including Prevnar, Quintaco, and Evidence. In a moment, Dave will provide updates on how we are also making progress with two other strategic priorities. The two other strategic priorities: expanding margins by realigning our cost base, and allocating capital to enhance shareholder value. When we consider what we achieved in the first quarter, along with our continued progress in executing our five strategic priorities, we are cautiously optimistic about the year ahead. We are continuing to focus on commercial execution, protecting and growing our products, and driving strong starts with new commercial launches. With the progress we are making in advancing our cost realignment program, as well as our confidence in the underlying strength of our business and our continued execution, we have raised our outlook for 2024 adjusted earnings per share by $0.10.

Additionally, we continue to protect and grow our core brands and key blockbusters, including PREVNAR, VYNDAQEL, and ELIQUIS, and Evidence. In a moment, Dave will provide updates on how we are also making progress with two other strategic priorities. The two other strategic priorities: expanding margins by realigning our cost base, and allocating capital to enhance shareholder value. When we consider what we achieved in the first quarter, along with our continued progress in executing our five strategic priorities, we are cautiously optimistic about the year ahead. We are continuing to focus on commercial execution, protecting and growing our products, and driving strong starts with new commercial launches. With the progress we are making in advancing our cost realignment program, as well as our confidence in the underlying strength of our business and our continued execution, we have raised our outlook for 2024 adjusted earnings per share by $0.10.

Speaker Change: Additionally, we continue to protect and grow our core brands and key blockbusters, including pregnant thing Tycho.

Albert Bourla: In a moment, Dave will provide updates on how we are also making progress with two other strategic priorities, expanding margins by realigning our cost base and allocating capital to enhance shareholder value. When we consider what we achieved in the first quarter, along with our continued progress in executing our five strategic priorities, we are cautiously optimistic about the year. We are continuing to focus on commercial execution, protecting and growing our products and driving strong starts with new commercial launches. With the progress we are making in advancing our cost realignment project, as well as our confidence in the underlying strength of our business and our continued execution, we have raised our outlook for 2024 adjusted earnings per share by $0.10. We have confidence in our company, with some of the most experienced and talented colleagues in the industry who have demonstrated many times before but we are very good at execution and we expect to continue delivering life-changing medicines for hundreds of millions of patients globally and meaningful value for shareholders. Now, I will turn it over to Dave to discuss the financial performance during the quarter as well as our progress in strengthening our business and enhancing shareholder value. Dave? Thank you, Albert. And good morning, everyone.

In a moment, Dave will provide updates on how we are also making progress with two other strategic priorities, expanding margins by realigning our cost base and allocating capital to enhance shareholder value. When we consider what we achieved in the first quarter, along with our continued progress in executing our five strategic priorities, we are cautiously optimistic about the year. We are continuing to focus on commercial execution, protecting and growing our products and driving strong starts with new commercial launches. With the progress we are making in advancing our cost realignment project, as well as our confidence in the underlying strength of our business and our continued execution, we have raised our outlook for 2024 adjusted earnings per share by $0.10. We have confidence in our company, with some of the most experienced and talented colleagues in the industry who have demonstrated many times before but we are very good at execution and we expect to continue delivering life-changing medicines for hundreds of millions of patients globally and meaningful value for shareholders. Now, I will turn it over to Dave to discuss the financial performance during the quarter as well as our progress in strengthening our business and enhancing shareholder value. Dave?

Speaker Change: In a moment, Steve will provide updates on how we are also making progress with two oh.

Speaker Change: Our strategic priorities to others. So it is a priority expanding margins by realigning our cost base and allocation of capital.

Speaker Change: Fluid causes shareholder vote.

Speaker Change: When you consider what we see.

Speaker Change: The first quarter.

Speaker Change: Along with our continued progress in executing our five strategic priorities.

Speaker Change: We are cautiously optimistic about the year.

Albert Bourla: We are continuing to focus on commercial execution, protecting and growing our product, and Driving Strong Starts with New Commercials. With the progress we are making in advancing our cost realignment project as well as our confidence in the underlying strength of our business, and our continued execution, we have raised our outlook for 2024 Adjusted Earnings Per Share by 10%. We have confidence in our company, with some of the most experienced and talented colleagues in the industry who have demonstrated many times this, but we are very good at it, and we expect to continue delivering life-changing medicines for hundreds of millions of patients globally and meaningful value for ourselves. Now I will turn it over to Dave.

Speaker Change: We are continuing to focus on commercial execution.

Speaker Change: Protecting and growing our programs and driving strong starts with new commercial.

With the progress we are making in advancing our cost realignment project, as well as our confidence in the underlying strength of our business and our continued execution, we have raised our outlook for 2024 adjusted earnings per share by $0.10. We have confidence in our company, with some of the most experienced and talented colleagues in the industry who have demonstrated many times before but we are very good at execution and we expect to continue delivering life-changing medicines for hundreds of millions of patients globally and meaningful value for shareholders. Now, I will turn it over to Dave to discuss the financial performance during the quarter as well as our progress in strengthening our business and enhancing shareholder value. Dave?

With the progress we are making in advancing our cost realignment project, as well as our confidence in the underlying strength of our business and our continued execution, we have raised our outlook for 2024 adjusted earnings per share by $0.10 cents. We have confidence in our company, with some of the most experienced and talented colleagues in the industry who have demonstrated many times before but we are very good at execution and we expect to continue delivering life-changing medicines for hundreds of millions of patients globally and meaningful value for shareholders.

Speaker Change: With the progress we are making.

Speaker Change: Our cost realignment program as well as our confidence in the underlying strength of our business.

Speaker Change: Business and our continued execution, we have raised our outlook for 2024 adjusted earnings per share by 10%.

Albert Bourla: We have confidence in our company. With some of the most experienced and talented colleagues in the industry, we have demonstrated many times before that we are very good at execution, and we expect to continue delivering life-changing medicines for hundreds of millions of patients globally, and meaningful value for our shareholders. Now, I will turn it over to Dave to discuss the financial performance during the quarter, as well as our progress in strengthening our business and enhancing shareholder value. Thank you, Albert, and good morning, everyone. As we continue to navigate a challenging post-COVID environment, I'm pleased to share that this year is off to a solid start. We are both protecting and growing our core brands while investing in building a more effective organization. Our relentless focus on execution is positioning Pfizer to improve shareholder returns.

We have confidence in our company. With some of the most experienced and talented colleagues in the industry, we have demonstrated many times before that we are very good at execution, and we expect to continue delivering life-changing medicines for hundreds of millions of patients globally, and meaningful value for our shareholders. Now, I will turn it over to Dave to discuss the financial performance during the quarter, as well as our progress in strengthening our business and enhancing shareholder value. Dave?

Speaker Change: We have confidence in our company with some of the most experienced and talented colleagues who have demonstrated many times and so.

Speaker Change: But we are very good at execution.

Speaker Change: And we expect to continue delivering life changing medicines for hundreds of millions of patients globally and meaningful value for ourselves.

Now, I will turn it over to Dave to discuss the financial performance during the quarter as well as our progress in strengthening our business and enhancing shareholder value. Dave?

Speaker Change: Now I'll talk about today.

David M. Denton: Discuss the financial performance during the quarter as well as our progress in strengthening our business and enhancing shareholder value. Thank you. Thank you, Albert, and good morning, everyone.

Speaker Change: To discuss the financial performance during the quarter as well as our progress in strengthening our business.

David M. Denton: Thank you, Albert. And good morning, everyone.

Speaker Change: Enhancing shareholder value.

Dave Denton: Thank you, Albert, and good morning, everyone. As we continue to navigate a challenging post-COVID environment, I'm pleased to share that this year is off to a solid start. We are both protecting and growing our core brands while investing in building a more effective organization. Our relentless focus on execution is positioning Pfizer to improve shareholder returns.

David M. Denton: As we continue to navigate a challenging post-COVID environment, I'm pleased to share that this year is off to a solid start. We are both protecting and growing our core brands, while investing in building a more effective organization. Our relentless focus on execution is positioning Pfizer to improve shareholder returns. This morning, I'll briefly review the highlights of our 1st quarter results then, I'll touch on our capital allocation priorities. I'll wrap up by outlining our 2024 financial guidance, as well as our key priorities for the remainder of this year. Turning to the 1st quarter, let me walk down the P&L. Total company revenues for the quarter were $14.9 billion, reflecting an operational decline of $3.5 billion or 19% versus last year.

As we continue to navigate a challenging post-COVID environment, I'm pleased to share that this year is off to a solid start. We are both protecting and growing our core brands, while investing in building a more effective organization. Our relentless focus on execution is positioning Pfizer to improve shareholder returns. This morning, I'll briefly review the highlights of our 1st quarter results then, I'll touch on our capital allocation priorities. I'll wrap up by outlining our 2024 financial guidance, as well as our key priorities for the remainder of this year.

Speaker Change: Thank you Albert and good morning, everyone. As we continue to navigate a challenging post COVID-19 environment I am pleased to share that this year is off to a solid start.

Speaker Change: We are both protecting and growing our core brands.

Speaker Change: We're investing in building a more effective organization.

Speaker Change: Relentless focus on execution has positioned positioning pfizer to improve shareholder returns.

Albert Bourla: This morning, I'll briefly review the highlights of our first quarter results. I'll touch on our capital allocation priorities. I'll wrap up by outlining our 2024 financial guidance, as well as our key priorities for the remainder of this year. Turning to the first quarter, let me walk down the P&L. Total company revenues for the quarter were $14.9 billion, reflecting an operational decline of $3.5 billion, or 19% versus last year. As you know, our business continues to be negatively impacted by a declining COVID environment on a global basis. To that end, we expect our COVID products will continue to have an outsized effect on both our top line and our bottom line throughout this year. However, I do want to point out that we expect our COVID products will continue to be contributors to both revenue and cash flows for the foreseeable future.

This morning, I'll briefly review the highlights of our first quarter results. I'll touch on our capital allocation priorities. I'll wrap up by outlining our 2024 financial guidance, as well as our key priorities for the remainder of this year. Turning to the first quarter, let me walk down the P&L. Total company revenues for the quarter were $14.9 billion, reflecting an operational decline of $3.5 billion, or 19% versus last year. As you know, our business continues to be negatively impacted by a declining COVID environment on a global basis. To that end, we expect our COVID products will continue to have an outsized effect on both our top line and our bottom line throughout this year. However, I do want to point out that we expect our COVID products will continue to be contributors to both revenue and cash flows for the foreseeable future.

David M. Denton: This morning, I'll briefly review the highlights of our first quarter results, then I'll touch on our capital allocation priorities. I'll wrap up by outlining our 2024 financial guidance, as well as our key priorities for the remainder of this year. Turning to the first quarter, let me walk down the P&L. Total company revenues for the quarter were $14.9 billion reflecting an operational decline of $3.5 billion for 19% versus last year.

Speaker Change: This morning, I'll briefly review the highlights of our first quarter results, then I'll touch on our capital allocation priorities.

Speaker Change: Wrap up by outlining our 2024 financial guidance as well as our key priorities for the remainder of this year.

Speaker Change: Turning to the first quarter, let me walk down the P&L.

Turning to the 1st quarter, let me walk down the P&L. Total company revenues for the quarter were $14.9 billion, reflecting an operational decline of $3.5 billion or 19% versus last year. As you know, our business continues to be negatively impacted by a declining COVID environment on a global basis. To that end, we expect our COVID products will continue to have an outsized effect on both our top-line and our bottomline throughout this year. However, I do want to point out that we expect our COVID products will continue to be contributors to both revenue and cash flows for the foreseeable future. Strong commercial execution across the enterprise drove 11% operational revenue growth in the quarter, when you exclude COMIRNATY and PAXLOVID.

Speaker Change: Total company revenues for the quarter were $14 $9 billion, reflecting an operational decline between $5 billion for 19% versus last year.

David M. Denton: As you know, our business continues to be negatively impacted by a declining COVID environment on a global basis. To that end, we expect our COVID products will continue to have an outsized effect on both our top line and our bottom line throughout this year. However, I do want to point out that we expect our COVID products will continue to be contributors to both revenue and cash flows for the foreseeable future. Strong commercial execution across the enterprise grew up 11% operational revenue growth in the quarter when you exclude Comirnaty and Paxlovid.

Speaker Change: As you know our business continues to be negatively impacted by a declining COVID-19 environment on a global basis.

Speaker Change: To that end, we expect our Covid products will continue to have an outsized effect on both our topline and our bottom line throughout this year.

Speaker Change: However, I do want to point out that we expect our coated products will continue to be contributors to both revenue and cash flows for the foreseeable future.

Albert Bourla: Strong commercial execution across the enterprise drove 11% operational revenue growth in the quarter when you exclude Comirnaty and Paxlovid. Performance was positively impacted by our renewed focus on key products and markets, refined allocation of commercial field resources globally, and further alignment of marketing resources into key priority areas. Contributing to this performance were our acquired products from Seagen, alongside inline products such as Vyndamax, Eliquis, and Abrysvo. Dampening our growth in the quarter was the expected lower global demand for Ibrance and Sutent, driven largely by lower demand in China in the first quarter of 2024 versus last year. Adjusted gross margin for the first quarter improved by 530 basis points to 79.6% versus Q1 of last year. This improvement was driven by three factors. First, were lower sales of Comirnaty resulting in favorable sales mix.

Strong commercial execution across the enterprise drove 11% operational revenue growth in the quarter when you exclude COMIRNATY and PAXLOVID. Performance was positively impacted by our renewed focus on key products and markets, refined allocation of commercial field resources globally, and further alignment of marketing resources into key priority areas. Contributing to this performance were our acquired products from Seagen, alongside inline products such as VYNDAQEL, ELIQUIS, and ABRYSVO. Dampening our growth in the quarter was the expected lower global demand for IBRANCE and SULPERAZON, driven largely by lower demand in China in the first quarter of 2024 versus last year. Adjusted gross margin for the first quarter improved by 530 basis points to 79.6% versus Q1 of last year. This improvement was driven by three factors. First, were lower sales of COMIRNATY resulting in favorable sales mix.

Speaker Change: Strong commercial execution across the enterprise drove 11% operational revenue growth in the quarter when you exclude commodity impacts Logan.

Strong commercial execution across the enterprise drove 11% operational revenue growth in the quarter, when you exclude COMIRNATY and PAXLOVID. Performance was positively impacted by our renewed focus on key products and markets. Refined allocation of commercial field resources globally and further alignment of marketing resources into key priority areas, Contributing to this performance were our acquired products from Seagen, alongside inline products such as Vindicale, Eliquis, and Abrisbo. Dampening our growth in the quarter was the expected lower global demand for Ibrance and Soporizon, driven largely by lower demand in China in the first quarter of 2024 versus last year. Adjusted gross margin for the first quarter improved by 530 basis points to 79.6% versus Q1 of last year.

David M. Denton: Performance was positively impacted by our renewed focus on key products and markets. Refined allocation of commercial field resources globally and further alignment of marketing resources into key priority areas, Contributing to this performance were our acquired products from Seagen, alongside inline products such as Vindicale, Eliquis, and Abrisbo. Dampening our growth in the quarter was the expected lower global demand for Ibrance and Soporizon, driven largely by lower demand in China in the first quarter of 2024 versus last year. Adjusted gross margin for the first quarter improved by 530 basis points to 79.6% versus Q1 of last year.

Speaker Change: Performance was positively impacted by our renewed focus on key products and markets refined allocation of commercial field resources globally, and further alignment of marketing resources into key priority areas.

Speaker Change: Contributing to this performance were our acquired products from season.

Speaker Change: Long side in line products, such as been to kill Ela question our Bridgeville.

Dampening our growth in the quarter was the expected lower global demand for Ibrance and Soporizon, driven largely by lower demand in China in the first quarter of 2024 versus last year. Adjusted gross margin for the first quarter improved by 530 basis points to 79.6% versus Q1 of last year. This improvement was driven by three factors. First were lower sales of Comirnaty, resulting in favorable sales net. Second, in the quarter, we recorded a product return adjustment for Paxlovid associated with our U.S. government contract, and I'll touch upon that in just a moment. And finally, we executed strong cost management across our manufacturing network. Improvements in our gross margin rate will continue to be an important focus for the company going forward. Total adjusted operating expenses increased modestly by 1% to $5.9 billion compared to Q1 of last year, despite adding expenses associated with the acquired Seagen, This disciplined cost control puts us squarely on track to delivering on our $4 billion net savings commitment by the end of the year.

Dampening our growth in the quarter was the expected lower global demand for IBRANCE and SULPERAZON, driven largely by lower demand in China in the 1st quarter of 2024 versus last year. Adjusted gross margin for the first quarter improved by 530 basis points to 79.6% versus Q1 of last year. This improvement was driven by three factors. First, were lower sales of COMIRNATY, resulting in favorable sales mix. Second, in the quarter, we recorded a product return adjustment for PAXLOVID associated with our U.S. government contract -- and I'll touch upon that in just a moment.

Speaker Change: Dampening our growth growth in the quarter was the expected lower global demand for eye brands and superb zon driven largely by lower demand in China in the first quarter of 2024 versus last year.

Speaker Change: Adjusted gross margin for the fourth first quarter improved by 530 basis points to 79, 6% versus Q1 of last year.

David M. Denton: This improvement was driven by three factors. First were lower sales of Comirnaty, resulting in favorable sales net. Second, in the quarter, we recorded a product return adjustment for Paxlovid associated with our U.S. government contract, and I'll touch upon that in just a moment. And finally, we executed strong cost management across our manufacturing network. Improvements in our gross margin rate will continue to be an important focus for the company going forward. Total adjusted operating expenses increased modestly by 1% to $5.9 billion compared to Q1 of last year, despite adding expenses associated with the acquired Seagen, This disciplined cost control puts us squarely on track to delivering on our $4 billion net savings commitment by the end of the year.

Speaker Change: This improvement was driven by three factors first.

Speaker Change: First were lower sales of commodity resulting in favorable sales mix.

Albert Bourla: Second, in the quarter, we recorded a product return adjustment for Paxlovid associated with our US government contract. I'll touch upon that in just a moment. Finally, we executed strong cost management across our manufacturing network. Improvements in our gross margin rate will continue to be an important focus for the company going forward. Total adjusted operating expenses increased modestly by 1% to $5.9 billion compared to Q1 of last year, despite adding expenses associated with the acquired Seagen business. This disciplined cost control puts us squarely on track to delivering on our $4 billion net savings commitment by the end of the year. Adjusted SI&A expenses increased 3% operationally in the quarter, driven by an increase in marketing and promotional expenses for recently acquired or launched products, partially offset by a decrease in expenses for both Paxlovid and Comirnaty.

Second, in the quarter, we recorded a product return adjustment for PAXLOVID associated with our US government contract. I'll touch upon that in just a moment. Finally, we executed strong cost management across our manufacturing network. Improvements in our gross margin rate will continue to be an important focus for the company going forward. Total adjusted operating expenses increased modestly by 1% to $5.9 billion compared to Q1 of last year, despite adding expenses associated with the acquired Seagen business. This disciplined cost control puts us squarely on track to delivering on our $4 billion net savings commitment by the end of the year. Adjusted SI&A expenses increased 3% operationally in the quarter, driven by an increase in marketing and promotional expenses for recently acquired or launched products, partially offset by a decrease in expenses for both PAXLOVID and COMIRNATY.

Speaker Change: Second in the quarter, we recorded a product return adjustment for Pac slowly associated with our U S government contract and I'll touch upon that in just a moment.

Speaker Change: And finally, we executed strong cost management across our manufacturing network.

And finally, we executed strong cost management across our manufacturing network. Improvements in our gross margin rate will continue to be an important focus for the company going forward. Total adjusted operating expenses increased modestly by 1% to $5.9 billion compared to Q1 of last year, despite adding expenses associated with the acquired Seagen business. This disciplined cost control puts us squarely on track to delivering on our $4 billion net savings commitment by the end of the year.

Speaker Change: Improvements in our gross margin rate will continue to be an important focus for the company going forward.

Speaker Change: Total adjusted operating expenses increased modestly by 1% to $5 9 billion compared to Q1 of last year, despite adding expenses associated with the acquired <unk> business.

Speaker Change: Disciplined cost control puts us squarely on track to delivering on our $4 billion net savings commitment by the end of the year.

David M. Denton: Adjusted SI&A expenses increased 3% operation in the quarter, driven by an increase in marketing and promotional expenses for recently acquired or launched products, partially offset by a decrease in expenses for both PAXLOVID and COMIRNATY. Consistent with our strategy, we are prioritizing our R&D spending to enhance overall returns while supporting growth for our pipeline. For the quarter, adjusted R&D expenses were $2.5 billion, a decrease of 1% operationally versus LY. The slight decline was driven primarily by a lower spending resulting from our cost realignment program and lower spending on certain vaccines programs, largely offset by increased investments mainly to develop certain assets acquired from Seagen.

Speaker Change: Adjusted <unk> expenses increased 3% operation in the quarter, driven by an increase in marketing and promotional expenses for our recently acquired or launch products, partially offset by a decrease in expenses for both <unk> and commodity.

Albert Bourla: Consistent with our strategy, we are prioritizing our R&D spending to enhance overall returns while supporting growth for our pipeline. For the quarter, adjusted R&D expenses were $2.5 billion, a decrease of 1% operationally versus last year. This slight decline was driven primarily by lower spending resulting from our cost realignment program and lower spending on certain vaccines programs, largely offset by increased investments mainly to develop certain assets acquired from CGen. Q1 reported diluted earnings per share were $0.55. Our adjusted diluted earnings per share was $0.82, which exceeded our expectations due to favorable gross margin performance, as well as strong cost management across the enterprise. As I stated earlier, during the quarter, we recorded a favorable product return adjustment associated with our US government contract for Paxlovid. Recall that during Q4 of last year, we estimated the US government credit for Paxlovid was $3.5 billion.

Consistent with our strategy, we are prioritizing our R&D spending to enhance overall returns while supporting growth for our pipeline. For the quarter, adjusted R&D expenses were $2.5 billion, a decrease of 1% operationally versus last year. This slight decline was driven primarily by lower spending resulting from our cost realignment program and lower spending on certain vaccines programs, largely offset by increased investments mainly to develop certain assets acquired from Seagen. Q1 reported diluted earnings per share were $0.55. Our adjusted diluted earnings per share was $0.82, which exceeded our expectations due to favorable gross margin performance, as well as strong cost management across the enterprise. As I stated earlier, during the quarter, we recorded a favorable product return adjustment associated with our US government contract for PAXLOVID. Recall that during Q4 of last year, we estimated the US government credit for PAXLOVID was $3.5 billion.

Speaker Change: Consistent with our strategy, we are prioritizing our R&D spending to enhance overall returns while supporting growth for our pipeline.

Speaker Change: For the quarter adjusted R&D expenses were $2 5 billion.

Speaker Change: A decrease of 1% operationally versus Earl y.

David M. Denton: The slight decline was driven primarily by a lower spending resulting from our cost realignment program and lower spending on certain vaccines programs. Largely offset by increased investments mainly to develop certain assets acquired from CJAR. Q1 reported diluted earnings per share were $0.55, Our adjusted diluted earnings per share was $0.82, which exceeded our expectations due to favorable gross margin performance, as well as strong cost management across the enterprise. As I stated earlier, during the quarter, we record a favorable product return adjustment associated with our U.S. government contract for Paxlovid.

The slight decline was driven primarily by a lower spending resulting from our cost realignment program and lower spending on certain vaccines programs.

Speaker Change: This slight decline was driven primarily by a lower spending resulting from our cost realignment program and lower spending on certain vaccines programs.

Speaker Change: Largely offset by increased investments mainly to develop certain assets acquired from Ctrip.

Largely offset by increased investments mainly to develop certain assets acquired from CJAR. Q1 reported diluted earnings per share were $0.55, Our adjusted diluted earnings per share was $0.82, which exceeded our expectations due to favorable gross margin performance, as well as strong cost management across the enterprise. As I stated earlier, during the quarter, we record a favorable product return adjustment associated with our U.S. government contract for Paxlovid. Recall that during Q4 of last year, we estimated the U.S. government credit for Paxlovid was $3.5 billion.

Largely offset by increased investments mainly to develop certain assets acquired from CJAR.

Q1 reported diluted earnings per share were $0.55 cents. Our adjusted diluted earnings per share was $0.82 cents, which exceeded our expectations due to favorable gross margin performance, as well as strong cost management across the enterprise. As I stated earlier, during the quarter, we recorded a favorable product return adjustment associated with our U.S. government contract for PAXLOVID. Recall that during Q4 of last year, we estimated the U.S. government credit for PAXLOVID was $3.5 billion.

Speaker Change: Q1 reported diluted earnings per share were <unk> 55 cents.

Speaker Change: Our adjusted diluted earnings per share was <unk>, 82, which exceeded our expectations due to favorable gross margin performance as well as strong cost management across the enterprise.

Speaker Change: As I stated earlier during the quarter, we recorded a favorable product return adjustment associated with our U S government contract co pack slogan.

David M. Denton: Recall that during Q4 of last year, we estimated the U.S. government credit for Paxlovid was $3.5 billion. Earlier this year, the U.S. government announced that the EUA-labeled product was no longer authorized for emergency use, and the agreed-upon return period had now expired.

Recall that during Q4 of last year, we estimated the U.S. government credit for Paxlovid was $3.5 billion.

Speaker Change: Recall that during Q4 of last year, we estimated the U S government credits, where <unk> was $3 $5 billion.

Albert Bourla: Earlier this year, the US government announced that the EUA labeled product was no longer authorized for emergency use, and the agreed-upon return period had now expired. Given those facts, we can now finalize the total value of the US government credit. This resulted in a favorable adjustment to revenues of $771 million for Paxlovid and contributed $0.11 to the company's earnings per share. Now, let me quickly touch upon our capital allocation strategy, which is designed to enhance long-term shareholder value. Our strategy consists of maintaining and growing our dividend over time, reinvesting in our business at an appropriate level of financial return, and making value-enhancing share repurchases after delivering our balance sheet. During the first quarter, we returned $2.4 billion to shareholders via our quarterly dividend, invested $2.5 billion in internal R&D, and, as expected, business development activity was minimal in the quarter.

Earlier this year, the US government announced that the EUA labeled product was no longer authorized for emergency use, and the agreed-upon return period had now expired. Given those facts, we can now finalize the total value of the US government credit. This resulted in a favorable adjustment to revenues of $771 million for PAXLOVID and contributed $0.11 to the company's earnings per share. Now, let me quickly touch upon our capital allocation strategy, which is designed to enhance long-term shareholder value. Our strategy consists of maintaining and growing our dividend over time, reinvesting in our business at an appropriate level of financial return, and making value-enhancing share repurchases after delivering our balance sheet. During the first quarter, we returned $2.4 billion to shareholders via our quarterly dividend, invested $2.5 billion in internal R&D, and, as expected, business development activity was minimal in the quarter.

Earlier this year, the U.S. government announced that the EUA-labeled product was no longer authorized for emergency use and the agreed-upon return period had now expired. Given those facts, we can now finalize the total value of the U.S. government credit. This resulted in a favorable adjustment to revenues of $771 million for PAXLOVID and contributed $0.11 cents to the company's earnings per share. Now, let me quickly touch upon our capital allocation strategy, which is designed to enhance long-term shareholder value. Our strategy consists of maintaining and growing our dividend over time, reinvesting in our business at an appropriate level of financial return and making value-enhancing share repurchases after delivering our balance sheet.

Speaker Change: Earlier this year the U S government announced that the EUA labeled product was no longer authorized for emergency use and agreed upon return period head now expired.

David M. Denton: Given those facts, we can now finalize the total value of the U.S. government credit. This resulted in a favorable adjustment to revenues of $771 million for Paxlovid and contributed $0.11 to the company's earnings per share. Now let me quickly touch upon our capital allocation strategy, which is designed to enhance long-term shareholder value. Our strategy consists of maintaining and growing our dividend over time. Reinvesting in our business at an appropriate level of financial return and making value-enhancing share with purchases after delivering a balance sheet.

Speaker Change: Given those facts, we can now finalized the total value of the U S government credit.

Speaker Change: This resulted in a favorable adjustment to revenues of $771 million for <unk> and contributed 11 cents to the company's earnings per share.

Speaker Change: Now, let me quickly touch upon our capital allocation strategy, which is designed to enhance long term shareholder value.

Now, let me quickly touch upon our capital allocation strategy, which is designed to enhance long-term shareholder value. Our strategy consists of maintaining and growing our dividend over time, reinvesting in our business at an appropriate level of financial return and making value-enhancing share repurchases after delivering our balance sheet. During the first quarter, we returned $2.4 billion to shareholders via our quarterly dividend, invested $2.5 billion in internal R&D, and as expected, business development activity was minimal in the quarter. We are committed to delivering our capital structure with a gross leverage target of three and a quarter times, which we expect to achieve over time. In support of that goal, during the quarter, we paid down approximately $1.25 billion in maturing debt.

Now, let me quickly touch upon our capital allocation strategy, which is designed to enhance long-term shareholder value. Our strategy consists of maintaining and growing our dividend over time, reinvesting in our business at an appropriate level of financial return and making value-enhancing share repurchases after de-levering our balance sheet. During the first quarter, we returned $2.4 billion to shareholders via our quarterly dividend, invested $2.5 billion in internal R&D and as expected, business development activity was minimal in the quarter. We are committed to de-levering our capital structure with a gross leverage target of three and a quarter times, which we expect to achieve over time.

Speaker Change: Our strategy consists of maintaining and growing our dividend over time.

Speaker Change: Reinvesting in our business at an appropriate level of financial return.

Speaker Change: And making value enhancing share repurchases after delevering our balance sheet.

David M. Denton: During the first quarter, we returned $2.4 billion to shareholders via our quarterly dividend, invested $2.5 billion in internal R&D, and as expected, business development activity was minimal in the quarter. We are committed to delivering our capital structure with a gross leverage target of three and a quarter times, which we expect to achieve over time. In support of that goal, during the quarter, we paid down approximately $1.25 billion in maturing debt.

Speaker Change: During the first quarter, we returned $2 $4 billion to shareholders via our quarterly dividend.

Speaker Change: Invested $2 $5 billion in internal R&D.

Speaker Change: As expected business development activity was minimal in the quarter.

We are committed to delivering our capital structure with a gross leverage target of three and a quarter times, which we expect to achieve over time. In support of that goal, during the quarter, we paid down approximately $1.25 billion in maturing debt. And in May, we will pay down another $1 billion of outstanding note. And importantly, during the quarter, we began to monetize our Halion stake through the initial sale of $3.5 billion, which reduced our equity position in the company from 32% to approximately 23%. Looking ahead to the next couple of quarters, I'd like to point out that we expect operating cash flow to be significantly below typical levels, largely due to the timing of certain payments.

We are committed to de-levering our capital structure with a gross leverage target of three and a quarter times, which we expect to achieve over time. In support of that goal, during the quarter, we paid down approximately $1.25 billion in maturing debt and in May, we will pay down another $1 billion of outstanding notes. And importantly, during the quarter, we began to monetize our Haleon stake through the initial sale of $3.5 billion, which reduced our equity position in the company from 32% to approximately 23%. Looking ahead to the next couple of quarters, I'd like to point out that we expect operating cash flow to be significantly below typical levels, largely due to the timing of certain payments. Despite this near-term pressure, clearly, our objective is to return to a more balanced capital allocation strategy over time.

We are committed to de-levering our capital structure with a gross leverage target of three and a quarter times, which we expect to achieve over time.

Albert Bourla: We are committed to delivering our capital structure with a gross leverage target of 3.25x, which we expect to achieve over time. In support of that goal, during the quarter, we paid down approximately $1.25 billion in maturing debt, and in May, we will pay down another $1 billion of outstanding notes. Importantly, during the quarter, we began to monetize our Haleon stake through an initial sale of $3.5 billion, which reduced our equity position in the company from 32% to approximately 23%. Looking ahead to the next couple of quarters, I'd like to point out that we expect operating cash flow to be significantly below typical levels, largely due to the timing of certain payments. Despite this near-term pressure, clearly our objective is to return to a more balanced capital allocation strategy over time.

We are committed to delivering our capital structure with a gross leverage target of 3.25x, which we expect to achieve over time. In support of that goal, during the quarter, we paid down approximately $1.25 billion in maturing debt, and in May, we will pay down another $1 billion of outstanding notes. Importantly, during the quarter, we began to monetize our Haleon stake through an initial sale of $3.5 billion, which reduced our equity position in the company from 32% to approximately 23%. Looking ahead to the next couple of quarters, I'd like to point out that we expect operating cash flow to be significantly below typical levels, largely due to the timing of certain payments. Despite this near-term pressure, clearly our objective is to return to a more balanced capital allocation strategy over time.

Speaker Change: We are committed to delivering our capital structure with a gross leverage target of three and of course times, which we expect to achieve over time.

In support of that goal, during the quarter, we paid down approximately $1.25 billion in maturing debt and in May, we will pay down another $1 billion of outstanding notes. And importantly, during the quarter, we began to monetize our Haleon stake through the initial sale of $3.5 billion, which reduced our equity position in the company from 32% to approximately 23%. Looking ahead to the next couple of quarters, I'd like to point out that we expect operating cash flow to be significantly below typical levels, largely due to the timing of certain payments. Despite this near-term pressure, clearly, our objective is to return to a more balanced capital allocation strategy over time.

Speaker Change: In support of that goal during the quarter, we paid down approximately 1.25 billion of maturing debt.

David M. Denton: And in May, we will pay down another $1 billion of outstanding note. And importantly, during the quarter, we began to monetize our Halion stake through the initial sale of $3.5 billion, which reduced our equity position in the company from 32% to approximately 23%. Looking ahead to the next couple of quarters, I'd like to point out that we expect operating cash flow to be significantly below typical levels, largely due to the timing of certain payments.

Speaker Change: And in May we will pay down another $1 billion about standing notes.

Speaker Change: And importantly during the quarter, we began to monetize our haley on stake through the initial sale of $3 5 billion.

Speaker Change: Which reduced our equity positioning the company from 32% to approximately 23%.

Looking ahead to the next couple of quarters, I'd like to point out that we expect operating cash flow to be significantly below typical levels, largely due to the timing of certain payments. Despite this near-term pressure, clearly our objective is to return to a more balanced capital allocation strategy over time. Now, let me spend just a few minutes on our outlook for the remainder of this year. As we entered 2024, the company was highly focused on delivering on its financial commitments, and our performance in Q1 demonstrates that we're off to a solid start. With that objective in mind and the fact that it's still early in the year, we are modestly updating the earnings outlook for this year. We are raising our full year adjusted diluted earnings per share guidance range by 10 cents to a new range of $2.15 to $2.35.

Speaker Change: Looking ahead to the next couple of quarters I would like to point out that we expect operating cash flow to be significantly below typical levels.

Speaker Change: Largely due to the timing of certain payments.

David M. Denton: Despite this near-term pressure, clearly our objective is to return to a more balanced capital allocation strategy over time. Now, let me spend just a few minutes on our outlook for the remainder of this year. As we entered 2024, the company was highly focused on delivering on its financial commitments, and our performance in Q1 demonstrates that we're off to a solid start. With that objective in mind and the fact that it's still early in the year, we are modestly updating the earnings outlook for this year. We are raising our full year adjusted diluted earnings per share guidance range by 10 cents to a new range of $2.15 to $2.35.

Speaker Change: Despite this near term pressure clearly our objective is to return to a more balanced capital allocation strategy over time.

Now, let me spend just a few minutes on our outlook for the remainder of this year. As we entered 2024, the company was highly focused on delivering on its financial commitments and our performance in Q1 demonstrates that we're off to a solid start. With that objective in mind and the fact that it's still early in the year, we are modestly updating the earnings outlook for this year. We are raising our full year adjusted diluted earnings per share guidance range by 10 cents to a new range of $2.15 to $2.35. Looking ahead, this increase takes into consideration both our improving line of sight to our cost savings targets and continued strength in our underlying business. As a reminder, our EPS guidance also includes an anticipated 40 cents of funding solution from the Seagen acquisition, largely due to financing costs. While the Paxlovid revenue return adjustment moves us to the upper end of the revenue guidance range, our top-line revenue expectations remain unchanged for the year. We continue to expect revenues in the range of $58.5 billion to $61.5 billion.

Albert Bourla: Now, let me spend just a few minutes on our outlook for the remainder of this year. As we entered 2024, the company was highly focused on delivering on its financial commitments, and our performance in Q1 demonstrates that we are off to a solid start. With that objective in mind, and the fact that it's still early in the year, we are modestly updating the earnings outlook for this year. We are raising our full-year adjusted diluted earnings per share guidance range by $0.10 to a new range of $2.15 to $2.35. Looking ahead, this increase takes into consideration both our improving line of sight to our cost savings targets, and continued strength in our underlying business. As a reminder, our EPS guidance also includes an anticipated $0.40 of earnings dilution from the Seagen acquisition, largely due to financing costs.

