Q2 2024 Pfizer Inc Earnings Call

July 30, 2024

Speaker Change: [music].

Good day, everyone and welcome to Pfizer's second quarter 'twenty 'twenty four earnings conference call today's call is being recorded.

Operator: Hello everyone, and welcome to Pfizer's second 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.

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.

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 second 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.

Good morning, and welcome to Pfizer's earnings call I'm, French Husky Marciano, 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 Dot com.

Francesca Demartino: On behalf of the Pfizer team, thank you for joining us. This call is being made available via audio webcast at www.pfizer.com. Earlier this morning, we released our results for the second 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.

Earlier. This morning, we released our results for the second 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.

Albert and Dave have some prepared remarks, and we will then open the call for questions joining.

Francesca DeMartino: Joining us for the Q&A session are 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 [inaudible] non-GAAP financial measures, I encourage you to read the disclaimers in our slide presentation, the press release we issued this morning, and the disclosures in our SEC filings, which are all available on the IR website at Pfizer.com.

Joining for the Q&A session. We also have Dr. Chris Basho, 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 like learn EVP, and general counsel and a mere Malik EVP and Chief U S commercial officer.

Francesca DeMartino: 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.

Encourage you to read the disclaimers in our slide presentation. The press release, we issued this morning and the disclosures in our SEC filings, which are all available on the IR website on Pfizer Dot com.

Forward looking statements on the 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 the statements with that I will turn the call over to Albert.

Albert Bourla: Thank you, Francesca. Good morning, everyone. We are pleased to report that we had a strong first half of the year, and our business is performing well. We drove progress in the second quarter with solid execution as we continue making a difference in the lives of patients around the world. Through the first six months of 2024, we reached more than 192 million patients with our medicine. Today I will provide updates about how we continue advancing our key strategic priorities in the second quarter. I will also mention examples from just the past few weeks when we achieved a series of regulatory approvals, pipeline advances, and other positive developments that we expect to fuel our progress through the rest of the year. We are pleased with the strong financial results coming from our disciplined execution. In the second quarter, for example, we achieved year-over-year revenue growth for the first time since the fourth quarter of 2022, when our COVID revenues decreased. I like to speak. Today, we'll talk about the recent additional aspects of our financial performance, as well, of course, our outcomes, and then we will pay. But before we go further...

Albert Bourla: Thank you, Francesca, good morning, everyone. We are pleased to report that we had a strong first half of the year, and our business is performing well. We drove progress in the second quarter with solid execution as we continue making a difference in the lives of patients around the world. Through the first six months of 2024, we reached more than 192 million patients with our medicines and vaccines. Today I will provide updates about how we continue advancing our key strategic priorities in the second quarter.

Francesca Cook with wanting to everyone. We are pleased to report that we had a strong first half of the year and our business is performing well.

We drove progress in the second quarter with solid execution.

We continue making a difference in the lives of patients around the world.

Speaker Change: Through the first six months of 2020 total you reached more than 92 million patients with our medicines and vaccines.

Albert Bourla: Today I will provide updates about how we continue advancing our key strategic priorities in the second quarter. I will also mention examples from just the past few weeks when we achieved a series of regulatory approvals, pipeline advances, and other positive developments that we expect to fuel our progress through the rest of the year. We are pleased with the strong financial results coming from our disciplined execution. In the second quarter, for example, we achieved year-over-year revenue growth for the first time since the fourth quarter of 2022, when our COVID revenues decreased. I like to speak. Today, we'll talk about the recent additional aspects of our financial performance, as well, of course, our outcomes, and then we will pay. But before we go further...

Today I will provide updates about how we continue advancing our key strategic priority or do you think the second part.

We also mentioned examples from just the past few weeks when we have achieved a series of regulatory approvals pipeline advances and other positive developments that we expect to fuel our progress through the rest of the week here.

Albert Bourla: I will also mention examples from just the past few weeks when we achieved a series of regulatory approvals, pipeline advances, and other positive developments that we expect to fuel our progress through the rest of the year. We are pleased with the strong financial results coming from our disciplined execution. In the second quarter, for example, we achieved year-over-year revenue growth for the first time since the fourth quarter of 2022, when our COVID revenues decreased. I like to speak. Today, we'll talk about the recent additional aspects of our financial performance, as well, of course, our outcomes, and then we will pay. But before we go further...

Albert Bourla: I will also mention examples from just the past few weeks when we have achieved a series of regulatory approvals, pipeline advances, and other positive developments that we expect to fuel our progress through the rest of the year. We are pleased with the strong financial results coming from our disciplined execution. In the second quarter, for example, we achieved year-over-year revenue growth for the first time since the fourth quarter of 2022, when our COVID revenues decreased [inaudible]

We are pleased with the strong financial results coming from our disciplined execution.

In the second part of it for example, we achieved year over year revenue growth for the first time since the fourth quarter of 2022.

When all corporates are never used to get the rates.

I speak.

Albert Bourla: I like to speak. Today, we'll talk about the recent additional aspects of our financial performance, as well, of course, our outcomes, and then we will pay. But before we go further...

Albert Bourla: I like to speak.

Dave will talk about the recent additional aspect of all quite nice outperformance as well of course Oh.

Albert Bourla: Today, we'll talk about the recent additional aspects of our financial performance, as well, of course, our outcomes, and then we will pay. But before we go further... I will touch on some recent announcements about our leadership team on board Eureka. I'll start with Michael Dolsten's coming department. It's hard to find words that do justice to the substantial impact Michael has had during his 15-year tenure at Pfizer. Michael transformed our R&D engine, ultimately delivering 35 approvals that have been meaningful for millions of patients globally. I thank my colleague and my friend for his tremendous contributions to human health. I look forward to working closely with him over the coming months as we search for his success. Until then, Michael will continue to lead as our Chief Scientific Officer and President of Pfizer Research and Development. I want to welcome Andrew Boe, our new Chief Professor at the University of New York. Andrew brings deep clinical, scientific, and biopharmaceutical sector expertise, and we are fortunate to have him to help shape and guide our strategy. Andrew is not able to join us today because he is relocating with his family to the United States.

Albert Bourla: Today, we'll talk about the recent additional aspects of our financial performance, as well, of course, our outlook, and then we will take questions. Before we go further, I will touch on some recent announcements about our leadership team and Board of Directors, I'll start with Michael Dolsten's coming departure. It's hard to find words that do justice to the substantial impact Michael has had during his 15-year tenure at Pfizer, Michael transformed our R&D engine, ultimately delivering 35 approvals that have been meaningful for millions of patients globally, I thank my colleague and my friend for his tremendous contributions to human health.

And then we will take questions.

Before we go further.

Albert Bourla: I will touch on some recent announcements about our leadership team on board Eureka. I'll start with Michael Dolsten's coming department. It's hard to find words that do justice to the substantial impact Michael has had during his 15-year tenure at Pfizer. Michael transformed our R&D engine, ultimately delivering 35 approvals that have been meaningful for millions of patients globally. I thank my colleague and my friend for his tremendous contributions to human health.

I will touch on some recent announcements about our leadership team and board of directors.

I'll start with Michael dogs things coming to the park.

It's hard to find wards that do justice to the substantial Michael said during his 15 year tenure at twice.

Michael transformed our R&D engine.

Timothy delivering 35 approvals that have been meaningful for millions of patients.

Patients globally.

Alright, Thank my colleague and nice correct for this tremendous contributions to humans.

Albert Bourla: I look forward to working closely with him over the coming months as we search for his success. Until then, Michael will continue to lead as our Chief Scientific Officer and President of Pfizer Research and Development. I want to welcome Andrew Boe, our new Chief Professor at the University of New York. Andrew brings deep clinical, scientific, and biopharmaceutical sector expertise, and we are fortunate to have him to help shape and guide our strategy. Andrew is not able to join us today because he is relocating with his family to the United States. She will be with us for future coverage. I also want to mention there is the addition of Cyrus Taraporevalla to our board. We are committed to strong governance supported by directors with a breadth of unique experiences and skills. Disrupting Lifestyles, Cyrus was president here at State Street Global Advisors until he retired two years ago, and he brings vast experience in investment management and financial markets.

Albert Bourla: I look forward to working closely with him over the coming months as we search for his successor, until then, Michael will continue to lead as our Chief Scientific Officer and President of Pfizer Research and Development. I want to welcome Andrew Baum, our new Chief Strategy and Innovation, Andrew brings deep clinical, scientific, and biopharmaceutical sector expertise, and we are fortunate to have him to help shape and guide our strategy. While Andrew is not able to join us today because he is relocating with his family to the United States, he will be with us for future corporate calls.

I look forward to watching closely with him over the coming months as we search for his successor.

Then Michael will continue to lead as a chief scientific officer, and President of Pfizer steps in development.

I want to welcome Andrew bolt on.

Our new chief strategy and innovation.

I'm drew brings deep clinical scientific and biopharmaceutical sector expertise and we are fortunate to have him to help shape and guide our strategies.

Why Andre is not able to join us today, because he's a co locating with his family to the United States, She will be with us for pizza coffee.

Albert Bourla: I also want to mention there is the addition of Cyrus Taraporevalla to our board. We are committed to strong governance supported by directors with a breadth of unique experiences and skills. Disrupting Lifestyles, Cyrus was president here at State Street Global Advisors until he retired two years ago, and he brings vast experience in investment management and financial markets. We are thrilled to have him joining our team. Good night, and return to your positions. The five strategic priorities we set at the beginning of the year remain unchanged. With our focus on the most important opportunities for advancing and strengthening our company, we are confident we will remain on track in 2020. In the second quarter, our colleagues moved our business forward in each strategic area. As a remainder, they are achieving world-class leadership in policy leadership, delivering the next wave of pipeline innovation.

Albert Bourla: I also want to mention there is the addition of Cyrus Taraporevala to our board. We are committed to strong governance supported by directors with a breadth of unique experiences and skills, exactly like Cyrus. Cyrus was the President of [inaudible] Global Advisors until he retired two years ago, and he brings vast experience in investment management and financial markets. We are thrilled to have him joining our board. Now I return to our performance. The five strategic priorities we set at the beginning of the year remain unchanged, with our focus on the most important opportunities for advancing and strengthening our company, we are confident we will remain on track in 2024.