Now, let me spend just a few minutes on our outlook for the remainder of this year. As we entered 2024, the company was highly focused on delivering on its financial commitments, and our performance in Q1 demonstrates that we are off to a solid start. With that objective in mind, and the fact that it's still early in the year, we are modestly updating the earnings outlook for this year. We are raising our full-year adjusted diluted earnings per share guidance range by $0.10 to a new range of $2.15-$2.35. Looking ahead, this increase takes into consideration both our improving line of sight to our cost savings targets, and continued strength in our underlying business. As a reminder, our EPS guidance also includes an anticipated $0.40 of earnings dilution from the Seagen acquisition, largely due to financing costs.

Speaker Change: Now, let me spend just a few minutes on our outlook for the remainder of this year.

Speaker Change: As we entered 2024 the company was highly focused on delivering on its financial commitments and our performance in Q1 demonstrates that we are off to a solid start.

Speaker Change: With that objective in mind and the fact that it's still early in the year. We are modestly updating the earnings outlook for this year.

With that objective in mind and the fact that it's still early in the year, we are modestly updating the earnings outlook for this year. We are raising our full year adjusted diluted earnings per share guidance range by 10 cents to a new range of $2.15 to $2.35. Looking ahead, this increase takes into consideration both our improving line of sight to our cost savings targets and continued strength in our underlying business. As a reminder, our EPS guidance also includes an anticipated 40 cents of funding solution from the Seagen acquisition, largely due to financing costs. While the Paxlovid revenue return adjustment moves us to the upper end of the revenue guidance range, our top-line revenue expectations remain unchanged for the year. We continue to expect revenues in the range of $58.5 billion to $61.5 billion.

Speaker Change: We are raising our full year adjusted diluted earnings per share guidance range by 10 cents.

Speaker Change: To a new range of $2 15.

Speaker Change: $2 35.

David M. Denton: Looking ahead, this increase takes into consideration both our improving line of sight to our cost savings targets and continued strength in our underlying business. As a reminder, our EPS guidance also includes an anticipated 40 cents of funding solution from the Seagen acquisition, largely due to financing costs. While the Paxlovid revenue return adjustment moves us to the upper end of the revenue guidance range, our top-line revenue expectations remain unchanged for the year. We continue to expect revenues in the range of $58.5 billion to $61.5 billion.

Speaker Change: Looking ahead. This increase takes into consideration both are improving line of sight to our cost savings targets and continued strength in our underlying business.

Looking ahead, this increase takes into consideration both our improving line of sight to our cost savings targets and continued strength in our underlying business. As a reminder, our EPS guidance also includes an anticipated $0.40 cents of earnings dilution from the Seagen acquisition, largely due to financing costs. While the PAXLOVID revenue return adjustment moves us to the upper end of the revenue guidance range, our top-line revenue expectations remain unchanged for the year. We continue to expect revenues in the range of $58.5 billion to $61.5 billion.

Speaker Change: As a reminder, our EPS guidance also includes an anticipated 40 cents of earnings dilution from the <unk> acquisition.

Speaker Change: Due to financing costs.

Albert Bourla: While the Paxlovid revenue return adjustment moves us to the upper end of the revenue guidance range, our top-line revenue expectations remain unchanged for the year. We continue to expect revenues in the range of $58.5 billion to $61.5 billion. In addition, even though Comirnaty revenues continue to perform consistent with our plan, it is important to remember that we expect approximately 90% of our sales to occur in the second half of the year, mostly in Q4, given the seasonal nature of this product. Lastly, we remain on track to deliver at least $4 billion in net savings from our cost realignment program by the end of the year. Improving our cost base will put us on strong footing towards margin expansion and improved financial returns as we move forward.

While the PAXLOVID revenue return adjustment moves us to the upper end of the revenue guidance range, our top-line revenue expectations remain unchanged for the year. We continue to expect revenues in the range of $58.5 billion t-$61.5 billion. In addition, even though COMIRNATY revenues continue to perform consistent with our plan, it is important to remember that we expect approximately 90% of our sales to occur in the second half of the year, mostly in Q4, given the seasonal nature of this product. Lastly, we remain on track to deliver at least $4 billion in net savings from our cost realignment program by the end of the year. Improving our cost base will put us on strong footing towards margin expansion and improved financial returns as we move forward.

Speaker Change: While the <unk> slogan revenue return adjustment moves us to the upper end of the revenue guidance range, our topline revenue expectations remain unchanged for the year.

Speaker Change: We continue to expect revenues in the range of $58 5 billion.

Speaker Change: To 61, and a half billion dollars.

David M. Denton: In addition, even though COMIRNATY revenues continue to perform consistent with our plan, it is important to remember that we expect approximately 90% of our sales to occur in the second half of the year -- mostly in Q4, given the seasonal nature of this product. Lastly, we remain on track to deliver at least $4 billion in net savings from our cost realignment program by the end of the year. Improving our cost base will put us on strong footing towards margin expansion and improve financial returns as we move forward.

Speaker Change: In addition, even though commodity revenues continue to perform consistent with our plan and it's important to remember that we expect approximately 90% of our sales to occur in the second half of the year.

Speaker Change: Mostly in Q4, given the seasonal nature of these products.

Speaker Change: Lastly, we remain on track to deliver at least $4 billion of net savings from our cost realignment program by the end of the year.

Speaker Change: Proving our cost base will put us on strong footing towards margin expansion and improved financial returns as we move forward.

Albert Bourla: As you know, over the past two years, the company has made significant investments to drive growth in the back half of the decade, and we remain encouraged by the long-term growth outlook for Pfizer. 2024 is clearly a year of focus. The foundation that we established this year sets the stage to deliver on our commitment to enhance shareholder value both this year and through the end of the decade. With that, I'd like to turn it back over to Albert as we begin our Q&A session. Thank you, David. Now, let's start the Q&A session. Operator, please assemble the queue. At this time, if you would like to ask a question, please press the Star and 1 on your telephone keypad. You may remove yourself from the queue at any point by pressing Star 2.

As you know, over the past two years, the company has made significant investments to drive growth in the back half of the decade, and we remain encouraged by the long-term growth outlook for Pfizer. 2024 is clearly a year of focus. The foundation that we established this year sets the stage to deliver on our commitment to enhance shareholder value both this year and through the end of the decade. With that, I'd like to turn it back over to Albert as we begin our Q&A session.

David M. Denton: As you know, over the past two years, the company has made significant investments to drive growth in the back half of the decade and remained encouraged by the long-term growth outlook for Pfizer. 2024 is clearly a year of focus, execution and delivering on our near-term financial commitments. The foundation that we established this year sets the stage to deliver on our commitment to enhance shareholder value both this year and through the end of the decade. And with that, I'd like to turn it back over to Albert as we begin our Q&A session. Thank you, David. Now let's start the Q&A session. Operator, please assemble the, At this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may remove yourself from the queue at any point by pressing star two.

As you know, over the past two years, the company has made significant investments to drive growth in the back half of the decade and remained encouraged by the long-term growth outlook for Pfizer. 2024 is clearly a year of focus, execution and delivering on our near-term financial commitments. The foundation that we established this year sets the stage to deliver on our commitment to enhance shareholder value both this year and through the end of the decade. And with that, I'd like to turn it back over to Albert as we begin our Q&A session.

Speaker Change: As you know where the past two years. The company has made significant investments to drive growth in the back half of the decade.

Speaker Change: And we remain encouraged by the long term growth outlook for Pfizer.

Speaker Change: 2024 is clearly your focus.

Speaker Change: That's the.

David M. Denton: The foundation that we established this year sets the stage to deliver on our commitment to enhance shareholder value both this year and through the end of the decade. And with that, I'd like to turn it back over to Albert as we begin our Q&A session. Thank you, David. Now let's start the Q&A session. Operator, please assemble the, At this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may remove yourself from the queue at any point by pressing star two.

Speaker Change: The foundation that we established this year sets the stage to deliver on our commitment to enhance shareholder value. Both this year and through the end of the visit in the decade.

And with that, I'd like to turn it back over to Albert as we begin our Q&A session.

Speaker Change: And with that I'd like to turn it back over to Albert as we begin our Q&A session.

Albert Bourla: Thank you, David. Now, let's start the Q&A session. Operator, please assemble the queue.

Thank you, David. Now let's start the Q&A session. Operator, please assemble the queue, At this time, if you would like to ask a question, please press the star and one on your telephone keypad. You may remove yourself from the queue at any point by pressing star two.

Albert Bourla: Thank you, David. Now, let's start the Q&A session. Operator, please assemble the queue,

Albert: Thank you David now, let's start the Q&A session operator, please assemble the queue.

Operator: At this time, if you would like to ask a question, please press the star and 1 on your telephone keypad. You may remove yourself from the queue at any point by pressing star-2. Once again, that is star and 1 if you would like to ask a question.

Operator: At this time, if you would like to ask a question, please press the Star and 1 on your telephone keypad. You may remove yourself from the queue at any point by pressing Star 2.

Albert: At this time, if you would like to ask a question. Please press the star and one on your telephone keypad you may remove yourself from the queue at any point by pressing star to once again I'm going to start in one if you would like to ask a question. We will take our first question from Louise Chen with Cantor. Your line is now open.

Albert Bourla: Once again, that is Star and 1 if you would like to ask a question. We'll take our first question from Louise Jan with Cantor. Your line is now open. Hi. Thanks for taking my question. I had a question for you on your RSV vaccine sales. Just curious what drove the downtick versus the fourth quarter. It looks like GSK had a similar downtick. How do you think about potential competition coming into the market for vaccines and treatments? Does that impact your future growth projections for the franchise? Thank you. I think Amir has a question for you. Maybe Alexandre also can add because now we started already to register and approve the product in international markets. Amir. Louise, thanks for the question. It very much appears like the RSV vaccination market is following a seasonal trend.

Once again, that is Star and 1 if you would like to ask a question. We'll take our first question from Louise Chen with Cantor. Your line is now open.

Operator: Once again, that is star and one if you would like to ask a question. We'll take our first question from Louise Chan with Canter. Your line is now open.

Once again, that is star and one if you would like to ask a question.

We'll take our first question from Louise Chen with Cantor. Your line is now open.

Louise Chen: Hi. Thanks for taking my question. I had a question for you on your RSV vaccine sales. Just curious what drove the downtick versus the fourth quarter. It looks like GSK had a similar downtick. How do you think about potential competition coming into the market for vaccines and treatments? Does that impact your future growth projections for the franchise? Thank you.

Louise Chen: Hi, thanks for taking my question. I had a question for you on your RSV vaccine sales. Just curious what drove the downtick versus the 4th quarter? Looks like GSK had a similar downtick. And then, how do you think about potential competition coming into the market for vaccines and treatments? Does that impact your future growth projections for the franchise? Thank you. I think, Aamir, if that's a question for you, then maybe, Alexandre, also, you can add, because now we started already to register and approve the product in international markets. Aamir.

Louise Chen: Hi, Thanks for taking my question I had a question for you on your RSV vaccine sales just curious what drove that downtick versus the fourth quarter. It looks like GSK had a similar okay. And then how do you think about potential competition coming into the market for vaccines and treatments does that impact your future growth projections for any franchise. Thank you.

Louise Chen: And then how do you think about potential competition coming into the market for vaccines and treatments? Does that impact your future growth projections for the franchise? I think, Aamir, if that's a question for you, then maybe, Alexandre, also, you can add, because now we started already to register and approve the product in international markets. Aamir.

Albert Bourla: I think Aamir has a question for you. Maybe Alexandre also can add because now we started already to register and approve the product in international markets. Aamir?

Albert Bourla: I think, Aamir, that's a question for you. Then maybe, Alexandre, also you can add because now we started already to register and approve the product in international markets. Aamir?

Speaker Change: I think I'm here, but it's a question for you guys than maybe Alexander also command because now we started already to register and approve the product.

Speaker Change: In our international markets.

Aamir Malik: Louise, thanks for the question. It very much appears like the RSV vaccination market is following a seasonal trend.

Aamir Malik: Louise, thanks for the question. So, it very much appears like the RSV vaccination market is following a seasonal trend so, you expect the dynamics in Q4 versus Q1 to be different. In Q1, what we saw for the market is, for older adults, it certainly attenuated over the course of the quarter. So, there was a peak in the second week of January and then, a steady week-by-week decline since then.

Alexander: Let me thanks for the question. So very much appears like the RSV vaccination market is following a seasonal trend. So you expect the dynamics in Q4 versus Q1 to be different in Q1, what we saw for the market is for older adults.

Albert Bourla: You expect the dynamics in Q4 versus Q1 to be different. In Q1, what we saw for the market is, for older adults, it certainly attenuated over the course of the quarter. There was a peak in the second week of January, and then a steady week-by-week decline since then. Now, in terms of the dynamics for our business and Abrysvo, our performance was in line with what we expected. We do think this will follow a seasonal trend, and we think we're very well positioned for the fall season for several reasons. One is we're progressing our retail contracting. Second is we have a real strength in the non-retail channel. You referred to GSK. They reported their revenues. When you look at the mix of US revenues as reported, it's about a 60/40 mix.

You expect the dynamics in Q4 versus Q1 to be different. In Q1, what we saw for the market is, for older adults, it certainly attenuated over the course of the quarter. There was a peak in the second week of January, and then a steady week-by-week decline since then. Now, in terms of the dynamics for our business and ABRYSVO, our performance was in line with what we expected. We do think this will follow a seasonal trend, and we think we're very well positioned for the fall season for several reasons. One is we're progressing our retail contracting. Second is we have a real strength in the non-retail channel. You referred to GSK. They reported their revenues. When you look at the mix of US revenues as reported, it's about a 60/40 mix.

Alexander: Attenuated over the course of the quarter. So there was a peak in the second week of January and then it's steady week by week declined. Since then so in terms of the dynamics for our business and our Bridgeville.

Aamir Malik: Now, in terms of the dynamics for our business and ABRYSVO, you know, our performance was in line with what we expected. We think this will follow a seasonal trend and we think we're very well-positioned for the fall season, for several reasons. One is we're progressing our retail contracting. Second is we have a real strength in the non-retail channel. You referred to GSK -- they reported their revenues, when you look at the mix of U.S. revenues as reported, it's about a 60/40 mix. Our retail share is lower than that but our non-retail share is much higher. And that portion of our business really doubled between Q4 and Q1 from about 9% to 17%. And I think that just speaks to our strength in doctors' offices and the relationships we have with organized customers. And I'll also note that later this year, if approved, we will have a new presentation of ACT-O-VIAL, which demonstrates ease of administration; and also our clinical data, which Albert referred to in his remarks, for label expansion for ABRYSVO for 18 to 59 year olds that are at risk, as well as durable efficacy through two seasons. I think the combination of these commercial efforts as well as potential label expansion, really position us well for the fall season. Thank you. Now, Alexandre.

Now, in terms of the dynamics for our business and ABRYSVO, you know, our performance was in line with what we expected. We think this will follow a seasonal trend and we think we're very well-positioned for the fall season, for several reasons. One is we're progressing our retail contracting. Second is we have a real strength in the non-retail channel. You referred to GSK -- they reported their revenues, when you look at the mix of U.S. revenues as reported, it's about a 60/40 mix. Our retail share is lower than that but our non-retail share is much higher. And that portion of our business really doubled between Q4 and Q1 from about 9% to 17%. And I think that just speaks to our strength in doctors' offices and the relationships we have with organized customers. And I'll also note that later this year, if approved, we will have a new presentation of ACT-O-VIAL, which demonstrates ease of administration. And also our clinical data, which Albert referred to in his remarks, for label expansion for ABRYSVO for 18 to 59 year olds that are at risk, as well as durable efficacy through two seasons. I think the combination of these commercial efforts as well as potential label expansion, really position us well for the fall season.

Alexander: Our performance was in line with what we expected. We do think this will follow a seasonal trend and we think we're very well positioned for the fall season for several reasons. One is we're progressing our retail contracting.

Aamir Malik: One is we're progressing our retail contracting. Second is we have a real strength in the non-retail channel. You referred to GSK.

Alexander: Second is we have a real strength in the non retail channel you referred to GSK. They reported their revenues when you look at the mix of U S revenues as reported it's about a 60 40 mix our retail share is lower than that but our non retail share is much higher and that portion of our business really doubled between Q4 and Q1 from about nine.

Aamir Malik: They reported their revenues. When you look at the mix of U.S. revenues as reported, it's about a 60-40 mix. Our retail share is lower than that, but our non-retail share is much higher. And that portion of our business really doubled between Q4 and Q1 from about 9% to 17%. And I think that just speaks to our strength in doctors' offices and the relationships we have with organized customers. And I'll also note that later this year, if approved, we will have a new presentation of ActoVial, which demonstrates ease of administration, and also our clinical data, which Albert referred to in his remarks, for label expansion for Brisville for 18- to 59-year-olds that are at risk, as well as durable efficacy through two seasons. Thank you. Now, Alexandre.

Albert Bourla: Our retail share is lower than that, but our non-retail share is much higher. That portion of our business really doubled between Q4 and Q1 from about 9% to 17%. I think that just speaks to our strength in doctor's offices and the relationships we have with organized customers. I'll also note that later this year, if approved, we will have a new presentation of Abrysvo, which demonstrates ease of administration, and also our clinical data, which Albert referred to in his remarks for label expansion for Abrysvo for 18 to 59-year-olds who are at risk, as well as durable efficacy through two seasons. I think the combination of these commercial efforts, as well as potential label expansion, really positions us well for a fall season. Thank you. Now, Alexandre. Yes. Louise, thanks for the questions.

Our retail share is lower than that, but our non-retail share is much higher. That portion of our business really doubled between Q4 and Q1 from about 9%-17%. I think that just speaks to our strength in doctor's offices and the relationships we have with organized customers. I'll also note that later this year, if approved, we will have a new presentation of ABRYSVO, which demonstrates ease of administration, and also our clinical data, which Albert referred to in his remarks for label expansion for ABRYSVO for 18 to 59-year-olds who are at risk, as well as durable efficacy through two seasons. I think the combination of these commercial efforts, as well as potential label expansion, really positions us well for a fall season.

And that portion of our business really doubled between Q4 and Q1 from about 9% to 17%. And I think that just speaks to our strength in doctors' offices and the relationships we have with organized customers. And I'll also note that later this year, if approved, we will have a new presentation of ACT-O-VIAL, which demonstrates ease of administration. And also our clinical data, which Albert referred to in his remarks, for label expansion for ABRYSVO for 18 to 59 year olds that are at risk, as well as durable efficacy through two seasons. I think the combination of these commercial efforts as well as potential label expansion, really position us well for the fall season.

Alexander: Sent to 17% and I think that just speaks to our strength in doctors' offices and the relationships we have with organized customers and I'll also note that later this year. If approved we will have a new presentation of the active aisle, which demonstrates ease of administration and also our clinical data, which Albert referred to in here.

Alexander: Remarks for label expansion for our Brisbane for 18 to 59 year olds as well as <unk> that are at risk as well as gerbil efficacy through two seasons I think the combination of these commercial efforts as well as a potential label expansion really position us well for a for a fall season.

Albert Bourla: Thank you. Now, Alexandre?

Albert Bourla: Thank you, Aamir. Now, Alexandre.

Speaker Change: No I was done.

Alexandre de Germay: Yes. Louise, thanks for the questions.

Alexandre de Germay: Yes. So, Louise, thanks for the questions. On the international front, we actually made great progress on the ABRYSVO. As you know, we got approval in the second half of 2023 in Europe and in the UK and since then we've been working with the health authority and the experts to provide medical evidence and healthcare system benefits associated with the protection against lower respiratory tract infection associated with RSV or through immunizations of maternal or through the immunization of all the adults.

Speaker Change: Yes, thanks for the questions on the international hopes they actually made great progress on the a reasonable as you know we got to approval in the second half of 2023 in Europe and in the U K and since then we've been working with the health authorities and we expect to provide medical evidence in house tested stability associated with the year protection against the low risk battery tracking.

Albert Bourla: On the international front, we actually made great progress on the Abrysvo. As you know, we got approval in the second half of 2023 in Europe and in the UK. Since then, we've been working with the health authority and the expert to provide medical evidence and healthcare system benefits associated with the protection against lower respiratory tract infection associated with RSV through immunizations of maternal, also the immunization of older adults. We're making good progress. Actually, we've already received the recommendation in the UK, in Austria, in Norway, and we are progressing and waiting for some recommendations from the Vaccine Technical Committee in many other European markets.

On the international front, we actually made great progress on the ABRYSVO. As you know, we got approval in the second half of 2023 in Europe and in the UK. Since then, we've been working with the health authority and the expert to provide medical evidence and healthcare system benefits associated with the protection against lower respiratory tract infection associated with RSV through immunizations of maternal, also the immunization of older adults. We're making good progress. Actually, we've already received the recommendation in the UK, in Austria, in Norway, and we are progressing and waiting for some recommendations from the Vaccine Technical Committee in many other European markets.

Speaker Change: Such as RSV and flu immunizations total ultimate elimination of all data. So we're making good progress and actually we have already received the recommendation in the UK, Australia, and Norway and we are progressing in waiting some recommendations from the vaccine Technical committee in many other European also had good progress from the <unk>.

Alexandre de Germay: So, we're making good progress and actually, we've already received the recommendation in the UK, in Austria, in Norway and we are progressing and awaiting some recommendations from the Vaccine Technical Committee in many other European markets. We also had good progress from a regulatory standpoint because it was a milestone with the approval of older adults and MI during the maternal immunization in Japan in the 1st quarter, as well as the Kingdom of Saudi Arabia. So, overall, they don't yet translate into financials because it takes time, you know, to get to the approval, to get the VTC and to get funding for those campaigns. But we see significant opportunity that we can address and meet medical need in the international. Just to give you one example -- in Europe, for instance, half of the hospitalizations due to respiratory tract infection in the first year of life were caused by RSV. So, there is definitely a great opportunity and the majority of those hospitalizations occur for the first three months of age. And as you know, ABRYSVO is the only maternal vaccine that helps protect infants from a lower respiratory tract infection caused by RSV immunization from birth to six months. So, we see a great opportunity.

So, we're making good progress and actually, we've already received the recommendation in the UK, in Austria, in Norway and we are progressing and awaiting some recommendations from the Vaccine Technical Committee in many other European markets. We also had good progress from a regulatory standpoint because it was a milestone with the approval of older adults and MI during the maternal immunization in Japan in the 1st quarter, as well as the Kingdom of Saudi Arabia. So, overall, they don't yet translate into financials because it takes time, you know, to get to the approval, to get the VTC and to get funding for those campaigns.

Albert Bourla: We also had good progress from a regulatory standpoint because it was a milestone with the approval of older adults and MI during the maternal immunization in Japan in the first quarter, as well as the Kingdom of Saudi Arabia. Overall, they don't yet translate into financials because it takes time to get the approval, to get the VTC, and to get funding for those campaigns. We see significant opportunity that we can address and make medical need in the international. Just to give you one example, in Europe, for instance, half of the hospitalizations due to respiratory tract infection in the first year of life were caused by RSV. There is definitely a great opportunity, and the majority of those hospitalizations occur for the first three months of age.

We also had good progress from a regulatory standpoint because it was a milestone with the approval of older adults and MI during the maternal immunization in Japan in the first quarter, as well as the Kingdom of Saudi Arabia. Overall, they don't yet translate into financials because it takes time to get the approval, to get the VTC, and to get funding for those campaigns. We see significant opportunity that we can address and make medical need in the international. Just to give you one example, in Europe, for instance, half of the hospitalizations due to respiratory tract infection in the first year of life were caused by RSV. There is definitely a great opportunity, and the majority of those hospitalizations occur for the first three months of age.

Speaker Change: They could actually send all because it was a milestone with the approval of the older adults and M.

Speaker Change: During the Vietnam immunization in Japan in the first quarter as well.

Speaker Change: The kingdom of Saudi Arabia, So overall, they don't yet translate into financials, because it takes time to get through the approval to get the Hec and to get to funding for those campaign, but we see significant opportunity that we can address unmet medical need in the international just to give you. One example.

Alexandre de Germay: So overall, they don't yet translate into financials because it takes time, you know, to get to the approval, to get the VTC, and to get funding for those campaigns. But we see significant opportunity that we can address and medical need in the international. Just to give you one example, in Europe, for instance, half of the hospitalizations due to respiratory tract infection in the first year of life were caused by RSV. So there is definitely a great opportunity, and the majority of those hospitalizations occur for the first three months of age. And as you know, Abrizo is the only maternal vaccine that helps protect infants, from a low-risk tract infection caused by RSV immunization from birth to six months.

But we see significant opportunity that we can address and meet medical need in the international. Just to give you one example -- in Europe, for instance, half of the hospitalizations due to respiratory tract infection in the first year of life were caused by RSV. So, there is definitely a great opportunity and the majority of those hospitalizations occur for the first three months of age. And as you know, ABRYSVO is the only maternal vaccine that helps protect infants from a lower respiratory tract infection caused by RSV immunization from birth to six months. So, we see a great opportunity.

Speaker Change: In Europe for instance.

Speaker Change: <unk> of the hospitalization due to risk rate tracking section in this first year of life were caused by RSV. So there is definitely a greater volatility in the majority of those are also utilization of fuel for the first three months of age and as you know that Brazil is dealing you mentioned no vaccine that help protect and events from low rates trucking.

Albert Bourla: As you know, Abrysvo is the only maternal vaccine that helps protect infants from lower respiratory tract infection caused by RSV immunization from birth to six months. We see a great opportunity. Thank you, Alexandre. Let's go to the next question, please. Thank you. We'll take our next question from Terence Flynn with Morgan Stanley. Your line is now open. Great. Thanks for taking the question. Maybe just a two-part from me. Just wondering if you can comment at all about any potential impact in 2025 from the Part D redesign. We've heard a couple of other companies already comment here. And then one in the pipeline, can you give us any update on Danoglipron and your plans more broadly in obesity? Thank you. Yes. Thank you. Can you add that Danoglipron is in the industry? Let me take that one to clear the way. It's not new.

As you know, ABRYSVO is the only maternal vaccine that helps protect infants from lower respiratory tract infection caused by RSV immunization from birth to six months. We see a great opportunity.

Speaker Change: Infection caused by RSV immunization from birth to six months, so we see a great opportunity.

Alexandre de Germay: Thank you, Alexandre. Let's go to the next question. Thank you. We'll take our next question from Terrence Flynn with Morgan Stanley. Your line is now open.

Albert Bourla: Thank you, Alexandre. Let's go to the next question.

Albert Bourla: Thank you, Alexandre. Let's go to the next question, please.

Speaker Change: Uh huh.

Operator: Thank you. We'll take our next question from Terence Flynn with Morgan Stanley. Your line is now open.

Speaker Change: Let's go to the next question.

Operator: Thank you. We'll take our next question from Terence Flynn with Morgan Stanley. Your line is now open.

Speaker Change: Thank you we'll take our next question from Terence Flynn with Morgan Stanley. Your line is now open.

Terence Flynn: Great. Thanks for taking the question. Maybe just a two-part from me. Just wondering if you can comment at all about any potential impact in 2025 from the Part D redesign. We've heard a couple of other companies already comment here. And then one in the pipeline, can you give us any update on danuglipron and your plans more broadly in obesity? Thank you.

Terence Flynn: Great. Thanks for taking the question. Maybe just a two-part for me. Just wondering if you can comment at all about any potential impact in 2025 from the Part D redesign? We've heard a couple of other companies already comment here. And then, one on the pipeline. Can you give us any update on DANUGLIPRON and your plans more broadly in obesity? Thank you.

Terence Flynn: Great. Thanks for taking the question maybe just a two part for me just wondering if you can comment at all about any potential impact in 2025 from the part D. Redesign we've heard a couple of other companies already comment here and then one on the pipeline can you give us any update on Danek, let Bryan in your plans.

Terence Flynn: More broadly in obesity. Thank you.

Albert Bourla: Yes. Thank you. Can you add that danuglipron is in the industry? Let me take that one to clear the way. It's not new.

Speaker Change: Yes. Thank you.

Speaker Change: Good Bromeosin interest I'll, let me take that one so to clear out of the woods.

Albert Bourla: We don't have news on Danoglipron. Everything is as we have discussed before. We are waiting around mid-year to get the totality of the data that relates to the once-a-day formulation. Based on the data and everything else, we will make decisions for future plans. We'll speak about them when we have more to say. Now let's go to Amir about the Part D redesign in 2025. Do you expect anything? Sure. Terrence, thanks for the question. As you can imagine, there are many moving parts to Part D redesign. I think relevant to our business, it's important to first note that as part of what already went into place with the redesign, there is no cost sharing imposed on vaccines. That, given our significant vaccines portfolio, is a positive.

We don't have news on danuglipron. Everything is as we have discussed before. We are waiting around mid-year to get the totality of the data that relates to the once-a-day formulation. Based on the data and everything else, we will make decisions for future plans. We'll speak about them when we have more to say. Now let's go to Aamir about the Part D redesign in 2025. Do you expect anything?

Speaker Change: They don't have.

Speaker Change: Everything is as we've discussed before so we are waiting.

Speaker Change: Mid year.

Terence Flynn: To get there.

Terence Flynn: The totality of the data.

Speaker Change: Uh huh.

Speaker Change: Relates to the <unk>.

Speaker Change: Once a day formulation and then based on the data and everything else. We will make this is a focus of plateau will speak about them win.

Speaker Change: We have more to say.

Terence Flynn: Just wondering if you can comment at all about any potential impact in 2025 from the Part D redesign. We've heard a couple of other companies already comment here. And then one on the pipeline.

Terence Flynn: Can you give us any update on Danagliparan and your plans more broadly in obesity? Thank you. Yes, thank you. Kirill Daniuklipour is in the interest. Let me take that one to clear the way.

Can you give us any update on Danagliparan and your plans more broadly in obesity? Thank you.

Speaker Change: However, now let's go to Amir about Rd redesign in 2025 do you expect them.

Aamir Malik: Sure. Terrence, thanks for the question. As you can imagine, there are many moving parts to Part D redesign. I think relevant to our business, it's important to first note that as part of what already went into place with the redesign, there is no cost sharing imposed on vaccines. That, given our significant vaccines portfolio, is a positive.

Amir: Sure Darren Thanks for the question and as you can imagine there's many moving parts to part D redesign I think relevant to our business.

Amir: I think it's important to first note that.

Amir: As part of what's already went into place with with the redesign.

Amir: There is no cost sharing imposed on vaccine so that given our significant vaccines portfolio is a positive and then obviously over the course of 'twenty four 'twenty five there's other dynamics with out of pocket cost caps, which.

Albert Bourla: Over the course of 2024 and 2025, there's other dynamics with out-of-pocket cost caps, which create better access for patients. That is helpful to volumes, and we're starting to see that in 2024 in some parts of our business, including on Zenda. There's things to come, including a change in that cap as well as patient smoothing. We'll see how that plays out. Obviously, there's also changes in how costs are shared between plans, manufacturers, government, and patients. How all of that gets implemented, we're tracking that very closely. We're not offering any specific guidance in terms of direct dollar impact on our business in 2025 because there's still a lot to come on this. When we're ready to do that, we certainly will. Thank you, Amir. Let's go to the next question, please.

Over the course of 2024 and 2025, there's other dynamics with out-of-pocket cost caps, which create better access for patients. That is helpful to volumes, and we're starting to see that in 2024 in some parts of our business, including on VYNDA. There's things to come, including a change in that cap as well as patient smoothing. We'll see how that plays out. Obviously, there's also changes in how costs are shared between plans, manufacturers, government, and patients. How all of that gets implemented, we're tracking that very closely. We're not offering any specific guidance in terms of direct dollar impact on our business in 2025 because there's still a lot to come on this. When we're ready to do that, we certainly will.

Albert Bourla: Yes, thank you. Clearly, DANUGLIPRON is in the interest. Let me take that one to clear the way. It's not new. We don't have news on DANUGLIPRON. Everything is as we have discussed before so, we are waiting around mid-year to get the totality of the data that relates to the once-a-day formulation. And then, based on the data and everything else, we will make decisions for future plans. So, we'll speak about them when we have more to say. However, now let's go to Aamir about the Part D redesign in 2025, if you're still with us. Sure. Taryn, thanks for the question.

Amir: Better access for patients and that is helpful to volumes and we're starting to see that in 'twenty four and some parts of our business, including on Tinder, and then theres things to come including a change in that cap as well as patient smoothing. So we'll see how that plays out and obviously theres also changes in how costs are shared between plans manufacturers.

Amir: Government and patients so how all of that gets implemented.

Amir: We're tracking that very closely we're not offering any specific guidance in terms of direct dollar impact on our business in 2025, because theres still a lot to come on this and when we are ready to do that we certainly will.

Albert Bourla: Thank you, Aamir. Let's go to the next question, please.

Albert Bourla: It's not new. We don't have news on Daniuklipour. Everything is as we have discussed before. So we are waiting around mid-year to get the totality of the data that relates to the ones that they formulate. And then based on the data and everything else, we will make decisions for future plans. We will speak about them when we have more time. However, now let's go to Aamir about the Part D redesign in 2025, if you're still with us. Sure. Taryn, thanks for the question.

Speaker Change: Thank you Amit let's go to the next question. Please.

Albert Bourla: We'll take our next question from Akash Tewari with Jefferies. Your line is open. Hey, thanks so much. Onto famous, really strong quarter, but I wanted to ask on patent life. Given we've seen the EU patent office strike down multiple invalidity oppositions, and on the US side, it looks like defendants are conceding infringement, how should we think about IP for this product? Why shouldn't this stay patented out to 2035? Number two, really strong quarter for Padcev, and you do have the pending Tivdak launch in first-line cervical. Is there any possibility we could see Seagen become accretive to Pfizer earnings by next year? Thanks so much. That's a very good question. Why don't we go first to you, Dave, to speak a little bit about. Clearly, Seagen is doing very well. If you expect that it can become accretive earlier.

Operator: We'll take our next question from Akash Tewari with Jefferies. Your line is open.

Amit: We'll take our next question from a cash <unk> with Jefferies. Your line is open.

Akash Tewari: Hey, thanks so much. Onto famous, really strong quarter, but I wanted to ask on patent life. Given we've seen the EU patent office strike down multiple invalidity oppositions, and on the US side, it looks like defendants are conceding infringement, how should we think about IP for this product? Why shouldn't this stay patented out to 2035? Number two, really strong quarter for PADCEV, and you do have the pending TIVDAK launch in first-line cervical. Is there any possibility we could see Seagen become accretive to Pfizer earnings by next year? Thanks so much.

Jefferies: Hey, thanks, so much onto family, it's really strong quarter, but I wanted to ask one patent life given we've seen the EU patent office strike down multiple invalidity oppositions and on the U S side. It looks like defendants are conceding infringement, how should we think about IP for this product why shouldn't be de patents out to 2035, and then number two really strong quarter for Pat.

Jefferies: You do have the pending Tim Dec launch in first line cervical is there any possibility we could see then become accretive to Pfizer earnings by next year. Thanks, So much.

Aamir Malik: Sure. Terence, thanks for the question. And as you can imagine, there's many moving parts to Part D redesign. I think relevant to our business, you know, I think it's important to first note that as part of what already went into place with the redesign, there is no cost sharing imposed on vaccines. So, that, given our significant vaccines portfolio, is a positive. And then, obviously, over the course of '24 and '25, there's other dynamics with out-of-pocket cost caps, which create better access for patients and that is helpful to volumes. And we're starting to see that in '24 in some parts of our business, including on VYNDA.

Albert Bourla: That's a very good question. Why don't we go first to you, Dave, to speak a little bit about. Clearly, Seagen is doing very well. If you expect that it can become accretive earlier.

Aamir Malik: And as you can imagine, there's many moving parts to Part D redesign. I think relevant to our business, you know, I think it's important to first note that as part of what already went into place with the redesign, there is no cost sharing imposed on vaccines. So that, given our significant vaccines portfolio, is a positive. And then obviously, over the course of 24 and 25, there's other dynamics with out-of-pocket cost caps, which create that better access for patients.

Speaker Change: That's a very good third questions why don't we go first through.

Speaker Change: Dave will speak a little bit about Pea harvest season is doing very well if you expect that.

Speaker Change: Can become accretive earlier also I would like to hear some comments from Chris about the progress of this as a portfolio and then Doug can comment on the IP situation. So yeah. So just maybe on <unk> from a financial perspective, obviously, clearly a very solid quarter and a very solid start to the year I think we're not changing our expectations.

Albert Bourla: Also, I would like to hear some comments from Chris about the progress of the CGen portfolio. Then Doug can comment on the IP situation or legal counsel. Dave? Yeah. Just maybe on CGen from a financial perspective, obviously, clearly a very solid quarter and a very solid start to the year. I think we're not changing our expectations, both short-term and long-term for CGen, but I think we're cautiously optimistic as we look forward. Probably nothing to update financially other than our continued commitment to the financial metrics that we've already established. Again, we're probably cautiously optimistic on the trends that we're seeing underlying that business at this point in time. You want to make some comments also, Chris, about the performance of the CGen business? Yeah.

Also, I would like to hear some comments from Chris about the progress of the Seagen portfolio. Then Doug can comment on the IP situation or legal counsel. Dave?