Albert Bourla: She will be with us for future coverage. I also want to mention there is the addition of Cyrus Taraporevalla to our board. We are committed to strong governance supported by directors with a breadth of unique experiences and skills. Disrupting Lifestyles, Cyrus was president here at State Street Global Advisors until he retired two years ago, and he brings vast experience in investment management and financial markets.

I also want to mention the recent addition of sorry, Oh, sorry, It was set up for a vote to our board.

We are committed to some government supported by direct goes with brad's unique experiences skills exactly like science.

Albert Bourla: We are thrilled to have him joining our team. Good night, and return to your positions. The five strategic priorities we set at the beginning of the year remain unchanged. With our focus on the most important opportunities for advancing and strengthening our company, we are confident we will remain on track in 2020. In the second quarter, our colleagues moved our business forward in each strategic area. As a remainder, they are achieving world-class leadership in policy leadership, delivering the next wave of pipeline innovation.

Cyrus was president and CEO at State Street Global Advisors.

He retired two years ago and he brings vast experience in investment management and not so much we are thrilled to have him joining us.

Albert Bourla: Now I return to our performance. The five strategic priorities we set at the beginning of the year remain unchanged, with our focus on the most important opportunities for advancing and strengthening our company, we are confident we will remain on track in 2024.

Now I will turn to our performance.

The five star partner already just reset at the beginning of the year remain unchanged.

With our focus on the most important opportunities for the Boston and strengthen our company.

We're confident we remain on track in 2024.

Albert Bourla: In the second quarter, our colleagues moved our business forward in each strategic area. As a reminder, they are achieving world-class oncology leadership, delivering the next wave of pipeline innovation, maximizing the performance of our new product, expanding margins by realizing our cost base and allocating capital in ways that will enhance shareholder value. We believe we are well positioned to continue creating value for our shareholders. I want to reinforce our commitment to maintaining and growing our dividends over time. And, as Dave will discuss in more detail, we are raising our full year 2024 guidance ranges for revenue and adjusted diversity earnings per share.

In the second quarter, our colleagues moved our business for work in each key strategic area is.

The remainder.

Achieving or classroom policy neither C L.

Delivering the next wave of pipeline innovation.

Albert Bourla: Maximizing the performance of our new product. We are expanding margins by realizing our cost base and allocating capital in ways that will enhance shareholder value. We believe we are well positioned to continue creating Pfizer for ourselves. I want to reinforce our commitment to maintaining and growing our dividends over time. And, as Dave will discuss in more detail, we are raising our full year 2024 guidance ranges for revenue and adjusted diversity earnings.

Speaker Change: <unk> performance of our new products expanding margins by area lighting.

Our cost base and allocating capital in ways that enhance shareholder value.

We are we believe we are well positioned to continue creating value for our shareholders I want to reinforce our commitment to maintaining and growing our dividend overtime.

And as David will discuss in more detail, we are raising our full year guidance ranges for revenue and adjusted diluted earnings per se.

Albert Bourla: Now I'll turn to our progress towards achieving the first one, world-class oncology leaders. Last year, we acted on our bold vision of combining seasonally transformative ADC medicines with Pfizer's expertise, innovation, and scale. We believe we can help people with cancer live better and longer lives and capture a differentiated opportunity to drive long-term sustainable growth for our company. At the halfway mark in 2024, we are on track to make this vision a reality, and we are pleased with the continued success of our integration. We've had high rates of quality retention, and acquired seasoned products are contributing meaningfully to our efforts. In particular, Paxos is rapidly progressing toward becoming the standard of care for patients with front-line locally advanced or metastatic urethria cancer. We are pleased with the strength of other key products across our conglomerate portfolio. Xtandi, Lorbrena, and the Raktovi-Metkovi combination, for example, continue as significant growth drivers during this phase. A robust oncology commercial performance in the first half of 2024 included full FDA approval for TIPCAC and European Medicines Agency approval for the Talzenna-Plax-Xtandi combination. We also received positive CH&T opinions for the Brasovic-Mekitovic combination and for Pfizer. The last one is a notable development because Pfizer receives royalty revenues for this product marketed in Europe by our partners.

No I was talking to our progress towards our T V.

First one was classroom technology leaders.

Last year, we actually don't Al Bolles reason of combining see this transformative a D C medicines with pfizer's expertise innovation and scale we.

Speaker Change: We believe we could help people with cancer, only better and longer lives and capture a differentiated opportunity to drive.

Long term sustainable growth for our company.

At the halfway Mark in 2020 before we are on track to make this vision a reality.

And we are pleased with the continued success of our integration.

Albert Bourla: We've had high rates of quality retention, and acquired seasoned products are contributing meaningfully to our efforts. In particular, Paxos is rapidly progressing toward becoming the standard of care for patients with front-line locally advanced or metastatic urethria cancer.

We've had high rates of colleague retention and acquired season products are contributing meaningfully to our revenues.

We've had high rates of quality retention, and acquired seasoned products are contributing meaningfully to our efforts. In particular, Paxos is rapidly progressing toward becoming the standard of care for patients with front-line locally advanced or metastatic urethria cancer. We are pleased with the strength of other key products across our conglomerate portfolio. Xtandi, Lorbrena, and the Raktovi-Metkovi combination, for example, continue as significant growth drivers during this phase. A robust oncology commercial performance in the first half of 2024 included full FDA approval for TIPCAC and European Medicines Agency approval for the Talzenna-Plax-Xtandi combination. We also received positive CH&T opinions for the Brasovic-Mekitovic combination and for Pfizer. The last one is a notable development because Pfizer receives royalty revenues for this product marketed in Europe by our partners.

Albert Bourla: We've had high rates of quality retention, and acquired seasoned products are contributing meaningfully to our efforts, in particular, PADCEV is rapidly progressing toward becoming the standard of care for patients with front-line locally advanced or metastatic urothelial cancer. We are pleased with the strength of other key products across our conglomerate portfolio. XTANDI, LORBRENA, and the BRAFTOVI+MEKTOVI combination, for example, continue as significant growth drivers during this quarter. A robust oncology commercial performance in the first half of 2024 included full FDA approval for TIVDAK and European Medicines Agency approval for the TALZENNA+XTANDI combination. We also received positive CH&T opinions for the BRAFTOVI+MEKTOVI combination and for PADCEV. The last one is a notable development because Pfizer receives royalty revenues for this product marketed in Europe by our partners.

Albert Bourla: We've had high rates of quality retention, and acquired seasoned products are contributing meaningfully to our efforts. In particular, PADCEV is rapidly progressing toward becoming the standard of care for patients with front-line locally advanced or metastatic urothelial cancer. We are pleased with the strength of other key products across our conglomerate portfolio. XTANDI, LORBRENA, and the BRAFTOVI+MEKTOVI combination, for example, continue as significant growth drivers during this quarter. A robust oncology commercial performance in the first half of 2024 included full FDA approval for TIVDAK and European Medicines Agency approval for the TALZENNA+XTANDI combination. We also received positive CH&T opinions for the BRAFTOVI+MEKTOVI combination and for PADCEV.

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Albert Bourla: We are pleased with the strength of other key products across our conglomerate portfolio. Xtandi, Lorbrena, and the Raktovi-Metkovi combination, for example, continue as significant growth drivers during this phase. A robust oncology commercial performance in the first half of 2024 included full FDA approval for TIPCAC and European Medicines Agency approval for the Talzenna-Plax-Xtandi combination. We also received positive CH&T opinions for the Brasovic-Mekitovic combination and for Pfizer. The last one is a notable development because Pfizer receives royalty revenues for this product marketed in Europe by our partners.

We are pleased with this triangle father to keep products across our oncology portfolio.

Extend the brand.

Barack Dolby Mcduffie combination for example continue as significant growth drivers during this call.

Our robust oncology commercial performance in the first half of 2024 included full FDA approval for <unk> and European Medicines agency approval for the <unk> Xenoplastic study can be nice.

We also received positive C. H M. P opinion for V, but October mcduffie combination and for parts.

Albert Bourla: The last one is a notable development because Pfizer receives royalty revenues for this product marketed in Europe by our partners, these highlights illustrate how we are already delivering breakthroughs that dramatically improve the lives of people with cancer. Of course, we are also working to develop future breakthroughs where we have the opportunity to bring the most important new therapies to patients in need. I will describe a recent pipeline highlight, starting with Obesity. Earlier this month, we announced our plans to move forward with the development of danuglipron, our oral GLP-1 receptor agonist, that is the most advanced candidate in our robust clinical and preclinical obesity pipeline. In previously reported results from the phase 2b study in obesity. The immune program demonstrated what we believe is good efficacy in its twice daily dose for cholera beat. We previously reported the maximum rate of GI adverse events across all those investigated.

Albert Bourla: The last one is a notable development because Pfizer receives royalty revenues for this product marketed in Europe by our partners. These highlights illustrate how we are already delivering breakthroughs that dramatically improve the lives of people with cancer. Of course, we are also working to develop future breakthroughs where we have the opportunity to bring the most important new therapies to patients in need. I will describe a recent pipeline highlight, starting with obesity.

The last one is not a developed because Pfizer received royalty revenues for these products marketed in Europe by our partners.

Okay.

Albert Bourla: These highlights illustrate how we are already delivering breakthroughs that dramatically improve the lives of people with cancer. Of course, we are also working to develop future breakthroughs where we have the opportunity to bring the most important new therapies to patients in need. I will describe a recent pipeline highlight, starting with Odisha.

These highlights illustrate how we are already delivering breakthroughs that dramatically improve the lives of people with cancer.

Of course, we are also working to develop excuse her breakthroughs, where we have the opportunity to bring the most important new therapies to patients in need.

I will review several recent pipeline highlights starting with obesity.

Albert Bourla: Earlier this month, we announced our plans to move forward with the development of the new people, our oral GLP-1 receptor adonis that is the most advanced candidate in our robust clinical and preclinical obesity type in previously reported results from the phase 2b study in obesity. The immune program demonstrated what we believe is good efficacy in its twice daily dose for cholera beat. We previously reported the maximum rate of GI adverse events across all those investigated.

Earlier this month, we announced our plans to move forward with development of Daniel.