Dave Denton: Yeah. Just maybe on Seagen from a financial perspective, obviously, clearly a very solid quarter and a very solid start to the year. I think we're not changing our expectations, both short-term and long-term for Seagen, but I think we're cautiously optimistic as we look forward. Probably nothing to update financially other than our continued commitment to the financial metrics that we've already established. Again, we're probably cautiously optimistic on the trends that we're seeing underlying that business at this point in time.

Aamir Malik: And we're starting to see that in '24 in some parts of our business, including on Zynda. And then there's things to come, including a change in that cap, as well as patient smoothing. So we'll see how that plays out. And obviously, there's also changes in how costs are shared between plans, manufacturers, government, and patients. So how all of that gets implemented, you know, we're tracking that very closely.

And we're starting to see that in '24 in some parts of our business, including on Zynda.

Chris: <unk>, both short term and long term procedure, but I think we're cautiously optimistic as we look forward. So.

Chris: Probably nothing to update financially other than our continued commitment to the financial metrics that we've already established and again, we're probably cautiously optimistic on the trends that we're seeing underlying that business at this point in time.

Albert Bourla: You want to make some comments also, Chris, about the performance of the Seagen business?

And then, there's things to come, including a change in that cap as well as patient smoothing. So, we'll see how that plays out. And obviously, there's also changes in how costs are shared between plans, manufacturers, government and patients. So, how all of that gets implemented, you know, we're tracking that very closely. We're not offering any specific guidance in terms of direct dollar impact on our business in 2025 because there's still a lot to come on this. And when we're ready to do that, we certainly will,

Chris: To make some comments also creates about them.

Chris Boshoff: Yeah.

Speaker Change: The performance of the system business and yes, I think just to add to what David said.

Albert Bourla: I think just to add to what David said, it's early days for Padcev, as you pointed out. For 302, the data was we just launched early this year. We've already seen 164% year-on-year pro forma growth. It's early, but we're very pleased that we've got NCCN guidelines, category one. We've got the New England Journal publication. We've got uptake in both academic and community settings. In fact, 70% of the current accounts are in the community. We're looking forward now because I think we're well set for the future in the muscle-invasive bladder cancer setting and those two studies that will read out later, in 2025, 2026, and 2027. Thank you very much, Chris. Doug, what about the situation with the IP disputes? Yes. Zendacla and Zendamax currently have US patent exclusivity, excuse me, through the end of this year.

I think just to add to what David said, it's early days for PADCEV, as you pointed out. For 302, the data was we just launched early this year. We've already seen 164% year-on-year pro forma growth. It's early, but we're very pleased that we've got NCCN guidelines, category one. We've got the New England Journal publication. We've got uptake in both academic and community settings. In fact, 70% of the current accounts are in the community. We're looking forward now because I think we're well set for the future in the muscle-invasive bladder cancer setting and those two studies that will read out later, in 2025, 2026, and 2027.

Speaker Change: It's early days for passive as you pointed out the full suite to the data was and we just launched early this year.

Speaker Change: We've already seen 164% year on year pro forma growth. It's early but we are very pleased that we've got <unk> guidelines category, one with all the new England Journal publication, we've got uptake in both academic and community settings. In fact, 70% of the current accounts on the community and we're looking forward now because I think we well.

Speaker Change: <unk> for the future in the muscle invasive bladder cancer setting and those two studies that would readout later in 2025 26 27. Thank you very much stock what about the situation with the IP disputes, yes been declines into Max currently has the U S patent exclusive exclusivity excuse me.

Albert Bourla: Thank you very much, Chris. Doug, what about the situation with the IP disputes?

Doug Lankler: Yes. VYNDAQEL and VYNDAMAX currently have US patent exclusivity, excuse me, through the end of this year.

Speaker Change: Through the end of this year, but we have a patent.

Albert Bourla: We have a patent term extension, which would take it out to December 2028. We may be filing additional requests for patent term extensions while that is pending. In major European markets, our patents expire in November 2026. In Japan, the patent expires in 2026, but there's regulatory exclusivity through March 2029 for cardiomyopathy. Thank you, Doug. All right. Let's move to the next question. Thank you, Alexander. Thank you. We'll take our next question from Evan Seigerman with BMO Capital Markets. Your line is open. Hi, guys. Thank you so much for taking my question. I want to touch on gross margin. Obviously, a nice improvement in this quarter. I believe back in December, you had said for the full year it'd be around 70%.

We have a patent term extension, which would take it out to December 2028. We may be filing additional requests for patent term extensions while that is pending. In major European markets, our patents expire in November 2026. In Japan, the patent expires in 2026, but there's regulatory exclusivity through March 2029 for cardiomyopathy.

Speaker Change: The pending patent term.

Speaker Change: Extension, which would take it out to December of 2028, and we may be filing additional request for patent term extensions, while that is pending in major European markets. Our patents expire in November of 2026 and in Japan patent.

Speaker Change: It expires in 2026, but theres regulatory exclusivity through March of 2029 for Cardiome Myopathic.

Albert Bourla: Thank you, Doug. All right. Let's move to the next question. Thank you, Alexander.

Speaker Change: Thank you Doug.

Doug: Yeah, Brad let's move to the next question. Thank you.

Operator: Thank you. We'll take our next question from Evan Seigerman with BMO Capital Markets. Your line is open.

Aamir Malik: We're not offering any specific guidance in terms of direct dollar impact on business in 2025, because there's still a lot to come on this. And when we're ready to do that, we certainly, Thank you, Aamir. Let's go to the next question. We'll take our next question from Akash Tewari with Jeffrey's, your line is open. Hey, thanks so much. On to FAMIT.

We're not offering any specific guidance in terms of direct dollar impact on business in 2025, because there's still a lot to come on this. And when we're ready to do that, we certainly,

Thank you, Aamir. Let's go to the next question. We'll take our next question from Akash Tewari with Jeffrey's, your line is open. Hey, thanks so much. On to FAMIT.

Albert Bourla: Thank you, Aamir. Let's go to the next question, please.

We'll take our next question from Akash Tewari with Jeffrey's, your line is open. Hey, thanks so much. On to FAMIT.

Operator: We'll take our next question from Akash Tewari with Jefferies. Your line is open.

Hey, thanks so much. On to FAMIT. It's a really strong quarter, but I wanted to ask on patent life. Given we've seen the EU patent office strike down multiple invalidity oppositions, and on the U.S. side, it looks like defendants are conceding infringement. How should we think about IP for this product? Why shouldn't the state patent it out to 2035? And then number two, really strong quarter for PADSEV, and you do have the pending TIBDEC launch in first-line cervical. Is there any possibility we could see Seagen become accretive to Pfizer earnings by next year? Thanks so much. That's a very good question.

Akash Tewari: Hey, thanks so much. On TAFAMIDIS, really strong quarter but I wanted to ask on patent life. Given we've seen the EU patent office strike down multiple invalidity oppositions and on the U.S. side, it looks like defendants are conceding infringement, how should we think about IP for this product? Why shouldn't the state patent it out to 2035? And then, number two, really strong quarter for PADCEV and you do have the pending TIVDAK launch in first-line cervical -- is there any possibility we could see Seagen become accretive to Pfizer earnings by next year? Thanks so much.

Akash Tewari: It's a really strong quarter, but I wanted to ask on patent life. Given we've seen the EU patent office strike down multiple invalidity oppositions, and on the U.S. side, it looks like defendants are conceding infringement. How should we think about IP for this product?

Speaker Change: Thank you we'll take our next question from <unk> with BMO capital markets. Your line is open.

Evan Seigerman: Hi, guys. Thank you so much for taking my question. I want to touch on gross margin. Obviously, a nice improvement in this quarter. I believe back in December, you had said for the full year it'd be around 70%.

Akash Tewari: Why shouldn't the state patent it out to 2035? And then number two, really strong quarter for PADSEV, and you do have the pending TIBDEC launch in first-line cervical. Is there any possibility we could see Seagen become accretive to Pfizer earnings by next year? Thanks so much. That's a very good question.

<unk>: Hi, guys. Thank you so much for taking my question I wanted to touch on gross margin, obviously, a nice improvement in this quarter and I believe back in December you had said for the full year would be around 70% do you expect that we could actually see a better gross margin for the full year given kind of the benefit we've seen or are there. Some other puts and takes that we should be aware of.

Albert Bourla: Do you expect that we could actually see a better gross margin for the full year given kind of the benefit we've seen, or are there some other puts and takes that we should be aware of? Yeah. This is Dave. We're always looking to improve our performance from both a gross margin and operating performance perspective. I'll say we'll continue to focus on that. Obviously, as you know, there are three things that improved our gross margin rate in the quarter. Some of those are temporal, some of those are more permanent. I think what is encouraging within our gross margin performance is the fact that our cost control element across our manufacturing platform was really strong. We expect that to continue to be a focus. Keep in mind that our commodity volume is very back-half weighted.

Do you expect that we could actually see a better gross margin for the full year given kind of the benefit we've seen, or are there some other puts and takes that we should be aware of?

Dave Denton: Yeah. This is Dave. We're always looking to improve our performance from both a gross margin and operating performance perspective. I'll say we'll continue to focus on that. Obviously, as you know, there are three things that improved our gross margin rate in the quarter. Some of those are temporal, some of those are more permanent. I think what is encouraging within our gross margin performance is the fact that our cost control element across our manufacturing platform was really strong. We expect that to continue to be a focus. Keep in mind that our commodity volume is very back-half weighted.

Albert Bourla: That's a very good questions. Why don't we go first to you, Dave, to speak a little bit about -- clearly, Seagen is doing very well if you expect that it can become accretive earlier. Also, I would like to hear some comments from Chris about the progress of the Seagen portfolio. And then, Doug can comment on the IP situation, our legal counsel. So, Dave?

Albert Bourla: Why don't we go first to you, Dave, to speak a little bit about... Clearly, Seagen is doing very well, if you expect that it can become accretive earlier. Also, I would like to hear some comments from Chris about the progress of the Seagen portfolio. And then Doug can comment on the IP situation, our legal costs. So, Dave?

<unk>: Yes. So this is Dave.

David M. Denton: Yeah. So, just maybe on Seagen from a financial perspective. Obviously, clearly, a very solid quarter and a very solid start to the year. I think we're not changing our expectations, both short-term and long-term for Seagen, but I think we're cautiously optimistic as we look forward. So, probably nothing to update financially other than our continued commitment to the financial metrics that we've already established. And again, we're probably cautiously optimistic on the trends that we're seeing underlying that business at this point in time.

David M. Denton: We're always looking to improve our performance from both the gross margin and operating performance perspective, I'll say, we will continue to focus on that.

<unk>: Obviously as.

David M. Denton: As you know, there's three things that improved our gross margin rate in the quarter. Some of those are temporal some of those are more permanent I think what is encouraging within our gross margin performance is the fact that our cost control element across our manufacturing platform was really strong.

David M. Denton: Do you expect that to be continued to be a focus keep in mind that our commodity volume is very back half weighted.

Albert Bourla: Commodity, as you know, because of our profit share, carries a very low gross margin rate. That mix will reverse itself in the back half of the year, compressing and putting pressure on our gross margin rate. You should expect that dynamic to occur as that product plays itself out through 2024. Thank you very much. All right. Let's go to the next question, please. Thank you. We'll take our next question from Vamil Divan with Guggenheim Securities. Your line is open. Great. Thanks for taking the questions, and congratulations on the quarter. The two products I want to just kind of touch on in terms of on the sort of newer growth drivers. One is Nurtec, which came in a little bit lighter than we expected. Obviously, the first quarter there tends to be impacted a lot by gross to net.

Commodity, as you know, because of our profit share, carries a very low gross margin rate. That mix will reverse itself in the back half of the year, compressing and putting pressure on our gross margin rate. You should expect that dynamic to occur as that product plays itself out through 2024.

David M. Denton: Commodity as you know carries because of our profit share carries a very low gross margin rate. So that mix will reverse itself in the back half of the year compressing and putting pressure on our gross margin rate. So you should expect that dynamic to occur as that product plays itself out through 2024.

Albert Bourla: Thank you very much. All right. Let's go to the next question, please.

Speaker Change: Thank you very much alright, let's go to the next question. Please thank.

Operator: Thank you. We'll take our next question from Vamil Divan with Guggenheim Securities. Your line is open.

David M. Denton: You want to make some comments also, Chris, about the performance of the Seagen business? Yeah, I think just to add to what Dave has said, it's early days for PaxSafe, as you pointed out, for 3.0.2, the data was, we just launched early this year.

Albert Bourla: You want to make some comments also, Chris, about the performance of the Seagen business?

Chris Boshoff: Yeah. I think just to add to what Dave has said, it's early days for PADCEV, as you pointed out. For 302, the data was -- we just launched early this year and we've already seen 164% year-on-year pro forma growth. It's early but we're very pleased that we've got NCCN Guidelines Category 1, we've got the New England Journal publication, we've got uptake in both academic and community settings. In fact, 70% of the current accounts are on the community and we're looking forward now, because I think we're well set for the future in the muscle invasive bladder cancer setting and those two studies that we'll read out later in 2025, '26 and '27.

Vamil Kishore Divan: Thank you we'll take our next question from <unk> Divan with Guggenheim Securities. Your line is open.

Chris Boshoff: We've already seen 164% here on year per form of growth. It's early, but we're very pleased that we've got MCC and Guidelines Category 1, we've got the New England Journal publication, we've got uptake in both academic and community settings, in fact, 70% of the current accounts on the community, and we're looking forward now, because I think we're well set for the future in the muscle invasive bladder cancer setting, and those two studies that we'll read out later in 2025, 2026, 2027.

Vamil Divan: Great. Thanks for taking the questions, and congratulations on the quarter. The two products I want to just kind of touch on in terms of on the sort of newer growth drivers. One is NURTEC, which came in a little bit lighter than we expected. Obviously, the first quarter there tends to be impacted a lot by gross to net.

Chris Boshoff: Thank you very much, Chris. Doug, what about the situation with the IEP? Yes, Vindoquel and Vindomax currently has U.S. patent exclusivity through the end of this year, but we have a patent term extension which would take it out to December of 2028, and we may be filing additional requests for patent term extensions while that is pending.

Albert Bourla: Thank you very much, Chris. Doug, what about the situation with the IP disputes?

Vamil Kishore Divan: Alright, thanks for taking my questions.

Vamil Kishore Divan: Congratulation on the quarter the two products I wanted to just kind of talk a ton.

Divan: In terms of on that are newer growth drivers. So one is <unk>, which came in a little bit lighter than you were.

Yes, Vindoquel and Vindomax currently has U.S. patent exclusivity through the end of this year, but we have a patent term extension which would take it out to December of 2028, and we may be filing additional requests for patent term extensions while that is pending. In major European markets, our patents expire in November of 2026, and in Japan the patent expires in 2026, but there's regulatory exclusivity through March of 2029 for cardiomyopathy. Thank you, Doug. All right, let's move to the next question. Thank you, Akash. Thank you. We'll take our next question from Evan Singerman with BMO Capital Markets. Your line is open.

Douglas M. Lankler: Yes. VYNDAQEL and VYNDAMAX currently has U.S. patent exclusivity through the end of this year but we have a patent term extension which would take it out to December of 2028 and we may be filing additional requests for patent term extensions while that is pending. In major European markets, our patents expire in November of 2026 and in Japan, the patent expires in 2026 but there's regulatory exclusivity through March of 2029 for cardiomyopathy.

Vamil Kishore Divan: We expect it obviously the first quarter there tends to be impacted a lot by gross to net I'm just trying to understand.

Albert Bourla: I'm just trying to understand if you can give a little more detail on what the dynamics on the quarter and any sort of change to your sort of expectation on that product's outlook. The second one's on the myeloma side, Elrexfio. I just noticed in your slide presentation that used to be listed under the key growth drivers in prior quarters. This year on slide nine, when you show your key growth drivers, it's no longer listed there. I'm just curious if that was, it looks like it was an intentional change. I'm just curious what drove the decision or moved that from the group of key growth drivers. Thank you very much, Vamil. Amir, Nurtec. Chris, myeloma. Thanks for the question, Vamil. I'm happy to talk a little bit about Nurtec.

I'm just trying to understand if you can give a little more detail on what the dynamics on the quarter and any sort of change to your sort of expectation on that product's outlook. The second one's on the myeloma side, ELREXFIO. I just noticed in your slide presentation that used to be listed under the key growth drivers in prior quarters. This year on slide nine, when you show your key growth drivers, it's no longer listed there. I'm just curious if that was, it looks like it was an intentional change. I'm just curious what drove the decision or moved that from the group of key growth drivers.

Divan: A little more details on what the dynamics on the quarter and any sort of change to your expectation.

Divan: That price outlook and then the second one.

Divan: On the myeloma <unk> does noticed.

Divan: In your slide presentation that used to be listed under the key growth drivers.

Divan: In prior quarters. This year on slide nine when you kind of your key growth drivers is no longer listed there. So I'm just curious.

Thank you, Doug. All right, let's move to the next question. Thank you, Akash. Thank you. We'll take our next question from Evan Singerman with BMO Capital Markets. Your line is open.

Albert Bourla: Thank you, Doug. All right, let's move to the next question. Thank you, Akash.

Divan: Looks like it was an intentional change I'm just curious.

Divan: <unk> drove the decision to remove that come from the group of key growth drivers.

Albert Bourla: Thank you very much, Vamil. Aamir, NURTEC. Chris, myeloma.

Operator: Thank you. We'll take our next question from Evan Seigerman with BMO Capital Markets. Your line is open.

Doug Lankler: In major European markets, our patents expire in November of 2026, and in Japan the patent expires in 2026, but there's regulatory exclusivity through March of 2029 for cardiomyopathy. Thank you, Doug. All right, let's move to the next question. Thank you, Akash. Thank you. We'll take our next question from Evan Singerman with BMO Capital Markets. Your line is open.

Speaker Change: Thank you very much.

Speaker Change: Amir.

Aamir Malik: Thanks for the question, Vamil. I'm happy to talk a little bit about NURTEC.

Speaker Change: Greece myeloma.

Evan David Seigerman: Hi guys, thank you so much for taking my question. I want to touch on gross margin, obviously a nice improvement in this quarter, and I believe back in December you had said for the full year it'd be around 70%. Do you expect that we could actually see a better gross margin for the full year given kind of the benefit we've seen, or are there some other puts and takes that we should be aware of? Yeah, so this is Dave.

Evan Seigerman: Hi guys, thank you so much for taking my question. I want to touch on gross margin. Obviously, a nice improvement in this quarter and I believe, back in December, you had said for the full year, it'd be around 70%. Do you expect that we could actually see a better gross margin for the full year given kind of the benefit we've seen or are there some other puts and takes that we should be aware of?

Amir: Thanks for the question Danielle So I'm happy to talk a little bit about neurotechnology.

Albert Bourla: We'd like to accelerate the momentum of Nurtec, and we're taking several steps to do that. For the quarter itself, what we're encouraged by is the demand and the volumes that we saw. On the flip side, as you already alluded to, the performance in the quarter was impacted by gross to net. On demand, a few points to just keep in mind. Nurtec continued its market leadership within the class with a 49% TRX share, and that was up 28% from Q1 of last year. Secondly, NBRX share, which we keep a very close eye on, that volume as a whole hit its high point since we closed the Biohaven acquisition at the end of 2022. That was up versus last year, but also importantly, up versus Q4 of 2023.

We'd like to accelerate the momentum of NURTEC, and we're taking several steps to do that. For the quarter itself, what we're encouraged by is the demand and the volumes that we saw. On the flip side, as you already alluded to, the performance in the quarter was impacted by gross to net. On demand, a few points to just keep in mind. NURTEC continued its market leadership within the class with a 49% TRX share, and that was up 28% from Q1 of last year. Secondly, NBRX share, which we keep a very close eye on, that volume as a whole hit its high point since we closed the Biohaven acquisition at the end of 2022. That was up versus last year, but also importantly, up versus Q4 of 2023.

Amir: We'd like to accelerate the momentum of <unk> and we're taking several steps to do that for the quarter itself. What we're encouraged by is the demand and the volumes that we saw and then on the flip side as you already alluded to the performance in the quarter was impacted by gross to net so on demand.

Amir: A few points to just keep in mind Nortek continued its market leadership within the class with a 49% Trs share and that was up 28% from Q1 of last year.

Amir: Secondly, <unk> share, which we keep a very close eye on that volume.

Amir: As a whole hit its high points since we closed the <unk> acquisition at the end of 'twenty. Two so that was up versus last year, but also importantly up versus Q4 of 'twenty three and there were about 11000, new Neurotechnology writers in Q1, and this is 90% of all the new writers within the <unk> class. So theres a lot about.

Albert Bourla: There were about 11,000 new Nurtec riders in Q1, and this is 90% of all the new riders within the oral CGRP class. That says a lot about the volume and the demand that we're encouraged by. Now, on gross to net, there were three issues this quarter. One is you typically tend to see this dynamic in the first quarter of every year. We saw that last year too, just given the benefit design dynamics. Secondly, we did have some pyramid issues between government and commercial channels this quarter. Finally, there was an unfavorable one-time prior period adjustment to our GTNs in Q1. Your question about the rest of the year, for Nurtec, we expect continued growth. We've talked about the fact that the fundamentals in terms of untreated patients and undertreated patients remain strong.

There were about 11,000 new NURTEC riders in Q1, and this is 90% of all the new riders within the oral CGRP class. That says a lot about the volume and the demand that we're encouraged by. Now, on gross to net, there were three issues this quarter. One is you typically tend to see this dynamic in the first quarter of every year. We saw that last year too, just given the benefit design dynamics. Secondly, we did have some pyramid issues between government and commercial channels this quarter. Finally, there was an unfavorable one-time prior period adjustment to our GTNs in Q1. Your question about the rest of the year, for NURTEC, we expect continued growth. We've talked about the fact that the fundamentals in terms of untreated patients and undertreated patients remain strong.

Yeah. So, this is Dave. We're always looking to improve our performance from both a gross margin and operating performance perspective. So, I'll say we'll continue to focus on that. Obviously, as you know, there's three things that improved our gross margin rate in the quarter. Some of those are temporal, some of those are more permanent. I think what is encouraging within our gross margin performance is the fact that our cost control element across our manufacturing platform was really strong. We expect that to be -- to continue to be a focus. Keep in mind that, you know, our COMIRNATY volume is very back half-weighted. COMIRNATY, as you know, carries because of our profit share, carries a very low gross margin rate. So, that mix will reverse itself in the back half of the year, compressing and putting pressure on our gross margin rate. So, you should expect that dynamic to occur as that product plays itself out through 2024. Thank you very much.

David M. Denton: Yeah. So, this is Dave. We're always looking to improve our performance from both a gross margin and operating performance perspective. So, I'll say we'll continue to focus on that. Obviously, as you know, there's three things that improved our gross margin rate in the quarter. Some of those are temporal, some of those are more permanent. I think what is encouraging within our gross margin performance is the fact that our cost control element across our manufacturing platform was really strong.

Amir: The volume and the demand that we're encouraged by now on gross to net there were three issues. This quarter. One is you typically tend to see this dynamic in the first quarter of every year. We saw that last year too just given the benefit design dynamics. Secondly, we did have some payer mix issues between government and commercial channels. This.

David M. Denton: We're always looking to improve our performance from both a gross margin and operating performance perspective. So I'll say we'll continue to focus on that. Obviously, as you know, there's three things that improved our gross margin rate in the quarter. Some of those are temporal, some of those are more permanent.

David M. Denton: I think what is encouraging within our gross margin performance is the fact that our cost control element across our manufacturing platform was really strong. We expect that to be continued to be a focus. Keep in mind that, you know, our, our commodity volume is very back half weighted. Comirnaty, as you know, carries, because of our profit share, carries a very low gross margin rate.

David M. Denton: So that mix will reverse itself in the back half of the year, compressing and putting pressure on our gross margin rate. So you should expect that dynamic to occur as that product plays itself out through 2024. Thank you very much.

We expect that to be -- to continue to be a focus. Keep in mind that, you know, our COMIRNATY volume is very back half-weighted. COMIRNATY, as you know, carries because of our profit share, carries a very low gross margin rate. So, that mix will reverse itself in the back half of the year, compressing and putting pressure on our gross margin rate. So, you should expect that dynamic to occur as that product plays itself out through 2024.

Amir: Quarter, and then finally, there was an unfavorable one time prior period adjustment to our GTS in Q1 to your question about the rest of the day a year for <unk>. We expect continued growth we've talked about the fact that the fundamentals in terms of untreated patients and <unk>.

Albert Bourla: Thank you very much. Operator, let's go to the next question.

David M. Denton: All right, let's go to the next question. Thank you. We'll take our next question from Vamil Divan with Guggenheim Securities. Your line is open.

All right, let's go to the next question.

Operator: Thank you. We'll take our next question from Vamil Divan with Guggenheim Securities. Your line is open.

Vamil Kishore Divan: Great. Thanks for taking the questions and congratulations on the quarter. The two products I want to just kind of touch on in terms of on the sort of newer gross drivers. So one is Nurtec, which came in a little bit lighter than we expected. Obviously, the first quarter there tends to be impacted a lot by gross to net. I'm just trying to understand if you can just give a little more detail on what the dynamics on the quarter and any sort of change to your sort of expectation on that product outlook. And then the second one on the myeloma side, Elrexfio, just noticed in your slide presentation that used to be listed under the sort of key gross drivers in prior quarters. This year on slide nine, when you show your key growth drivers, it's no longer listed there. So I'm just curious. It looks like it was an intentional change. I'm just curious sort of what drove the decision to remove that from the group of key growth drivers.

Vamil Divan: Great. Thanks for taking the questions and congratulations on the quarter. The two products I want to just kind of touch on, in terms of the sort of newer gross drivers. So, one is NURTEC, which came in a little bit lighter than we expected. Obviously, the first quarter there tends to be impacted a lot by gross to net. I'm just trying to understand, if you can just give a little more detail on what the dynamics on the quarter and any sort of change to your sort of expectation on that product outlook.

Amir: Undertreated patients remained strong.

Albert Bourla: We also think that some of the gross to net that I described is going to be temporal, and it'll slowly abate over the course of the rest of the year. We have made a number of changes in our commercial execution in terms of what we're doing with patient engagement, focusing our field force resources on physician awareness in a different way, and also working to reduce friction for patient access. Overall, we do expect continued growth from Nurtec in the balance of 2024. Thank you. Chris, about Elrexfio? Thank you, Albert. The reason Albert didn't list Elrexfio as a major growth driver, just to remind, he pointed out Lorbrena, Xtandi, and Padcev as the immediate biggest growth drivers for oncology. We're absolutely confident that Elrexfio will become, over the next couple of months and years, a major driver for oncology.

We also think that some of the gross to net that I described is going to be temporal, and it'll slowly abate over the course of the rest of the year. We have made a number of changes in our commercial execution in terms of what we're doing with patient engagement, focusing our field force resources on physician awareness in a different way, and also working to reduce friction for patient access. Overall, we do expect continued growth from NURTEC in the balance of 2024.

Vamil Kishore Divan: So one is Nurtec, which came in a little bit lighter than we expected. Obviously, the first quarter there tends to be impacted a lot by gross to net. I'm just trying to understand if you can just give a little more detail on what the dynamics on the quarter and any sort of change to your sort of expectation on that product outlook. And then the second one on the myeloma side, Elrexfio, just noticed in your slide presentation that used to be listed under the sort of key gross drivers in prior quarters. This year on slide nine, when you show your key growth drivers, it's no longer listed there. So I'm just curious.

Amir: We also think that some of the gross to net that I described is going to be temporal.

Amir: Slowly abate over the course of the rest of the year and then we have made a number of changes in our commercial execution.

And then, the second one on the myeloma side, ELREXFIO. I just noticed in your slide presentation, that used to be listed under the sort of key gross drivers in prior quarters. This year, on slide 9, when you do your key growth drivers, it's no longer listed there. So, I'm just curious, it looks like it was an intentional change. I'm just curious sort of what drove the decision to remove that from the group of key growth drivers.

Vamil Kishore Divan: It looks like it was an intentional change. I'm just curious sort of what drove the decision to remove that from the group of key growth drivers. Thank you very much, Aamir. Aamir, Nurtec, and then Chris Maloma.

It looks like it was an intentional change. I'm just curious sort of what drove the decision to remove that from the group of key growth drivers.

Amir: In terms of what we're doing with patient engagement and focusing our field force resources on physician awareness in a different way and also working to reduce friction for patient access. So overall, we do expect continued growth from near taking the balance of 'twenty four.

Albert Bourla: Thank you very much, Vamil. Aamir, Nurtec. And then, Chris, myeloma.

Aamir Malik: Thanks for the question, Vamil. So, I'm happy to talk a little bit about NURTEC. You know, we'd like to accelerate the momentum of NURTEC and we're taking several steps to do that. For the quarter itself, what we're encouraged by is the demand and the volumes that we saw. And then, on the flip side, as you already alluded to, the performance in the quarter was impacted by gross to net. So, on demand, a few points to just keep in mind -- NURTEC continued its market leadership within the class with a 49% TRx share and that was up 28% from Q1 of last year. Secondly, NBRx share -- which we keep a very close eye on -- that volume, as a whole, hit its high point since we closed the Biohaven acquisition at the end of '22. So, that was up versus last year but also, importantly, up versus Q4 of '23. And there were about 11,000 new NURTEC writers in Q1 and this is 90% of all the new writers within the oral CGRP class. So, there's a lot about the volume and the demand that we're encouraged by. Now, on gross to net, there were three issues this quarter. One is, you typically tend to see this dynamic in the 1st quarter of every year -- we saw that last year, too, just given the benefit design dynamics. Secondly, we did have some payer mix issues between government and commercial channels this quarter. And then, finally, there was an unfavorable one-time prior period adjustment to our GTNs in Q1.

Aamir Malik: So on demand, a few points to just keep in mind, Nurtec continued its market leadership within the class with a 49% TRX share. And that was up 28% from Q1 of last year. Secondly, NBRX share, which we keep a very close eye on, that volume as a whole hit its high point since we closed the BioHaven acquisition at the end of 22. So that was up versus last year, but also importantly, up versus Q4 of 23. And there were about 11,000 new Nurtec writers in Q1. And this is 90% of all the new writers within the oral CGRP class.

So, on demand, a few points to just keep in mind -- NURTEC continued its market leadership within the class with a 49% TRx share and that was up 28% from Q1 of last year. Secondly, NBRx share -- which we keep a very close eye on -- that volume, as a whole, hit its high point since we closed the Biohaven acquisition at the end of '22. So, that was up versus last year but also, importantly, up versus Q4 of '23. And there were about 11,000 new NURTEC writers in Q1 and this is 90% of all the new writers within the oral CGRP class. So, there's a lot about the volume and the demand that we're encouraged by. Now, on gross to net, there were three issues this quarter. One is, you typically tend to see this dynamic in the 1st quarter of every year -- we saw that last year, too, just given the benefit design dynamics. Secondly, we did have some payer mix issues between government and commercial channels this quarter. And then, finally, there was an unfavorable one-time prior period adjustment to our GTNs in Q1.

Aamir Malik: So there's a lot about the volume and the demand that we're encouraged by. Now, on gross to net, there were three issues this quarter. One is you typically tend to see this dynamic in the first quarter of every year. We saw that last year, too, just given the benefit design dynamics. Secondly, we did have some pair mix issues between government and commercial channels this quarter. And then finally, there was an unfavorable one time prior period adjustment to our GTMs in Q1.

Albert Bourla: Thank you. Chris, about ELREXFIO?

Now, on gross to net, there were three issues this quarter. One is, you typically tend to see this dynamic in the 1st quarter of every year -- we saw that last year, too, just given the benefit design dynamics. Secondly, we did have some payer mix issues between government and commercial channels this quarter. And then, finally, there was an unfavorable one-time prior period adjustment to our GTNs in Q1.

Aamir Malik: Your question about the rest of the year -- for NURTEC, we expect continued growth. We've talked about the fact that the fundamentals, in terms of untreated patients and undertreated patients, remain strong. We also think that some of the gross to net that I described is going to be temporal and will slowly abate over the course of the rest of the year. And then, we have made a number of changes in our commercial execution, in terms of what we're doing with patient engagement and focusing our field force resources on physician awareness in a different way and also, working to reduce friction for patient access. So, overall, we we do expect continued growth from NURTEC in the balance of '24. Thank you. Chris, about Elrexfio?

Your question about the rest of the year -- for NURTEC, we expect continued growth. We've talked about the fact that the fundamentals, in terms of untreated patients and undertreated patients, remain strong. We also think that some of the gross to net that I described is going to be temporal and will slowly abate over the course of the rest of the year. And then, we have made a number of changes in our commercial execution, in terms of what we're doing with patient engagement and focusing our field force resources on physician awareness in a different way and also, working to reduce friction for patient access. So, overall, we we do expect continued growth from NURTEC in the balance of '24.

Speaker Change: Thank you Chris about.

Chris Boshoff: Thank you, Albert. The reason Albert didn't list ELREXFIO as a major growth driver, just to remind, he pointed out LORBRENA, XTANDI, and PADCEV as the immediate biggest growth drivers for oncology. We're absolutely confident that ELREXFIO will become, over the next couple of months and years, a major driver for oncology.

Amir: Excellent.

Albert Bourla: Thank you. Chris, about ELREXFIO?

Chris Boshoff: Thank you, Albert. So, the reason Albert didn't list ELREXFIO as a major growth driver, just to remind -- so, he pointed out LORBRENA, XTANDI and PADCEV as the immediate biggest growth drivers for Oncology but we're absolutely confident that ELREXFIO will become, over the next couple of months and years, a major driver for Oncology. Just a reminder, we've seen very promising efficacy data in highly refractory patient populations, with deep and durable responses. And we reported the longest reported median progressive-free survival in the recurrent/relapsed refractory setting of 17.2 months. Now, of course, recognizing there's no definitive conclusion because there's no head-to-head studies.

Speaker Change: Thank you all of that said the recent Albert didn't list our rigs get the major growth driver just to remind so ive pointed out look very nice start getting Pat says as the immediate biggest growth drive a small college, absolutely confident that the outbreak will become.

Amir: Over the next couple of months and years major dry bulk apologies just a reminder, we've seen very promising.

Albert Bourla: Just a reminder, we've seen very promising efficacy data in highly refractory patient populations with deep, endurable responses. We've reported the longest reported median progressive pre-survival in the recurrent relapse refractory setting of 17.2 months. Of course, recognizing there's no definitive conclusion because there's no head-to-head studies, we currently encourage what we've seen with the uptake, the bulk of new patient starts as we've planned. We remain very optimistic for the future from the current indication, as well as from the future indications. A reminder that we have four ongoing registrational studies in the next 12 months. The first phase three study will read out, the MM5 study. We've also recently received J-code for access, we've smoothened the reimbursement process, and continue to gain favorable positions on various pathways, and in some of the most favorable pathways.

Just a reminder, we've seen very promising efficacy data in highly refractory patient populations with deep, endurable responses. We've reported the longest reported median progressive pre-survival in the recurrent relapse refractory setting of 17.2 months. Of course, recognizing there's no definitive conclusion because there's no head-to-head studies, we currently encourage what we've seen with the uptake, the bulk of new patient starts as we've planned. We remain very optimistic for the future from the current indication, as well as from the future indications. A reminder that we have four ongoing registrational studies in the next 12 months. The first phase III study will read out, the MM5 study. We've also recently received J-code for access, we've smoothened the reimbursement process, and continue to gain favorable positions on various pathways, and in some of the most favorable pathways.

Amir: Very promising efficacy data in highly refractory patient populations with deep and durable responses and we've reported the longest reported median progression free survival in the.

Amir: Recurrent relapsed refractory setting of $17 two months now of course, recognizing there's no definitive conclusion.

Now, of course, recognizing there's no definitive conclusion because there's no head-to-head studies. We're currently encouraged by what we've seen with the uptake, with the bulk of new patient starts, as we have planned. And we remain very optimistic for the future from the current indication, as well as from the future indications. And a reminder that we have four ongoing registrational studies and the next 12 months, the first Phase III study will read out -- and the MM5 study. We've also recently received J-code for access and we've smoothened reimbursement process and continue to gain favorable positions on various pathways -- and in some, the most favorable pathways. Looking forward to update you very soon on more things on ELREXFIO. Thank you, Chris.

Chris Boshoff: We currently encourage, but what we've seen with the uptake, with the bulk of new patient starts, as we have planned, and we remain very optimistic for the future from the current indication, as well as from the future indications, and a reminder that we have four ongoing registrational studies, and the next 12 months, the first phase three study will read out, and the MMPrize study. We've also recently received J-code for access, and we've smoothened reimbursement process and continue to gain favorable positions on various pathways, and in some, the most favorable pathways. Looking forward to update you very soon on more things on Elrexfio. Thank you, Chris.

Amir: No head to head studies, we currently encourage by what we've seen with the uptake and the bulk of new patient starts.

Amir: As we had planned.

Amir: Very optimistic for the future from the current indication as well as from the future indications and a reminder, that we have full ongoing Registrational studies in the next 12 months. The first phase III study will readout multiple.