Albert Bourla: Earlier this month, we announced our plans to move forward with the development of DANUGLIPRON, our oral GLP-1 receptor agonist, that is the most advanced candidate in our robust clinical and preclinical obesity pipeline. In previously reported results from the phase 2b study in obesity, DANUGLIPRON demonstrated what we believe is good efficacy in it's twice daily formulation. For tolerability, we previously reported the maximum rate of GI adverse events across all those investigated, looking at individual dose levels, in our Phase 2b, however, we observe tolerability profiles that are competitive for [inaudible] Our efforts are now focused on developing the once-a-day formulation essential to delivering a competitive oral drug. We are empowered by a pharmacokinetic study evaluating multiple modified release technologies and formulations. If strengthened or confident in potentially delivering a competitive once-daily pill, a dose level expected to be escaped. We plan to conduct those immunization studies in the second half of this year, but they are intended to inform our registration-level studies.

Oral <unk> one receptor agonist.

But he's the most advanced candidate in a robust clinical and preclinical obesity pipeline.

In previously reported results from the Phase two study in obesity, Daniel <unk> demonstrated what we believe is good efficacy in its twice daily formulation.

Tolerability, we previously reported the maximum rate of Gi adverse events across all doses investigated.

Albert Bourla: Looking at individual dose levels, in our case, however, we observe tolerability profiles that are competitive for the. Our efforts are now focused on developing the once-a-day formulation essential to delivering a competitive oral drug. We are empowered by a pharmacokinetic study evaluating multiple modified release technologies and formulations. If strengthened or confident in potentially delivering a competitive once-daily pill, a dose level expected to be escaped. We plan to conduct those immunization studies in the second half of this year, but they are intended to inform our registration-level studies.

Looking at individual dose level I've seen our face to be however, we observed tolerability profiles that are competitive for the drops.

Our efforts are now focused on developing the once daily formulation essential to delivering a competitive oral product.

Albert Bourla: We are empowered by a pharmacokinetic study evaluating multiple modified release technologies and formulations. If strengthened or confident in potentially delivering a competitive once-daily pill, a dose level expected to be escaped. We plan to conduct those immunization studies in the second half of this year, but they are intended to inform our registration-level studies. Obesity represents a growing area of patient need, and it is a key area of focus for Pfizer's R&D program, we believe this study's results, along with learnings from our previous Phase II studies and data that we have accumulated from more than 1,400 participant patients, leave us well-positioned to execute on a registration-enabling study as we work to deliver a competitive product in a rapidly-growing market. When we hosted our Oncology Innovation Day in February, we shared the pipeline milestones that would mark our success over the next year.

Albert Bourla: We are empowered by a pharmacokinetic study evaluating multiple modified release technologies and formulations. If strengthened our confidence in potentially delivering a competitive once-daily pill, a dose level expected to be escaped. We plan to conduct those immunization studies in the second half of this year, but they are intended to inform our registration-level studies. Obesity represents a growing area of patient need, and it is a key area of focus for Pfizer's R&D program, we believe this study's results, along with learnings from our previous Phase II studies and data that we have accumulated from more than 1,400 participant patients, leave us well-positioned to execute on a registration-enabling study as we work to deliver a competitive product in a rapidly-growing market.

We were encouraged by a pharmacokinetic study evaluates multi modified release technologies central new lease.

This strengthened.

Our confidence in potentially delivering a competitive once daily pill, it's always level expected to be efficacious.

We plan to conduct those are permanent and started to see the second half of this year, but are intended to fall all.

Our registration enabling studies.

Albert Bourla: Obesity represents a growing area of patient need, and it is a key area of focus for Pfizer's R&D program. We believe this study's results, along with learnings from our previous phase 2 studies and data that we have accumulated from more than 1,400 participant phases, leave us well-positioned to execute on a registration-enabling study as we work to deliver a competitive product in a rapidly-growing market. When we hosted our Oncology Innovation Day in February, we shared the pipeline milestones that would mark our success over the next year.

Obesity presents a growing aerospace and Smith MTP is a key area of focus for Pfizer's R&D program.

We believe this Dod the results along with learnings from our previous phase two studies and data we have accumulated from more than 1440 patients leave us well positioned to execute on our registration study as we work to deliver a competitive product in our op unit.

Albert Bourla: When we hosted our Oncology Innovation Day in February, we shared the pipeline milestones that would mark our success over the next year, and we are already demonstrating progress. A highlight was our strong presence at the American Society of Clinical Oncology annual meeting last month, which was anchored by three positive Phase III relapses. Follow-up data from the Phase III Crown Study of LORBRENA in patients without positive metastatic non-cell lung cancer, showed 60% of patients on LORBRENA were living beyond five years without disease progression. This strengthens LORBRENAS's position as an emerging standard of care in the front line setting.

Growing market.

When we hosted our oncology innovation day in February we started the pipeline might've storms that with Mark our success over the next year and we are already demonstrating progress.

Albert Bourla: And we are already demonstrating progress. A highlight was our strong presence at the American Society of Clinical Oncology annual meeting last month, which was anchored by three positive phase 3 relapses. Follow-up data from the Phase III Crown Study of Lorbrena in patients without positive metastatic non-cell lung cancer showed 60% of patients on Lorbrena were living beyond five years without disease progression. This strengthens Obrena's position as an emerging standard of care in the front line.

The highlight was our strong presence at the.

American Society of clinical oncology annual meeting last month.

Which was anchored by three positive phase III readouts.

Follow up data from the Phase III trial stop you from a brand name patients with <unk> positive metastatic non cell lung cancer, so 60% of patients on oral Brenda we're living beyond five years without disease progression.

Speaker Change: These strengths central Brent its position as an emerging standard of care in the frontline setting.

Albert Bourla: Data from the Phase III ECHELON-3 study of ADCETRIS in combination with LENALIDOMIDE and RITUXAN demonstrated a clinically meaningful improvement in overall survival for patients with relapsed or refractory diffuse large B-cell lymphoma, and data from a Phase III study evaluating an additional ADCETRIS combination [inaudible]. So progression-free data in patients with newly diagnosed classical Hodgkins lymphoma while significantly reducing side effects compared to the standard of care regimen used in Europe in this setting. We have advanced our oncology clinical pipeline in 2024 with Phase III studies for SIGVOTATUG VEDOTIN are Integrin beta-6 Directed-ADC, ATIRMOCICLIB, our selected CDK4 inhibitor, ELREXFIO in the second line setting in relapsed refractory multiple myeloma, and Mevromestosta are EZH2 inhibitors. We are now moving to phase three and anticipate enrollment beginning in August. We will continue working towards our 2030 oncology strategy goals of delivering eight or more blockbuster medicines and doubling the number of patients treated with our innovative cancer injection.

Data from the phase III excellent threes type of ADCETRIS in combination with Lytham.

<unk> and Rituxan demonstrated a clinically meaningful improvement in overall survival for patients with relapsed or refractory diffuse large b cell lymphoma.

Any data from phase III study evaluating an additional et cetera combination regiment, so progression free data in patients with newly diagnosed classical hodgkin lymphoma, while significantly reducing side effects compared to standard of care regimen used in Europe can be set.

Albert Bourla: We have advanced our oncology clinical pipeline in 2024. Three studies for Cignotatut vedati are Integrin Beta-6 Directed-ADC, Adrenocyte, our selected CDK4 inhibitor, Elrexfio in the second line setting in relapsed refractory multiple myeloma, and Mevromestosta are EZH2 inhibitors. We are now moving to phase three and anticipate enrollment beginning in August. We will continue working towards our 2030 oncology strategy goals of delivering eight or more blockbuster medicines and doubling the number of patients treated with our innovative cancer injection.

We have advanced our college recruiting our pipeline in 2024 with phase <unk>.

Albert Bourla: We have advanced our oncology clinical pipeline in 2024 with Phase III studies for SIGVOTATUG VEDOTIN are Integrin beta-6 Directed-ADC, ATIRMOCICLIB, our selected CDK4 inhibitor, ELREXFIO in the second line setting in relapsed refractory multiple myeloma, and MEVROMETOSTAT, our EZH2 inhibitors, plus are now moving to phase three and anticipate enrollment beginning in August. We will continue working towards our 2030 oncology strategy goals of delivering eight or more blockbuster medicines and doubling the number of patients treated with our innovative cancer medicines.

So these studies for Cigna to adopt.

Are you, taking any better six directly to ABC.

Funeral site are selective C D K 40 <unk>.

In the second line setting in relapsed refractory multiple myeloma.

And maybe one of my stuffs that are easy H, two inhibitor, which we are now moving to phase III and anticipate enrollment beginning in August.

We will continue working towards 2030, oncologists rapids at Gulfstream, delivering eight or more blockbuster medicines and doubling the number of patients treated with our innovative <unk>.

Constant mix.

Albert Bourla: We also have Momentum with our Vaccine Drop, in our next-gen PCV candidate, for example, we have advanced to a Phase II program in both adults and pediatrics, based on encouraging clinical data that we received that highlight our industry-leading capabilities in expanding [inaudible] beyond [inaudible]. We expect to be highly competitive by offering the largest serotype coverage in a single vaccine while strategically addressing the persistent medical need across invasive disease, antibiotic resistance and [inaudible] serotypes. In RSVV with ABRYSVO I'm pleased to report that yesterday we received approval for ABRYSVO Act-O-Vial presentation in the United States, a presentation that offers significant advantages, such as never-frozen, unique system-enabling, one-step reconstitution, high value by far. Additionally, we have submitted for label expansion in both the United States and Europe for adults 18 to 69. In our malignant hematology programs, we are also driving progress. Last week, we reported positive results from a phase three study demonstrating the safety and efficacy of our one-time gene therapy candidates for people with hemophilia A.

We also have momentum with our vaccine programs.

Our next Xen PCV.

<unk>, Canada for example, we have advanced to a phase II program in both adults and pediatrics based on encouraging clinical data or to receive that highlight our industry, leading capabilities and expanding the valency beyond 20 serotypes.

Speaker Change: We expect to be highly competitive.

By offering the largest serotype coverage in a single vaccine why strategically addressing the persistent medical need across invasive disease antibiotic resistance and silencing serotypes.

Albert Bourla: with A. Bristow, I'm pleased to report that yesterday we received approval for A. Bristow's acto-vial presentation in the United States, a presentation that offers significant advantages, such as never-frozen, unique system-enabling, one-step reconstruction. High value by far. Additionally, we have submitted for label expansion in both the United States and Europe for adults 18 to 69. In our malignant hematology programs, we are also driving progress. Last week, we reported positive results from a phase three study demonstrating the safety and efficacy of our one-time gene therapy candidates for people with hemophilia A.

Albert Bourla: In RSVV with ABRYSVO I'm pleased to report that yesterday we received approval for ABRYSVO Act-O-Vial presentation in the United States, a presentation that offers significant advantages, such as never-frozen, unique system-enabling, one-step reconstitution, high value by far. Additionally, we have submitted for label expansion in both the United States and Europe for adults 18 to 69.

Speaker Change: In RSV without Bruce I'm pleased to report that yesterday, we received an approval for a breakfast active Weil presentation, I mean, the United States presentation that offers significant advantages such as never frozen unique system, enabling one step requested.

Highly valued by pharmacies.

Albert Bourla: Additionally, we have submitted for label expansion in both the United States and Europe for adults 18 to 69. In our malignant hematology programs, we are also driving progress. Last week, we reported positive results from a phase three study demonstrating the safety and efficacy of our one-time gene therapy candidates for people with hemophilia A. As we continue to advance our pipeline, additional milestones include expected updates later this year about our COVID flu combination vaccine, about Mastaxima for Haemophilia A and B, and for Segroma for Catexia, a wasting disorder associated with chronic disease. Now I'll turn to our strength with the commercial. Another strategic area of focus is protecting and growing our core product portfolio while we also maximize the performance of our We continue to see encouraging progress with our teams.

Albert Bourla: Additionally, we have submitted for label expansion in both the United States and Europe for adults 18 to 69.

Speaker Change: Additionally, we have submitted for label expansion in bulk.

The space in Europe for adults 18 to 69.

Albert Bourla: In our malignant hematology programs, we are also driving progress, last week, we reported positive results from a Phase III study demonstrating the safety and efficacy of our one-time gene therapy candidates for people with hemophilia A. As we continue to advance our pipeline, additional milestones include expected updates later this year about our COVID/flu combination vaccine, about MARSTACIMAB for Haemophilia A and B, and for PONSEGROMAB for Cachexia, a wasting disorder associated with chronic disease. Now I'll turn to our strength with the commercial. Another strategic area of focus is protecting and growing our core product portfolio while we also maximize the performance of our We continue to see encouraging progress with our teams.

Our malignant hematology programs. We are also driving progress last week, we reported positive results from our phase III study, demonstrating the safety and efficacy of one times instead, if he can do that for people with hemophilia a.

Albert Bourla: As we continue to advance our pipeline, additional milestones include expected updates later this year about our COVID flu combination vaccine, about Mastaxima for Haemophilia A and B, and for Segroma for Catexia, a wasting disorder associated with chronic disease. Now I'll turn to our strength with the commercial. Another strategic area of focus is protecting and growing our core product portfolio while we also maximize the performance of our We continue to see encouraging progress with our teams.

As we continue to advance our pipeline additional milestones include expected updates later this year. The balls are copied farooq combination vaccine a bulk cmos for them are freely I E in beef and pork segregate for cachexia, a wasting disorder associated with chronic diseases.

Albert Bourla: Now I'll turn to our strength with the commercial. Another strategic area of focus is protecting and growing our core product portfolio while we also maximize the performance of our We continue to see encouraging progress with our teams.

Albert Bourla: Now I'll turn to our strength with the commercial.

Now I'll turn to our strength with the commercial execution of our business.

Albert Bourla: Another strategic area of focus is protecting and growing our core product portfolio while we also maximize the performance of our new products, we continue to see encouraging progress with our team's execution. NURTEC is an example of where we are rising to meet substantial demand, this product delivered strong results in the quarter, with 44% year-over-year global operational revenue growth. We see additional opportunities for expanding care in both acute and preventive use, as well as growth opportunities in international markets where we are making progress with our long-term goals. I hope Alexandre will be able to pass on that during the Q&A session. Now I will touch on a few additional products for Ohio. In the pediatrics segment, Prevnar-20 continues to demonstrate strong performance that reinforces a leadership position among pneumococcal vaccines in the United States, where our market share grew to greater than 80%. During this quarter, the performance of Brisbane was in line with seasonal vaccine trends. We remain confident in our full-year performance as we believe we are well positioned to help address the expected rising need later in the year among older adults at increased risk for HIV.

Another therapeutic area of focus is protecting and growing our core products portfolio. Why we also maximize the performance of our new products we.

To see encouraging progress with our team's execution.

Albert Bourla: Nurtec is an example of where we are rising to meet substantial demand. This product delivered strong results in the quarter, with 44% year-over-year global operational revenue growth. We see additional opportunities for expanding care in both acute and preventive use, as well as growth opportunities in international markets where we are making progress with our long-term goals. I hope Alexandre will be able to pass on that during the Q&A.

Speaker Change: He is an example of where we are rising to meet such as steel demand.

This product delivered strong results in the quarter with 44% year over year global operational revenue growth.

Alexander: We see additional opportunities for expanding share in both acute and preventative usage as well as growth opportunities in international markets, where we are making progress with our lumps I hope Alexander we'd be able to touch based on invested during the Q&A session.

Albert Bourla: Now I will touch on a few additional products for Ohio. In the pediatrics segment, Prevnar-20 continues to demonstrate strong performance that reinforces a leadership position among pneumococcal vaccines in the United States, where our market share grew to greater than 80%. During this quarter, the performance of Brisbane was in line with seasonal vaccine trends. We remain confident in our full-year performance as we believe we are well positioned to help address the expected rising need later in the year among older adults at increased risk for HIV.

Albert Bourla: Now I will touch on a few additional products for our highlights. In the pediatrics segment, PREVNAR-20 continues to demonstrate strong performance that reinforces a leadership position among pneumococcal vaccines in the United States, where our market share grew to greater than 80%. During this quarter, the performance of ABRYSVO was in line with seasonal vaccine trends. We remain confident in our full-year performance as we believe we are well positioned to help address the expected rise in need later in the year among older adults at increased risk for RSV. LITFULO is a product we launched last year, and we are encouraged by Suneet DeMartino. Approximately 1 out of every 2 new patients on advanced systemic therapies is receiving a LITFUL prescription, a position we expect to grow as we continue focusing on execution. We view Velcipit as a promising and much needed option for adults with moderate to severe active pulmonary colitis.

Now I will touch on a few additional product portfolio highlights.

In the pediatric segment <unk> continues to demonstrate strong performance reinforces our leadership position among pneumococcal vaccines in the United States, where all the market share grew to greater than 80%.

During this quarter the performance of our Brisbane was in line with seasonal vaccine trends, we remain confident in our full year performance as we believe we are well positioned to help address the expected the rising need later in the year among older adults at increased risk for RSV.

Albert Bourla: LITFULO is a product we launched last year, and we are encouraged by Suneet DeMartino. Approximately 1 out of every 2 new patients on advanced systemic therapies is receiving a LITFUL prescription, a position we expect to grow as we continue focusing on execution. We view Velcipit as a promising and much needed option for adults with moderate to severe active pulmonary colitis.

Let's follow up is a product we launched last year and we are encouraged by strong demand.

Albert Bourla: LITFULO is a product we launched last year, and we are encouraged by strong demand, approximately 1 out of every 2 new patients on advanced systemic therapies is receiving a LITFULO prescription, a position we expect to grow as we continue focusing on execution. We view VELSIPITY as a promising and much needed option for adults with moderate to severe ulcerative colitis, we are encouraged by recently securing preferred coverage for VELSIPITY as our first large national payer, we expect to see the impact of this in 2025, and now we are working to build on this with additional payers. When we consider core products in our portfolio, we are also seeing positive impact from strong, [inaudible] offers a good example of how we are making a difference for patients and our business. We are accelerating growth by working with physicians to drive improvement in identifying appropriate patients with ATTR cardiomyopathy and helping patients to access and stay on treatment once it is finished.

Approximately one out of every two patients on advanced systemic therapies is receiving its full of prescription.

Was this something you expect to grow as we continue focusing on execution.

We view those typically has a promising and much needed option for adults with moderate to severe active ulcerative colitis. We are encouraged by our recent security preferred coverage.

Albert Bourla: We are empowered by recently securing preferred coverage for the CDC on our first large national page. We expect to see the impact of this in 2025. And now we are working to build on this with additional phases. When we consider core products in our portfolio, we are also seeing positive impact from strong, [inaudible] offers a good example of how we are making a difference for patients and our business. We are accelerating growth by working with physicians to drive improvement in identifying appropriate patients with ATTR cardiomyopathy and helping patients to access and stay on treatment once it is finished.

Alexander: Typically its our first large national payer.

Expect to see the impact of this in 2025 and now we are working to build on this with additional payers.

Albert Bourla: When we consider core products in our portfolio, we are also seeing positive impact from strong execution, the VYNDAQEL family of products offers a good example of how we are making a difference for patients and our business. We are accelerating growth by working with physicians to drive improvement in identifying appropriate patients with ATTR cardiomyopathy, and helping patients to access and stay on the therapy once [inaudible]. With strong growth through the second quarter, we believe there is additional opportunity to identify more patients who can benefit from our VYNDAQEL products because of high unmet need, it is estimated that nearly half of those with this progressive and deadly disease have yet to be diagnosed. ELIQUIS was another significant contributor to our results, as we continued to claim a greater share in a growing oral ambitiola and this fragile and Now, let me briefly wrap up.

Albert Bourla: When we consider core products in our portfolio, we are also seeing positive impact from strong execution, the VYNDAQEL family of products offers a good example of how we are making a difference for patients and our business. We are accelerating growth by working with physicians to drive improvement in identifying appropriate patients with ATTR cardiomyopathy, and helping patients to access and stay on the therapy once prescribed. With strong growth through the second quarter, we believe there is additional opportunity to identify more patients who can benefit from our VYNDAQEL products because of high unmet need, it is estimated that nearly half of those with this progressive and deadly disease have yet to be diagnosed. ELIQUIS was another significant contributor to our results, as we continued to claim a greater share in a growing oral anticoagulant and decoagulant market.

Alexander: When we consider our core products in our portfolio.

We are also seeing positive impact from strong execution.

The <unk> family of products offered us a good example of how we are making a difference for patients and our business. We are accelerating growth by working with physicians to drive improvement in identifying appropriate patients with ADP or cardiomyopathy, and helping patients access and stay on the therapy. Once these prescribers.