Amir: Imply study. We've also recently received J code for access and we smooth reimbursement process and continue to gain favorable positions on various pathways and in some of the most by the cost base.

Albert Bourla: We're looking forward to update you very soon on more things on Elrexfio. Thank you, Chris. Maybe Alexandre, do you have anything to add about the product in international markets? Yes. On Elrexfio, we actually have it's been progressing very nicely because, as you know, we got approval in Europe in December 2023, in the UK in January, and in Japan in March 2024. We're now moving into reimbursements, and we got early access considering the clinical profile, the exceptional clinical profile of the product. That's why we got in some markets early access, and that's why we started sales in the first quarter. We are very satisfied that we could close the time-to-market gap as a competitor. In some cases, like in Japan, we actually indeed became first-in-class approved.

We're looking forward to update you very soon on more things on ELREXFIO.

Speaker Change: Looking forward to update you very soon.

Albert Bourla: Thank you, Chris. Maybe, Alexandre, you have anything to add about the product in international markets?

Albert Bourla: Thank you, Chris. Maybe Alexandre, do you have anything to add about the product in international markets?

Speaker Change: So alexia. Thank you, Chris maybe Alexandra do you have anything to add about that product being in the rest of our markets, yes on that extra we actually have.

Alexandre de Germay: Maybe, Alexandre, you have anything to add about the product in international markets? Yes, on Elrexfio, we actually have, we're progressing very nicely because, as you know, we got approval in Europe in December of 2023 and in the UK in January and in Japan in March 2024. So we are now moving into reimbursement and we got early access considering the clinical profile, the exceptional clinical profile of the products, so that's why we got in some markets early access and that's why we started to sell in the first quarter.

Maybe, Alexandre, you have anything to add about the product in international markets?

Alexandre de Germay: Yes. On ELREXFIO, we actually have it's been progressing very nicely because, as you know, we got approval in Europe in December 2023, in the UK in January, and in Japan in March 2024. We're now moving into reimbursements, and we got early access considering the clinical profile, the exceptional clinical profile of the product. That's why we got in some markets early access, and that's why we started sales in the first quarter. We are very satisfied that we could close the time-to-market gap as a competitor. In some cases, like in Japan, we actually indeed became first-in-class approved.

Yes. On ELREXFIO, we actually have -- it's progressing very nicely because, as you know, we got approval in Europe in December of 2023 and in the UK in January and in Japan in March 2024. So, we are now moving into reimbursement and we got early access considering the clinical profile, the exceptional clinical profile of the products. So, that's why we got in some markets early access and that's why we started to sell in the 1st quarter. But we are very satisfied that we could close the time to market gap versus competitors. And in some cases, like in Japan, we actually indeed became first-in-class approved. So, now, we are moving into reimbursement discussion and introduction of the product later in the year. Overall, in most international markets, there is a gap between the approval and the access grant. But because of the profile of the product, we saw early access, which is basically something that happens on an exceptional base if the product is unique. But some countries, before they approve the price, they are allowing you to have access to your own price.

Alexandre de Germay: Yes. On ELREXFIO, we actually have -- it's progressing very nicely because, as you know, we got approval in Europe in December of 2023 and in the UK in January and in Japan in March 2024. So, we are now moving into reimbursement and we got early access considering the clinical profile, the exceptional clinical profile of the products. So, that's why we got in some markets early access and that's why we started to sell in the 1st quarter. But we are very satisfied that we could close the time to market gap versus competitors. And in some cases, like in Japan, we actually indeed became first-in-class approved. So, now, we are moving into reimbursement discussion and introduction of the product later in the year.

Alexandra: We are progressing very nicely because as you know we got the approval in Europe in December of 2023 and in the U K in January and in Japan.

Alexandra: In March 2020, full so we're now moving into reimbursements that are with us.

Alexandra: Early access considering the clinical profile the exceptional clinical profile of the products, but that's why we call it.

Alexandra: In some market early access and that's why we see sales in the first quarter, but we are very satisfied that we could close the top at the time to market cap. This competitor and in some cases like in Japan, We actually became first in class approved so that we are moving into a registration reimbursement discussion and the introduction of the product.

Albert Bourla: We are moving into reimbursement discussion and introduction of the product later in the year. Right. Overall, in most international markets, there is a gap between the approval and the access grant. Because of the profile of the product, we saw early access, which is basically something that happens on an exceptional base if the product is unique. Some countries, before they approve the price, are allowing you to have access with your own price, and then they make the adjustment. It is a very good sign for this product. We are really feeling very bold when we see the clinical profile and the opinions of the key opinion on it. Thank you. Let's move now to the next question, please. We'll take our next question from Dave Risinger with Leerink Partners. Your line is open. Yes. Thanks very much.

We are moving into reimbursement discussion and introduction of the product later in the year.

Alexandre de Germay: But we are very satisfied that we could close the time to market gap as competitors and in some cases, like in Japan, we actually indeed became first in class approved. So now we are moving into reimbursement discussion and introduction of the product later in the year. Overall, in most international markets, there is a gap between the approval and the access grant. But because of the profile of the product, we saw early access, which is basically something that happens on an exceptional base if the product is unique. But some countries, before they approve the price, they are allowing you to have access to your own price.

Albert Bourla: Right. Overall, in most international markets, there is a gap between the approval and the access grant. Because of the profile of the product, we saw early access, which is basically something that happens on an exceptional base if the product is unique. Some countries, before they approve the price, are allowing you to have access with your own price, and then they make the adjustment. It is a very good sign for this product. We are really feeling very bold when we see the clinical profile and the opinions of the key opinion on it. Thank you. Let's move now to the next question, please.

Alexandra: Later in the year.

Alexandra: Overall in most industrial markets there is a gap between the approval.

Albert Bourla: Overall, in most international markets, there is a gap between the approval and the access grant. But because of the profile of the product, we saw early access, which is basically something that happens on an exceptional base if the product is unique. But some countries, before they approve the price, they are allowing you to have access to your own price. Yes, so, that is a very good sign for this product. We are really feeling very bullish when we see the clinical profile and the opinions of -- the key opinions on it.

Alexandra: <unk> grown but.

Alexandra: Because of the profile of the product. So early access program is basically something about compass on an exceptional base.

Alexandra: Assuming but some companies before they approve.

Alexandra: The price they are allowing you to have access to your own pricing, but.

Albert Bourla: Yes, so that is a very good sign for this product. We are really feeling very bullish when we see the clinical profile and the opinions of the QP North. Thank you. Let's move now to the next question. We'll take our next question from Dave Reisinger with LearnX Partners. Your line is open. Yes, thanks very much. So, How many questions am I allowed to ask? You, Dave, you don't have a list.

Yes, so that is a very good sign for this product.

Alexandra: Yes.

Alexandra: It's a very good signs for this product we are really feeling very bullish when we see the clinical profile and the opinions of the keeping on it.

We are really feeling very bullish when we see the clinical profile and the opinions of -- the key opinions on it. Thank you. Let's move now to the next question. We'll take our next question from Dave Reisinger with LearnX Partners. Your line is open. Yes, thanks very much. So, How many questions am I allowed to ask? You, Dave, you don't have a list.

We are really feeling very bullish when we see the clinical profile and the opinions of -- the key opinions on it.

Speaker Change: Thank you, let's move now to <unk>.

Operator: We'll take our next question from David Risinger with Leerink Partners. Your line is open.

Speaker Change: Next question. Please we'll.

Thank you. Let's move now to the next question, please. We'll take our next question from Dave Reisinger with LearnX Partners. Your line is open. Yes, thanks very much. So, How many questions am I allowed to ask? You, Dave, you don't have a list.

Thank you. Let's move now to the next question, please.

Speaker Change: We will take our next question from Dave Risinger with Alere Leerink partners. Your line is open.

We'll take our next question from Dave Risinger with Leerink Partners. Your line is open. Yes, thanks very much. So, How many questions am I allowed to ask? You, Dave, you don't have a list.

Operator: We'll take our next question from Dave Risinger with Leerink Partners. Your line is open.

David Risinger: Yes. Thanks very much.

David Risinger: Yes, thanks very much.

Albert Bourla: How many questions am I allowed to ask? You, Dave, you don't have a limit. Very kind of you, Albert. Okay, I'll keep it to two. First, regarding the company's cost structure, I'm just trying to get a sense of whether it bottomed out in the first quarter or if there are additional cost reductions ahead after 30 March such that the cost structure of the company is coming down after the first quarter. Second, with respect to Vyndamax, I appreciate the comments in response to the question earlier, but I'm just trying to get a little bit better understanding of how to think about it. There was a comment about patent term extension potentially applying beyond December of 2028. If Pfizer is successful, what would the date be instead of December 2028 for the US?

Yes, thanks very much. So, how many questions am I allowed to ask? You, Dave, you don't have a limit.

David Risinger: Yes, thanks very much. So, how many questions am I allowed to ask?

David Risinger: So uh huh.

How many questions am I allowed to ask?

David Risinger: How many questions of my allowed to ask.

Albert Bourla: You, Dave, you don't have a limit.

Alexandra: Yes.

David Risinger: Very kind of you, Albert. Okay, I'll keep it to two. First, regarding the company's cost structure, I'm just trying to get a sense of whether it bottomed out in the first quarter or if there are additional cost reductions ahead after 30 March such that the cost structure of the company is coming down after the first quarter. Second, with respect to VYNDAQEL, I appreciate the comments in response to the question earlier, but I'm just trying to get a little bit better understanding of how to think about it. There was a comment about patent term extension potentially applying beyond December of 2028. If Pfizer is successful, what would the date be instead of December 2028 for the US?

Alexandra: Ladies.

David Risinger: Very kind of you, Albert. Okay. So, I have -- I'll keep it to two. So, first, regarding the company's cost structure, I'm just trying to get a sense of whether it bottomed out in the 1st quarter or if there are additional cost reductions ahead after March 30th, such that the cost structure of the company is coming down after the 1st quarter. And then, second, with respect to VYNDAQEL -- I appreciate the comments in response to the question earlier -- but I'm just trying to get a little bit better understanding of how to think about it. So, there was a comment about patent term extension potentially applying beyond December of '28. So, if Pfizer is successful, what would the date be instead of December '28 for the U.S.? And then, for the EU, the comment was November of '26 but I've heard that there is a positive EU patent development and I'm trying to understand what that would extend the EU to. Thanks so much.

Speaker Change: [laughter] very kind of you are okay. So I have I'll keep it to two.

Alexandra: So.

Alexandra: First.

Alexandra: Regarding the company's cost structure I'm, just trying to get a sense of whether it bottomed out in the first quarter.

Alexandra: Or if there are additional cost reductions ahead. After march 30th such that the cost structure of the company is coming down after the first quarter and then second with respect to vendor.

And then, second, with respect to VYNDAQEL -- I appreciate the comments in response to the question earlier -- but I'm just trying to get a little bit better understanding of how to think about it. So, there was a comment about patent term extension potentially applying beyond December of '28. So, if Pfizer is successful, what would the date be instead of December '28 for the U.S.? And then, for the EU, the comment was November of '26 but I've heard that there is a positive EU patent development and I'm trying to understand what that would extend the EU to. Thanks so much.

Speaker Change: I appreciate the comments and response to the question earlier, but I'm, just trying to get a little bit better understanding of.

Speaker Change: How to think about it. So there was a comment about patent term extension potentially applying beyond December of 'twenty eight.

David Risinger: So if Pfizer is successful, what would the date be instead of December 28 for the U.S.? And then for the EU, the comment was November of 26, but I've heard that there is a positive EU patent development and I'm trying to understand what that would extend the EU to. Thanks so much.

Alexandra: If Pfizer is successful what would the date would be instead of December 28 for the U S and then for the EU.

Albert Bourla: For the EU, the comment was November of 2026, but I've heard that there was a positive EU patent development, and I'm trying to understand what that would extend the EU to. Thanks so much. Thank you very much, Dave. Dave, please you take the cost structure. Yeah. First, as you well know, right-sizing our cost structure is incredibly important for us as we think forward for margin expansion and improving our financial returns. As we look through Q1 and through the balance of the year, keep in mind that the cost changes that we've made in the US are largely complete. Obviously, in ex-US, some of those changes lag. You will see changes in the cost structure ex-US for the balance of the year. Those are probably not quite as large as we look forward compared to what has already happened at this point.

For the EU, the comment was November of 2026, but I've heard that there was a positive EU patent development, and I'm trying to understand what that would extend the EU to. Thanks so much.

Alexandra: <unk> was November of 2006.

Alexandra: But I've heard that there was a positive EU patent development and I'm trying to understand what that would extend the EU too. Thanks, so much.

Albert Bourla: Thank you very much, Dave. Dave, please you take the cost structure.

David M. Denton: Thank you very much, Dave. So Dave, then, please, you take the cost structure. Yeah. First, as you well know, you know, right-sizing our cost structure is incredibly important for us from as we think of forward for margin expansion in improving our financial returns. As we look through Q1 and through the balance of the year, keep in mind that the cost changes that we've made in the U.S. are largely complete. Obviously, in ex-U.S., some of those changes lag.

Albert Bourla: Thank you very much, Dave. So Dave, then, please, you take the cost structure.

Speaker Change: Thank you very much so.

Alexandra: Then you take the cost structure.

Dave Denton: Yeah. First, as you well know, right-sizing our cost structure is incredibly important for us as we think forward for margin expansion and improving our financial returns. As we look through Q1 and through the balance of the year, keep in mind that the cost changes that we've made in the US are largely complete. Obviously, in ex-US, some of those changes lag. You will see changes in the cost structure ex-US for the balance of the year. Those are probably not quite as large as we look forward compared to what has already happened at this point.

Yeah. First, as you well know, right-sizing our cost structure is incredibly important for us from -- as we think of forward for margin expansion in improving our financial returns. As we look through Q1 and through the balance of the year, keep in mind that the cost changes that we've made in the U.S. are largely complete. Obviously, in ex-U.S., some of those changes lag so, you will see changes in the cost structure ex-U.S. for the balance of the year. Those are probably not quite as large as we look forward compared to what has already happened at this point. But I would just say that this will be a constant focus for us as we think about cost and margin enhancements going forward. This is a -- now, we're on a continual cycle of thinking about how we invest and what is the appropriate cost structure in support of our revenue objectives for this business going forward. Thank you, Dave.

David M. Denton: Yeah. First, as you well know, right-sizing our cost structure is incredibly important for us from -- as we think of forward for margin expansion in improving our financial returns. As we look through Q1 and through the balance of the year, keep in mind that the cost changes that we've made in the U.S. are largely complete. Obviously, in ex-U.S., some of those changes lag so, you will see changes in the cost structure ex-U.S. for the balance of the year.

Alexandra: First as you well know.

Alexandra: Right sizing our cost structure is incredibly important for us.

Alexandra: As we think forward for margin expansion and improving our financial returns as we look through Q1 and through the balance of the year keep in mind the cost.

Alexandra: Changes that we've made in the U S are largely complete.

Alexandra: Obviously in ex U S. Some of those changes lag. So you will see changes in the cost structure ex U S for the balance of the year those are probably not quite as large as we look forward.

David M. Denton: So, you will see changes in the cost structure ex-U.S. for the balance of the year. Those are probably not quite as large as we look forward compared to what has already happened at this point. But I would just say that this will be a constant focus for us as we think about cost and margin enhancements going forward. This is a now we're on a continual cycle of thinking about how we invest and what is the appropriate cost structure in support of our revenue objectives for this business going forward. Thank you, Dave.

Those are probably not quite as large as we look forward compared to what has already happened at this point. But I would just say that this will be a constant focus for us as we think about cost and margin enhancements going forward. This is a -- now, we're on a continual cycle of thinking about how we invest and what is the appropriate cost structure in support of our revenue objectives for this business going forward.

Alexandra: Impaired to what has already happened at this point, but I would just say that this will be a constant focus for us as we think about cost and margin enhancements going forward. This is this is a now we're on a continual cycle of thinking about how we invest and what is the appropriate cost structure and support of our revenue objectives for this.

Albert Bourla: I would just say that this will be a constant focus for us as we think about cost and margin enhancements going forward. This is a now we're on a continual cycle of thinking about how we invest and what is the appropriate cost structure in support of our revenue objectives for this business going forward. Thank you, Dave. Doug, can you please clarify a few things about Vyndamax to Dave's recent question? Sure. Just to be clear, Dave, we shouldn't think beyond December 2028 on Vyndamax and Vyndamax. We've got a patent term extension that is filed and is pending. All I was saying was that in addition to that patent term extension, which would take it out to December 2028 that we filed and is pending, we may file additional patent term extensions, again, though, just to take it out to December 2028.

I would just say that this will be a constant focus for us as we think about cost and margin enhancements going forward. This is a now we're on a continual cycle of thinking about how we invest and what is the appropriate cost structure in support of our revenue objectives for this business going forward.

Albert Bourla: Thank you, Dave. Doug, can you please clarify a few things about VYNDAQEL to Dave's recent question?

Alexandra: Business going forward.

Albert Bourla: Thank you, Dave. And Doug, can you please clarify a few things about VYNDAQEL to Dave Risinger's question?

Doug Lankler: And, Doug, can you please clarify a few things about Vimtaka to Dave's, Eric Singer's, question? Sure. Just to be clear, Dave, we shouldn't think beyond December 2028 on Vindica and Vindomax. So we've got a patent term extension that is filed and is pending. And all I was saying was that in addition to that patent term extension, which would take it out to December 2028, that we filed and is pending, we may file additional patent term extensions. Again, though, just to take it out to December 2028.

And, Doug, can you please clarify a few things about Vimtaka to Dave's, Eric Singer's, question?

Speaker Change: Thank you guys.

Speaker Change: Doc can you please clarify some things about being back to Dave's question.

Doug Lankler: Sure. Just to be clear, Dave, we shouldn't think beyond December 2028 on VYNDAQEL and VYNDAQEL. We've got a patent term extension that is filed and is pending. All I was saying was that in addition to that patent term extension, which would take it out to December 2028 that we filed and is pending, we may file additional patent term extensions, again, though, just to take it out to December 2028.

Doc: Sure just just to be clear Dave.

Douglas M. Lankler: Sure. Just to be clear, Dave, we shouldn't think beyond December 2028 on VYNDAQEL and VYNDAMAX. So, we've got a patent term extension that is filed and is pending. And all I was saying was that, in addition to that patent term extension -- which would take it out to December 2028 -- that we filed and is pending, we may file additional patent term extensions. Again, though, just to take it out to December 2028. I hope that's clear.

Doc: We shouldn't think beyond December 2028 on <unk>, So we've got a.

Doc: Patent term extension that is filed and pending and all I was saying was that in addition to that patent term extension, which would take it out to December 2028 that we filed and is pending we made final additional patent term extensions again just to take it out to December two.

Albert Bourla: I hope that's clear. Thank you for clarifying that. Okay. Now, let's go to the next question, please. Thank you. We'll take our next question from Charon Hamel with UBS. Your line is now open. Hi guys. Charon Nguyen from UBS. Thanks for taking my questions. One on the ACIP meeting coming up and just a clarification on the guide, if I may. On ACIP in June, what's your expectations on the recommendation for the 50 to 59 population? Could this be a shared clinical decision like the 60-plus? Do you think this is going to be risk-based? Is there any chance you can get the 18 to 59 data on the agenda for this meeting? Just on the guide, a clarification here on the credit for the quarter, because you've kept your $3 billion guide for PACs.

I hope that's clear.

Albert Bourla: Thank you for clarifying that. Okay. Now, let's go to the next question, please.

Doc: 28, I hope that's clear.

Speaker Change: Thank you for clarifying.

Speaker Change: Okay now let's go through the next question. Please.

Operator: Thank you. We'll take our next question from Trung Huynh with UBS. Your line is now open.

Speaker Change: Yeah.

Doug Lankler: I hope that's clear. Thank you for clarifying that. Okay, now let's go to the next question, please. Thank you. We'll take our next question from Charong Hamel with UBS. Your line is now open. Hi guys, Trung Nguyen from UBS.

I hope that's clear.

Tom Hamill: Thank you we'll take our next question is from two wrong Hamill with UBS. Your line is now open.

Thank you for clarifying that. Okay, now let's go to the next question, please. Thank you. We'll take our next question from Charong Hamel with UBS. Your line is now open. Hi guys, Trung Nguyen from UBS.

Albert Bourla: Thank you for clarifying that. Okay. Now, let's go to the next question, please.

Thank you. We'll take our next question from Trung Huynh with UBS. Your line is now open. Hi guys, Trung Nguyen from UBS.

Operator: Thank you. We'll take our next question from Trung Huynh with UBS. Your line is now open.

Trung Huynh: Hi guys. Trung Huynh from UBS. Thanks for taking my questions. One on the ACIP meeting coming up and just a clarification on the guide, if I may. On ACIP in June, what's your expectations on the recommendation for the 50 population-59 population? Could this be a shared clinical decision like the 60+? Do you think this is going to be risk-based? Is there any chance you can get the 18 to 59 data on the agenda for this meeting? Just on the guide, a clarification here on the credit for the quarter, because you've kept your $3 billion guide for PACs.

Trung Huynh: Hi guys, Trung Nguyen from UBS. Thanks for taking my questions. One on the ACIP meeting coming up and just a clarification on the guide, if I may. So, on ACIP in June, what's your expectations on the recommendation for the 50 to 59 population? Could this be a shared clinical decision like the 60 plus or do you think this is gonna be risk-based? Is there any chance you can get the 18 to 59 data on the agenda for this meeting? And just on the guide, a clarification here on the credit for the quarter because you've kept your $3 billion guide for PAX. I appreciate the comment, you're now gonna be at the upper end of guide but on PAX, do you expect to have $770 million less PAX sales than you imagined at the start of the year, given that you updated your EPS guide or was this expected? Thanks.

Trung Huynh: Thanks for taking my questions. One on the ACIP meeting coming up and just a clarification on the guide. So on ACIP in June, what's your expectations on the recommendation for the 50 to 59 population? Could this be a shared clinical decision like the 60 plus?

Alexandra: Hi, guys Trung Nguyen from UBS. Thanks for taking my questions. One on the ACP meeting coming up in just a clarification on the guide if I may say on ACF in June what's your expectations on the recommendation for the 50% to 59 population could this be a shared clinical decision like the 60 plus.

Trung Huynh: Would you think this is gonna be risk-based? Is there any chance you can get the 18 to 59 data on the agenda for this meeting? And just on the guide, a clarification here on the credit for the quarter, because you've kept your $3 billion guide for Pax, I appreciate the comment, you're now gonna be at the upper end of guide, but on Pax. Do you expect to have... 770 million less pack sales than you imagined at the start of the year given that you updated your EPS guide or was this expected? Well, maybe I'll take that first.

Would you think this is gonna be risk-based? Is there any chance you can get the 18 to 59 data on the agenda for this meeting? And just on the guide, a clarification here on the credit for the quarter, because you've kept your $3 billion guide for Pax, I appreciate the comment, you're now gonna be at the upper end of guide, but on Pax. Do you expect to have... 770 million less pack sales than you imagined at the start of the year given that you updated your EPS guide or was this expected?

Alexandra: What do you think this is going to be risk base is there any chance you can get the 18% to 59 data on the agenda for this meeting.

And just on the guide, a clarification here on the credit for the quarter because you've kept your $3 billion guide for PAX. I appreciate the comment, you're now gonna be at the upper end of guide but on PAX, do you expect to have $770 million less PAX sales than you imagined at the start of the year, given that you updated your EPS guide or was this expected? Thanks.

Alexandra: And just on the guide a clarification here.

Alexandra: On the credit for the quarter, because you've kept your $3 billion guide for <unk> I. Appreciate the comment Youll now going to be at the upper end of guidance.

Albert Bourla: I appreciate the comment you're now going to be at the upper end of guide. On PACs, do you expect to have $770 million less PAC sales than you imagined at the start of the year, given that you outstated your EPS guide? Or was this expected? Thanks. Well, maybe I'll take that first. From a guide perspective, we obviously did not expect this final adjustment. It was an estimate that we did at the end of the year. We're now finalizing the adjustment based on the returns that we've seen, and it is now complete. I would say that as we look forward for the full year, both for Paxlovid and for the full year of all of our products, we're cautiously optimistic about where we are. I think Paxlovid started off from a very solid utilization.

I appreciate the comment you're now going to be at the upper end of guide. On PACs, do you expect to have $770 million less PAC sales than you imagined at the start of the year, given that you outstated your EPS guide? Or was this expected? Thanks.

Alexandra: Impact.

Alexandra: To have.

Alexandra: $770 million less pack sales than you imagined at the start of the year given that you take your EPS guide or what's the expected. Thanks.

Dave Denton: Well, maybe I'll take that first. From a guide perspective, we obviously did not expect this final adjustment. It was an estimate that we did at the end of the year. We're now finalizing the adjustment based on the returns that we've seen, and it is now complete. I would say that as we look forward for the full year, both for PAXLOVID and for the full year of all of our products, we're cautiously optimistic about where we are. I think PAXLOVID started off from a very solid utilization.

David M. Denton: Well, maybe I'll take that first. From a guide perspective, I would not -- we obviously did not expect this final adjustment. It was an estimate that we did at the end of the year. We're now finalizing the adjustment based on the returns that we've seen and it is now complete. I would say that as we look forward for the full year, both for PAXLOVID and for the full year of all of our products, we're cautiously optimistic about where we are. I think PAXLOVID started off from a very solid utilization -- and keep in mind, that product will trend consistent with infection rates across the globe. And we're still cautiously optimistic that we will achieve our objective and we do not expect anything less than our original expectation at this point in time.

David M. Denton: From a guide perspective, I would not, we obviously did not expect this final adjustment. It was an estimate that we did at the end of the year. We're now finalizing the adjustment based on the returns that we've seen, and it is now complete. I would say that as we look forward for the full year, both for Paxlovid and for the full year of all of our products, we're cautiously optimistic about where we are. I think Paxlovid started off, and from a very solid utilization, and keep in mind, that product will trend consistent with infection rates across the globe.

Speaker Change: Well, maybe I'll take that first.

Speaker Change: From a guide perspective, I would not we obviously did not expect this final adjustment. There was it was an estimate that we did at the end of the year. We're now finalizing adjustment based on the returns that we've seen and it is now complete.

Alexandra: I would say that as we look forward for the full year, both for <unk> and for the full year of all of our products. We're cautiously optimistic about where we are I think <unk> started off from a very solid utilization and keep in mind that product will trend.

Albert Bourla: Keep in mind that product will trend consistent with infection rates across the globe. We're still cautiously optimistic that we will achieve our objective, and we do not expect anything less than our original expectation at this point in time. Thank you, David. Michael, on the ACIP meetings and the June-October recommendations, etc. Yeah. First, to punctuate, good to hear you're interested in our RSV vaccine. We have a lot of positive and informative data that's coming. Eighteen to 59, we have already been out sharing robust outcome for that, and filing is imminent to happen in US FDA. We also have data coming on second season, full second season, and data so far that have been available show robust and probably best-in-class profile for us. You heard Amir mention we also have new delivery formats.

Keep in mind that product will trend consistent with infection rates across the globe. We're still cautiously optimistic that we will achieve our objective, and we do not expect anything less than our original expectation at this point in time.

Alexandra: Consistent with infection rates across the globe.

Alexandra: And we're still cautiously optimistic that we will achieve our objective and we do not expect anything less.

Alexandra: Than our original expectation at this point in time thank.

Albert Bourla: Thank you, David. Mikael, on the ACIP meetings and the June-October recommendations, etc.

David M. Denton: And we're still cautiously optimistic that we will achieve our objective, and we do not expect anything less than our original expectation at this point. Thank you, David. And Michael, on the ACIP meetings and the June-October recommendations, et cetera. Yeah.

And we're still cautiously optimistic that we will achieve our objective, and we do not expect anything less than our original expectation at this point.

Speaker Change: Thank you David.

Michael Dolsten: Michael on the ACP.

Thank you, David. And Michael, on the ACIP meetings and the June-October recommendations, et cetera. Yeah.

Albert Bourla: Thank you, David. And Mikael, on the ACIP meetings and the June-October recommendations, et cetera.

Speaker Change: Meetings.

Speaker Change: October recommendation system.

Mikael Dolsten: Yeah. First, to punctuate, good to hear you're interested in our RSV vaccine. We have a lot of positive and informative data that's coming. Eighteen to 59, we have already been out sharing robust outcome for that, and filing is imminent to happen in US FDA. We also have data coming on second season, full second season, and data so far that have been available show robust and probably best-in-class profile for us. You heard Aamir mention we also have new delivery formats.

Mikael Dolsten: Yeah. First, to punctuate, good to hear you're interested in our RSV vaccine. We have a lot of positive and informative data sets coming. 18 to 59, we have already been out, sharing robust outcome for that and filing is imminent to happen in U.S. FDA. We also have data coming on second season, full second season, and data so far that have been available to show robust and probably best-in-class profile for us. And you heard Aamir mention we also have new delivery formats. So, there's a lot of positive things happening to further strengthen ABRYSVO.

Michael Dolsten: First, to punctuate, good to hear you're interested in our RSV vaccine. We have a lot of positive and informative data sets coming. 18 to 59, we have already been out sharing robust outcome for that and finding its imminence to happen in US FDA. We also have data coming on second season, full second season and data so far that have been available to show robust and, probably best-in-class profile for us. And you heard Aamir mention we also have new delivery formats.

Alexandra: First to puncture.

Michael Dolsten: Good to hear you're interested in our RSV vaccine we have.

Michael Goldstein: A lot of positive and informative data sets coming in.

Michael Goldstein: 18 to 59, we have already been sharing.

Michael Goldstein: Robust outcome for that filing is imminent so happened in the U S FDA.

Michael Goldstein: We also have.

Michael Goldstein: Coming on second season full sequences.

Michael Goldstein: And data so partners have been available to show robust and.

Michael Goldstein: Probably best in class profile for US and you heard EMEA mentioned, we also have new delivery for months. So there is a lot of positive things happening to further strengthen of reasonable.

Albert Bourla: There are a lot of positive things happening to further strengthen Abrysvo. For a formal decision on recommendation, ACIP normally waits until a product is FDA approved. We do not know exactly when FDA will potentially approve. We think, clearly, given this unique age range, that it can happen to be meaningful for the fall, but that needs to be, of course, pending FDA's views. We will certainly be very open to share data from several of these new important data sets that could help ACIP to understand the planning of the various RSV products. We think that would be very helpful for ACIP, as Abrysvo data sets are robust and in some sense unique in a positive way. Thank you. In general, a couple of comments for both of these questions. On the ACIP, we always do not speak for ACIP, so it is not appropriate.

There are a lot of positive things happening to further strengthen ABRYSVO. For a formal decision on recommendation, ACIP normally waits until a product is FDA approved. We do not know exactly when FDA will potentially approve. We think, clearly, given this unique age range, that it can happen to be meaningful for the fall, but that needs to be, of course, pending FDA's views. We will certainly be very open to share data from several of these new important data sets that could help ACIP to understand the planning of the various RSV products. We think that would be very helpful for ACIP, as ABRYSVO data sets are robust and in some sense unique in a positive way.

Michael Dolsten: So there's a lot of positive things happening to further strengthen ABRISFORM. For a formal decision on recommendation, ASIC normally wait until a product is FDA approved. We don't know exactly when FDA will potentially approve, we think... Clearly given this unique age range that it can happen to be meaningful for the fall, but that needs to be, of course, pending FDA's views.

So there's a lot of positive things happening to further strengthen ABRISFORM.

For a formal decision on recommendation, ASIC normally wait until a product is FDA approved. We don't know exactly when FDA will potentially approve, we think... Clearly given this unique age range that it can happen to be meaningful for the fall, but that needs to be, of course, pending FDA's views. But we will certainly be very open to share data from several of these new important datasets that could help ACIP to understand the planning of the various RSV products. And we think that would be very helpful for ACIP as... A brief data set of robust and in some sense unique in a positive way. Thank you. In general, a couple of comments for both of these questions. On the ACIP, we always don't speak for ACIP, so it's not appropriate.

For a formal decision on recommendation, ACIP normally wait until a product is FDA approved. We don't know exactly when FDA will potentially approve. We think, clearly given this unique age range that it can happen to be meaningful for the fall but that needs to be, of course, pending FDA's views. But we will certainly be very open to share data from several of these new important datasets that could help ACIP to understand the planning of the various RSV products. And we think that would be very helpful for ACIP as ABRYSVO dataset of robust and, in some sense, unique in a positive way. Thank you.

Michael Goldstein: For a formal decision on.

Michael Goldstein: Recommendation ASIC normally wait until the product is FDA approved.

Speaker Change: We don't know exactly when that day.

Speaker Change: We will potentially approve we're seeing.

Speaker Change: Clearly given this unique <unk> range is kind of happened to be meaningful for the fall, but that needs to be of course.

Michael Goldstein: Pending fda's.

Michael Goldstein: Views, but we will certainly be very open to share data from several of these new importance. Thanks assets that could help basis to understand the planning of the various RSV products and we think that would be very helpful.

Michael Dolsten: But we will certainly be very open to share data from several of these new important datasets that could help ACIP to understand the planning of the various RSV products. And we think that would be very helpful for ACIP as... A brief data set of robust and in some sense unique in a positive way. Thank you. In general, a couple of comments for both of these questions. On the ACIP, we always don't speak for ACIP, so it's not appropriate.

Michael Goldstein: <unk>.

Michael Goldstein: Bruce the data sets are robust and in some sense unique in a positive way.

In general, a couple of comments for both of these questions. On the ACIP, we always don't speak for ACIP so, it's not appropriate. So, ACIP will do what they can do. Of course, typically, as we say, they wait to see FDA approvals and we hope that they will ask us to present the data in June. But, you know, it's something that we don't know. What we know is that whatever they decide, whenever they decide, we have prepared our marketing and commercial plans in the U.S., as we do, of course, in other countries, so that we can maximize the approvals or the recommendations or the data that we have. So that's one thing. The other thing, David explained that we are cautiously optimistic. Of course, that comes through the entire line of guidance that we gave you, and of course we improved again cautiously we think the EPS and you need to see all of that in the context of guys who have been there last year with a big misalignment between what we were expecting to come for COVID and eventually what came and that is something that you know makes us to be double cautious and when we speak about projections we know credibility is extremely important for us so everything we say we feel a rocket solid but we will achieve and we don't say anything more than that we prefer to achieve rather, So that is the context to all the guidance that we have provided this time. So with that, let's go to the next question. We'll take our next question from Umer Raffat with Evercore ISI. Your line is now open.

Albert Bourla: In general, a couple of comments for both of these questions. On the ACIP, we always don't speak for ACIP so, it's not appropriate. So, ACIP will do what they can do. Of course, typically, as we say, they wait to see FDA approvals and we hope that they will ask us to present the data in June. But, you know, it's something that we don't know. What we know is that whatever they decide, whenever they decide, we have prepared our marketing and commercial plans in the U.S., as we do, of course, in other countries so, that we can maximize the approvals or recommendations or the data that we have. So, that's one thing.

Albert Bourla: Thank you. In general, a couple of comments for both of these questions. On the ACIP, we always do not speak for ACIP, so it is not appropriate.

Michael Goldstein: Is that a couple of comments for goes to both of these questions on the ACI.

Speaker Change: Don't speak for ACI.

Albert Bourla: ACIP will do what they can do. Of course, typically, as we say, they wait to see FDA approvals, and we hope that they will ask us to present the data in June. It is something that we do not know. What we know is that whatever they decide, whenever they decide, we have prepared our marketing and commercial plans in the US, as we do, of course, in other countries, so that we can maximize the approvals, the recommendations, or the data that we have available. That is one thing. David explained that we are cautiously optimistic, of course, about that, which comes through the entire line of guidance that we gave. We are cautiously optimistic on revenues, we are cautiously optimistic on margins, and, of course, we improve, again, cautiously within the EPS.

ACIP will do what they can do. Of course, typically, as we say, they wait to see FDA approvals, and we hope that they will ask us to present the data in June. It is something that we do not know. What we know is that whatever they decide, whenever they decide, we have prepared our marketing and commercial plans in the US, as we do, of course, in other countries, so that we can maximize the approvals, the recommendations, or the data that we have available. That is one thing. David explained that we are cautiously optimistic, of course, about that, which comes through the entire line of guidance that we gave. We are cautiously optimistic on revenues, we are cautiously optimistic on margins, and, of course, we improve, again, cautiously within the EPS.

Albert Bourla: So ACIP will do what they can do. Of course, typically, as we say, they wait to see FDA approvals, and we hope that they will ask us to present the data in June. But, you know, it's something that we don't know.

Speaker Change: Appropriate so.

Speaker Change: We will do what they can of course typically as we say the wait and see FDA approvals and we hope that they will ask us to present the data, but it's something but we don't know what do we know it.