Albert Bourla: With strong growth through the second quarter, we believe there is additional opportunity to identify more patients who benefit from our green sector products because of their high and net. It is estimated that nearly half of those with this progressive and deadly disease have yet to be diagnosed. Eliquis was another significant contributor to our results, as we continued to claim a greater share in a growing oral ambitiola and this fragile and Now, let me briefly wrap up.

With strong growth through the second quarter, we believe there's additional opportunity to identify more patients.

Benefits from our vintage with products because of high unmet need.

It is estimated that nearly half of those with this progressive and deadly disease.

Yet to be diagnosed.

L. A was another significant contributor to our results as we continued to claim grades of share in the growing oral anticoagulant car.

Albert Bourla: ELIQUIS was another significant contributor to our results, as we continued to claim a greater share in a growing oral anticoagulant and decoagulant market. Now, let me briefly wrap up. First, I would like to thank my more than 80,000 colleagues for the dedication they're show each day to our purpose of delivering breakthroughs that [inaudible] patients lives. We are confident in our business, with our focus and execution, along with our deep expertise in driving innovation and advancing our pipeline, we believe we are on track to deliver on our full year financial commitments in 2024. I walked through our progress with three of our strategic priorities, and now they will cover our work to expand margin by realigning our cost base and allocate capital to enhance shareholder value as he discussed our financial performance and outlook. With that, I turn it to you.

Albert Bourla: ELIQUIS was another significant contributor to our results, as we continued to claim a greater share in a growing oral anticoagulant and decoagulant market.

<unk> Mark.

Albert Bourla: Now, let me briefly wrap up. First, I would like to thank my more than 80,000 colleagues for the dedication they're show each day to our purpose of delivering breakthroughs that change patients lives. We are confident in our business, with our focus and execution, along with our deep expertise in driving innovation and advancing our pipeline, we believe we are on track to deliver on our full year financial commitments in 2024.

Now, let me briefly wrap up.

Albert Bourla: First, I would like to thank my more than 80,000 colleagues for the dedication they show each day to our purpose of delivering breakthroughs that end patients. We are confident in our business because of our focus and execution, along with our deep expertise in driving innovation and advancing our pipeline. We believe we are on track to deliver on our full year financial commitments in 2024. I walked through our progress with three of our strategic priorities, and now they will cover our work to expand margin by realigning our cost base and allocate capital to enhance shareholder value as he discussed our financial performance and outlook. With that, I turn it to you.

First I would like to thank my more than 8000 colleagues for their dedication their selling it today to our purpose of delivering breakthroughs that change patients' lives.

Confidence in our business with our focus and execution, along with our deep expertise in driving interface and advancing our pipeline.

We believe we are on track to deliver on our full year financial commitments in 2000 and default.

Albert Bourla: I walked through our progress with three of our strategic priorities, and now Dave will cover our work to expand margins by realigning our cost base and allocate capital to enhance shareholder value as he discusses our financial performance and outlook. With that, I turn it to you, Dave.

I walked through our progress with three of our strategic priorities and now Dave will cover our work to expand margins by realigning our cost base and allocate capital to enhance shareholder value as he discusses our financial performance and outlook without they tended to you David.

Dave Denton: Thank you, Albert, and good morning, everyone, as we close out the first half of this year, I'm very pleased by our second quarter results. We continue our relentless focus on execution, demonstrating our ability to both protect and grow our core brands, while also continuing to advance our science-led transformation by investing in key TAs to build durable franchises. Our initiatives to right-size off-backs and to reduce the cost of goods will result in a more efficient organization, setting the stage for strong capital returns and long-term improved shareholder value, enabling our commitment to both maintain and to grow our dividends. This morning, I will briefly review our second quarter results, including some one-time items.

Thank you Albert and good morning to everyone as we close out the first half of this year I'm very pleased by our second quarter results. We continue our relentless focus on execution, demonstrating our ability to both protect and grow our core brands. While also continuing to advance our science led transformation by investing in.

<unk> to build durable franchises.

Our initiatives to rightsize opex and to reduce cost of goods will result in a more efficient organization setting the stage for strong capital returns and long term improved shareholder value, enabling our commitment to both maintain and to grow our dividend.

Alexander: This morning, I will briefly review, our second quarter results, including some one time items touch on our capital allocation priorities and wrap up with an update on our 24 financial guidance, our key priorities and expectations for the remainder of this year.

Dave Denton: This morning, I will briefly review our second quarter results, including some one-time items, touch on our capital allocation priorities, and wrap up with an update on our 24 financial guidance, our key priorities and expectations for the remainder of this year. Turning first to Q2 for performance versus the same period of last year, let's walk down the P&L. Total company revenues for the quarter were $13.3 billion, reflecting operational growth of 3%. Our revenue and cash flow continue to be impacted by the post-pandemic COVID environment on a global basis, but to a much lesser extent than prior quarters. Looking at our business excluding our COVID products, we've demonstrated strong commercial execution across the enterprise, resulting in 14% operational revenue growth in the quarter. Performance was positively impacted by our continued focus on key products and geographies, refined allocation of commercial field resources globally, and further optimization of our marketing resources into key priority areas. Contributing to this performance were our acquired products from Seagen, as well as Nurtec, alongside in-line products Vindicale, Aliquest, and Xandi. As expected, Xeljanz and Ibrance dampened our growth in the quarter.

David M. Denton: Touch on our capital allocation priorities, and wrap up with an update on our 24 financial guidance, our key priorities and expectations for the remainder of this year. Turning first to Q2 for performance versus the same period of last year, let's walk down the P&L. Total company revenues for the quarter were $13.3 billion, reflecting operational growth of 3%.

Turning first to Q2 for performance versus the same period of last year, let's walk down the P&L.

Total company revenues for the quarter were $13 $3 billion, reflecting operational growth of 3%.

Dave Denton: Turning first to Q2 for performance versus the same period of last year, let's walk down the P&L. Total company revenues for the quarter were $13.3 billion, reflecting operational growth of 3%. Our revenue and cash flow continue to be impacted by the post-pandemic COVID environment on a global basis, but to a much lesser extent than prior quarters.

David M. Denton: Our revenue and cash flow continue to be impacted by the post-pandemic COVID environment on a global basis, but to a much lesser extent than prior quarters. Looking at our business excluding our COVID products, we've demonstrated strong commercial execution across the enterprise, resulting in 14% operational revenue growth in the quarter. Performance was positively impacted by our continued focus on key products and geographies, refined allocation of commercial field resources globally, and further optimization of our marketing resources into key priority areas. Contributing to this performance were our acquired products from Seagen, as well as Nurtec, alongside in-line products Vindicale, Aliquest, and Xandi. As expected, Xeljanz and Ibrance dampened our growth in the quarter.

Our revenue and cash flow continued to be impacted by the post pandemic COVID-19 environment on a global basis.

But to a much lesser extent than prior quarters.

Looking at our business, excluding our Cobra products, we diminish demonstrated strong commercial execution across the enterprise, resulting in 14% operational revenue growth in the quarter.

Dave Denton: Looking at our business excluding our COVID products, we've demonstrated strong commercial execution across the enterprise, resulting in 14% operational revenue growth in the quarter. Performance was positively impacted by our continued focus on key products and geographies, refined allocation of commercial field resources globally, and further optimization of our marketing resources into key priority areas. Contributing to this performance were our acquired products from Seagen, as well as Nurtec, alongside in-line products VINDAQEL, ELIQUIS, and XTANDI, as expected, dampening our growth in the quarter were XELJANZ and IBRANCE. Adjusted gross margin for the quarter was 79% compared to 76% last year, and this was primarily the result of scalable sales mix from our non-COVID products, as well as continued strong cost management across the manufacturing network. Improving our gross margin rate will continue to be a focus for the company over the next few years, as we execute on our recently announced manufacturing optimization program. This new program, and together with our cost realignment program, is focused on returning the company to pre-pandemic operating margins on a mixed-adjusted basis, excluding Comirnaty. Phase 1 of the Manufacturing Optimization Program, which focuses on operational efficiencies, is well underway now.

Performance was positively impacted by our continued focus on key products and geographies.

We find allocation of commercial field resources globally, and further optimization of our marketing resources into key priority areas.

Contributing to this performance was our acquired products from season as well as <unk>.

Speaker Change: Alongside inline products, then decal Alec Western exam D as.

<unk> dampening our growth in the quarter were Xeljanz and I brands.

David M. Denton: Adjusted gross margin for the quarter was 79% compared to 76% last year, and this was primarily the result of scalable sales mix from our non-COVID products, as well as continued strong cost management across the manufacturing network. Improving our gross margin rate will continue to be a focus for the company over the next few years, as we execute on our recently announced manufacturing optimization program. This new program, and together with our cost realignment program, is focused on returning the company to pre-pandemic operating margins on a mixed-adjusted basis, excluding Comirnaty. Phase 1 of the Manufacturing Optimization Program, which focuses on operational efficiencies, is well underway now.

Adjusted gross margin for the quarter was 79% compared to 76% last year.

And was primarily the result of favorable sales mix from our non COVID-19 products as well as continued strong cost management across our manufacturing network.

Dave Denton: Adjusted gross margin for the quarter was 79% compared to 76% last year, and this was primarily the result of scalable sales mix from our non-COVID products, as well as continued strong cost management across the manufacturing network. Improving our gross margin rate will continue to be a focus for the company over the next few years, as we execute on our recently announced manufacturing optimization program. This new program, and together with our cost realignment program, is focused on returning the company to pre-pandemic operating margins on a mixed-adjusted basis, excluding Comirnaty. Phase 1 of the Manufacturing Optimization Program, which focuses on operational efficiencies, is well underway now.

Dave Denton: Adjusted gross margin for the quarter was 79% compared to 76% last year, and this was primarily the result of scalable sales mix from our non-COVID products, as well as continued strong cost management across the manufacturing network. Improvement in our gross margin rate will continue to be a focus for the company over the next few years, as we execute on our recently announced manufacturing optimization program. This new program, and together with our cost realignment program, is focused on returning the company to pre-pandemic operating margins on a mixed-adjusted basis, excluding COMIRNATY. Phase 1 of the Manufacturing Optimization Program, which focuses on operational efficiencies, is well underway now.