Albert Bourla: What we know is that whatever they decide, whenever they decide, we have prepared our marketing and commercial plans in the U.S., as we do, of course, in other countries, so that we can maximize the approvals or the recommendations or the data that we have. So that's one thing. The other thing, David explained that we are cautiously optimistic. Of course, that comes through the entire line of guidance that we gave you, and of course we improved again cautiously we think the EPS and you need to see all of that in the context of guys who have been there last year with a big misalignment between what we were expecting to come for COVID and eventually what came and that is something that you know makes us to be double cautious and when we speak about projections we know credibility is extremely important for us so everything we say we feel a rocket solid but we will achieve and we don't say anything more than that we prefer to achieve rather, So that is the context to all the guidance that we have provided this time. So with that, let's go to the next question. We'll take our next question from Umer Raffat with Evercore ISI. Your line is now open.

Speaker Change: Whatever they decide whenever they decide we have prepared all of our marketing and commercial plans in the U S. As we do of course in other countries. So that we can maximize the.

Speaker Change: The approvals.

Speaker Change: Commendation or the data book, we have.

Speaker Change: So.

Speaker Change: One of.

Speaker Change: The other thing David explained, but we are cautiously optimistic of course about the comps.

The other thing, David explained that we are cautiously optimistic. Of course, that comes through the entire line of guidance that we gave. We are cautiously optimistic on revenues, we are cautiously optimistic on margins and of course, we improved, again cautiously, we think the EPS. You need to see all of that in the context of guys who have been there last year with a big misalignment between what we were expecting to come for COVID and eventually, what came. And that is something that makes us to be double cautious. And when we speak about projections, we know credibility is extremely important for us so, everything we say we feel rocket solid that we will achieve and we don't say anything more than that, we prefer to achieve rather than say. So, that is the context to all the guidance that we have provided this time. So, with that, let's go to the next question, please. We'll take our next question from Umer Raffat with Evercore ISI. Your line is now open.

Speaker Change: So the entire line of guidance that we gave you a question whenever you start.

Speaker Change: Margaret and of course, we improve.

Speaker Change: Again cautiously.

Speaker Change: Think of EPS.

Albert Bourla: You need to see all of that in the context that, guys, we have been burned last year with a big misalignment between what we were expecting to come for COVID and eventually what came. That is something that makes us be double cautious. When we speak about projections, we know credibility is extremely important for us. Everything we say, we feel rocket solid that we will achieve, and we do not say anything more than that. We prefer to achieve rather than save. That is the context to all the guidance that we have provided this time. With that, let's go to the next question, please. We'll take our next question from Umar Refiq with Evercore ISI. Your line is now open. Hi, guys. Thanks for taking my question. A couple of financial-focused questions, if I may.

You need to see all of that in the context that, guys, we have been burned last year with a big misalignment between what we were expecting to come for COVID and eventually what came. That is something that makes us be double cautious. When we speak about projections, we know credibility is extremely important for us. Everything we say, we feel rocket solid that we will achieve, and we do not say anything more than that. We prefer to achieve rather than save. That is the context to all the guidance that we have provided this time. With that, let's go to the next question, please.

Speaker Change: You need to see a robot in the context of a guy so we're going to be better.

Speaker Change: Last year with a big misalignment between what we were expecting to come for corporate and eventually what came in.

Speaker Change: Fox is something but.

And that is something that makes us to be double cautious. And when we speak about projections, we know credibility is extremely important for us so, everything we say we feel rocket solid that we will achieve and we don't say anything more than that, we prefer to achieve rather than say. So, that is the context to all the guidance that we have provided this time.

Speaker Change: It makes us to be.

Speaker Change: Cautious when we speak about the projections, we know credibility is extremely important for us. So everything we say, we favor rocket solid, but we will see and we don't say anything more than that we prefer to let's see rather than saying talking about the context, all the guidance we have provided.

So, with that, let's go to the next question, please. We'll take our next question from Umer Raffat with Evercore ISI. Your line is now open.

So, with that, let's go to the next question, please.

Speaker Change: So with that let's go to the next question.

Operator: We'll take our next question from Umer Reffat with Evercore ISI. Your line is now open.

Operator: We'll take our next question from Umer Raffat with Evercore ISI. Your line is now open.

Speaker Change: We'll take our next question from Omar wrap it with Evercore ISI. Your line is now open.

Umer Raffat: Hi, guys. Thanks for taking my question. A couple of financial-focused questions, if I may.

Umer Raffat: Hi guys, thanks for taking my question. A couple of financials-focused questions, if I may. First, on gross margin. Dave, I remember last time you mentioned two specific things, insourcing of recently acquired products as well as new launches as being a drag on gross margin. Considering both those things were presumably baked into 1Q and 1Q looked more like what the historic margin build would have implied, wouldn't that suggest full-year margin is tracking meaningfully north of the full-year guidance of 70%? Or were there one-offs like some inventory work done from recent acquisitions in 1Q that helped it?

Omar: Hi, guys. Thanks for taking my question.

Omar: Financials focused questions. If I may 1st on gross margin, Dave I Remember last time, you mentioned two specific things in sourcing of recently acquired products as well as new launches as being a drag on gross margin considering.

Albert Bourla: First, on gross margin, Dave, I remember last time you mentioned two specific things: insourcing of recently acquired products, as well as new launches, as being a drag on gross margin. Considering both those things were presumably baked into Q1, and Q1 looked more like what the historic margin build would have implied, wouldn't that suggest full-year margin is tracking meaningfully north of the full-year guidance of 70%? Were there one-offs, like some inventory work done from recent acquisitions in Q1, that helped it? Secondly, and maybe this is for you and Albert both, is there potential for significant monetization for some of your excess manufacturing capacity from over the years, be it fill, finish, or beyond, just considering what the broader environment is and some of the questions on dividend? Thank you very much. I think David can take both of them. Dave. Yes.

First, on gross margin, Dave, I remember last time you mentioned two specific things: insourcing of recently acquired products, as well as new launches, as being a drag on gross margin. Considering both those things were presumably baked into 1Q, and 1Q looked more like what the historic margin build would have implied, wouldn't that suggest full-year margin is tracking meaningfully north of the full-year guidance of 70%? Were there one-offs, like some inventory work done from recent acquisitions in 1Q, that helped it? Secondly, and maybe this is for you and Albert both, is there potential for significant monetization for some of your excess manufacturing capacity from over the years, be it fill, finish, or beyond, just considering what the broader environment is and some of the questions on dividend? Thank you very much.

Omar: Considering both of those things, where presumably baked into <unk> and once you look more like what the historic margin build would've implied wouldn't that suggest full year margin is tracking meaningfully north of the full year guidance of 70%.

Omar: Or were there one offs like some inventory work down from recent acquisitions in <unk> that helped that and secondly.

Umer Raffat: And secondly -- maybe this is for you and Albert both, is there potential for a significant monetization for some of your excess manufacturing capacity from over the years, be it fill finish or beyond. Just considering what the broader environment is and some of the questions on dividend? Thank you very much. I think David can take both of them.

And secondly -- maybe this is for you and Albert both, is there potential for a significant monetization for some of your excess manufacturing capacity from over the years, be it fill finish or beyond. Just considering what the broader environment is and some of the questions on dividend? Thank you very much.

Omar: And maybe this is for you and Albert Bolles is there potential for a significant monetization.

Omar: Are some of your excess manufacturing capacity from over the years be it fill finish or beyond just considering what the broader environment is and some of the questions on dividend. Thank you very much.

Albert Bourla: I think David can take both of them. Dave?

Omar: I think David can take both of them.

Dave Denton: Yes.

David M. Denton: David. Yes. On the gross margin side, as I said, there was a couple of things that impacted favorably our performance in Q1. The items that you listed, both new product launches and insourcing, the insourcing is probably a longer term implication to us because those don't happen in an immediate quarter. So you think about Seagen, it's probably a multi-year phenomenon that we have here. I don't think that was an outsized impact to that.

David.

Albert Bourla: On the gross margin side, as I said, there were a couple of things that impacted favorably our performance in Q1. The items that you listed, both new product launches and insourcing, the insourcing is probably a longer-term implication to us because those do not happen in an immediate quarter. You think about CGEN, that is probably a multi-year phenomenon that we have here. I do not think there was an outsized impact to that. Obviously, the new launches, we planned for those to be compressing our gross margin rates, which they did. I think we are off to a very solid start. Keep in mind what I said earlier. In the back half of the year, commodity sales will begin to ramp up. They compress our gross margin rate fairly significantly given the partner contribution and payment that we have to our partners.

On the gross margin side, as I said, there were a couple of things that impacted favorably our performance in 1Q. The items that you listed, both new product launches and insourcing, the insourcing is probably a longer-term implication to us because those do not happen in an immediate quarter. You think about Seagen, that is probably a multi-year phenomenon that we have here. I do not think there was an outsized impact to that. Obviously, the new launches, we planned for those to be compressing our gross margin rates, which they did. I think we are off to a very solid start. Keep in mind what I said earlier. In the back half of the year, commodity sales will begin to ramp up. They compress our gross margin rate fairly significantly given the partner contribution and payment that we have to our partners.

Yes. On the gross margin side, as I said, there was a couple of things that impacted favorably our performance in Q1. The items that you listed, both new product launches and insourcing -- the insourcing is probably a longer term implication to us because those don't happen in an immediate quarter. So, you think about Seagen, it's probably a multi-year phenomenon that we have here. I don't think that was an outsized impact to that. And obviously, the new launches, we plan for those to be compressing our gross margin rates -- which they did. I think we're off to a very solid start but keep in mind what I said earlier, in the back half of the year, commodity sales will begin to ramp up. They compress our gross margin rate fairly significantly given the partner contribution and payment that we have to our partner. So, I would expect that to dampen our gross margin performance in the back half of the year. But Umer, as you well know, is we're focused on over-delivering if we can. So, I think we will do everything we can to continue to improve our performance there.

David M. Denton: Yes. On the gross margin side, as I said, there was a couple of things that impacted favorably our performance in Q1. The items that you listed, both new product launches and insourcing -- the insourcing is probably a longer term implication to us because those don't happen in an immediate quarter. So, you think about Seagen, it's probably a multi-year phenomenon that we have here. I don't think that was an outsized impact to that. And obviously, the new launches, we plan for those to be compressing our gross margin rates -- which they did.

David Risinger: Gross margin side as I said there was.

David Risinger: A couple of things that impacted us favorably our performance in Q1.

David Risinger: The items that you listed are both new product launches and in sourcing.

David Risinger: The in sourcing is probably a longer term implication to us because those don't happen in the immediate quarter. So as you think about <unk> and there's probably a multi year phenomenon that we have here, but I don't think there was an outsized impact to that and obviously the new launches we plan for those to be compressing our gross margin.

David M. Denton: And obviously, the new launches, we plan for those to be compressing our gross margin rates, which they did. I think we're off to a very solid start. But keep in mind what I said earlier. In the back half of the year, commodity sales will begin to ramp up.

Speaker Change: Right, so which they did.

I think we're off to a very solid start but keep in mind what I said earlier, in the back half of the year, commodity sales will begin to ramp up. They compress our gross margin rate fairly significantly given the partner contribution and payment that we have to our partner. So, I would expect that to dampen our gross margin performance in the back half of the year. But Umer, as you well know, is we're focused on over-delivering if we can. So, I think we will do everything we can to continue to improve our performance there.

Speaker Change: I think we're off to a very solid start but keep in mind, what I said earlier.

Speaker Change: In the back half of the year commodity sales will begin to ramp up they compress our gross margin rate fairly significantly given the.

David M. Denton: They compress our gross margin rate fairly significantly given the partner contribution and payment that we have to our partner. So I would expect that to dampen our gross margin performance in the back half. But Umer, as you well know, is we're focused on over delivering if we can.

Speaker Change: Partner contribution and.

Speaker Change: Payment that we have to our partner so.

Albert Bourla: I would expect that to dampen our gross margin performance in the back half of the year. Umar, as you well know, we're focused on over-delivering if we can. I think we will do everything we can to continue to improve our performance there. Finally, as we think about the balance sheet, first and foremost, I just want to reiterate that our number one priority from a capital allocation perspective is both supporting and growing our dividend over time, and that is not at risk. Secondly, yes, we always look at the assets that we have across our platform and understand what's the best way to capitalize on those assets. Some of that may be monetizing some of that. Some of that may be operating them more effectively. Everything's on the table from that perspective. Thank you, Dave.

I would expect that to dampen our gross margin performance in the back half of the year. Umer, as you well know, we're focused on over-delivering if we can. I think we will do everything we can to continue to improve our performance there. Finally, as we think about the balance sheet, first and foremost, I just want to reiterate that our number one priority from a capital allocation perspective is both supporting and growing our dividend over time, and that is not at risk. Secondly, yes, we always look at the assets that we have across our platform and understand what's the best way to capitalize on those assets. Some of that may be monetizing some of that. Some of that may be operating them more effectively. Everything's on the table from that perspective.

David Risinger: I would expect that to dampen our gross margin performance in the back half of the year.

David Risinger: <unk> as you well know we're focused on overdue deliveries. We can so I think we will do everything we can to continue to improve our performance there.

David M. Denton: So I think we will do everything we can to continue to improve our performance there. And then finally, as we think about the balance sheet, first and foremost, I just want to reiterate that our number one priority from a capital allocation perspective is both supporting and growing our dividend over time. And that is not a, Secondly, yes, we always look at the assets that we have across our platform and understand what's the best way to capitalize on those assets.

So I think we will do everything we can to continue to improve our performance there.

And then finally, as we think about the balance sheet -- first and foremost, I just want to reiterate that our number one priority from a capital allocation perspective is both supporting and growing our dividend over time. And that is not at risk, Secondly, yes, we always look at the assets that we have across our platform and understand what's the best way to capitalize on those assets. And some of that may be monetizing some of that, some of that may be operating them more effectively. So, everything's on the table from that perspective,

David Risinger: Finally, as we think about the balance sheet first and foremost I just wanted to reiterate that our number one priority from a capital allocation perspective is both supporting and growing our dividend over time and that is not at risk.

David M. Denton: And some of that may be monetizing some of that, some of that may be operating them more effectively. So everything's on the table from that, Thank you, Dave. And although your answer was very complete, I would just reiterate something that you said, because it seems like that some people, they want to hear it again.

And some of that may be monetizing some of that, some of that may be operating them more effectively. So everything's on the table from that,

David Risinger: Secondly, yes, we always look at the assets that we have across our platform and understand what's the best way to capitalize on those assets and some of that may be monetizing some of that some of that may be operating them more effectively so everything's on the table from that perspective. Thank.

Thank you, Dave. And although your answer was very complete, I would just reiterate something that you said because it seems like that some people, they want to hear it again. The dividend is a sacred cow for us. Dividend, it is secure and we will continue our policy on dividend as we have promised repeatedly. And we don't have to monetize things to be able to achieve that. The reason why we are looking at all our assets is because we want to maximize return on the capital. And of course, we will see opportunities -- only when it makes sense, like the ones that you described. There is a serious, now, issue with the sterile capacity that people are looking to apply. We will look at everything but it's not that we are looking right now on this, on that because we need to support the dividend or we need to support the delivering opportunities or we need to support the investments in the business. We can do that without doing anything.

Albert Bourla: Thank you, Dave. And although your answer was very complete, I would just reiterate something that you said because it seems like that some people, they want to hear it again. The dividend is a sacred cow for us. Dividend, it is secure and we will continue our policy on dividend as we have promised repeatedly. And we don't have to monetize things to be able to achieve that. The reason why we are looking at all our assets is because we want to maximize return on the capital. And of course, we will see opportunities -- only when it makes sense, like the ones that you described.

Albert Bourla: Thank you, Dave.

Albert Bourla: Although your answer was very complete, I will just reiterate something that you said because it seems like some people, they want to hear it again. The dividend is a sacred cow for us. Dividend, it is secure, and we will continue our policy on dividend as we have promised, repeated. We do not have to monetize things to be able to achieve that. The reason why we are looking at all our assets is because we want to maximize return on the card. Of course, we will see opportunities when it makes sense, like the ones that you described. There is a serious now issue with sterile capacity that people are looking to acquire.

Although your answer was very complete, I will just reiterate something that you said because it seems like some people, they want to hear it again. The dividend is a sacred cow for us. Dividend, it is secure, and we will continue our policy on dividend as we have promised, repeated. We do not have to monetize things to be able to achieve that. The reason why we are looking at all our assets is because we want to maximize return on the card. Of course, we will see opportunities when it makes sense, like the ones that you described. There is a serious now issue with sterile capacity that people are looking to acquire.

Speaker Change: Thank you, Dave and although your answer was very complete I will just reiterate something that you're starting to flag that some people they want to hear it again the dividend is a separate call for us.

Albert Bourla: The dividend is a separate topic. Dividend, it is secure and we will continue our policy on dividend as we have promised repeatedly, and we don't have to monetize things today. The reason why we are looking at all our assets is because we want to maximize return on the card. And of course, we will see opportunities, and when it makes sense, like the ones that you described, there is a serious now issue with the sterile capacity that people are looking to apply.

David Risinger: Dividend.

Speaker Change: <unk> secure and we will continue our bullish on dividend as we have.

David Risinger: Repeat.

David Risinger: And we don't have to monetize things to be able to buy.

David Risinger: The reason why we are looking at all our assets and of course maximize right there on the card.

David Risinger: Of course, we will see opportunities as well.

David Risinger: Makes sense like the ones that you've described but isn't it.

There is a serious, now, issue with the sterile capacity that people are looking to apply. We will look at everything but it's not that we are looking right now on this, on that because we need to support the dividend or we need to support the delivering opportunities or we need to support the investments in the business. We can do that without doing anything.

David Risinger: Now with the sterile.

David Risinger: Capacity, but people are looking for example, I think we were looking at everything but it's not that we are looking right now on this on that because we need to.

Albert Bourla: We will look at everything, but it's not that we are looking right now on this, on that, because we need to support the dividend, or we need to support the delivering opportunities, or we need to support the investments in the business, right? We can do that without doing any of that. Thank you very much. Let's go to the next question. We'll take our next question from Geoff Meacham with Bank of America. Your line is now open. Hey, everyone. Thanks for the question. Just had two quick ones. The first is, now that Seagen has been fully integrated and you'll see some commercial leverage from the deal, would you expect to see more of a gradual impact on the Padcev and etc. trajectories looking out a few years, or could you have a more near-term inflection?

We will look at everything, but it's not that we are looking right now on this, on that, because we need to support the dividend, or we need to support the delivering opportunities, or we need to support the investments in the business, right? We can do that without doing any of that. Thank you very much. Let's go to the next question.

David Risinger: Support the dividend already to support the delevering opportunities or needs to support the investments in the business like we can do that without anywhere.

Speaker Change: Thank you very much guys.

Operator: We'll take our next question from Geoff Meacham with Bank of America. Your line is now open.

Speaker Change: The next question.

Albert Bourla: Thank you very much. Let's go to the next. We'll take our next question from Jeff Meacham with Bank of America. Your line is now open. Hey everyone, thanks for the question. Just had two quick ones.

Thank you very much. Let's go to the next question.

David Risinger: We'll take our next question from Geoff Meacham with Bank of America. Your line is now open.

We'll take our next question from Jeff Meacham with Bank of America. Your line is now open. Hey everyone, thanks for the question. Just had two quick ones.

Operator: We'll take our next question from Geoff Meacham with Bank of America. Your line is now open.

Geoff Meacham: Hey, everyone. Thanks for the question. Just had two quick ones. The first is, now that Seagen has been fully integrated and you'll see some commercial leverage from the deal, would you expect to see more of a gradual impact on the PADCEV and ADCETRIS trajectories looking out a few years or, you know, could you have a more near-term inflection? Then the second question. You know, Dave, Albert, the capital allocation commitment to the dividend is super clear -- what we view on slide 12 as dividend and de-leveraging as the two highest priorities or is bolt-on BD still in the mix for this year or next? Thank you.

Geoff Meacham: The first is now that Seagen has been fully integrated, and you know, you'll see some commercial leverage from the deal. Would you expect to see more of a gradual impact on the PATSEV and SETCHF trajectories looking out a few years? Or, you know, could you have a more near-term inflection?

Geoff Meacham: Hey, everyone. Thanks for the question just had two quick ones.

Geoff Meacham: The first is now that <unk> has been fully integrated and Youll see some commercial leverage from the deal would.

Geoff Meacham: Would you expect to see more of a gradual impact on the pad that sort of trajectory is looking out a few years or.

Geoff Meacham: Could you have a more near term inflection and then the second question Dave.

Albert Bourla: The second question, Dave, Albert, the capital allocation commitment to the dividend is super clear. Would we view on slide 12 as dividend and deleveraging as the two highest priorities, or is bolt-on BD still in the mix for this year or next? Thank you. Yeah. Let's go to Chris to understand the commercial impact on Seagen and how that will take time. Thank you very much. As you know, we did a number of months' planning prior to close to ensure we had a seamless integration. We completed cross-training of our commercial field force teams in January, especially for breast cancer between Tocaiz and Ibrance, but also for hematology between Adcetris and Elrexfio. We should start seeing that further playing out now over the coming months. As we've mentioned, we're obviously very pleased that there's been tremendous colleague retention.

The second question, Dave, Albert, the capital allocation commitment to the dividend is super clear. Would we view on slide 12 as dividend and deleveraging as the two highest priorities, or is bolt-on BD still in the mix for this year or next? Thank you.

Geoff Meacham: Then the second question. You know, Dave, Albert, the capital allocation commitment to the dividend is super clear -- what we view on slide 12 as dividend and de-leveraging as the two highest priorities or is bolt-on BD still in the mix for this year or next? Thank you. Yeah, let's go to Chris to understand the commercial impact on seed and how that would take.

Then the second question. You know, Dave, Albert, the capital allocation commitment to the dividend is super clear -- what we view on slide 12 as dividend and de-leveraging as the two highest priorities or is bolt-on BD still in the mix for this year or next? Thank you.

Geoff Meacham: Dave Albert on the capital allocation commitment to the dividend is super clear.

Geoff Meacham: Hi.

David Risinger: We view on slide 12, as dividend and deleveraging as the two highest priorities or is bolt on BD still in the mix for this year or next thank you.

Albert Bourla: Yeah. Let's go to Chris to understand the commercial impact on Seagen and how that will take time.

Albert Bourla: Yeah. Let's go to Chris to understand the commercial impact on Seagen and how that would take time.

David Risinger: Yes.

David Risinger: To understand the commercial impact from Seaton and carve out will take time.

Chris Boshoff: Thank you very much. As you know, we did a number of months' planning prior to close to ensure we had a seamless integration. We completed cross-training of our commercial field force teams in January, especially for breast cancer between TUKYSA and IBRANCE, but also for hematology between ADCETRIS and ELREXFIO. We should start seeing that further playing out now over the coming months. As we've mentioned, we're obviously very pleased that there's been tremendous colleague retention.

Chris Boshoff: Thank you very much. So, as you know, we did a number of months planning prior to close to ensure we had a seamless integration. And we completed cross-training of our commercial field force teams in January, especially for breast scans between TUKYSA and IBRANCE but also for hematology between ADCETRIS and ELREXFIO. And we should start seeing that further playing out now, over the coming months. As we've mentioned, we're obviously very pleased that there's been tremendous colleague retention. So, we haven't had an issue with colleague retention -- both from the legacy Pfizer and the legacy Seagen organization, as we build a new business. We expect that to continue to do well. There's significant enthusiasm from healthcare providers, from patients, from patient advocacy groups because of the groundbreaking data, double the overall survival. So, we are confident that we'll continue to see PADCEV growth. We've also seen TUKYSA, for instance, 21% year-over-year pro forma basis growth. And, in fact, the last quarter was the highest performance of TUKYSA.

Speaker Change: Thank you very much so as you know we did a number of months planning prior to close to ensure we had a seamless integration and be completed cross training of our commercial team.

David Risinger: Teams in January and especially for brakes guidance between <unk>, and <unk>, hematology and hematology between ADCETRIS and <unk>.

David Risinger: <unk> and we should start seeing that play out over the coming months as we've mentioned, we obviously very pleased that and.

Chris Boshoff: As we've mentioned, we're obviously very pleased that there's been tremendous colleague retention. So we haven't had an issue with colleague retention, both from the legacy Pfizer and the legacy Seagen organization as we build a new business. We expect that to continue to do well. There's significant enthusiasm from health care providers, from patients, from patient advocacy groups because of the groundbreaking data, double the overall survival. So we are confident that we'll continue to see Pfizer growth. We've also seen Tichyza, for instance, 21% year-over-year per-forma basis growth. And, in fact, the last quarter was the highest performance of Tichyza.

David Risinger: They've been tremendous and colleague retention. So we haven't had an issue with colleague retention both from the legacy <unk> and the legacy <unk> organization as they both new business and we expect that to continue to do well.

Albert Bourla: We haven't had an issue with colleague retention, both from the legacy Pfizer and the legacy Seagen organization as we build the new business. We expect Padcev to continue to do well. There's significant enthusiasm from healthcare providers, from patients, and from patient advocacy groups because of the groundbreaking data, double the overall survival. We are confident that we'll continue to see Padcev growth. We've also seen Tukysa, for instance, 21% year-over-year pro forma basis growth. In fact, the last quarter was the highest performance of Tukysa. Overall, great confidence. We started the first new phase three study with an NME from the Seagen portfolio with sigvotatug vedotin. We hope to update you on other phase three studies from the Seagen portfolio, legacy Seagen portfolio.

We haven't had an issue with colleague retention, both from the legacy Pfizer and the legacy Seagen organization as we build the new business. We expect PADCEV to continue to do well. There's significant enthusiasm from healthcare providers, from patients, and from patient advocacy groups because of the groundbreaking data, double the overall survival. We are confident that we'll continue to see PADCEV growth. We've also seen TUKYSA, for instance, 21% year-over-year pro forma basis growth. In fact, the last quarter was the highest performance of TUKYSA. Overall, great confidence. We started the first new phase III study with an NME from the Seagen portfolio with sigvotatug vedotin. We hope to update you on other phase III studies from the Seagen portfolio, legacy Seagen portfolio.

So, we haven't had an issue with colleague retention -- both from the legacy Pfizer and the legacy Seagen organization, as we build a new business. We expect that to continue to do well. There's significant enthusiasm from healthcare providers, from patients, from patient advocacy groups because of the groundbreaking data, double the overall survival. So, we are confident that we'll continue to see PADCEV growth. We've also seen TUKYSA, for instance, 21% year-over-year pro forma basis growth. And, in fact, the last quarter was the highest performance of TUKYSA. So, overall, great confidence. And we started the first new Phase III study with an NME from the Seagen portfolio with [inaudible]. And we hope to update you on other Phase III studies from the legacy Seagen portfolio.

David Risinger: Significant enthusiasm from health care providers and patients from patient advocacy groups because of the groundbreaking data double the overall survival. So we will we are confident they will continue to see positive growth. We've also seen takeda for instead of 21% year over.

David Risinger: <unk> pro forma basis growth and in fact, this last quarter was the highest performance of Takeda.

David Risinger: So overall, great confidence and we started the first new phase III study with <unk> in EMEA from the agent portfolio with particular to attack and we hope to update you on other phase III study is slowly data from the <unk> legacy portfolio.

Chris Boshoff: So, overall, great confidence. And we started the first new Phase III study with an NME from the Seagen portfolio with [inaudible]. And we hope to update you on other Phase III studies from the legacy Seagen portfolio. From my perspective, of course, we have invested so much into this business and we think that this is an area that we can make a huge difference to the world. I'm monitoring that very closely. I'm very impressed, actually.

So, overall, great confidence. And we started the first new Phase III study with an NME from the Seagen portfolio with [inaudible]. And we hope to update you on other Phase III studies from the legacy Seagen portfolio.

Albert Bourla: From my perspective, of course, we have invested so much into this business, and we think that this is an area that we can make a huge difference to the world. I'm monitoring that very closely. I'm very impressed, actually. I would say nicely surprised on the positive side, how well both on the Pfizer impact, the one plus one equals three rather than two, but already we have started seeing it both in the research organization because we are putting now a lot of phase three on start. You don't see, but I have high visibility on what's going on in earlier stages where we put a lot of stuff in the clinic.

From my perspective, of course, we have invested so much into this business and we think that this is an area that we can make a huge difference to the world. I'm monitoring that very closely. I'm very impressed, actually. I would say nice and surprised on the positive side, how well both -- on the Pfizer impact of the 1 plus 1 equals 3 rather than 2 but already, we have started seeing it both in the research organization because we are putting now a lot of Phase III on start. And you don't see but I have high visibility on what's going on in earlier stages where we put a lot of stuff in the clinic. And then, also in the commercial -- you can see now, stabilization for IBRANCE on the Pfizer side and then, high growth of the Seagen assets -- despite the fact that, as I said, you should expect a decline in the first year. When you have an integration, always you have a decline.

Albert Bourla: From my perspective, of course, we have invested so much into this business and we think that this is an area that we can make a huge difference to the world. I'm monitoring that very closely. I'm very impressed, actually. I would say nice and surprised on the positive side, how well both -- on the Pfizer impact of the 1 plus 1 equals 3 rather than 2 but already, we have started seeing it both in the research organization because we are putting now a lot of Phase III on start. And you don't see but I have high visibility on what's going on in earlier stages where we put a lot of stuff in the clinic.

Albert Bourla: From my perspective, of course, we have invested so much into this business, and we think that this is an area that we can make a huge difference to the world. I'm monitoring that very closely. I'm very impressed, actually. I would say nicely surprised on the positive side, how well both on the Pfizer impact, the 1 + 1 = 3 rather than two, but already we have started seeing it both in the research organization because we are putting now a lot of phase III on start. You don't see, but I have high visibility on what's going on in earlier stages where we put a lot of stuff in the clinic.

David Risinger: From my perspective of course is that we invested so much into this business and we think this is an area that we can make a huge difference to the world and monitoring that very closely I'm very impressed actually.

Albert Bourla: I would say nice and surprised on the positive side, how well both on the Pfizer impact of the 1 plus 1 equals 3 rather than 2, but already we have started seeing it both in the research organization because we are putting now a lot of phase 3 on start and you don't see but I have high visibility on what's going on in earlier stages where we put a lot of, and a high growth of the seagen acid, despite the fact that, as I said, you should expect a decline in the first year. When you have an integration, always you have a decline.

David Risinger: I would say nicely surprised on the positive.

David Risinger: Right.

David Risinger: Oh on the size of that impact.

David Risinger: The day, one plus one equals three rather than cool, but already start seeing it both in theory or the resets organization, because we are pushing now local phase III.

David Risinger: On starts and you don't see but high visibility to what's going on in Arab states this quarter with the lifestyle.

Albert Bourla: Also in the commercial, you can see now stabilization for Ibrance on the Pfizer side, and then high growth of the Seagen asset despite the fact that, as I said, you should expect a decline in the first six months. When you have an integration, always you have a decline. I haven't seen a single integration that we have done that didn't face challenges because people are changing territories, people are changing, let's say, jobs, marketers are moving around. All of that creates, let's say, a disruption. Here, we have the opposite. We have very, very strong growth on both sides. I'm really, really pleased. Now, of course, cautiously optimistic. It will take time to see the full benefit. Certainly, under Chris's leadership, and he has formed a terrific team, we are off to a very good start.

Also in the commercial, you can see now stabilization for IBRANCE on the Pfizer side, and then high growth of the Seagen asset despite the fact that, as I said, you should expect a decline in the first six months. When you have an integration, always you have a decline. I haven't seen a single integration that we have done that didn't face challenges because people are changing territories, people are changing, let's say, jobs, marketers are moving around. All of that creates, let's say, a disruption. Here, we have the opposite. We have very, very strong growth on both sides. I'm really, really pleased. Now, of course, cautiously optimistic. It will take time to see the full benefit. Certainly, under Chris's leadership, and he has formed a terrific team, we are off to a very good start.

David Risinger: And then also on the commercial but as you can see now.

And then, also in the commercial -- you can see now, stabilization for IBRANCE on the Pfizer side and then, high growth of the Seagen assets -- despite the fact that, as I said, you should expect a decline in the first year. When you have an integration, always you have a decline. I haven't seen a single integration that we have done but it didn't face challenges because people are changing territories, people are changing, let's say, jobs, marketers are moving around. All of that creates, let's say, a disruption. Here, we can be opposite. We have a very, very strong growth on both sides. So, I'm really, really pleased. Now, of course, cautiously optimistic. It will take time to see the full benefit. But certainly, under Chris' leadership and he has formed a terrific team, we are off to a very good start.

David Risinger: Stabilization of <unk> on the on the.

David Risinger: The site and then Uh huh.

David Risinger: High growth of the season also despite the fact that as I said you shouldn't expect a decline in the first six months, whether you have any integration.

Albert Bourla: I haven't seen a single integration that we have done, but it didn't face challenges because people are changing territories, people are changing, let's say, jobs, marketers are moving around. All of that creates, let's say, a disruption. Here, we can be opposite.

David Risinger: I haven't seen a single integration of it because of that.

David Risinger: Do they face challenges.

David Risinger: Because people are changing very thorough as people are changing.

David Risinger: Adults.

David Risinger: Market there so moving around all of upgrades so to say.

David Risinger: The structure here.

Albert Bourla: We have a very, very strong growth on both sides. So I'm really, really pleased. Now, of course, of course, it's optimistic. It will take time to see the full benefit. But certainly, under Chris' leadership, and he has formed a terrific team, we are also a very good start. Now, Dave, why don't you take us to the next question?

We have a very, very strong growth on both sides. So I'm really, really pleased. Now, of course, of course, it's optimistic. It will take time to see the full benefit. But certainly, under Chris' leadership, and he has formed a terrific team, we are also a very good start.

David Risinger: It's very very strong growth on both sides.

David Risinger: Really really pleased NASCAR sponsorship initiatives will take time to see the full benefit but.

David Risinger: Secondly, under Chris's leadership and.

David Risinger: She says form a terrific team.

Now, Dave, why don't you take us to the next question?

Albert Bourla: Now, Dave, why don't you take us to the next question? As it relates to your question regarding capital allocation, clearly our first priority, number one priority, is supporting both the dividend, as well as delivering our balance sheet. That is job one from my perspective. As it relates to bolt-on acquisitions, in the near term, you would not expect us to do much there. That is a lower priority in the near term until we get our sales up. Hope that helps. Thank you. Next question, please. Thank you. We'll take our next question from Kripa Devarakonda with Truist. Your line is open. Hey, guys. Thank you so much for taking my questions, and congrats on the progress. I have a question about your breast cancer franchise from the Ibrance perspective.

Now, Dave, why don't you take us to the next question?

David Risinger: We are also a very good start not widely.

Dave Denton: As it relates to your question regarding capital allocation, clearly our first priority, number one priority, is supporting both the dividend, as well as delivering our balance sheet. That is job one from my perspective. As it relates to bolt-on acquisitions, in the near term, you would not expect us to do much there. That is a lower priority in the near term until we get our sales up. Hope that helps.

David M. Denton: So, as it relates to your question regarding capital allocation -- clearly, our first priority, number one priority, is supporting both the dividend as well as de-levering our balance sheet. So, that is job one from my perspective. As it relates to bolt-on acquisitions, in the near-term, you would not expect us to do much there. We are -- that is a lower priority in the near-term until we get ourselves [inaudible]. Hope that helps. Thank you. Next question, please. Thank you. We'll take our next question from Shripal Durvakonda with Truist. Your line is open.

David Risinger: So as it relates to your question regarding capital allocation clearly our fruit.

David Risinger: Priority number one priority is supporting both the dividend as well as deleveraging our balance sheet. So that is job one from my perspective as it relates to our bolt on acquisitions in the near term you would not expect us to do much. There. We are that is a lower priority in the near term until we.

David Risinger: Get ourselves.

Albert Bourla: Thank you. Next question, please.

David Risinger: Hope that helps thank you next question please.

Thank you. Next question, please. Thank you. We'll take our next question from Shripal Durvakonda with Truist. Your line is open.

Albert Bourla: Thank you. Next question, please.

Operator: Thank you. We'll take our next question from Kripa Devarakonda with Truist. Your line is open.

Operator: Thank you. We'll take our next question from Srikripa Devarakonda with Truist. Your line is open.

Speaker Change: Thank you we'll take our next question from Sherpa whichever condo with Charley Your line is open.

Kripa Devarakonda: Hey, guys. Thank you so much for taking my questions, and congrats on the progress. I have a question about your breast cancer franchise from the IBRANCE perspective.

Srikripa Devarakonda: Hey guys, thank you so much for taking my questions and congrats on the progress. I have a question about your breast cancer franchise -- from the IBRANCE perspective. You have pivotal data from the estrogen receptor PROTAC, the collaboration with -- partnership with Arvinas expected later this year. What are your expectations for these data? And how important are these data for you to make decisions around either continuing or initiating like a combo Phase III trials? Like, whether it's CDK4/6 combo or CDK4 combo or both of them. Thank you. Thank you very much. Chris, quickly.

Speaker Change: Hey, guys. Thank you so much for taking my questions and congrats on the progress I have a question about your breast cancer franchise from the <unk>, yes.