Dave Denton: Adjusted gross margin for the quarter was 79% compared to 76% last year, and this was primarily the result of scalable sales mix from our non-COVID products, as well as continued strong cost management across the manufacturing network. Improvement in our gross margin rate will continue to be a focus for the company over the next few years, as we execute on our recently announced manufacturing optimization program. This new program, and together with our cost realignment program, is focused on returning the company to pre-pandemic operating margins on a mixed-adjusted basis, excluding COMIRNATY.

Improvements in our gross margin rate will continue to be a focus for the company over the next few years as we execute on our recently announced manufacturing optimization program.

Dave Denton: Improving our gross margin rate will continue to be a focus for the company over the next few years, as we execute on our recently announced manufacturing optimization program. This new program, and together with our cost realignment program, is focused on returning the company to pre-pandemic operating margins on a mixed-adjusted basis, excluding Comirnaty. Phase 1 of the Manufacturing Optimization Program, which focuses on operational efficiencies, is well underway now.

This new program and together with our cost realignment program is focused on returning the company to pre pandemic operating margins on a mix adjusted basis, excluding commodity.

Phase one of the manufacturing optimization program, which focuses on operational efficiencies is well underway now.

The first phase is expected to deliver approximately $1 $5 billion in savings by the end of 2027.

Dave Denton: Phase 1 of the Manufacturing Optimization Program, which focuses on operational efficiencies, is well underway now. The first phase is expected to deliver approximately $1.5 billion in savings by the end of 2027, some of which is anticipated to be realized beginning in 2025. Total Adjusted Operating Expenses increased 5% operationally to $6.3 billion and include spending from our legacy Seagen business. Looking at the components, adjusted SINA expenses increased 8%, driven primarily by marketing and promotional expenses for recently launched as well as acquired products. Adjusted R&D expenses increased 2% operationally, driven primarily by increased spending related to the acquisition of Seagen, partially offset by lower spending primarily the result of our cost realignment program. Q2 reported diluted earnings per share was $0.01, and our adjusted diluted earnings per share was $0.60.

Some of which is anticipated to be realized beginning in 2025.

David M. Denton: The first phase is expected to deliver approximately $1.5 billion in savings by the end of 2027, some of which is anticipated to be realized beginning in 2025. Total Adjusted Operating Expenses increased 5% operationally to $6.3 billion and include spending from our legacy Seagen business. Looking at the components, adjusted SINA expenses increased 8%, driven primarily by marketing and promotional expenses for recently launched as well as acquired products. Adjusted R&D expenses increased 2% operationally, driven primarily by increased spending related to the acquisition of Seagen, partially offset by lower spending primarily the result of our cost realignment program. Q2 reported diluted earnings per share was $0.01, and our adjusted diluted earnings per share was $0.60.

Total adjusted operating expenses increased 5% operationally to six $3 billion and include spending from our legacy <unk> business.

Looking at the components adjusted <unk> expenses increased 8% driven primarily by marketing and promotional expenses for our recently launched as well as acquired products.

Adjusted R&D expenses increased 2% operationally driven primarily by increased spending related to the acquisition of <unk>, partially offset by lower spending primarily the result of our cost realignment program.

Dave Denton: Adjusted R&D expenses increased 2% operationally, driven primarily by increased spending related to the acquisition of Seagen, partially offset by lower spending primarily the result of our cost realignment program. Q2 reported diluted earnings per share was $0.01, and our adjusted diluted earnings per share was $0.60. Unique one-time items included in our GAAP results and excluded from our adjusted results this quarter include a $1.3 billion charge related to our Manufacturing Optimization Program, primarily for [inaudible], and a $230 million charge for IP R&D asset impairment and other related costs associated with the discontinuation of our D&D program. Additionally, we expect to record a charge of approximately $400 million in the third quarter of 2024 after a decision was made in July to sell one of our facilities as a result of the discontinuation of the DMD effort.

Q2 reported diluted earnings per share was one cent and our adjusted diluted earnings per share was <unk> 60.

David M. Denton: Unique one-time items included in our GAAP results and excluded from our adjusted results this quarter include a $1.3 billion charge related to our Manufacturing Optimization Program, primarily for SEPRINT, and a $230 million charge for IP R&D asset impairment and other related costs associated with the discontinuation of our D&D program. Additionally, we expect to record a charge of approximately $400 million in the third quarter of 2024 after a decision was made in July to sell one of our facilities as a result of the discontinuation of the DMD effort.

Unique one time items included in our GAAP results and excluded from our adjusted results. This quarter include a $1 $3 billion charge related to our manufacturing optimization program primarily for severance.

Speaker Change: And a $230 million charge for IP, R&D asset impairment and other related costs associated with the discontinuation of our DMD program.

Dave Denton: Additionally, we expect to record a charge of approximately $400 million in the third quarter of 2024 after a decision was made in July to sell one of our facilities as a result of the discontinuation of the DMD effort. 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 finally, making value-enhancing share repurchases after delivering our balance sheet. In the first half of 2024, we returned $4.8 billion to shareholders via our dividend, invested $5.2 billion in internal R&D, and, as expected, the completed business development activity was minimal.

Additionally, we expect to record a charge of approximately $400 million in the third quarter of 24. After a decision was made in July to sell one of our facilities as a result of the discontinuation of the DMD effort.

David M. Denton: 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 finally, making value-enhancing share repurchases after delivering our balance sheet. In the first half of 2024, we returned $4.8 billion to shareholders via our dividend, invested $5.2 billion in internal R&D, and, as expected, the completed business development activity was minimal.

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

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

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

And finally, making value enhancing share repurchases after delevering our balance sheet.

In the first half of 'twenty, four we returned $4 $8 billion to shareholders via our dividend invested $5 2 billion in internal R&D and as expected the completed business development activity was minimal.

Dave Denton: In the first half of 2024, we returned $4.8 billion to shareholders via our dividend, invested $5.2 billion in internal R&D, and, as expected, the completed business development activity was minimal. Our commitment to de-levering our capital structure to a growth leverage target of three and a quarter times remains a key priority. In support of that goal, year-to-date, we have paid down approximately $2.25 billion in maturing debt, including $1 billion dollars in May of outstanding notes, and though we did not monetize any Haleon shares in Q2, we expect to resume monetization of our 23% Haleon stake in the future. I would also note that once our Haleon ownership is less than 20%, our accounting will transition from recording equity income, and it will no longer be included in our adjusted results. This change is factored into our long-term financial planning as well as our guidance. As we've previously stated, we expect operating cash flow to be significantly below typical levels this year, and particularly during the first half of fiscal 2.4, due to the decline of certain payments and one-time expenses.

David M. Denton: Our commitment to delivering our capital structure to a growth leverage target of three and a quarter times remains a key priority. In support of that goal, year-to-date, we have paid down approximately $2.25 billion in maturing debt, including $1 billion in May of outstanding notes.

Our commitment to delivering delevering, our capital structure to a gross leverage target of three and a quarter times remains a key priority.

In support of that goal year to date, we have paid down approximately two and a quarter billion of maturing debt, including $1 billion in dollars in may of outstanding notes and.

David M. Denton: And though we did not monetize any Halion shares in Q2, we expect to resume monetization of our 23% Halion stake in the future. I would also note that once our Halion ownership is less than 20%, our accounting will transition from recording equity income, and it will no longer be included in our adjusted results. This change is factored into our long-term financial planning as well as our guidance. As we've previously stated, we expect operating cash flow to be significantly below typical levels this year, and particularly during the first half of fiscal 2.4, due to the decline of certain payments and one-time expenses.

Although we did not monetize any helium shares in Q2, we expect to be zoom monetization of our 23% Helios stake in the future.

Dave Denton: I would also note that once our Haleon ownership is less than 20%, our accounting will transition from recording equity income, and it will no longer be included in our adjusted results. This change is factored into our long-term financial planning as well as our guidance. As we've previously stated, we expect operating cash flow to be significantly below typical levels this year, and particularly during the first half of fiscal '24, due to the decline of certain payments and one-time expenses. We expect a heavy weighting of revenues to the fourth quarter as our businesses becomes more seasonal in nature with the potential that a high level of cash collections may carry over into Q1 of 25. Despite this near-term pressure, clearly, our objective remains 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 the year.

I would also note that once our Haley on ownership is less than 20%, our accounting will transition from recording equity income and will no longer be included in our adjusted results. This change is factored into our long term financial planning as well as our guidance.

As we've previously stated we expect operating cash flow to be significantly below typical levels. This year and particularly during the first half of 'twenty four due to the timing of certain payments and onetime expenses.

Dave Denton: We expect a heavy weighting of revenues to the fourth quarter as our businesses becomes more seasonal in nature with the potential that a high level of cash collections may carry over into Q1 of '25, despite this near-term pressure, clearly, our objective remains 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 the year, we enter 2024 focused on delivering on our financial commitments, as well as on commercial performance. With a successful first half now complete, we believe it is appropriate to update our four-year earnings outlook to reflect our strong business performance, I'll remind you that our revised guidance assumes the seasonal cadence of our product portfolio and that we expect PAXLOVID results to trend with infection rates. With that said, we are raising our full-year revenue range by $1 billion and our adjusted diluted earnings per share by $0.30.

David M. Denton: We expect a heavy weighting of revenues to the fourth quarter as our businesses become more seasonal in nature with the potential that a high level of cash collections may carry over into Q1 of 25. Despite this near-term pressure, clearly, our objective remains 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 the year.

We expect heavily weighting of revenues to the fourth quarter as our business has become more seasonal in nature with the potential that a high level of cash collections may carry over into Q1 of 'twenty five.

Despite this near term pressure clearly our objective remains to return to a more balanced capital allocation strategy over time.

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

David M. Denton: We enter 2024 focused on delivering on our financial commitments, as well as on commercial performance. With a successful first half now complete, we believe it is appropriate to update our four-year earnings outlook to reflect our strong business performance. I'll remind you that our revised guidance assumes the seasonal cadence of our product portfolio and that we expect Paxlovid results to trend with infection rates. With that said, we are raising our full-year revenue range by $1 billion and our adjusted diluted earnings per share by $0.30.

We entered 2024 focused on delivering on our financial commitments as well as commercial performance.

Dave Denton: With a successful first half now complete, we believe it is appropriate to update our four-year earnings outlook to reflect our strong business performance, I'll remind you that our revised guidance assumes the seasonal cadence of our product portfolio and that we expect PAXLOVID results to trend with infection rates. With that said, we are raising our full-year revenue range by $1 billion and our adjusted diluted earnings per share by $0.30, we now expect revenues in the range of $59.5 to $62.5 billion dollars, and operational revenue growth, excluding COVID products, is now projected to be 9% to 11%. COVID product revenues are now expected to be $8.5 billion dollars for the year, $5 billion dollars for COMIRNATY, and $3.5 billion dollars for PAXLOVID. Our guidance for adjusted SINA and adjusted R&D remains unchanged, while our effective tax rate on adjusted income is now expected to be approximately 13%. And lastly, we expect adjusted diluted earnings per share of $2.45 to $2.65, primarily reflecting the increase to the top line and the revised tax rate, among other items. As a reminder, our EPS guidance includes an anticipated $0.40 of earnings dilution from the Seagen acquisition, largely due to financing costs.

With a successful first half now complete we believe it is appropriate to update our full year earnings outlook to reflect our strong business performance.

I'll remind you that our revised guidance assumes the seasonal cadence of our product portfolio and that we expect tax low bid results to trend with infection rates.

With that said, we are raising our full year revenue range by $1 billion and our adjusted diluted earnings per share by 30 cents.

David M. Denton: We now expect revenues in the range of $59.5 to $62.5 billion, and operational revenue growth, excluding COVID products, is now projected to be 9 to 11 percent. COVID product revenues are now expected to be $8.5 billion for the year, $5 billion for Comirnaty, and $3.5 billion for Paxlovid. Our guidance for adjusted SINA and adjusted R&D remains unchanged, while our effective tax rate on adjusted income is now expected to be approximately 13%. Lastly, we expect adjusted diluted earnings per share of $2.45 to $2.65, primarily reflecting the increase to the top line and the revised tax rate, among other items. As a reminder, our EPS guidance includes an anticipated $0.40 of earnings dilution from the Seagen acquisition, largely due to financing costs.

We now expect revenues in the range of 59, and a half to $62 $5 billion in operational revenue growth. Excluding Covid project products is now projected to be 9% to 11%.

<unk> product revenues are now expected to be $8 $5 billion for the year $5 billion for commodity and $3 5 billion for <unk>.

Dave Denton: COVID product revenues are now expected to be $8.5 billion dollars for the year, $5 billion dollars for COMIRNATY, and $3.5 billion dollars for PAXLOVID. Our guidance for adjusted SINA and adjusted R&D remains unchanged, while our effective tax rate on adjusted income is now expected to be approximately 13%. And lastly, we expect adjusted diluted earnings per share of $2.45 to $2.65, primarily reflecting the increase to the top line and the revised tax rate, among other items. As a reminder, our EPS guidance includes an anticipated $0.40 of earnings dilution from the Seagen acquisition, largely due to financing costs.

Our guidance for adjusted <unk>, and adjusted R&D remains unchanged, while our effective tax rate on adjusted income is now expected to be approximately 13%.

And lastly, we expect adjusted diluted earnings per share of $2 45.

Dave Denton: And lastly, we expect adjusted diluted earnings per share of $2.45 to $2.65, primarily reflecting the increase to the top line and the revised tax rate, among other items. As a reminder, our EPS guidance includes an anticipated $0.40 of earnings dilution from the Seagen acquisition, largely due to financing costs.

To $2 65.

Primarily reflecting the increase to the top line and the revised tax rate among other items.

As a reminder, our EPS guidance includes an anticipated 40 cents of earnings dilution from the <unk> acquisition, largely due to the financing cost.

Dave Denton: In closing, we remain on track to deliver at least $4 billion dollars of net savings from our cost realignment program by the end of this year. This improvement in our cost base, alongside our new initiatives focused on manufacturing, is expected to put us on a strong footing toward margin expansion and improved financial returns. Additionally, our continued focus on execution and our recent investments have positioned the company for continued success moving forward. This quarter's results are a testament to the performance of our commercial business and our prudent approach to improving our cost base.

In closing we remain on track to deliver at least $4 billion of net savings from our cost realignment program by the end of this year.

This improvement in our cost base alongside our new initiatives focused on manufacturing is expected to put us on strong footing towards margin expansion and improved financial returns.

Additionally, our continued focus on execution and our recent investments have positioned the company for continued success moving forward.

This quarter's results are a testament to the performance of our commercial business and our prudent approach to improving our cost base.

Dave Denton: Though we've had a strong first half, we do not take lightly the continued focus needed to deliver in the second half, considering the seasonality of our respiratory products. We are clearly striving to bring about improved performance on both top and bottom lines through focus, execution, and delivering on our near-term commercial and financial goals. 2024 is clearly a foundation year for Pfizer. Our achievements to date set the stage for generating compelling shareholder value, through our science-led transformation, we will methodically build on this space with breakthroughs and innovations driving growth in the back half of this decade. And with that I'd now like to turn it back over to Albert to start our Q&A.

So we've had a strong first half we do not take lightly the continued focus needed to deliver in the second half considering the seasonality of our respiratory products we.

We're clearly striving to bring about improved performance on both top and bottom lines focused execution.

Execution and delivering on our near term commercial and financial goals.

24, it's clearly a foundation year for Pfizer or.

Our achievements to date set the stage for generating compelling shareholder value through our science led transformation, we will methodically build off this base.

David M. Denton: Through our science-led transformation, we will methodically build on this space with breakthroughs and innovations driving growth in the back half of this decade. Yes. Thank you, Dave. Let's start the Q&A session. Operator, please assemble the queue.

Through our science-led transformation, we will methodically build on this space with breakthroughs and innovations driving growth in the back half of this decade.

With breakthroughs in innovation driving growth in the back half of this decade and with that I'd now like to turn it back over to Albert to start our Q&A, yes. Thank you, Dave let's start the Q&A session. Operator, please assemble the queue.

Albert Bourla: Yes, thank you, Dave, 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 star 1 on your telephone keypad. You may remove yourself from the queue at any time by pressing star Q. Once again, that is star number one to ask the question. We will pause for a moment to allow questions to queue. We'll take our first question from Louise Chen with Candor, please go ahead.

At this time, if you would like to ask a question. Please press star one on your telephone keypad.

May remove yourself from the queue at any time by pressing star Q.

Operator: Once again, that is car number one to ask the question. We will pause for a moment to allow questions to queue. We'll take our first question from Louise Chen on Cancer. Please go ahead.

Speaker Change: Once again that is star one to ask a question, we'll pause for a moment to allow questions to queue.

Operator: We will pause for a moment to allow questions to queue. We'll take our first question from Louise Chen on Cancer. Please go ahead.

Operator: We'll take our first question from Louise Chen on Cancer. Please go ahead.

We will take our first question from Louise Chen with Cantor. Please go ahead.

Louise Chen: Hi, and thanks for taking my questions, so I wanted to ask you on DANUGLIPRON, when do you expect to see the actual efficacy data? And if this product moves forward as anticipated, how hard would it be for you to being [inaudible]?

If this product moved forward as anticipated how hard would it be for you to manufacture.

Mikael Dolsten: Yeah, we are, as Albert said in the oral remarks, doing the dose optimization for PK and formulation to select potential doses for, pending data progression to Phase III, and we expect to share that first quarter. Thank you very much, let's move to the next question

Albert Bourla: Mikael, do you want to address this very quickly?

Michael you want to address it very quickly.

Yeah, we are.

Speaker Change: As Albert said in the remarks.

During the dose optimization or PK and formulation to select potential doses or.

Pending data progression to phase three and we expect to share the first quarter.

Albert Bourla: Thank you very much, let's move to the next question

Thank you very much is moved to the next question.

Operator: Our next question comes from Mohit Bansal with Wells Fargo.

Our next question comes from Mohit Bansal with Wells Fargo.

Mohit Bansal: Great, thank you very much for taking my question and just thinking about the cost guidance and cost measures here, I just wanted to understand how we should think about the margin extension for the rest of the year? And then how we should think about it going forward in 2025 and 26, especially as you head into the IRA territory? And that's a question for Dave Yeah, so, Mohit, just a couple things.

Mohit Bansal: Great. Thank you very much for taking my question and just thinking about that.

The cost guidance cost cost measures here.

Just wanted to understand how should we think about the margin expansion for the rest of the year.

And then how should we think about it going forward in 2025 and 2006.

Especially as you head into that territory.

Mohit Bansal: And that's a question for Dave Yeah, so, Mohit, just a couple things.

Albert Bourla: And that's a question for Dave

Our specialty question Jose, Yes, so mohit I just a couple of things as you recall on my prepared remarks.

Dave Denton: Yeah, so, Mohit, just a couple things, as you recall in my prepared remarks, we are focused on and actually launched our Manufacturing Optimization Program, the result of which will begin to yield results in 2025 and to generate over $1.5 billion dollars in savings by 2027. As we think about margin expansion, just given the guidance that I provided for the balance of this year, it would imply that gross margin rates would actually improve versus the low 70's total that we've given previously, to probably the mid-70s at this point in time. We do expect that all these investments, both our cost realignment program and our investments from the manufacturing optimization program, are all designed to improve operating margins to get us back to pre-pandemic levels in the near future. Thank you, Dave. Operator, the next question.

David M. Denton: As you recall in my prepared remarks, we are focused on and have actually launched our manufacturing optimization program, the result of which will begin to yield results in 2025 and generate over $1.5 billion in savings by 2027. As we think about margin expansion, just given the guidance that I provided for the balance of this year, it would imply that gross margin rates would actually improve versus the low 70s. However, that we've given previously to probably the mid-70s at this point in time, we do expect that all these investments, both our cost realignment program and our investments from the manufacturing optimization program, are all designed to improve operating margins to get us back to pre-pandemic levels in the near future. Thank you, Dave. Operator, the next question.

We are focused on in actually launched our manufacturing optimization program. The result of which will begin to yield results in 2025 and to generate over $1 $5 billion in savings by 2027.

As we think about margin expansion just given the guidance that I provided for the balance of this year. It would imply that margin gross margin rates would actually improve.

Mohit Bansal: Versus the low seventies.

Mohit Bansal: Color that we've given previously to probably mid Seventy's at this point in time.

We do expect that all of these investments both our cost realignment program and our investments from our manufacturing optimization program are all designed to improve operating margins to get us back to pre pandemic levels in the near future. Thank you Dave Operator next question.