Albert Bourla: You have pivotal data from the estrogen receptor PROTAC, the collaboration with the partnership with ARV-471 expected later this year. One is, what are your expectations for these data? How important are these data for you to make decisions around either continuing or initiating SEPTEC combo phase three trials, whether it's CDK4/6 combo, CDK4 combo, or both of them? Thank you. Thank you very much. Chris. Yeah. Thank you very much for the question. Just a reminder to point out with Ibrance that over 773,000 patients have now been treated globally with Ibrance. It is currently still the CDK4/6 leader. We're very excited about two programs, the degastran, which we believe could be best in class, next-generation estrogen receptor degrader, and also a temocyclop, next-generation CDK4-specific inhibitor.

You have pivotal data from the estrogen receptor PROTAC, the collaboration with the partnership with ARV-471 expected later this year. One is, what are your expectations for these data? How important are these data for you to make decisions around either continuing or initiating SEPTEC combo phase III trials, whether it's CDK4/6 combo, CDK4 combo, or both of them? Thank you.

Sherpa: You have pivotal data from the estrogen receptor protag collaboration with the partnership with our venous expected later this year.

Sherpa: One is what are your expectations for these data and how important are these data for you to make decisions around either continuing or initiating combo phase III trials.

Sherpa: Whether it's CDK four six combo or CDK four commvault are both of them. Thank you.

Albert Bourla: Thank you very much. Chris?

Albert Bouria: Thank you very much. Chris?

Chris Boshoff: Yeah. Thank you very much for the question. Just a reminder to point out with IBRANCE that over 773,000 patients have now been treated globally with IBRANCE. It is currently still the CDK4/6 leader. We're very excited about two programs, the vepdegestrant, which we believe could be best in class, next-generation estrogen receptor degrader, and also a atimociclib, next-generation CDK4-specific inhibitor.

Speaker Change: Thank you very much Chris.

Chris Boshoff: Yes, thank you very much for the question. Just a reminder, to point out with IBRANCE, that over 773,000 patients have now been treated globally with IBRANCE. So, it is currently still the CDK4/6 leader. We're very excited about two programs -- VEPDEGESTRANT, which we believe to be best-in-class, next-generation estrogen receptor degrader and also, ATIRMOCICLIB, next-generation CDK4-specific inhibitor. For VEPDEGESTRANT, as you point out, we'll get the data later this year for VERITAC-2 but we are planning additional studies at risk. So, you can expect to see first-line studies, both a first-line study with ATIRMOCICLIB and standard of care endocrine therapy, as well as ATIRMOCICLIB plus VEPDEGESTRANT. For ATIRMOCICLIB, as you've seen in a heavily pre-treated population, we've seen an overall response rate of 32%, with median progressive-free survival of 8.1 months. We're therefore highly encouraged and definitely very encouraged by the safety profile. We've seen more continuous dosing, very good compliance and more complete coverage of CDK4. And that's why we're confident to accelerate CDK4 into a registration strategy. And the first study's already started, as you know, the second-line study.

Speaker Change: Yes. Thank you very much for the question just a reminder to point out with <unk> brands that over 773000 patients have now been treated globally with ipads. So it is currently still the CDK post takes leader, we're very excited about two programs that <unk>, which we believe to be best in class next generation <unk> receptor.

Speaker Change: The gray debts and also at <unk> next generation CDK close specific inhibitor. Both of Deca spent as you pointed out we will get the data later this year for Barrick Teck too that we are planning additional studies.

Albert Bourla: For DEGASTRAN, as you point out, we'll get the data later this year for BERATAC2, but we are planning additional studies at risk. You can expect to see first-line studies, both a first-line study with a Temocyclop and standard of care endocrine therapy, as well as a Temocyclop plus the DEGASTRAN. For a Temocyclop, as you've seen in a heavily pretreated population, we've seen an overall response rate of 32% with median prognosis survival of 8.1 months. We're therefore highly encouraged and definitely very encouraged by the safety profile. We've seen more continuous dosing, very good compliance, and more complete coverage of CDK4. That's why we're confident to accelerate CDK4 into a registration strategy. The first study has already started, as you know, the second-line study. Thank you, Chris. Next question, please. Thank you. We'll take our next question from Carter Gould with Barclays.

For DEGASTRAN, as you point out, we'll get the data later this year for VERITAC-2, but we are planning additional studies at ROTH. You can expect to see first-line studies, both a first-line study with a termocyclib and standard of care endocrine therapy, as well as a termocyclib plus the vepdegestrant. For a termocyclib, as you've seen in a heavily pretreated population, we've seen an overall response rate of 32% with median prognosis survival of 8.1 months. We're therefore highly encouraged and definitely very encouraged by the safety profile. We've seen more continuous dosing, very good compliance, and more complete coverage of CDK4. That's why we're confident to accelerate CDK4 into a registration strategy. The first study has already started, as you know, the second-line study.

Chris Boshoff: For Degastrans, as you point out, we'll get the data later this year for Veritac-2, but we are planning additional studies at risk. So you can expect to see first-line studies, both a first-line study with Atomocyclib and standard of care endocrine therapy, as well as Atomocyclib plus the Degastrans. For Atomocyclib, as you've seen, in a heavily pretreated population, we've seen an overall response rate of 32%, with median progressive survival of 8.1 months.

Sherpa: You can expect to see first line study both at first line study with <unk> and standard of care endocrine therapy as well as a tablet size.

So, you can expect to see first-line studies, both a first-line study with ATIRMOCICLIB and standard of care endocrine therapy, as well as ATIRMOCICLIB plus VEPDEGESTRANT. For ATIRMOCICLIB, as you've seen in a heavily pre-treated population, we've seen an overall response rate of 32%, with median progressive-free survival of 8.1 months. We're therefore highly encouraged and definitely very encouraged by the safety profile. We've seen more continuous dosing, very good compliance and more complete coverage of CDK4. And that's why we're confident to accelerate CDK4 into a registration strategy. And the first study's already started, as you know, the second-line study.

Sherpa: That ticket spend and for <unk>.

Sherpa: And as you've seen in a heavily pretreated population, we've seen an overall response rate of 32% with median progression free survival of eight one months with Dave for highly encourage.

Chris Boshoff: We're therefore highly encouraged and definitely very encouraged by the safety profile. We've seen more continuous dosing, very good compliance, and more complete coverage of CDK4. And that's why we're confident to accelerate CDK4 into a registration strategy. And the first study's already started, as you know. Thank you, Chris.

We're therefore highly encouraged and definitely very encouraged by the safety profile. We've seen more continuous dosing, very good compliance, and more complete coverage of CDK4. And that's why we're confident to accelerate CDK4 into a registration strategy. And the first study's already started, as you know.

Sherpa: And definitely very encouraged by the safety profile and we see more continuous dosing very good compliance and more complete coverage of CDK four and Thats why we confident to accelerate CDK full into registration strategy. The first studies already started as soon as the second line study.

Albert Bourla: Thank you, Chris. Next question, please.

Operator: Thank you. We'll take our next question from Carter Gould with Barclays.

Speaker Change: Next question please.

Albert Bourla: Thank you, Chris. Next question, please.

Chris Boshoff: Next question, please. Thank you. We'll take our next question from Carter Gould with Barclays. Your line is open. Good morning.

Next question, please.

Sherpa: Thank you we'll take our next question from Carter Gould with Barclays. Your line is open.

Operator: Thank you. We'll take our next question from Carter Gould with Barclays. Your line is open. Good morning.

Operator: Thank you. We'll take our next question from Carter Gould with Barclays. Your line is open.

Albert Bourla: Your line is open. Good morning. Thanks for taking the question. I wanted to ask a follow-up, as I think it's important, and I fully respect the focus on 2024 and Albert's commentary on conservatism around guidance, but to come back to the IRA impact for thinking about 2025, when do you think you'll be in a better position to comment a little bit under your contracting discussions are underway pretty late in the earnings season here, and most of your peers have already made comments, and your Part D exposure isn't exactly a surprise. Any color there on timeline would be helpful. I guess for David, you've talked about the operating margin improvement being sort of a multi-year process. Is there a risk that the IRA sort of presents a little bit of a hiccup to that in 2025? Thank you. Thank you.

Your line is open.

Carter Gould: Good morning. Thanks for taking the question. I wanted to ask a follow-up, as I think it's important, and I fully respect the focus on 2024 and Albert's commentary on conservatism around guidance, but to come back to the IRA impact for thinking about 2025, when do you think you'll be in a better position to comment a little bit under your contracting discussions are underway pretty late in the earnings season here, and most of your peers have already made comments, and your Part D exposure isn't exactly a surprise. Any color there on timeline would be helpful. I guess for David, you've talked about the operating margin improvement being sort of a multi-year process. Is there a risk that the IRA sort of presents a little bit of a hiccup to that in 2025? Thank you.

Carter Gould: Good morning. Thanks for taking the question. I wanted to ask a follow-up, as I think it's important and I fully respect the focus on '24 and Albert's commentary on conservatism around guidance, but to come back to the IRA impact for thinking about '25 -- when do you think you'll be in a better position to comment a little bit under, you know, your contracting discussions are underway pretty late in the earnings season here and most of your peers have already made comments and your Part D exposure isn't exactly a surprise. So, any color there on timeline would be helpful. And I guess for David, you've talked about the operating margin improvement being sort of multi-year process. Is there a risk that the IRA sort of presents a little bit of a hiccup to that, in '25? Thank you.

Carter Lewis Gould: Thanks for taking the question. I wanted to ask a follow-up, as I think it's important, and I fully respect the focus on 24 and Albert's commentary on conservatism around guidance, but to come back to the IRA impact for thinking about 25, when do you think you'll be in a better position to comment a little bit under, you know, your contracting discussions are underway pretty late in the earnings season here, and most of your peers have already made comments, and your Part D exposure isn't exactly a surprise. So any color there on timeline would be helpful.

Carter Lewis Gould: Hi, good morning, Thanks for taking the question I wanted to ask a follow up I think it's important that I fully respect the focus on 24, and Albert's commentary on conservatism around guidance, but.

Carter Lewis Gould: To come back to the the IRA impact for thinking about 25, when do you think youll be in a better position to comment a little bit.

Sherpa: You're contracting discussion turned away pretty late in the earnings season here and most of your peers have already made comments in your part D exposure isn't exactly a surprise so any any any color. There on timeline would be helpful and I guess for David you've talked about the operating margin improvement being sort of a multiyear.

Carter Lewis Gould: And I guess for David, you've talked about the operating margin improvement being sort of multi-year process. Is there a risk that the IRA sort of presents a little bit of a hiccup to that, in '25? Thank you. Thank you. Aamir, do you have any comments on that?

And I guess for David, you've talked about the operating margin improvement being sort of multi-year process. Is there a risk that the IRA sort of presents a little bit of a hiccup to that, in '25? Thank you.

Sherpa: Process.

Sherpa: Is there a risk that the IRA sort of.

Sherpa: Presents a little bit of a hiccup to that in 25. Thank you.

Albert Bourla: Thank you.

Albert Bouria: Thank you. Aamir, do you have any comments on that?

Albert Bourla: Amir, do you have any comments on that? Sure. Carter, I think you heard us describe the dynamics. Later this year, we will have more clarity on what that means, and we can certainly share that. I think there's also a specific question that comes up often about Eliquis. Let me just address that now because we're clearly in a live negotiation on that. BMS, our alliance partner, is leading that process. You've heard them describe, and we'll also describe, that there will be transparency around the outcome of that for impact in 2026 in the September timeframe. At that point, we'll be in a position to share more. Yes.

Aamir, do you have any comments on that?

Speaker Change: Thank you Amin.

Aamir Malik: Sure. Carter, I think you heard us describe the dynamics. Later this year, we will have more clarity on what that means, and we can certainly share that. I think there's also a specific question that comes up often about ELIQUIS. Let me just address that now because we're clearly in a live negotiation on that. BMS, our alliance partner, is leading that process. You've heard them describe, and we'll also describe, that there will be transparency around the outcome of that for impact in 2026 in the September timeframe. At that point, we'll be in a position to share more.

Speaker Change: Have any comments I'm not sure I got it I think you heard us describe the dynamics.

Aamir Malik: Sure. So, Carter, I think you heard us describe the dynamics and later this year, we will have more clarity on what that means and so, we can certainly share that. I think there's also a specific question that comes up often about ELIQUIS so, let me just address that now because we're clearly in a live negotiation on that. BMS, our alliance partner, is leading that process. You've heard them describe and we also described that there will be transparency around the outcome of that for impact in '26, in the September time frame. And so, at that point, we'll be in a position to share more. Yes, and I guess as it relates to 2025 and the impact of the IRA from a margin expense perspective, I would say without giving any specifics on that is as we look forward, we obviously run multiple scenarios around how our business might perform. And in those scenarios, we would model different impacts to the IRA, because it's still unclear, because it's still a lot of moving parts, specifically, as we just spoke about. Under those scenarios, we will work hard to offset any implication we might have through improving our cost structure.

Sherpa: And later this year, we will have more clarity on what that means and so we can certainly share that I think there's also a specific question that comes up often about illiquid. So let me just address that now because.

Aamir Malik: So let me just address that now, because we're clearly in a live negotiation on that. BMS, our alliance partner, is leading that process. You've heard them describe and we also described that there will be transparency around the outcome of that for impact in 26 in the September time frame. And so at that point, we'll be in a position to share. Yes, and I guess as it relates to 2025 and the impact of the IRA from a margin expense perspective, I would say without giving any specifics on that is as we look forward, we obviously run multiple scenarios around how our business might perform. And in those scenarios, we would model different impacts to the IRA, because it's still unclear, because it's still a lot of moving parts, specifically, as we just spoke about.

Sherpa: We are clearly in.

Sherpa: A live negotiation on that.

Sherpa: BMS our alliance partner is leading that process.

Sherpa: You've heard them described and we also described that there will be transparency around the outcome of that for impact in 2006 in the September timeframe and so at that point, we'll be in a position to share more.

Dave Denton: Yes.

Albert Bourla: As it relates to 2025 and the impact of the IRA from a margin expansion perspective, I would say without giving any specifics on that, as we look forward, we obviously run multiple scenarios around how our business might perform. In those scenarios, we would model different impacts to the IRA because it's still unclear, because there's still a lot of moving parts, specifically as we just spoke about. Under those scenarios, we will work hard to offset any implication we might have through improving our cost structure. Thank you. I want to be also to set something that clearly in 2025, we will have two events happening which we will have to contribute to as pharmaceutical industry so that we put pressure on the pricing, let's say.

As it relates to 2025 and the impact of the IRA from a margin expansion perspective, I would say without giving any specifics on that, as we look forward, we obviously run multiple scenarios around how our business might perform. In those scenarios, we would model different impacts to the IRA because it's still unclear, because there's still a lot of moving parts, specifically as we just spoke about. Under those scenarios, we will work hard to offset any implication we might have through improving our cost structure.

Speaker Change: Yes, and I guess as it relates to 2025 and the impact of the IRR from a margin expansion perspective, I would say without giving any specifics on that is as we look forward. We obviously run multiple scenarios around how our business might perform.

David M. Denton: Yes. And I guess as it relates to 2025 and the impact of the IRA from a margin expansion perspective, I would say -- without giving any specifics on that -- is as we look forward, we obviously run multiple scenarios around how our business might perform. And in those scenarios, we would model different impacts to the IRA because it's still unclear, because it's still a lot of moving parts -- specifically, as we just spoke about. Under those scenarios, we will work hard to offset any implication we might have through improving our cost structure.

Sherpa: And in those scenarios, we would model different impacts to the IRR because it's still unclear because it is still a lot of moving parts specifically as we just spoke about.

David M. Denton: Under those scenarios, we will work hard to offset any implication we might have through improving our cost structure. Thank you. I want, on VR, also, to set the.., something that clearly in 2025, we will have two events are happening, which are we will have to contribute to as pharmaceutical industry so that we put pressure on the on the price industry, but also because of the significant change in the out-of-pocket dynamics and which I hope that will be implemented as the law says immediately because I'm here in efforts to try to play with that.

Under those scenarios, we will work hard to offset any implication we might have through improving our cost structure.

Sherpa: Under those scenarios, we will work hard to offset any implications you might have through improving our cost structure.

Carter Gould: Thank you.

Albert Bourla: I want to be also to set something that clearly in 2025, we will have two events happening which we will have to contribute to as pharmaceutical industry so that we put pressure on the pricing, let's say.

And I want on the IRA also, to set something that, clearly, in 2025, we will have two events are happening, which are -- we will have to contribute to a pharmaceutical industry so that we put pressure on the price industry. But also because of the significant change in the out-of-pocket dynamics and which, I hope, that will be implemented as the law says, immediately because I'm hearing efforts to try to play with that. But if that is the case, which we are certain because that's the law, we will see it in a significant work uptake for everyone -- not for us -- of course, for everyone. Because there is huge number of abandonment that is happening at the pharmacy level when people are asked to pay this very high out-of-pocket, particularly the first one quarter and maybe two, when they need to exhaust their co-pays or their deductibles.

Albert Bourla: And I want on the IRA also, to set something that, clearly, in 2025, we will have two events are happening, which are -- we will have to contribute to a pharmaceutical industry so that we put pressure on the price industry. But also because of the significant change in the out-of-pocket dynamics and which, I hope, that will be implemented as the law says, immediately because I'm hearing efforts to try to play with that. But if that is the case, which we are certain because that's the law, we will see it in a significant work uptake for everyone -- not for us -- of course, for everyone.

Sherpa: I wasn't going to be are you also said there.

Sherpa: Something but clearly in 2025, we will have two events are happening.

Sherpa:

Sherpa: We will have to contribute to the pharmaceutical industry is all about.

Sherpa: Pressure on the on the price.

Albert Bourla: Also because of the significant pains in the out-of-pocket dynamics, which I hope that will be implemented as the law says immediately, because I'm hearing efforts to try to play with that. If that is the case, which we are certain because that's the law, we will see significant work update, right? For everyone, not for us, of course, for everyone, because there is a huge number of abandonment that is happening at the pharmacy level when people are asked to pay this very high out-of-pocket, particularly the first quarter and maybe two when they need to exhaust their, let's say, their copays or the deductible.

Also because of the significant pains in the out-of-pocket dynamics, which I hope that will be implemented as the law says immediately, because I'm hearing efforts to try to play with that. If that is the case, which we are certain because that's the law, we will see significant work update, right? For everyone, not for us, of course, for everyone, because there is a huge number of abandonment that is happening at the pharmacy level when people are asked to pay this very high out-of-pocket, particularly the first quarter and maybe two when they need to exhaust their, let's say, their copays or the deductible.

Sherpa: Price in lithium.

Sherpa: Also because of the significant pains.

Sherpa: The out of pockets dynamics.

Sherpa: Which I hope.

Sherpa: <unk> will be implemented as the LOE says immediately because I'm hearing.

David M. Denton: But if that is the case, which we are certain because that's the law, we will see it in a different world, for everyone, not for us, of course, for everyone, because there is a huge number of abandonment that is happening at the pharmacy level when people are asked to pay this very high out-of-pocket, particularly the first one quarter and maybe two, when they need to exhaust their copays or their deductibles.

Sherpa: Efforts to try to play.

Sherpa: But the.

Sherpa: Is the case, we are circling because thats below.

Sherpa: We will see significant uptake.

Sherpa: Alright for everyone, but for us of course for everyone. Because there is huge number of abandonment.

Because there is huge number of abandonment that is happening at the pharmacy level when people are asked to pay this very high out-of-pocket, particularly the first one quarter and maybe two, when they need to exhaust their co-pays or their deductibles. So that, I think, dynamic. You know that the industry always asks that we contribute to the out-of-pocket payments, as long as the patients are paying less, because there is a significant benefit for all -- for the healthcare system, for the patients, for us. So, I'm not that concerned about that for the industry as a whole. I'm very concerned for the industry as a whole with the mandatory cost reductions -- there is no negotiation there, they are just cutting prices -- that are occurring for biologics and for more volumes, particularly. One good thing for us, it is, first of all, that we have good exposure on vaccines; that they are not part of that -- actually, they are benefiting from the IRA because there is no co-sharing. So, we can see that in the volumes again. But on the small molecules, where we do have exposures, I would say that we were lucky only one product was selected for '26 -- we could have had three or four and only one was selected. So ELIQUIS, as Aamir said, we will wait to see -- we know, of course, but we can't discuss in the middle of negotiations about anything that is happening. So, we'll see the impact of whatever that is, in 2026. Then, if next year they bring some of the other products that they could be included and they were not in this year -- that would be the IBRANCE of the world, that would be the XTANDIs, [inaudible] -- those are products that, anyway, they are approaching their LOE.

Sherpa: <unk>.

Sherpa: The pharmacy level.

Sherpa: When people are asked to pay these very high out of pocket, but theoretically there first.

Sherpa: One quarter, and maybe too when you need to exhaust their let's say their co pays or the.

Albert Bourla: I think that dynamic, you know, that the industry always asks that we contribute to the out-of-pocket payments as long as the patients are paying less because there is a significant benefit for all, for the healthcare system, for the patients, for us. I'm not that concerned about that for the industry as a whole. I'm very concerned for the industry as a whole with the mandatory cost reductions. There is no negotiation there. They are just cutting prices that are occurring for biologics and for more molecules particularly. One good thing for us, it is first of all that we have good exposure on vaccines, but they are not part of that. Actually, they are benefiting from the IRA because there is no co-sharing. We can see that in the volumes here.

I think that dynamic, you know, that the industry always asks that we contribute to the out-of-pocket payments as long as the patients are paying less because there is a significant benefit for all, for the healthcare system, for the patients, for us. I'm not that concerned about that for the industry as a whole. I'm very concerned for the industry as a whole with the mandatory cost reductions. There is no negotiation there. They are just cutting prices that are occurring for biologics and for more molecules particularly. One good thing for us, it is first of all that we have good exposure on vaccines, but they are not part of that. Actually, they are benefiting from the IRA because there is no co-sharing. We can see that in the volumes here.

Sherpa: The deductible thoughts I think dynamic you know that the industry always ask.

Albert Bourla: So that, I think, is dynamic. You know that the industry always asks that we contribute to the out-of-pocket payments as long as the patients are paying less, because there is a significant benefit for all, for the healthcare system, for the patients, for us. So I'm not that concerned about that for the industry as a whole. I'm very concerned for the industry as a whole with the mandatory cost reductions, there is no negotiation there, they are just cutting prices, that are occurring for biologics and for... More molecules particulate. One good thing for us, it is, first of all, that we have good exposure on vaccines, but they are not part of that. Actually, they are benefiting from the IRA because there is no co-sharing.

Sherpa: But we continue to be out of pocket payments.

Sherpa: Long as the basins are paying less because there is a significant benefit for all the health care system.

Sherpa: And so I'm not that concerned about the volume for the industry as a whole I am very concerned for the industry as a whole.

I'm very concerned for the industry as a whole with the mandatory cost reductions -- there is no negotiation there, they are just cutting prices -- that are occurring for biologics and for more volumes, particularly. One good thing for us, it is, first of all, that we have good exposure on vaccines; that they are not part of that -- actually, they are benefiting from the IRA because there is no co-sharing. So, we can see that in the volumes again. But on the small molecules, where we do have exposures, I would say that we were lucky only one product was selected for '26 -- we could have had three or four and only one was selected. So ELIQUIS, as Aamir said, we will wait to see -- we know, of course, but we can't discuss in the middle of negotiations about anything that is happening. So, we'll see the impact of whatever that is, in 2026. Then, if next year they bring some of the other products that they could be included and they were not in this year -- that would be the IBRANCE of the world, that would be the XTANDIs, [inaudible] -- those are products that, anyway, they are approaching their LOE.

Sherpa: The amount of authority.

Sherpa: Cost reductions there is no negotiation on.

Sherpa: Cutting prices.

Sherpa: Our oh carry or biologic center.

Sherpa: Sure.

Sherpa: More volumes particular.

Sherpa: One good thing for US. It is first of all that we have a group exposure and vaccines.

Sherpa: Actually they are benefiting from the alright, because there is no.

Sherpa: Oh, sorry, so we can see bottomed at volumes here.

Albert Bourla: So we can see that in the volume, and but on the small molecules where we do have exposure I would say that we were lucky only one product was selected for 26 we could have three or four and only one was selected so Eliquis as Aamir said we will wait to see we know of course but we can discuss in the middle of negotiations about anything that is happening and so we'll see the impact of whatever that is in 2026 then if next year they bring some of the other products that they could be included and they were not in this year, That would be the Ibrance of the world, that would be the Xtandi, Xeljanz. Those are products that, anyway, they are approaching their LOE.

Albert Bourla: On the small molecules where we do have exposure, I would say that we were lucky only one product was selected for 2026. We could have three or four, and only one was selected. So Eliquis, as Amir said, we will wait to see. We know, of course, but we can't discuss in the middle of negotiations about anything that is happening. We'll see the impact of whatever that is in 2026. If next year they bring some of the other products that could be included and they were not in this year, that would be the Ibrance of the world. That would be the standard sellers. Those are products that anyway are approaching their LOE.

On the small molecules where we do have exposure, I would say that we were lucky only one product was selected for 2026. We could have three or four, and only one was selected. So ELIQUIS, as Aamir said, we will wait to see. We know, of course, but we can't discuss in the middle of negotiations about anything that is happening. We'll see the impact of whatever that is in 2026. If next year they bring some of the other products that could be included and they were not in this year, that would be the IBRANCE of the world. That would be the standard sellers. Those are products that anyway are approaching their LOE.

Sherpa: But on the small molecules, where we do have an exposure.

Sherpa: I would say that we were lucky only one product was selected for 'twenty six.

Sherpa: Video call.

Sherpa: And the only one of them.

So ELIQUIS, as Aamir said, we will wait to see -- we know, of course, but we can't discuss in the middle of negotiations about anything that is happening. So, we'll see the impact of whatever that is, in 2026. Then, if next year they bring some of the other products that they could be included and they were not in this year -- that would be the IBRANCE of the world, that would be the XTANDIs, [inaudible] -- those are products that, anyway, they are approaching their LOE. So, even if they come into the IRA, the MPV risk that we have in place is not that big because, really, we'll cut the price for something that will not be for a very lengthy period of time but will be for a smaller-than-others period of time. This doesn't mean that this is not very bad for the industry and for innovation -- and we're clearly opposing it and we'll try whatever we can to defend it.

Speaker Change: So I'll leave it with us.

Speaker Change: You said, we will wait to see that we know of course, but we can discuss in the middle of negotiations about that it is happening.

Speaker Change:

Sherpa: So we'll see.

Sherpa: See the impact of whatever it was thought this through 2026.

Sherpa: Next year, they bring some of the other products that they could be.

Sherpa: And.

Sherpa: We're not in this year.

Sherpa: That would be the eyebrows when the World Cup will be.

Sherpa: <unk>, it's always a perfect them anyway, they are approaching their alloy so even if they come into the IRI the MTV.

Albert Bourla: Even if they come into the IRA, the MTV risk that we have at place is not that big because really we'll cut the price for something that will not be for a very lengthy period of time, but will be for a smaller than others period of time. This does not mean that this is not very bad for the industry and for innovation, and we're clearly opposing it. We'll try whatever we can to defend it. Let's go to the next question because we are running out of time. Thank you. We'll take our next question from Rajesh Kumar with HSBC. Your line is open. Hi. Good morning. Thanks for taking the questions. First question is you very helpfully provided some color on the gross margin. What are the takes and puts there?

Even if they come into the IRA, the MTV risk that we have at place is not that big because really we'll cut the price for something that will not be for a very lengthy period of time, but will be for a smaller than others period of time. This does not mean that this is not very bad for the industry and for innovation, and we're clearly opposing it. We'll try whatever we can to defend it. Let's go to the next question because we are running out of time.

Albert Bourla: So even if they come into the IRA, the MTV risk that we have in place is not that big, because, really, we'll cut the price for something that will not be for a very lengthy period of time, but will be for a smaller-than-others period of time.

So, even if they come into the IRA, the MPV risk that we have in place is not that big because, really, we'll cut the price for something that will not be for a very lengthy period of time but will be for a smaller-than-others period of time. This doesn't mean that this is not very bad for the industry and for innovation -- and we're clearly opposing it and we'll try whatever we can to defend it.

Sherpa: But we havent place is long debates because really we're path.

Sherpa: The price for something but we're not before very lengthy beautiful signed but were before are smaller than others periods of time. This doesn't mean that this is not very bad for the easiest thing for innovation and we clearly are pausing as it would probably whatever we can to defend it let's go to the next question because you are running.

Operator: Thank you. We'll take our next question from Rajesh Kumar with HSBC. Your line is open.

Sherpa: Sure.

Albert Bourla: This doesn't mean that this is not very bad for the industry and for innovation, and we're clearly opposing it, and we'll try whatever we can to defend it. Let's go to the next question, because we are running out of time. Thank you. We'll take our next question from Rajesh Kumar with HSBC. Your line is open. Hi, good morning, thanks for taking the... First question is, you very helpfully provided some color on the growth.

This doesn't mean that this is not very bad for the industry and for innovation, and we're clearly opposing it, and we'll try whatever we can to defend it.

Sherpa: Thank you we'll take our next question from Rajeev Kumar with HSBC. Your line is open.

Rajesh Kumar: Hi. Good morning. Thanks for taking the questions. First question is you very helpfully provided some color on the gross margin. What are the takes and puts there?

Rajesh Kumar: Hi, good morning, Thanks for taking the questions first question is.

Let's go to the next question because we are running out of time. Thank you. We'll take our next question from Rajesh Kumar with HSBC. Your line is open. Hi, good morning, thanks for taking the... First question is, you very helpfully provided some color on the growth.

Let's go to the next question because we are running out of time.

Thank you. We'll take our next question from Rajesh Kumar with HSBC. Your line is open. Hi, good morning, thanks for taking the... First question is, you very helpfully provided some color on the growth.

Operator: Thank you. We'll take our next question from Rajesh Kumar with HSBC. Your line is open.

Rajesh Kumar: You very helpfully provided some color on the gross margin what are the.

Rajesh Kumar: Hi, good morning. Thanks for taking the questions. First question is, you very helpfully provided some color on the gross margin -- what are the takes and puts there? If we look at your early 70s guidance and the gross margin you've achieved in Q1, do we see below 70s gross margin some point in some quarter this year or you sort of will get to early 70s but throughout the year, maintaining over 70% margin? And then, the bit which is quite difficult to work out from the disclosures is, how did the PAXLOVID number impact the gross margin? Any help there so that we can model that right would be much appreciated.

Rajesh Kumar: If we look at your early 70s guidance and the gross margin, achieved in Q. Do we see, you know, below 70 close margin some point in some quarter this year or you sort of, will get to early 70s throughout the year, maintaining over, and then the bit which is quite difficult to work out from. How did the Paxlovid number impact the growth? So any help there so that we can model that right would be much appreciated.

Rajesh Kumar: Take the inputs there.

Albert Bourla: If we look at your early 70s guidance and the gross margin you've achieved in Q1, do we see below 70% gross margin at some point in some quarter this year, or you sort of will get to early 70s throughout the year maintaining over 70% margin? The bit, which is quite difficult to work out from the disclosures, is how did the Paxlovid number impact the gross margin? Any help there so that we can model that right would be much appreciated. Dave? Great. Yes, I think we just gave some color around gross margin being closer to 70% versus closer to 80% when we entered 2024. We are maintaining that color at this point in time. I would say that it's unlikely for our gross margin rate to fall below 70% in any given quarter.

If we look at your early 70s guidance and the gross margin you've achieved in Q1, do we see below 70% gross margin at some point in some quarter this year, or you sort of will get to early 70s throughout the year maintaining over 70% margin? The bit, which is quite difficult to work out from the disclosures, is how did the PAXLOVID number impact the gross margin? Any help there so that we can model that right would be much appreciated.

Rajesh Kumar: If we look at your early seventies guidance and the gross margin.

Rajesh Kumar: Achieved in Q1.

Speaker Change: Do we see you know.

Rajesh Kumar: The low Seventy's gross margin some point at some quarter this year or you have thought of.

Speaker Change: We'll get to early 17.

Speaker Change: Throughout the year, maintaining over 70% margin.

Rajesh Kumar: And then the bid.

Rajesh Kumar: It's quite difficult to work out from the disclosures.

Rajesh Kumar: How did the frac fluid number impact the gross margin. So any help there. So that we can model that right would be much appreciated.

Albert Bourla: Dave?

Dave Denton: Great. Yes, I think we just gave some color around gross margin being closer to 70% versus closer to 80% when we entered 2024. We are maintaining that color at this point in time. I would say that it's unlikely for our gross margin rate to fall below 70% in any given quarter.

Rajesh Kumar: Dave? Great. So I, yes, I think we just gave some color around gross margin being closer to 70 versus closer to 80% when we entered 2024. We are maintaining that color at this point in time.

Albert Bourla: Dave?

Speaker Change: Okay, great. So.

Great. So I, yes, I think we just gave some color around gross margin being closer to 70% versus closer to 80% when we entered 2024. We are maintaining that color at this point in time. I would say that it's unlikely for our gross margin rate to fall below 70% in any given quarter but it -- but I want to just emphasize, the gross margin rate will fluctuate a bit, primarily given the mix of sales; specifically, within the vaccine portfolio which carries a lower gross margin, number one. Number two, when you look at our performance for gross margin in Q1, the dominant effect of that versus last year is the mix, the lower sales volume of COMIRNATY in the quarter in Q1 versus last year's Q1. Obviously, the final adjustment of the PAXLOVID reserve actually did also have a one-time positive impact on the gross margin rate in Q1 but that was less of an impact compared to the mix. So, I hope that helps. And also I want to emphasize that on Paxlovid, what really makes me pleased is the underlying demand of the product, right? So it was approached approximately in the first quarter only in the U.S. 2 million scripts, right?

David M. Denton: Great. So I, yes, I think we just gave some color around gross margin being closer to 70% versus closer to 80% when we entered 2024. We are maintaining that color at this point in time. I would say that it's unlikely for our gross margin rate to fall below 70% in any given quarter but it -- but I want to just emphasize, the gross margin rate will fluctuate a bit, primarily given the mix of sales; specifically, within the vaccine portfolio which carries a lower gross margin, number one.

Speaker Change: Yes, I think we just gave some color around gross margin being closer to 70 versus closer to 80% when we entered 2024.

David M. Denton: I would say that it's unlikely for our gross margin rate to fall below 70% in any given quarter, but it, but I want to just emphasize the gross margin rate will fluctuate a bit, primarily given the mix of sales, specifically within the vaccine portfolio, which carries a lower gross margin number. Number two, when you look at our performance for gross margin in Q1, the dominant effect of that versus last year is the mix, the lower sales volume of Comirnaty in the quarter in Q1 versus last year.

Speaker Change: We are maintaining that color at this point in time, I would say that it's unlikely for our gross margin rate to fall below 70% in any given quarter, but it but I want to just emphasize the gross margin rate will fluctuate a bit primarily given the mix of sales specifically within the vaccine portfolio, which carries a lower gross.

Albert Bourla: I want to just emphasize the gross margin rate will fluctuate a bit, primarily given the mix of sales, specifically within the vaccine portfolio, which carries a lower gross margin, number one. Number two, when you look at our performance for gross margin in Q1, the dominant effect of that versus last year is the mix, the lower sales volume of Comirnaty in the quarter in Q1 versus last year's Q1. Obviously, the final adjustment of the Paxlovid reserve actually did also have a one-time positive impact on the gross margin rate in Q1, but that was less of an impact compared to the mix. I hope that helps. Also, I want to emphasize that on Paxlovid, what really makes me pleased is the underlying demand of the product, right? It was approximately the first quarter only in the US, 2 million scripts, right?

I want to just emphasize the gross margin rate will fluctuate a bit, primarily given the mix of sales, specifically within the vaccine portfolio, which carries a lower gross margin, number one. Number two, when you look at our performance for gross margin in Q1, the dominant effect of that versus last year is the mix, the lower sales volume of COMIRNATY in the quarter in Q1 versus last year's Q1. Obviously, the final adjustment of the PAXLOVID reserve actually did also have a one-time positive impact on the gross margin rate in Q1, but that was less of an impact compared to the mix. I hope that helps.

Speaker Change: Margin number one number two when you look at our performance for gross margin in Q1. The dominoes are dominant effect of that versus last year is the mix the lower sales volume of commodity in the quarter in Q1 versus last year's Q1, obviously.

Number two, when you look at our performance for gross margin in Q1, the dominant effect of that versus last year is the mix, the lower sales volume of COMIRNATY in the quarter in Q1 versus last year's Q1. Obviously, the final adjustment of the PAXLOVID reserve actually did also have a one-time positive impact on the gross margin rate in Q1 but that was less of an impact compared to the mix. So, I hope that helps.

David M. Denton: Obviously, the final adjustment of the Paxlovid reserve actually did also have a one-time positive impact on the gross margin rate in Q1, but that was less of an impact compared to the mix. So I hope that helps. And also I want to emphasize that on Paxlovid, what really makes me pleased is the underlying demand of the product, right? So it was approached approximately in the first quarter only in the U.S. 2 million scripts, right?

Speaker Change: Final adjustment of the <unk> Reserve actually did also have a one time positive impact on the gross margin rate in Q1, but that was less of an impact compared to the mix. So I hope that helps.

Albert Bourla: Also, I want to emphasize that on PAXLOVID, what really makes me pleased is the underlying demand of the product, right? It was approximately the first quarter only in the US, 2 million scripts, right?

Albert Bourla: And also I want to emphasize that on PAXLOVID, what really makes me pleased is the underlying demand of the product, right? So it was, at the approach, approximately the 1st quarter only in the U.S., 2 million scripts, right? So, that's significant. And keep in mind that this was the quarter that we moved from a previous way of go-to-market approach to a commercial model, right? That had a lot of maintenance in execution but we didn't step into any of that. So, it was -- again, I'm very pleased how Aamir and the U.S. team executed on that. Meticulous execution.

Speaker Change: So I want to emphasize our compact sluggish what really makes me pleased with is the underlying demand of the product right. So it was approach approximately the first part of the army and the U S 2 million scripts right. So thats significant.

Albert Bourla: That's significant. Keep in mind that this was the quarter that we moved from a previous way of go-to-market approach to a commercial model, right? That had a lot of minds in execution, but we didn't step into any of that. It was, again, I'm very pleased how Amir and the US team executed on that. Meticulous execution. We had a very smooth transition with very low copays on commercial plans for the vast majority of the insured lives. At the same time, very good execution with thousands of pharmacists participating, almost 90,000 pharmacists, if I remember well, 90%, excuse me, of the pharmacists participating into the Medicare part. That went extremely well.

That's significant. Keep in mind that this was the quarter that we moved from a previous way of go-to-market approach to a commercial model, right? That had a lot of minds in execution, but we didn't step into any of that. It was, again, I'm very pleased how Aamir and the US team executed on that. Meticulous execution. We had a very smooth transition with very low copays on commercial plans for the vast majority of the insured lives. At the same time, very good execution with thousands of pharmacists participating, almost 90,000 pharmacists, if I remember well, 90%, excuse me, of the pharmacists participating into the Medicare part. That went extremely well.

Albert Bourla: So that's significant. And keep in mind that this was the quarter that we moved from a previous way of go-to-market approach to a commercial model, right? VAT had a lot of mindfulness in execution, but we didn't step into any of that. So it was, again, I'm very pleased how Amir and Keith, the U.S. team, executed on VAT. Meticulous execution.

Speaker Change: Keep in mind that is worth of quarters that we move from.

Speaker Change: Previews way of go to market approach, where commercial model right Bob.

Speaker Change: And local mines in Mexico, but we did then stepping to annual so it was again I'm vertically as power mirroring the USD executed on about.

Speaker Change: I think it was a ticket so we kept it.

Albert Bourla: So, we have a very smooth transition, with very low co-pays on commercial plans for the vast majority of the insured lives. And then, at the same time, very good execution with thousands of pharmacies participating -- almost 90,000 pharmacies, if I remember well. 90%, excuse me, of the pharmacists participating into the Medicare part and that went extremely well. And also, I want to remind that the Medicare, that goes clearly with different price level because it's through the credit of the U.S. government compared to the commercial plan, that they are at $1,000 -- it's a different list price and that, the difference exists for this year. Next year, everybody moves to the list price and of course, the discounts that we give to [inaudible]. Let's go to the next question, please. Thank you all for joining us on this. Thank you. We'll take our next question from Chris Chibutani with Goldman Sachs. Your line is open.

So, we have a very smooth transition, with very low co-pays on commercial plans for the vast majority of the insured lives. And then, at the same time, very good execution with thousands of pharmacies participating -- almost 90,000 pharmacies, if I remember well. 90%, excuse me, of the pharmacists participating into the Medicare part and that went extremely well. And also, I want to remind that the Medicare, that goes clearly with different price level because it's through the credit of the U.S. government compared to the commercial plan, that they are at $1,000 -- it's a different list price and that, the difference exists for this year. Next year, everybody moves to the list price and of course, the discounts that we give to [inaudible].

Speaker Change: Very smooth transition.

Speaker Change: Very local patient or on the commercial plus or the vast majority of their lives and then at the same time very good execution.

Speaker Change: Causes a pharmacist participating almost 90000 pharmacy, if I remember well.

Speaker Change: 90% of the pharmacist participating into.

Speaker Change: The Medicare part.

Albert Bourla: I want to remind that the Medicare that goes clearly with different price level because it's through the credit of the US government compared to the commercial plans that they are at 1,000. It's a different list price. That difference exists for this year on. Next year, everybody moves to the list price and, of course, the discounts that we give plan by plan. Next door to the next question, please. Thank you. We'll take our next question from Chris Shibutani with Goldman Sachs. Your line is open. Thank you. Two questions, if I may. The first on pneumococcal vaccines with Prevnar as well. Last quarter, you provided some commentary about your thoughts on the tone of the markets, particularly for adults being somewhat more mature. Obviously, competition is coming across the different categories, adult and pediatrics.

Speaker Change: And so that went extremely well and also I want to remind that the Medicare.

I want to remind that the Medicare that goes clearly with different price level because it's through the credit of the US government compared to the commercial plans that they are at 1,000. It's a different list price. That difference exists for this year on. Next year, everybody moves to the list price and, of course, the discounts that we give plan by plan. Next door to the next question, please.

Speaker Change: But clearly with different price level, because it's the first through the credit of the U S government come back to the commercial plans that we are at the 1000.

Speaker Change: You can find a list price.

Speaker Change: But the difference exists zero next year, everybody moves to their list price and of course, the discounts that we give Columbus. It makes it. Thank you guys.

Let's go to the next question, please. Thank you all for joining us on this. Thank you. We'll take our next question from Chris Chibutani with Goldman Sachs. Your line is open.

Let's go to the next question, please.

Operator: Thank you. We'll take our next question from Chris Shibutani with Goldman Sachs. Your line is open.

Speaker Change: Thank you we'll take our next question from Chris <unk> with Goldman Sachs. Your line is open.

Chris Shibutani: Thank you. Two questions, if I may. The first on pneumococcal vaccines with PREVNAR as well. Last quarter, you provided some commentary about your thoughts on the tone of the markets, particularly for adults being somewhat more mature. Obviously, competition is coming across the different categories, adult and pediatrics.

Chris Shibutani: Thank you. Two questions, if I may. The first on pneumococcal vaccines, with PREVNAR as well. Last quarter, you provided some commentary about your thoughts on the tone of the markets, particularly for adults being somewhat more mature. And obviously, competition is coming across the different categories, adult and pediatrics. Can you comment about your view, given that performance was relatively strong and how you're preparing for competition? The second question I have is on commercial models.

Chris Shibutani: Thank you. Two questions, if I may. The first on pneumococcal vaccines with Prevnar as well. Last quarter, you provided some commentary about your thoughts on the tone of the markets, particularly for adults being somewhat more mature. And obviously, competition is coming across the different categories, adult and pediatrics. Can you comment about your view, given that performance was relatively strong, and how you're preparing for competition?

Chris: Two questions if I may the first on pneumococcal vaccines with <unk> as well.

Chris: Last quarter, you provided some commentary about your thoughts on the tone of the market, particularly for adult being somewhat more mature.

Chris: And obviously competition is coming across the different categories in adult and pediatrics can you comment about your view given the performance was relatively strong and how youre preparing for competition and the second question I have is on commercial models.

Albert Bourla: Can you comment about your view given that performance was relatively strong and how you're preparing for competition? The second question I have is on commercial models. There has been some nascent efforts in the industry to go more direct to consumers. I cite, for instance, Lilly has a LillyDirect for their obesity products. Amir, I'm curious about your thoughts about integrating this type of approach, particularly as I think about certain product categories that you have like migraines and Nurtec. How might this work? Where is Pfizer in terms of exploring these opportunities? Thank you. Amir. Okay. Chris, thanks for the question. On Prevnar, you alluded to the commentary we provided around dimensionalizing the market, and I think it's worthwhile just reiterating that. The adult market continues to contract, and that's for two reasons. There are increasingly fewer eligible 65-plus adults.

Can you comment about your view given that performance was relatively strong and how you're preparing for competition? The second question I have is on commercial models. There has been some nascent efforts in the industry to go more direct to consumers. I cite, for instance, Lilly has a LillyDirect for their obesity products. Aamir, I'm curious about your thoughts about integrating this type of approach, particularly as I think about certain product categories that you have like migraines and NURTEC. How might this work? Where is Pfizer in terms of exploring these opportunities? Thank you.

The second question I have is on commercial models. There has been some nascent efforts in the industry to go more direct to consumers. I cite, for instance, Lilly has Lilly Direct for their obesity products. Aamir, I'm curious about your thoughts about integrating this type of approach, particularly as I think about certain product categories that you have like, migraines and NURTEC. How might this work? Where is Pfizer in terms of exploring these opportunities? Thank you. Aamir.

Chris Shibutani: There has been some nascent efforts in the industry to go more direct to consumers. I cite for, or Lili Direct for their obesity products. Aamir, I'm curious about your thoughts about integrating this type of approach, particularly as I think about certain product categories that you have, like migraines and Nurtec. How might this work? Where is Pfizer in terms of exploring these? Aamir.

Speaker Change: There.

Speaker Change: Has been some nascent efforts in the industry to go more direct to consumers.

Speaker Change: For instance.

Speaker Change: It really has been really direct for their obesity products Amir I'm curious about your thoughts about integrating this type of approach, particularly as we think about certain product categories that you have like migraines in Nortek, how might this work, whereas Pfizer in terms of exploring these opportunities. Thank you.

Albert Bourla: Aamir?

Aamir Malik: Okay. Chris, thanks for the question. On PREVNAR, you alluded to the commentary we provided around dimensionalizing the market, and I think it's worthwhile just reiterating that. The adult market continues to contract, and that's for two reasons. There are increasingly fewer eligible 65+ adults.

Albert Bourla: Aamir.

Aamir Malik: Okay. Chris, thanks for the question. So, on PREVNAR, you alluded to the commentary we provided around dimensionalizing the market and I think it's worthwhile just reiterating that. So, the adult market continues to contract and that's for two reasons. There are increasingly fewer eligible 65-plus adults and then, the 19 to 64 underlying medical conditions population is obviously more difficult to activate. So, that is a dynamic that is true for our business but it's also true for any competitor that's going to come into the adult vaccine market. So, I think that's important to note. Now, for our overall franchise, we continue to expect growth. We did very nicely in Q1, we saw 6% growth. And the big driver of that is increased uptakes as well as market share growth in the pediatrics [inaudible].

Amir: Okay, Chris Thanks for the question so on <unk>.

Amir: You alluded to the commentary we'd be pried it around dimensionalize the market and I think it's worthwhile just reiterating that.

Amir: The adult market continues to contract and Thats for two reasons, there increasingly fewer eligible 65, plus adults and then the 19% to 64 underlying medical conditions population is obviously more and more difficult to activate so.

Albert Bourla: The 19 to 64 underlying medical conditions population is obviously more difficult to activate. That is a dynamic that is true for our business, but it's also true for any competitor that's going to come into the adult vaccine market. I think that's important to note. Now, for our overall franchise, we continue to expect growth. We did very nicely in Q1. We saw 6% growth, and the big driver of that is increased uptakes as well as market share growth in the pediatric sector. Pediatrics in Q1, we saw a lot of conversion from PCV13 to 20, and our share exiting Q1 was at 80%. That was from 71% at the time of launch of PCV15. We see good momentum on pediatrics. Now, back to your question about the adult segment and competition, we're continuing to see very good performance where we are.

The 19 to 64 underlying medical conditions population is obviously more difficult to activate. That is a dynamic that is true for our business, but it's also true for any competitor that's going to come into the adult vaccine market. I think that's important to note. Now, for our overall franchise, we continue to expect growth. We did very nicely in Q1. We saw 6% growth, and the big driver of that is increased uptakes as well as market share growth in the pediatric sector. Pediatrics in Q1, we saw a lot of conversion from PCV13 to 20, and our share exiting Q1 was at 80%. That was from 71% at the time of launch of PCV15. We see good momentum on pediatrics. Now, back to your question about the adult segment and competition, we're continuing to see very good performance where we are.

Aamir Malik: That is a dynamic that is true for our business, but it's also true for any competitor that's going to come into the adult vaccine market. So I think that's important to note. Now, for our overall franchise, we continue to expect growth. We did very nicely in Q1, we saw 6% growth. And the big driver of that is increased uptakes, as well as market share growth in the pediatrics.

Speaker Change: That is a dynamic that is true for our business, but it's also true for any competitor that's going to come into the adult vaccine market. So I think that's important to note now for our overall franchise.

So, I think that's important to note. Now, for our overall franchise, we continue to expect growth. We did very nicely in Q1, we saw 6% growth. And the big driver of that is increased uptakes as well as market share growth in the pediatrics [inaudible].

So, I think that's important to note.

Now, for our overall franchise, we continue to expect growth. We did very nicely in Q1, we saw 6% growth. And the big driver of that is increased uptakes as well as market share growth in the pediatrics [inaudible]. So, pediatrics in Q1, we saw a lot of conversion -- PCV 13 to 20 -- and our share exit in Q1 was at 80%. And that was from 71% at the time of launch of PCV 15. So, we see good momentum on pediatrics. Now, back to your question about the adult segment and competition. We're continuing to see very good performance where we are. We have 98% market share, we acknowledge that V116 is coming and as Albert alluded to earlier, we're not going to speculate on what the regulatory outcomes or recommendations are going to be, but there are a number of things that we can do to defend our business in the adult segment.

Speaker Change: We continue to expect gross we did very nicely in Q1, we saw 6% growth and the big driver of that is increased uptake as well as market share growth in the pediatrics.

Aamir Malik: So, pediatrics in Q1, we saw a lot of conversion, PCV13 to 20, and our share exit in Q1 was at 80%, and that was from 71% at the time of launch of PCV15. So, we see good momentum on pediatrics. Now, back to your question about the adult segment and competition, we're continuing to see very good performance where we are. We have 98% market share. We acknowledge that B116 is coming, and as Albert alluded to earlier, we're not going to speculate on what the regulatory outcomes or recommendations are going to be, but there are a number of things that we can do to defend our business in the adult segment.

Speaker Change: So pediatrics in Q1, we saw a lot of conversion <unk> to 'twenty.

Speaker Change: And our share exiting Q1 was at 80% and that was from 71% at the time of launch of <unk>. So we see good momentum on pediatrics now back to your question about the adult segment and competition.

Now, back to your question about the adult segment and competition. We're continuing to see very good performance where we are. We have 98% market share, we acknowledge that V116 is coming and as Albert alluded to earlier, we're not going to speculate on what the regulatory outcomes or recommendations are going to be, but there are a number of things that we can do to defend our business in the adult segment. Firstly, we have a portfolio approach to contracting that we're deploying in the retail setting but also, in the non-retail setting. And it's also important to note that in the non-retail setting, many organized customers have a preference for workflow management to stock one vaccine that satisfies all the current ACIP recommendations.

Speaker Change: We're continuing to see very good performance, where we are we have 98% market share we acknowledge that <unk> is coming and as Albert alluded to earlier, we're not going to speculate on what the regulatory outcomes recommendations are going to be but there are a number of things that we can do to defend our business.

Albert Bourla: We have 98% market share. We acknowledge that B116 is coming. As Albert alluded to earlier, we're not going to speculate on what the regulatory outcomes or recommendations are going to be. There are a number of things that we can do to defend our business in the adult segment. Firstly, we have a portfolio approach to contracting that we're deploying in the retail setting, but also in the non-retail setting. It's also important to note that in the non-retail setting, many organized customers have a preference for workflow management to stock one vaccine that satisfies all the current basic recommendations. Until we know more, I think the best way to defend our share in the adult segment is to continue to do what we're doing.

We have 98% market share. We acknowledge that V116 is coming. As Albert alluded to earlier, we're not going to speculate on what the regulatory outcomes or recommendations are going to be. There are a number of things that we can do to defend our business in the adult segment. Firstly, we have a portfolio approach to contracting that we're deploying in the retail setting, but also in the non-retail setting. It's also important to note that in the non-retail setting, many organized customers have a preference for workflow management to stock one vaccine that satisfies all the current basic recommendations. Until we know more, I think the best way to defend our share in the adult segment is to continue to do what we're doing.

Speaker Change: The adult segment, Firstly, we have a portfolio approach to contracting that we're deploying in the retail setting but also in the in the non retail setting and it's also important to note that in the non retail setting many organized customers have a preference for workflow management to stock one vaccine that satisfies all the current pace.

Aamir Malik: Firstly, we have a portfolio approach to contracting that we're deploying in the retail setting, but also in the non-retail setting, and it's also important to note that in the non-retail setting, many organized customers have a preference for workflow management to stock one vaccine that satisfies all the current ACIP requirements.

And it's also important to note that in the non-retail setting, many organized customers have a preference for workflow management to stock one vaccine that satisfies all the current ACIP recommendations. So, until we know more, I think the best way to defend our share in the adult segment is to continue to do what we're doing. And that's to be laser-focused on maximizing the opportunity that we have in the adult segment -- albeit contracting -- and then, continue to drive growth in pediatrics. On your second question around consumers, look, engaging and activating consumers is, as you pointed out, a very, very important part of our business. It's true in vaccines. It's true in categories like Paxlovid and Nurtec, just to name a few examples.

Speaker Change: The recommendation.

Aamir Malik: So, until we know more, I think the best way to defend our share in the adult segment is to continue to do what we're doing, and that's to be laser-focused on maximizing the opportunity that we have in the adult segment, albeit contracting, and then continue to drive growth in PDA. On your second question around consumers, look, engaging and activating consumers is, as you pointed out, a very, very important part of our business. It's true in vaccines. It's true in categories like Paxlovid and Nurtec, just to name a few examples.

Speaker Change: So until we know more I think the best way to defend our share in the adult segment is to continue to do what we're doing and that's to be laser focused on maximizing the opportunity that we have in the adult segment, albeit contracting and then continue to drive growth in our in pediatrics.

Albert Bourla: That's to be laser-focused on maximizing the opportunity that we have in the adult segment, albeit contracting, and then continue to drive growth in pediatrics. On your second question around consumers, look, engaging and activating consumers is, as you pointed out, a very, very important part of our business. It's true in vaccines, it's true in categories like Paxlovid and Nurtec, just to name a few examples. We're always looking at ways to enhance that connection. One example I'll point to is the work that we've done on VaxAssist as a mechanism to help consumers determine their vaccine eligibility, but also book appointments. That's a really good example of value that we can bring. To the extent that we can do more of that, create value for patients as well as for our business in other categories, we'll certainly look to explore that.

That's to be laser-focused on maximizing the opportunity that we have in the adult segment, albeit contracting, and then continue to drive growth in pediatrics. On your second question around consumers, look, engaging and activating consumers is, as you pointed out, a very, very important part of our business. It's true in vaccines, it's true in categories like PAXLOVID and NURTEC, just to name a few examples. We're always looking at ways to enhance that connection. One example I'll point to is the work that we've done on VaxAssist as a mechanism to help consumers determine their vaccine eligibility, but also book appointments. That's a really good example of value that we can bring. To the extent that we can do more of that, create value for patients as well as for our business in other categories, we'll certainly look to explore that.

Speaker Change: Your second question.

On your second question around consumers -- look, engaging and activating consumers is, as you pointed out, a very, very important part of our business. It's true in vaccines, it's true in categories like PAXLOVID and NURTEC, just to name a few examples. And we're always looking at ways to enhance that connection. You know, one example I'll point to is the work that we've done on VaxAssist as a mechanism to help consumers determine their vaccine eligibility but also book appointments. And that's a really good example of value that we can bring. And to the extent that we can do more of that, create value for patients as well as for our business in other categories, we'll certainly look to explore that. Alexandre, very quickly, anything on PCV in the international markets?

Speaker Change: Round consumers look engaging and activating consumers is as you pointed out a very very important part of our business. It's true in vaccines, it's true in categories.

Speaker Change: Categories like exploded and Eurotech just to name a few examples.

Aamir Malik: And we're always looking at ways to enhance that connection. You know, one example I'll point to is the work that we've done on VaxAssist as a mechanism to help consumers determine their vaccine eligibility, but also book appointments. And that's a really good example of value that we can bring. And to the extent that we can do more of that, create value for patients as well as for our business in other categories, we'll certainly look to explore that. Alexander, very quickly, anything on PCV in the international markets?

Speaker Change: And we are always looking at ways to enhance that connection. One example, I'll point to is the work that we've done on vacs assist as a mechanism to help consumers determine their vaccine eligibility, but also a book appointments and that's a really good example of value that we can bring and to the extent that we can do more of that.

Speaker Change: Create value for patients as well as for our business and other categories. We will certainly look to explore that.

Albert Bourla: Alexander, very quickly, anything on PCV in the international markets? Yeah, no, we had a great quarter. As you know, we grew by 8% operationally. More importantly, we also have achieved some key milestones. We got the European approval of pediatric Prevnar 20 in Europe. We also got it approved in Japan, which is a very important market, Australia, and many others. This is great because we want to build on the very successful Prevnar 30 franchise around the world. As you know, we have exclusive NIP status in 130 markets, and now we're going to be able to build on that. Just one comment on the adults. We still are in the process of getting BTC recommendation in most of the European market, but where we got it in Germany and in France, we see very nice pickup. And why?

Albert Bourla: Alexander, very quickly, anything on PCV in the international markets?

Albert Bourla: Alexandre, very quickly. Anything on PCV in the international markets?

Speaker Change: Alexander very quickly anything won't be serving in the restaurant markets. Yes, we had a great quarter. As you know we grew by 8% operational EBIT and more importantly, we also have achieved a key milestone. So we got the European approval of the pediatric care panned out 'twenty Europe. We also got its approved in Japan very important market in Australia.

Alexandre de Germay: Yeah, no, we had a great quarter. As you know, we grew by 8% operationally. More importantly, we also have achieved some key milestones. We got the European approval of pediatric PREVNAR 20 in Europe. We also got it approved in Japan, which is a very important market, Australia, and many others. This is great because we want to build on the very successful PREVNAR 30 franchise around the world. As you know, we have exclusive NIP status in 130 markets, and now we're going to be able to build on that. Just one comment on the adults. We still are in the process of getting BTC recommendation in most of the European market, but where we got it in Germany and in France, we see very nice pickup. And why?

Alexandre de Germay: Yeah. No, we had a great quarter. As you know, we grew by 8% operationally but, more importantly, we also have achieved some key milestones. So, we got the European approval of pediatric PREVNAR 20 in Europe, we also got it approved in Japan -- which is a very important market -- and Australia and many others. So, this is great because then we want to build on the very successful PREVNAR 30 franchise around the world. As you know, we have exclusive NIP status in 130 markets and now, we're going to be able to build on that. Just one comment on the adults. We still are in the process of getting VTC recommendation in most of the European markets but where we got it in Germany and in France, we see very nice pickup. And why?

Speaker Change: I and many others, but this is great because that we want to build on the very successful pillar two franchised Rhonda.

Alexandre de Germay: So this is great because then we want to build on the very successful PEMDAR 30 franchise around the world. As you know, we have exclusive NIP status in 130 markets, and now we're going to be able to build on that. Just one comment on the adults. We still are in the process of getting PTC recommendation in most of the European markets, but when we got it in Germany and in France, we see very nice pickup. And why?

Speaker Change: Around the World as you know we have excuse me to Nic's salaries at the 132 markets and now we're going to be able to pick up on that just one comment on the adults. We still are in the process of getting PTC recommendation most of the European market, but when we got it.

Just one comment on the adults. We still are in the process of getting VTC recommendation in most of the European markets but where we got it in Germany and in France, we see very nice pickup. And why? Because they extended the population covered by the PREVNAR 20 adults. For instance, in Germany, STIKO gave us 18 to 59 population at risk and all-comers, 60 and above. And since that -- and we got this recommendation in February -- we get very nice pickup and utilization in Germany and we are about to launch in France, as we speak. So, in adults as well, we see a great potential of growth. It's a very nice cadence of approval and a very nice cadence of recommendations.

Speaker Change: And in France, we see very nice pick up and why because they extended the population.

Albert Bourla: Because they extended the population covered by the PREVNAR 20 adults. For instance, in Germany, Stiko gave us 18 to 59 population at risk, and all comers 60 and above. Since that, and we got this recommendation in February, we get very nice pickup and utilization in Germany, and we are about to launch in France as we speak. In adults as well, we see a great potential of growth. It's very nice cadence of approval, and very nice cadence of recommendations. Next question, please. Thank you. We'll take our next question from Mohit Bansal with Wells Fargo. Your line is open. Great. Thank you very much for taking my question. Maybe a question for Dave.

Because they extended the population covered by the PREVNAR 20 adults. For instance, in Germany, STIKO gave us 18 to 59 population at risk, and all comers 60 and above. Since that, and we got this recommendation in February, we get very nice pickup and utilization in Germany, and we are about to launch in France as we speak. In adults as well, we see a great potential of growth. It's very nice cadence of approval, and very nice cadence of recommendations.

Alexandre de Germay: Because they extended the population covered by the PEMDAR 20 adults. For instance, in Germany, STIKO gave us 18 to 59 population at risk and all commerce 60 adults. And since that, and we got this recommendation in February, we get very nice pickup and utilization in Germany, and we are about to launch in France as we speak. So in adults as well, we see a great potential of growth. It's a very nice cadence of approval and a very nice cadence of recommendations.

Speaker Change: Our corporate buy dependent Appalachia those for instance in Germany.

Speaker Change: <unk> gave us 80% to 89 population at risk and all Congress <unk> and since that and we got this recommendation in February we get very nice pick up and you see they should in Germany, and we are launching as we speak so in adults as well, we see a great potential levels, it's very nice cadence of approval.

Albert Bourla: Next question, please.

Speaker Change #100: Maybe I'd ask David next question. Please.

Albert Bourla: It's a very nice cadence of approval and a very nice cadence of recommendations. Next question, please.

Operator: Thank you. We'll take our next question from Mohit Bansal with Wells Fargo. Your line is open.

Albert Bourla: Next question, please. Thank you. We'll take our next question from Mohit Bansal with Wells Fargo. Your line is open.

Next question, please.

Speaker Change: Thank you we'll take our next question from Mohit Bansal with Wells Fargo. Your line is open.

Operator: Thank you. We'll take our next question from Mohit Bansal with Wells Fargo. Your line is open.

Mohit Bansal: Great. Thank you very much for taking my question. Maybe a question for Dave.

Mohit Bansal: Great. Thank you very much for taking my question. Maybe a question for Dave. Just wanted to understand the cadence of margin improvement as you are embarking on the cost management journey throughout the year. Because, I mean -- so, you had a really high EPS because of the one-time item but if you think about margin profile over the year, how should we think about it? I understand 4th quarter could be impacted with COMIRNATY revenues and then, when we get into 2025, should we think about better leverage or do you think there could be more opportunity to reduce expenses in '25 as well? Thank you. Yeah, thank you for the question. I would say that without giving you since we don't guide to quarterly expectations for gross margin, I would just say that the focus that we have around improving our cost of goods sold is a multi-year journey.

Mohit Bansal: Great. Thank you very much for taking my question, maybe a question for Dave just wanted to understand the cadence of margin improvement as you are knocking on the cost management journey.

Albert Bourla: Just wanted to understand the cadence of margin improvement as you are embarking on the cost management journey throughout the year because, I mean, you had a really high EPS because of the one-time item. If you think about margin profile over the year, how should we think about it? I understand fourth quarter could be impacted with Comirnaty revenues. When we get into 2025, should we think about better leverage, or do you think there could be more opportunity to reduce expenses in '25 as well? Thank you. Yeah, thank you for the question. I would say that without giving you, since we do not guide to quarterly expectations for gross margin, I would just say that the focus that we have around improving our cost of goods sold is a multi-year journey.

Just wanted to understand the cadence of margin improvement as you are embarking on the cost management journey throughout the year because, I mean, you had a really high EPS because of the one-time item. If you think about margin profile over the year, how should we think about it? I understand fourth quarter could be impacted with COMIRNATY revenues. When we get into 2025, should we think about better leverage, or do you think there could be more opportunity to reduce expenses in 2025 as well? Thank you.

Speaker Change: Yes.

Speaker Change #102: Because I mean like so you had a really high EPS because of the one time item but.

Dave: If you think about margin profile over the year, how should we think about it I understand fourth quarter could be impacted commonality revenues and then we get into 2025 should we think about.

Mohit Bansal: I understand fourth quarter could be impacted with Comirnaty revenues, and then when we get into 2025, should we think about better leverage, or do you think there could be more opportunity to reduce expenses in 2025 as well? Thank you. Yeah, thank you for the question. I would say that without giving you since we don't guide to quarterly expectations for gross margin, I would just say that the focus that we have around improving our cost of goods sold is a multi-year journey.

Dave: Better leverage or do you think there could be more opportunity to do.

Speaker Change: <unk> expenses in 'twenty five as Matt. Thank you.

Dave Denton: Yeah, thank you for the question. I would say that without giving you, since we do not guide to quarterly expectations for gross margin, I would just say that the focus that we have around improving our cost of goods sold is a multi-year journey.

Matt: Yes. Thank you for the question I would say that without giving you simply don't guide to quarterly expectations for gross margin I would just say that the focus that we have been improving our cost of goods sold.

Matt: A multiyear journey and these costs that we are working to improve take time to adjust into.

Albert Bourla: These costs that we are working to improve take time to adjust and to further implement ways to be more effective and efficient in this infrastructure. I wouldn't think of that having a significant impact on 2024, but more if it would, it'd be late 2024, but more 2025 and 2026. More to come as we know more and as we develop our plans more specifically, we'll be certain to share some specifics around that. Thank you. Next question, please. Thank you. We'll take our next question from Chris Schott with JPMorgan. Your line is open. Great. Just two ones for me here. Just on Abrysvo, just really quickly following up on the earlier commentary. Can you just update us on where we are in terms of contracting efforts and progress in the retail channel, just addressing some of the market share issues you highlighted last year?

These costs that we are working to improve take time to adjust and to further implement ways to be more effective and efficient in this infrastructure. I wouldn't think of that having a significant impact on 2024, but more if it would, it'd be late 2024, but more 2025 and 2026. More to come as we know more and as we develop our plans more specifically, we'll be certain to share some specifics around that.

Matt: Further implement ways to be more effective and efficient in this infrastructure. So I wouldn't think of that having a significant impact on 2024, but more.

Yeah, thank you for the question. I would say that without giving you -- since we don't guide to quarterly expectations for gross margin, I would just say that the focus that we have around improving our cost of goods sold is a multi-year journey. And these costs that we are working to improve, take time to adjust and to further implement ways to be more effective and efficient in this infrastructure. So, I wouldn't think of that having a significant impact on 2024 but more -- if it would, it'd be late 2024 but more '25 and '26. But more to come as we know more and as we develop our plans more specifically, we'll be certain to share some specifics around that. Thank you. Next question, please. Thank you. We'll take our next question from Chris Schott with J.P. Morgan. Your line is open. Great. Just two ones for me here.

David M. Denton: Yeah, thank you for the question. I would say that without giving you -- since we don't guide to quarterly expectations for gross margin, I would just say that the focus that we have around improving our cost of goods sold is a multi-year journey. And these costs that we are working to improve, take time to adjust and to further implement ways to be more effective and efficient in this infrastructure. So, I wouldn't think of that having a significant impact on 2024 but more -- if it would, it'd be late 2024 but more '25 and '26. But more to come as we know more and as we develop our plans more specifically, we'll be certain to share some specifics around that.

Speaker Change: It would be late 2024, but more 25 and 26, so but more to come as we as we know more and as we develop our plans more specifically will.

Speaker Change #105: We will be certain to share some specifics around that thank you next question. Please.

Albert Bourla: Thank you. Next question, please.

Operator: Thank you. We'll take our next question from Chris Schott with JPMorgan. Your line is open.

Thank you. Next question, please. Thank you. We'll take our next question from Chris Schott with J.P. Morgan. Your line is open. Great. Just two ones for me here.

Albert Bourla: Thank you. Next question, please.

Thank you. We'll take our next question from Chris Schott with J.P. Morgan. Your line is open. Great. Just two ones for me here.

Operator: Thank you. We'll take our next question from Chris Schott with J.P. Morgan. Your line is open.

David M. Denton: And these costs that we are working to improve, take time to adjust and to, Further implement ways to be more effective and efficient in this infrastructure, so I wouldn't think of that having a significant impact on 2024, but more, if it would, it'd be late 2024, but more 2025 and 2026, so, but more to come as we as we know more and as we develop our plans more specifically, we'll be certain to share some specifics around that. Thank you. Next question. Thank you. We'll take our next question from Chris Schott with J.P. Morgan. Your line is open. Great. Just two ones for me here.

Speaker Change: Thank you we'll take our next question from Chris Schott with Jpmorgan. Your line is open.

Great. Just two ones for me here. Just on ABRYSVO, just really quickly following up on the earlier commentary. Can you just update us on where we are in terms of contracting efforts and progress in the retail channel, just addressing some of the market share issues you highlighted last year? I guess my specific question is, do you have line of sight on contracting at this point or is that still something that's going to evolve as the year progresses? And then, the second quick one was just on VYNDAQEL. Obviously, very strong numbers. Maybe just a quick update in terms of where we are with penetration in that market and how much higher can this go and just how much more of a growth runway is there for that drug? Thank you. Thanks, Chris.

Chris Schott: Great. Just two ones for me here. Just on ABRYSVO, just really quickly following up on the earlier commentary. Can you just update us on where we are in terms of contracting efforts and progress in the retail channel, just addressing some of the market share issues you highlighted last year? I guess my specific question is, do you have line of sight on contracting at this point or is that still something that's going to evolve as the year progresses?

Chris Schott: Just on Brisvo, just really quickly following up on the earlier commentary, can you just update us on where we are in terms of contracting efforts and progress in the retail channel, just addressing some of the market share issues you highlighted last year? I guess my specific question is, do you have line of sight on contracting at this point, or is that still something that's going to evolve as the year progresses? And then the second quick one was just on Vendacal, obviously very strong numbers.

Chris Schott: Just two ones from me here just on <unk>, just really quickly following up on the earlier commentary can you just update us on where we are in terms of contracting efforts and progress in the retail channel just addressing some of the market share issues. You highlighted last year I guess my specific question is do you have line of sight on contracting at this point or is that still something thats.

Albert Bourla: I guess my specific question is, do you have line of sight on contracting at this point, or is that still something that's going to evolve as the year progresses? The second quick one was just on Vyndamax, obviously very strong numbers. Maybe just a quick update in terms of where we are with penetration in that market, how much higher can this go, and just how much more of a growth runway is there for that drug? Thank you. Thanks, Chris. On Abrysvo, as I said, we're progressing our contracting conversation. We'll have more to share on that as we do later. In terms of your question on Vyndamax, Vyndamax had a really strong quarter. We were up 96% year over year, but importantly, also 41% over last quarter. When you look at the drivers, I think there's a few things.

I guess my specific question is, do you have line of sight on contracting at this point, or is that still something that's going to evolve as the year progresses? The second quick one was just on VYNDAQEL, obviously very strong numbers. Maybe just a quick update in terms of where we are with penetration in that market, how much higher can this go, and just how much more of a growth runway is there for that drug? Thank you.

Chris Schott: Going to evolve as the year progresses, and then the second quick one was just on <unk>, obviously very strong numbers, maybe just a quick update in terms of where we are with penetration in that market and where do we how much higher can this go and just how much more of a growth runway is there for for that drug.

And then, the second quick one was just on VYNDAQEL. Obviously, very strong numbers. Maybe just a quick update in terms of where we are with penetration in that market and how much higher can this go and just how much more of a growth runway is there for that drug? Thank you.

Chris Schott: Maybe just a quick update in terms of where we are with penetration in that market, and how much higher can this go, and just how much more of a growth runway is there for that drug? Thank you. Thanks, Chris.

Albert Bourla: Aamir?

Aamir Malik: Thanks, Chris. On ABRYSVO, as I said, we're progressing our contracting conversation. We'll have more to share on that as we do later. In terms of your question on VYNDA, VYNDA had a really strong quarter. We were up 96% year over year, but importantly, also 41% over last quarter. When you look at the drivers, I think there's a few things.

Aamir. Thanks, Chris.

Albert Bourla: Aamir.

Thanks, Chris. So, on ABRYSVO, as I said, we're progressing our contract in conversations so, we'll have more to share on that as we do later. And in terms of your question on VYNDA -- VYNDA had a really strong quarter. We were up 96% year-over-year but importantly also, 41% over last quarter. When you look at the drivers, I think there's two things. Some of that is temporal. So, there were some purchasing patterns with wholesaler and specialty pharmacies and we also made a lot of efforts towards the end of last year to ensure that the re-enrollment process for patients was very smooth at the beginning of this year. So, all of that leads to a little bit of a Q1 bolus. But importantly, at the heart of it, part of our strong performance on VYNDA is that the fundamentals around diagnosis and demand are really strong. So, we saw a 33% quarter-over-quarter increase in new patient starts. And diagnosis rates over the last several years, we had talked about getting into the 30% to 50% range -- we're approaching the top end of that. And there's still significant opportunity to identify more patients. That's the biggest unmet need and that's where we're concentrating our commercial efforts going forward. So, we do think that we will sustain this momentum, probably not at the same rate that we saw in Q1 but we will continue to perform well with VYNDA. Thank you. Alexandre, anything to add? Very quickly, on the international front, we also had a very strong quarter because we saw a 28% operational growth, but a 43% volume growth, which is comparable to what we see in the US.

Aamir Malik: Thanks, Chris. So, on ABRYSVO, as I said, we're progressing our contract in conversations so, we'll have more to share on that as we do later. And in terms of your question on VYNDA -- VYNDA had a really strong quarter. We were up 96% year-over-year but importantly also, 41% over last quarter. When you look at the drivers, I think there's two things. Some of that is temporal. So, there were some purchasing patterns with wholesaler and specialty pharmacies and we also made a lot of efforts towards the end of last year to ensure that the re-enrollment process for patients was very smooth at the beginning of this year.

Aamir Malik: So on the Brisbois, as I said, we're, we're progressing our contract. So we'll have more to share on that as we do later. And in terms of your question on VINDA, VINDA had a really strong quarter. We were up 96% year over year, but importantly also 41% over last quarter. When you look at the drivers, I think there's two things.

Speaker Change: Yes.

Speaker Change #107: Thanks, Chris.

Speaker Change: And Bristow as I said, where we're progressing our contracting conversations so we will have more to share on that as.

Speaker Change: As we do later.

Aamir Malik: Some of that is temporal. So there were some purchasing patterns with wholesaler and specialty pharmacies. And we also made a lot of efforts towards the end of last year to ensure that the re-enrollment process for patients was very smooth at the beginning of this year. So all of that leads to a little bit of a Q1 bolus. But importantly, at the heart of it, part of our strong performance on VINDA is that the fundamentals around diagnosis and demand are really strong.

Speaker Change #108: And in terms of your question on <unk>.

Speaker Change #108: Linda.

Speaker Change: Linda had a really strong quarter, we were up 96% year over year, but importantly, also a 41% over last quarter. When you look at the drivers I think there's a few things some of that is temporal. So there were some purchasing patterns with a wholesaler and specialty pharmacies and then we also made a lot of efforts.

Albert Bourla: Some of that is temporal. There were some purchasing patterns with wholesaler and specialty pharmacies. We also made a lot of efforts towards the end of last year to ensure that the re-enrollment process for patients was very smooth at the beginning of this year. All of that leads to a little bit of a Q1 bolus. Importantly, at the heart of it, part of our strong performance on Vyndamax is that the fundamentals around diagnosis and demand are really strong. We saw a 33% quarter-over-quarter increase in new patient starts. Diagnosis rates over the last several years, we had talked about getting into the 30% to 50% range. We're approaching the top end of that, and there's still significant opportunity to identify more patients. That's the biggest unmet need, and that's where we're concentrating our commercial efforts going forward.

Some of that is temporal. There were some purchasing patterns with wholesaler and specialty pharmacies. We also made a lot of efforts towards the end of last year to ensure that the re-enrollment process for patients was very smooth at the beginning of this year. All of that leads to a little bit of a Q1 bolus. Importantly, at the heart of it, part of our strong performance on VYNDA is that the fundamentals around diagnosis and demand are really strong. We saw a 33% quarter-over-quarter increase in new patient starts. Diagnosis rates over the last several years, we had talked about getting into the 30%-50% range. We're approaching the top end of that, and there's still significant opportunity to identify more patients. That's the biggest unmet need, and that's where we're concentrating our commercial efforts going forward.

Speaker Change: Towards the end of last year to ensure that the re enrollment process for patients was very smooth at the beginning of this year. So all of that leads to a little bit of a Q1, a bolus, but importantly at the heart of it part of our strong performance on Linda is that the fundamentals around diagnosis and demand are really strong so we.

So, all of that leads to a little bit of a Q1 bolus. But importantly, at the heart of it, part of our strong performance on VYNDA is that the fundamentals around diagnosis and demand are really strong. So, we saw a 33% quarter-over-quarter increase in new patient starts. And diagnosis rates over the last several years, we had talked about getting into the 30% to 50% range -- we're approaching the top end of that. And there's still significant opportunity to identify more patients. That's the biggest unmet need and that's where we're concentrating our commercial efforts going forward. So, we do think that we will sustain this momentum, probably not at the same rate that we saw in Q1 but we will continue to perform well with VYNDA.

Aamir Malik: So we saw a 33% quarter over quarter increase in new patient starts. And diagnosis rates, over the last several years, we had talked about getting into the 30 to 50% range. We're approaching the top end of that. And there's still significant opportunity to identify more patients. That's the biggest unmet need.

Speaker Change: A 33% quarter over quarter increase in new patient starts.

Speaker Change: And diagnosis rates.

Speaker Change: Over the last several years.

Speaker Change: We had talked about getting into the 30% to 50% range. We're approaching the top end of that and there is still significant opportunity to identify more patients. That's the biggest unmet need and that's where we're concentrating our commercial efforts going forward. So we do think that we will sustain this momentum probably not at the same rate that we saw in Q1, but we will continue to perform.

Aamir Malik: And that's where we're concentrating our commercial efforts going forward. So we do think that we will sustain this momentum, probably not at the same rate that we saw in Q1, but we will continue to perform well with VINDA. Thank you, Alexander, anything to add? Very quickly, on the international front, we also had a very strong quarter because we saw a 28% operational growth, but a 43% volume growth, which is comparable to what we see in the US.

Albert Bourla: We do think that we will sustain this momentum, probably not at the same rate that we saw in Q1, but we will continue to perform well with Vyndamax. Thank you. Alexander, anything to add? Yeah, very quickly on the international response. We also had a very strong quarter because we saw 28% operational growth, but 43% volume growth, which is comparable to what we see in the US. Exactly as Amir said, there is still opportunity because we basically have established Vyndamax as the standard of care. We have worked with the healthcare professional to establish robust infrastructure so that we can screen, diagnose, and treat faster. The reality is we still have opportunity to grow because, yes, in markets like France, we are approaching 50%, but in others like Italy, we are around 30%, Japan 28%.

We do think that we will sustain this momentum, probably not at the same rate that we saw in Q1, but we will continue to perform well with VYNDA.

Thank you. Alexandre, anything to add? Very quickly, on the international front, we also had a very strong quarter because we saw a 28% operational growth, but a 43% volume growth, which is comparable to what we see in the US.

Albert Bourla: Thank you. Alexandre, anything to add?

Albert Bourla: Thank you. Alexander, anything to add?

Speaker Change #110: Well with Linda Thank you Alexandra and sweat Yeah very quickly on the international front. We also had a very strong quarter, because we saw a 28% of operational gross but it's 43% volume growth, which is comparable to what we've seen in the U S exactly yes.

Alexandre de Germay: Yes. Very quickly, on the international front, we also had a very strong quarter because we saw a 28% operational growth but a 43% volume growth, which is comparable to what we see in the U.S. Exactly as Amir said, there is still opportunity because we basically have established VYNDAQEL as the standard of care. And we've worked with the healthcare professional to establish robust infrastructure so that we can screen, diagnose and treat faster. And the reality is, we still have opportunity to grow because, yes, in markets like France, we are approaching 50% but in other, like Italy, we are around 30%, Japan 28%. So, there is still opportunity to grow and increase diagnosis rates.

Alexandre de Germay: Yeah, very quickly on the international response. We also had a very strong quarter because we saw 28% operational growth, but 43% volume growth, which is comparable to what we see in the US. Exactly as Aamir said, there is still opportunity because we basically have established VYNDAQEL as the standard of care. We have worked with the healthcare professional to establish robust infrastructure so that we can screen, diagnose, and treat faster. The reality is we still have opportunity to grow because, yes, in markets like France, we are approaching 50%, but in others like Italy, we are around 30%, Japan 28%.

Alexandre de Germay: Exactly as Amir said, there is still opportunity because we basically have established VINDAQL as the standard of care. And we've worked with the healthcare professional to establish robust infrastructure so that we can screen, diagnose, and treat faster. And the reality is we still have opportunity to grow because yes, in markets like France, we are approaching 50%, but in other like Italy, we are around 30%, Japan 28%.

Speaker Change #110: There is still opportunity because we basically have established <unk> as just tenant okay, and we've worked with the healthcare professional to establish robust infrastructure. So that we can screen Jack knows entry faster and the reality is we still have opportunity to grow because guests in markets like France, we are approaching 50% but in.

Speaker Change: Albert I E City, we are around 30%, Japan, 28%. So there is still opportunity to grow it.

Albert Bourla: There is still opportunity to grow and increase diagnosis rates. Thank you very much. Next question. We'll take two more questions because we are running out of time. Next question, please. Thank you. We'll take our next question from Tim Anderson with Wolfe Research. Your line is open. Tim? Yeah. Can you hear me? Yes. Yeah. It's a busy pipeline readout year. I'm wondering, Michael, can you just point to perhaps the one or two bigger upcoming readouts that excite you the most where your confidence is highest that could be value-creating? I'm not looking for a description of everything you're reading out, just maybe one or two that excite you the most. Thank you. Mike. Excited for us to follow, please. Yeah. Yeah. I'm excited about the potential approval for Marstacimab for both hemophilia A and B to continue to grow our hematology franchise momentum.

There is still opportunity to grow and increase diagnosis rates.

Alexandre de Germay: So there is still opportunity to grow and increase diagnosis. Thank you very much. Next question.

So there is still opportunity to grow and increase diagnosis.

Albert Bourla: Thank you very much. Next question. We'll take two more questions because we are running out of time. Next question, please.

Speaker Change #114: <unk>. Thank you very much next question, we'll take two more questions. Because we are running all the time. So next question. Please.

Albert Bourla: Thank you very much. Next question -- we'll take two more questions because we are running out of time. So, next question, please.

Tim Anderson: We'll take two more questions because we are running out of time. So next question, please. Thank you. We'll take our next question from Tim Anderson with Wolf Research. Your line is open, team. Yeah. Can you hear me?

We'll take two more questions because we are running out of time. So next question, please.

Operator: Thank you. We'll take our next question from Tim Anderson with Wolfe Research. Your line is open.

Speaker Change #114: Thank you we'll take our next question from Tim Anderson with Wolfe Research.

Albert Bourla: Tim?

Tim Anderson: Your line is open.

Thank you. We'll take our next question from Tim Anderson with Wolfe Research. Your line is open, team. Yeah. Can you hear me?

Operator: Thank you. We'll take our next question from Tim Anderson with Wolfe Research. Your line is open.

Tim Anderson: Yeah. Can you hear me?

Speaker Change: Tim.

Speaker Change: Yeah.

Albert Bourla: Yes.

Tim Anderson: Yeah. It's a busy pipeline readout year. I'm wondering, Mikael, can you just point to perhaps the one or two bigger upcoming readouts that excite you the most where your confidence is highest that could be value-creating? I'm not looking for a description of everything you're reading out, just maybe one or two that excite you the most.

open, team. Yeah. Can you hear me?

open,

Tim Anderson: Can you hear me.

team. Yeah. Can you hear me?

Albert Bourla: Tim?

Tim Anderson: Yeah. Can you hear me?

Speaker Change: Okay.

Tim Anderson: Yeah, so it's a busy pipeline readout year. I'm wondering, Michael, can you just point to perhaps the one or two bigger upcoming readouts that excite you the most, where your confidence is highest, that could be value creating? So I'm not looking for a description of everything you're reading out, just, I'm going to give you one or two that are...

Albert Bourla: Yes.

Tim: Yeah. So it's a busy pipeline readout year I'm wondering Michael can you just point to perhaps the one or two bigger upcoming readouts that excite you. The most where your confidence is higher so it could be value, creating so I'm not looking for a description of everything you are reading out just.

Tim Anderson: Yeah. So, it's a busy pipeline readout year. I'm wondering, Mikael, can you just point to perhaps, the one or two bigger upcoming readouts that excite you the most, where your confidence is high as that could be value-creating? So, I'm not looking for a description of everything you're reading out, just maybe one or two that excite you the most.

Michael: Maybe one or two that excite you the most.

Albert Bourla: Thank you. Mike? Excited for us to follow, please.

Michael Dolsten: Thank you. Mike, excite us all. Yeah. I am excited about the potential approval for mastasimab for both Immokia and B to continue to grow our hematology franchise momentum. D&D gene therapy, we actually today got the equivalent of breakthrough designation R-MAP, based on the early clinical data available. So we are super excited about that. Relatively near term, the readout is coming. COVID flu combination vaccine, 1859 readout.

Albert Bourla: Thank you. Mike, excite us all.

Speaker Change #101: Thank you so excited.

Mikael Dolsten: Yeah. Yeah. I'm excited about the potential approval for Marstacimab for both hemophilia A and B to continue to grow our hematology franchise momentum.

Speaker Change #122: First of all.

Speaker Change #101: Yeah.

Yeah. I am excited about the potential approval for MARSTACIMAB, for both hemophilia A and B, to continue to grow our hematology franchise momentum. DMD gene therapy, we -- actually, today, got the equivalent of breakthrough designation RMAT, based on the early clinical data available. So, we are super excited about that. Relatively near-term, the readout is coming. COVID/Flu combination vaccine, 18-59 readout, Phase III. And then, one mid-pipeline -- PONSEGROMAB cachexia, which I think pending readout, has really a breakthrough mechanism. That's fantastic. And anything from your side, Chris? Perhaps just to mention again the potential unprecedented new five-year data for Lorbrena, which will be presented oral at AFSCO, and which could define the growth of Lorbrena over the next decade. There's two other upcoming readouts. That would be good if you are talking about, and there's two other, and readout that's important to us. The one is Breakwater, which is the first-line opportunity in BRAF positive colorectal cancer. Reminder that that's up to 12% of colorectal cancer. It's a particularly poor prognosis, so we're looking forward to that readout, Breakwater. And then also, as mentioned earlier, Veritac2 in second-line ER-positive breast cancer, which can define, also help to define the future path for breast cancer.

Mikael Dolsten: Yeah. I am excited about the potential approval for MARSTACIMAB, for both hemophilia A and B, to continue to grow our hematology franchise momentum. DMD gene therapy, we -- actually, today, got the equivalent of breakthrough designation RMAT, based on the early clinical data available. So, we are super excited about that. Relatively near-term, the readout is coming. COVID/Flu combination vaccine, 18-59 readout, Phase III. And then, one mid-pipeline -- PONSEGROMAB cachexia, which I think pending readout, has really a breakthrough mechanism.

Speaker Change #101: Yeah.

Speaker Change #101: I'm excited about.

Tim: Potential approval foremost thoughts of Madden for both hemophilia, a and B is to continue to grow our hematology franchise momentum.

Albert Bourla: D&D gene therapy, we actually today got the equivalent of breakthrough designation, ARMET, based on the early clinical data available. We are super excited about that. Relatively near term, the readout is coming. COVID flu combination vaccine, 8 to 59 readout, phase three. One mid-pipeline, Ponsegromab cachexia, which I think pending readout has really a breakthrough mechanism. That's fantastic. Anything from your side, Chris? Perhaps just to mention again the potential unprecedented new five-year data for Lorbrena, which will be presented oral at ASCO. We could define the growth of Lorbrena over the next decade. There are two other upcoming readouts. That's good if you're talking to that enthusiastically. There are two other readouts that are important to us. The one is Breakwater, which is the first-line opportunity in BRAF positive colorectal cancer. Reminder that that's up to 12% of colorectal cancer, particularly poor prognosis.

D&D gene therapy, we actually today got the equivalent of breakthrough designation, RMAT, based on the early clinical data available. We are super excited about that. Relatively near term, the readout is coming. COVID flu combination vaccine, 8 to 59 readout, phase III. One mid-pipeline, ponsegromab cachexia, which I think pending readout has really a breakthrough mechanism.

Tim: DMD gene therapy.

Tim: Actually today, the Cleveland or breakthrough designation are met.

Tim: Just on the.

Tim: The early clinical data available. So we are super excited about that.

Tim: Yes.

Tim: Relatively near term the Readouts is coming.

Tim: Colby flu combination vaccine Athens, 59 readout phase.

Michael Dolsten: Phase III, and then one mid-pipeline, Ponsegrum abdica kexia, which I think, pending readout, has really a breakthrough mechanism. That's fantastic. And anything from your side, Chris? Perhaps just to mention again the potential unprecedented new five-year data for Lorbrena, which will be presented oral at AFSCO, and which could define the growth of Lorbrena over the next decade. There's two other upcoming readouts. That would be good if you are talking about, and there's two other, and readout that's important to us.

Tim: Phase III, and then well need.

That's fantastic. And anything from your side, Chris? Perhaps just to mention again the potential unprecedented new five-year data for Lorbrena, which will be presented oral at AFSCO, and which could define the growth of Lorbrena over the next decade. There's two other upcoming readouts. That would be good if you are talking about, and there's two other, and readout that's important to us. The one is Breakwater, which is the first-line opportunity in BRAF positive colorectal cancer. Reminder that that's up to 12% of colorectal cancer. It's a particularly poor prognosis, so we're looking forward to that readout, Breakwater. And then also, as mentioned earlier, Veritac2 in second-line ER-positive breast cancer, which can define, also help to define the future path for breast cancer.

Albert Bourla: That's fantastic. And anything from your side, Chris?

Tim: Pipeline on <unk>, which I think.

Perhaps, just to mention again the potential unprecedented new five-year data for LORBRENA, which will be presented [inaudible] at ASCO, which could define the growth of LORBRENA over the next decade. There's two other upcoming readouts -- Must be good if you are talking to that quite enthusiastically. and there's two other, and readout that's important to us. The one is Breakwater, which is the first-line opportunity in BRAF positive colorectal cancer. Reminder that that's up to 12% of colorectal cancer. It's a particularly poor prognosis, so we're looking forward to that readout, Breakwater. And then also, as mentioned earlier, Veritac2 in second-line ER-positive breast cancer, which can define, also help to define the future path for breast cancer.

Chris Boshoff: Perhaps, just to mention again the potential unprecedented new five-year data for LORBRENA, which will be presented [inaudible] at ASCO, which could define the growth of LORBRENA over the next decade. There's two other upcoming readouts --

Tim: Pending readout.

Tim:

Albert Bourla: That's fantastic. Anything from your side, Chris?

Tim: Breakthrough medicines.

Speaker Change #104: So it's not about anything from your side, Chris and.

Chris Boshoff: Perhaps just to mention again the potential unprecedented new five-year data for LORBRENA, which will be presented oral at ASCO. We could define the growth of LORBRENA over the next decade. There are two other upcoming readouts.

Speaker Change #104: That's just to mention again, the potential unprecedented new five year data polo brand, which will be presented to automotive.

Must be good if you are talking to that quite enthusiastically. and there's two other, and readout that's important to us. The one is Breakwater, which is the first-line opportunity in BRAF positive colorectal cancer. Reminder that that's up to 12% of colorectal cancer. It's a particularly poor prognosis, so we're looking forward to that readout, Breakwater. And then also, as mentioned earlier, Veritac2 in second-line ER-positive breast cancer, which can define, also help to define the future path for breast cancer.

Albert Bourla: Must be good if you are talking to that quite enthusiastically.

Speaker Change #104: And define the growth outlook over the next decade, there's two other upcoming readout goods. If you are talking about Brazil.

Chris Boshoff: And there's two other readouts that's important to us. The one is BREAKWATER, which is the first-line opportunity in BRAF-positive colorectal cancer -- reminder that that's up to 12% of colorectal cancer. It's a particularly poor prognosis so, we're looking forward to that readout, BREAKWATER. And then also, as mentioned earlier, VERITAC-2 in second-line ER-positive breast cancer, which can define -- also help to define the future path for VEPDEGESTRANT.

Albert Bourla: That's good if you're talking to that enthusiastically.

Chris Boshoff: There are two other readouts that are important to us. The one is Breakwater, which is the first-line opportunity in BRAF positive colorectal cancer. Reminder that that's up to 12% of colorectal cancer, particularly poor prognosis.

Speaker Change #104: Two other.

Speaker Change #104: <unk> readouts that are important to us the one bright water, which is the first line opportunity in BRAF positive colorectal cancer reminded that thats up to 12% of colorectal cancer, particularly poor prognosis that we are looking forward to that readout and breakwater and then also as mentioned earlier <unk> two in second line <unk> positive breast cancer.

Michael Dolsten: The one is Breakwater, which is the first-line opportunity in BRAF positive colorectal cancer. Reminder that that's up to 12% of colorectal cancer. It's a particularly poor prognosis, so we're looking forward to that readout, Breakwater. And then also, as mentioned earlier, Veritac2 in second-line ER-positive breast cancer, which can define, also help to define the future path for breast cancer.

Albert Bourla: We're looking forward to that readout, Breakwater. As mentioned earlier, Veritact II in second-line positive breast cancer, which can help to define the future path for Vyndaqel breast. Thank you very much. The last question, please. Thank you. Our last question will come from Steve Scala with TD Cowen. Your line is now open. Thank you. I have two questions. In the Pfizer mRNA flu vaccine efficacy trial, was superior efficacy versus approved flu vaccine shown in the 65-plus cohort? This data was to have been presented last year, but I don't believe we've ever gotten an update. Secondly, your interest in obesity more broadly. The outlook for Danoglipron is not good. Boltons don't look likely. This is just one very simple data point. There are postings on pfizer.com for obesity clinical lead positions, suggesting something is moving forward.

We're looking forward to that readout, Breakwater. As mentioned earlier, VERATEC 2 in second-line positive breast cancer, which can help to define the future path for VYNDAQEL.

Speaker Change #104: You can define also helped to define the future.

Albert Bourla: Thank you very much. The last question, please.

Speaker Change #104: Okay.

Chris Boshoff: Thank you very much. And the last question. Thank you. Our last question will come from Ski Scala with TD Cowan. Your line is now open. Thank you. I have two questions.

Albert Bourla: Thank you very much. And the last question, please.

Speaker Change #106: Thank you very much and the last question. Please.

Operator: Thank you. Our last question will come from Steve Scala with TD Cowen. Your line is now open.

Thank you. Our last question will come from Ski Scala with TD Cowan. Your line is now open. Thank you. I have two questions.

Operator: Thank you. Our last question will come from Steve Scala with TD Cowen. Your line is now open.

Speaker Change #106: Thank you our last question will come from Steve Scala with TD Cowen. Your line is now open.

Steve Scala: Thank you. I have two questions. In the Pfizer mRNA flu vaccine efficacy trial, was superior efficacy versus approved flu vaccine shown in the 65+ cohort? This data was to have been presented last year, but I don't believe we've ever gotten an update. Secondly, your interest in obesity more broadly. The outlook for danuglipron is not good. Boltons don't look likely. This is just one very simple data point. There are postings on pfizer.com for obesity clinical lead positions, suggesting something is moving forward.

Steve Scala: Thank you. I have two questions. In the Pfizer mRNA flu vaccine efficacy trial, was superior efficacy versus approved flu vaccine shown in the 65-plus cohort? This data was to have been presented last year but I don't believe we've ever gotten an update. And then secondly, your interest in obesity, more broadly. So, the outlook for DANUGLIPRON is not good, bolt-ons don't look likely but -- and this is just one very simple data point. There are postings on Pfizer.com for obesity clinical lead positions suggesting something is moving forward. So, what exactly is moving forward in obesity at Pfizer? Thank you.

Stephen Michael Scala: In the Pfizer mRNA flu vaccine efficacy trial, was superior efficacy versus approved flu vaccine shown in the 65-plus cohort? This data was to have been presented last year, but I don't believe we've ever gotten an update. And then secondly, your interest in obesity more broadly. So the outlook for danuglipron is not good. Boltons don't look likely.

Steve Scala: I have two questions in the Pfizer mrna flu vaccine efficacy trial. It was superior efficacy versus approved flu vaccine shown in the 65 plus cohort.

Steve Scala: Data was to have been presented last year, but I don't believe we've ever gotten an update and then secondly, your interest in obesity more broadly so the outlook for Daniel Glib, Brian is not good bolt ons don't look likely but and this is just one very simple data point, there our postings on Pfizer dot com for obese.

Stephen Michael Scala: But, and this is just one very simple data point. There are postings on Pfizer.com for obesity clinical lead positions suggesting something is moving forward. So what exactly is moving forward in obesity at Pfizer? Thank you. Yes.

But, and this is just one very simple data point. There are postings on Pfizer.com for obesity clinical lead positions suggesting something is moving forward. So what exactly is moving forward in obesity at Pfizer? Thank you.

Speaker Change #106: CD clinical lead position, suggesting something is moving forward. So what exactly is moving forward in obesity advisor. Thank you.

Albert Bourla: What exactly is moving forward in obesity at Pfizer? Thank you. On the obesity end, Michael also can comment, of course, together with the mRNA flu vaccine. I said multiple times that, first of all, metabolic is an area that we took traditionally very big strength in terms of research. This is an area that we have the right to win. We are strong, and we keep investing in the whole area because we have the infrastructure. Obesity is a very big part of it, given the magnitude of the market. We will be very active in obesity with current mechanisms of actions and new mechanisms of actions. We said repeatedly that we had three agents right now in the clinic, and we have multiple that are preclinical that we are progressing.

What exactly is moving forward in obesity at Pfizer? Thank you.

Albert Bourla: On the obesity end, Mikael also can comment, of course, together with the mRNA flu vaccine. I said multiple times that, first of all, metabolic is an area that we took traditionally very big strength in terms of research. This is an area that we have the right to win. We are strong, and we keep investing in the whole area because we have the infrastructure. Obesity is a very big part of it, given the magnitude of the market. We will be very active in obesity with current mechanisms of actions and new mechanisms of actions. We said repeatedly that we had three agents right now in the clinic, and we have multiple that are preclinical that we are progressing.

Yes. On the obesity end, Mikael also can comment, of course, together with the mRNA flu vaccine. But I said multiple times that, first of all, metabolic is an area that takes, traditionally, very big strength in terms of research. And this is an area that we have the right to win. So, we are strong and we keep investing in the whole area because we have the infrastructure. And obesity is a very big part of it, given the magnitude of the market. So, we will be very active in the obesity with current mechanism of actions and new mechanism of action. We said repeatedly that we had three agents right now in the clinic and we have multiple that are pre-clinical and that we are progressing. But we don't have anything to say, per se, right now because on that, we are waiting. Some other data and for the other ones, it's too early to speak about them. So, that's why we are not commenting much of that. And we will, let's say, continue being very active in the obesity space one way or another. Now, what about the mRNA flu vaccine? I think you want to add also to the obesity, Mike. I think you said it so well on obesity.

Albert Bourla: Yes. On the obesity end, Mikael also can comment, of course, together with the mRNA flu vaccine. But I said multiple times that, first of all, metabolic is an area that takes, traditionally, very big strength in terms of research. And this is an area that we have the right to win. So, we are strong and we keep investing in the whole area because we have the infrastructure. And obesity is a very big part of it, given the magnitude of the market. So, we will be very active in the obesity with current mechanism of actions and new mechanism of action.

Albert Bourla: On the obesity end, Michael also can comment, of course, together with the mRNA flu vaccine. But I said multiple times that, first of all, metabolic is an area that we take traditionally very big strength, and this is an area that we have the right to win so we are strong and we keep investing in the whole area because we have the infrastructure and obesity is a very big part of it given the magnitude of the market so we will be very active in the obesity with current mechanism of actions and new mechanism of action, We said repeatedly that we had three agents right now in the clinic and we have multiple that are preclinical and that we are progressing.

Speaker Change #106: On the obesity and Michael also can comment of course, together with mrna flu vaccine, but.

Speaker Change #115: I see.

Speaker Change #106: Multiple times, so first of all Mr. Pollack is an area about the fixed traditionally very big strength.

Speaker Change #106: Sure.

Speaker Change #106: And these scenarios.

Speaker Change #124: So we are.

Speaker Change #124: Stronger to keep investing in the whole area because of the type of infrastructure and obesity is a very big.

Speaker Change #106: Given the market the market so we would be very.

Speaker Change #106: We've got a mechanism of action is that new mechanism of action.

Speaker Change #106:

We said repeatedly that we had three agents right now in the clinic and we have multiple that are pre-clinical and that we are progressing. But we don't have anything to say, per se, right now because on that, we are waiting. Some other data and for the other ones, it's too early to speak about them. So, that's why we are not commenting much of that. And we will, let's say, continue being very active in the obesity space one way or another. Now, what about the mRNA flu vaccine? I think you want to add also to the obesity, Mike.

Speaker Change #106: We've had three exits right now either.

Albert Bourla: But we don't have anything to say, per se, right now because on that you are waiting for some other data and for the other ones it's too early to speak about them. So that's why we are not recommending much of that.

Speaker Change #106: Multiple.

Speaker Change #106: And I'll bring tunica.

Albert Bourla: We don't have anything to say per se right now because on Danu, we are waiting some of the data. For the other ones, it's too early to speak about them. That's why we are not commenting much on that. We will, let's say, continue being very active in the obesity space one way or another. Now, what about the mRNA flu vaccine? Anything you want to add also to the obesity, Michael? I think you said it so well on obesity. I'll focus on the mRNA vaccine and just say that we did share that we had very robust, favorable data for 18 to 59 in the outcome event trial on the first-generation flu mRNA platform. We actually further refined that product in order to expand activity against these serotypes, although the disease is dominated by A. We saw an opportunity to do that.

Speaker Change #106: We are progressing, but we don't have anything to say per.

We don't have anything to say per se right now because on Danu, we are waiting some of the data. For the other ones, it's too early to speak about them. That's why we are not commenting much on that. We will, let's say, continue being very active in the obesity space one way or another. Now, what about the mRNA flu vaccine? Anything you want to add also to the obesity, Mikael?

Speaker Change #106: Let's say right now because I'm dying to outweigh some of the data and the other ones is literally just think about them. So that's why you are not muscle.

Speaker Change #106: And we will let's say continue being very active in the obesity space, one way or no no no.

Michael Dolsten: And we will, let's say, continue being very active in the obesity space one way or another. Now, what about the mRNA flu vaccine? And I think you want to add also to the obesity mic. I think you said it so well on obesity.

Speaker Change #106: What is it about the.

Speaker Change #106: The mrna vaccine.

Speaker Change #106: We had also for your business.

I think you said it so well on obesity. I'll focus on mRNA vaccine and just say that, you know, we did share that we had a very robust payable data for 18 to 59 in the outcome event trial on the first-generation, flu mRNA platform. We actually further refined that product in order to expand activity against these serotypes. Although the disease is dominated by A, we saw an opportunity to do that. And that technology is now with the COVID/Flu combo vaccine, running for 18 to 59 years old and relatively soon, we'll have a readout. We think that's really the near-term opportunity to bring both of the variant viruses under one simple administration approach. For the 65 plus, what you referred to was an early trial with the first-generation. We have now moved focus to the second-generation and are in preparation of subsequent clinical studies on that.

Mikael Dolsten: I think you said it so well on obesity. I'll focus on mRNA vaccine and just say that, you know, we did share that we had a very robust payable data for 18 to 59 in the outcome event trial on the first-generation, flu mRNA platform. We actually further refined that product in order to expand activity against these serotypes. Although the disease is dominated by A, we saw an opportunity to do that.

Mikael Dolsten: I think you said it so well on obesity. I'll focus on the mRNA vaccine and just say that we did share that we had very robust, favorable data for 18 to 59 in the outcome event trial on the first-generation flu mRNA platform. We actually further refined that product in order to expand activity against these serotypes, although the disease is dominated by A. We saw an opportunity to do that.

Speaker Change #125: I think you said it so well on obesity I'll focus on mrna vaccine than just say that.

Michael Dolsten: I'll focus on the MRNA vaccine and just say that, you know, we did share that we had a very robust payable data for 18 to 559 in the outcome event trial on the first generation, flu mRNA platform. We actually further refined that product in order to expand activity against these serotypes. Although the disease is dominated by A, we saw an opportunity to do that. And that technology is now with the COVID flu combo vaccine running for 18 to 59 years old.

Speaker Change #106: We did share that we had a very robust pivotal data for <unk> nine.

Speaker Change #106: Column events try on deposit generation.

Speaker Change #106: Flu mrna platform, we're actually.

Speaker Change #106: Our refined.

Speaker Change #106: Product in order to expand.

Speaker Change #106: Activity against these serotypes, although the disease is dominated by a.

And that technology is now with the COVID/Flu combo vaccine, running for 18 to 59 years old and relatively soon, we'll have a readout. We think that's really the near-term opportunity to bring both of the variant viruses under one simple administration approach. For the 65 plus, what you referred to was an early trial with the first-generation. We have now moved focus to the second-generation and are in preparation of subsequent clinical studies on that.

Speaker Change #111: So an opportunity to do that.

Albert Bourla: That technology is now with the COVID flu combo vaccine running for 18 to 59 years old. Relatively soon, we'll have a readout. We think that's really the near-term opportunity to bring both of the variants of viruses under one simple administration approach. For the 65-plus, what you referred to was an early trial with the first generation. We have now moved focus to the second generation and are in preparation of subsequent clinical studies on them. Thank you, Michael. Thank you, operator, and thank you, everyone, for your interest. That was a very good call in summary. We are very pleased with the solid start in 2024. We are cautiously optimistic about the year ahead, and with our continued progress in executing our five priorities, we are confident that we will continue to deliver for our patients, shareholders, and our company.

That technology is now with the COVID flu combo vaccine running for 18 to 59 years old. Relatively soon, we'll have a readout. We think that's really the near-term opportunity to bring both of the variants of viruses under one simple administration approach. For the 65+, what you referred to was an early trial with the first generation. We have now moved focus to the second generation and are in preparation of subsequent clinical studies on them.

Speaker Change #111: And that technology is not with the Covid flu combo vaccine broadening for 18 to 59 years old and relatively soon we will have a readout, we think thats really the near term opportunity to bring both of the variance.

Michael Dolsten: And relatively soon we'll have a readout. We think that's really the near-term opportunity to bring both of the variant viruses under one simple administration approach. For the 65 plus, What you referred to was an early trial with the first generation.

Speaker Change #111: Services under one simple administration approach.

Speaker Change #111: The 65 plus.

Speaker Change #111: What do you refer to was early trial with the first generation. We have now moved focus through the second generation and are in preparation of some.

Michael Dolsten: We have now moved focus to the second generation and are in preparation of subsequent clinical studies. Thank you, Michael. So, thank you, operator, and thank you, everyone, for your interest. That was a very good call.

We have now moved focus to the second generation and are in preparation of subsequent clinical studies.

Albert Bourla: Thank you, Mikael. So thank you, operator and thank you, everyone, for your interest. That was a very good call.

Speaker Change #111: Sequent clinical starting something.

Albert Bourla: Thank you, Mikael. Thank you, operator, and thank you, everyone, for your interest. That was a very good call in summary. We are very pleased with the solid start in 2024. We are cautiously optimistic about the year ahead, and with our continued progress in executing our five priorities, we are confident that we will continue to deliver for our patients, shareholders, and our company.

Speaker Change #121: Thank you Michael so thank you operator, and thank you everyone for your interest.

Albert Bourla: In summary, we are very pleased with a solid start in 2024. We are cautiously optimistic about the year ahead. And with our continued progress in executing our five priorities, we are confident that we will continue to deliver for our patients, shareholders and our company. Thank you again for your interest in Pfizer and we hope you have a wonderful week. Thank you. Thank you. This does conclude today's program. Thank you for your participation.

In summary, we are very pleased with a solid start in 2024. We are cautiously optimistic about the year ahead. And with our continued progress in executing our five priorities, we are confident that we will continue to deliver for our patients, shareholders and our company. Thank you again for your interest in Pfizer and we hope you have a wonderful week. Thank you.

Speaker Change #117: A very good quarter in summary, we are very pleased with the solid start in 2024, we are cautiously optimistic about the year ahead.

Speaker Change #116: With our continued progress in executing our five priorities. We are confident that we will continue to deliver for our patients shareholders and our company. Thank you again for your interest in Pfizer and we hope you'll.

Albert Bourla: Thank you again for your interest in Pfizer. We hope you have a wonderful week. Thank you. Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful day.

Thank you again for your interest in Pfizer. We hope you have a wonderful week. Thank you.

Operator: Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful day.

Speaker Change #119: Wonderful thank you.

Operator: Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time and have a wonderful day.

Albert Bourla: You may disconnect at any time and have a wonderful day. [inaudible] 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 EZH2, Comirnaty, Opdivo, CDK6, GBT601, [inaudible] Thank you for watching! [inaudible]

You may disconnect at any time and have a wonderful day.

Speaker Change #123: Thank you. This does conclude today's program. Thank you for your participation you may disconnect at any time and have a wonderful day.

[inaudible] 1 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 EZH2, Comirnaty, Opdivo, CDK6, GBT601, [inaudible] Thank you for watching! [inaudible]

Speaker Change #123: Okay.

Speaker Change #119: [music].

Speaker Change #119: Hum.

Speaker Change #119: [music].

Speaker Change #119: Yes.

Speaker Change #119: [music].

Speaker Change #119: Okay.

Speaker Change #119: [music].

Speaker Change #119: Yeah.

Speaker Change #119:

Speaker Change #119: Hum.

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