Dave Denton: We do expect that all these investments, both our cost realignment program and our investments from the manufacturing optimization program, are all designed to improve operating margins to get us back to pre-pandemic levels in the near future.

Albert Bourla: Thank you, Dave. Operator, the next question.

Operator: Our next question comes from Terence Flynn with Morgan Stanley. Please go ahead.

Our next question comes from Terence Flynn with Morgan Stanley. Please go ahead.

Terence Flynn: Great, thanks for taking the question, I was just wondering, have two, on the new product cycle side, how are you guys thinking about this upcoming RSV season as we think about, you know, patients coming back in for a booster as well as maybe an existing new group of patients coming in? And then on ELREXFIO in myeloma, can you give us any color on the launch, either sales or market share there, and if you're still confident in that $4 billion dollars opportunity? Thank you.

Mohit Bansal: Great.

Thanks for taking the question I was just wondering.

Two on the new product cycle side, how are you guys thinking about this upcoming RSV season as.

As we think about patients coming back in for a booster as well as maybe an existing new group of patients coming in and then on <unk> in myeloma can you give us any color on the launch either sales or market share there and if you're still confident in that $4 billion opportunity. Thank you.

Albert Bourla: Yeah, thank you, Darren, some very good questions. RSV, why don't Aamir and then Alexander speak about the roles, and then Chris, you cover the rest. For Bristow, I think we are very well positioned going into the fall season in the U.S. for three main reasons. One is contracting, so we have significantly strengthened our contracting position. Many of those decisions were confirmed shortly after the June ACIP and are set to take effect in August, commensurate with the beginning of the season.

Albert Bourla: Yeah, thank you, Terence, some very good questions. RSV, why don't Aamir and then Alexandre speak about the roles, and then Chris, you cover the rest.

Yes, Thank you Terrence and very good questions.

Albert Bourla: Hey Terrence this is Aamir, for ABRISVO, I think we are very well positioned going into the fall season in the U.S. for three main reasons. One is contracting, so we have significantly strengthened our contracting position, many of those decisions were confirmed shortly after the June ACIP and are set to take effect in August, commensurate with the beginning of the season. The second is the ACIP guidance itself, with a recommendation for a single dose for all adults over 75 and those 60 to 74 that are at increased risk, we think that is clear and strengthens the directive for those who are eligible for a vaccine. And then thirdly is just Bristow itself. We've got great data, including two seasons of durable efficacy data. As Albert alluded to earlier, we have both our current needle-free constitution kit that is never required to be frozen or thawed, as well as our new active bio system, which offers many advantages, including 80% storage efficiency.

Aamir Malik: Hey Terrence this is Aamir, for ABRISVO, I think we are very well positioned going into the fall season in the U.S. for three main reasons. One is contracting, so we have significantly strengthened our contracting position, many of those decisions were confirmed shortly after the June ACIP and are set to take effect in August, commensurate with the beginning of the season. The second is the ACIP guidance itself, with a recommendation for a single dose for all adults over 75 and those 60 to 74 that are at increased risk, we think that is clear and strengthens the directive for those who are eligible for a vaccine. And then thirdly is just ABRYSVO itself, we've got great data, including two seasons of durable efficacy data, as Albert alluded to earlier, we have both our current needle-free constitution kit that is never required to be frozen or thawed, as well as our new active bio system, which offers many advantages, including 80% storage efficiency, so, there's good options for customers. And I will also remind you that there's many healthcare providers in pharmacies that prefer simplifying their vaccine management by having one vaccine for both older adults and maternal, which only ABRYSVO can offer. So, the combination of contracting, the ACIP guidance, and the value proposition of Bristow positions as well.

Aamir Malik: Hey Terrence this is Aamir, for ABRYSVO, I think we are very well positioned going into the fall season in the U.S. for three main reasons. One is contracting, so we have significantly strengthened our contracting position, many of those decisions were confirmed shortly after the June ACIP and are set to take effect in August, commensurate with the beginning of the season. The second is the ACIP guidance itself, with a recommendation for a single dose for all adults over 75 and those 60 to 74 that are at increased risk, we think that is clear and strengthens the directive for those who are eligible for a vaccine.

B why don't <unk>.

And then Alexander speak about the Royalton, Chris you cover the alerts.

Aamir Malik: The second is the ACIP guidance itself, with a recommendation for a single dose for all adults over 75 and those 60 to 74 that are at increased risk. We think that is clear and strengthens the directive for those who are eligible for a vaccine. And then thirdly is just Bristow itself. We've got great data, including two seasons of durable efficacy data. As Albert alluded to earlier, we have both our current needle-free constitution kit that is never required to be frozen or thawed, as well as our new active bio system, which offers many advantages, including 80% storage efficiency.

Hey, Darren just to me are core.

So I think we are very well positioned going into the fall season in the U S. For three main reasons. One is contracting so we've significantly strengthened our contracting position. Many of those decisions were confirmed shortly after the June ace It and are set to take effect in August commensurate with the beginning of the seat.

And the second is the ACF guidance itself with the recommendation for single dose for all adults over 75, and those 60 to 74 that are at increased risk. We think that is just clear and strengthens the directive for those who are eligible for a vaccine.

Aamir Malik: And then thirdly is just ABRYSVO itself, we've got great data, including two seasons of durable efficacy data, as Albert alluded to earlier, we have both our current needle-free constitution kit that is never required to be frozen or thawed, as well as our new active bio system, which offers many advantages, including 80% storage efficiency, so, there's good options for customers. And I will also remind you that there's many healthcare providers in pharmacies that prefer simplifying their vaccine management by having one vaccine for both older adults and maternal, which only ABRYSVO can offer. So, the combination of contracting, the ACIP guidance, and the value proposition of ABRYSVO positions as well.

Albert Bourla: And then thirdly is just ABRYSVO itself, we've got great data, including two seasons of durable efficacy data, as Albert alluded to earlier, we have both our current needle-free constitution kit that is never required to be frozen or thawed, as well as our new active bio system, which offers many advantages, including 80% storage efficiency, so, there's good options for customers. And I will also remind you that there's many healthcare providers in pharmacies that prefer simplifying their vaccine management by having one vaccine for both older adults and maternal, which only ABRYSVO can offer. So, the combination of contracting, the ACIP guidance, and the value proposition of Bristow positions as well. And Alexandre, what about the international market? Yes, Chancellor, good question, President Bristow. We are making great progress.

And then thirdly is just a bridge, though itself, we've got great data, including <unk>.

Two seasons of durable efficacy data as Albert alluded to earlier, we have both our current needle free reconstitution kit that is.

Never required to be.

Frozen or thought as well as our new active biosystem, which offers many advantages, including 80% storage efficiency. So there's good options for customers.

Aamir Malik: So, there are good options for customers, and I will also remind you that there are many healthcare providers and pharmacies that prefer simplifying their vaccine management by having one vaccine for both older adults and pregnant women, which only Bristow can offer. So, the combination of contracting, the ACIP guidance, and the value proposition of Bristow positions as well. And Alexandre, what about the international market? Yes, Chancellor, good question, President Bristow. We are making great progress.

And I will also remind you that theres, many health care providers and pharmacies that prefer simplifying their vaccine management by having one vaccine for both older adults and maternal with only a bristow can offer so the combination of contacting the ace of guidance and the value proposition of the Brazil positions us well in the U S and Alexander where the bulk of international market Yes.

Albert Bourla: And Alexandre, what about the international market? Yes, Chancellor, good question, President Bristow. We are making great progress.

Albert Bourla: And Alexandre, what about the international market?

Alexandre de Germay: Yes, Terrence, good question on ABRYSVO, we are making great progress as well on the international front, [inaudible] approval, remember, in the second half of 2023 in Europe and in the UK. We already are progressing nicely with the vaccine technical committee [inaudible] positively ABRYSVO, so we've got positive recommendations in the UK, in France, in Canada, in Australia, and several other markets, and in Saudi Arabia as well. So, we're moving very nicely, that's right that actually the UK authorities have selected ABRYSVO for RSA prevention in older adults, as well as maternal immunization for pediatrics for the next two years with an option of an additional two years. And we also were selected in Canada specifically also for adult vaccination.

Alexandre de Germay: Yes, Terence, good question on ABRYSVO. We are making great progress as well on the international front, [inaudible] approval, remember, in the second half of 2023 in Europe and in the UK. We already are progressing nicely with the vaccine technical committee [inaudible] positively ABRYSVO, so we've got positive recommendations in the UK, in France, in Canada, in Australia, and several other markets, and in Saudi Arabia as well. So, we're moving very nicely, that's right that actually the UK authorities have selected ABRYSVO for RSA prevention in older adults, as well as maternal immunization for pediatrics for the next two years with an option of an additional two years.

Alexandre de Germay: progress as well on the international front, aiming for approval, remember, in the second half of 2023 in Europe and in the UK. We already are progressing nicely with the vaccine technical committee recognized positively at Greensboro, so we've got positive recommendations in the UK, in France, in Canada, in Australia, and several other markets, and in Saudi Arabia as well. So, we're moving very nicely. That's right, actually the UK authorities have selected a brief vote for RSA prevention in older adults, as well as maternal immunization for pediatrics for the next two years with an option of an additional two years. And we also were selected in Canada specifically for adult vaccines.

So quick question on <unk>, but we haven't seen great progress as well of the international comps. Following the approval will remember in the second half of 2023 in Europe and in the U K. We already are progressing nicely with vaccine Technical committee recommending who has achieved the reasonable so we got pretty cheap recommendation will be <unk>.

New plants in Canada, and Australia, and several other markets.

<unk>.

Mohit Bansal: In Saudi Arabia, as well so we are moving very nicely capitalize it that actually <unk> has selected our breathable <unk> prevention in older adults as well as in.

Methanol immunization, Paul Papa Jets rich for the next two years with an option of additional two years.

Alexandre de Germay: And we also were selected in Canada specifically also for adult vaccination.

We also were selected in Canada, specifically also all adult vaccination.

Chris Boshoff: So, good news [inaudible], and let's go to Chris. Thank you for the question on Elrexfio. As you saw, we recently demonstrated the updated median overall survival data for Elrexfio in the intent-to-treat 123 patient population with late Lyme disease. We see an overall survival of 24.3 months, which we believe is differentiated. Elrexfio also has a differentiated profile in terms of the

Albert Bourla: So, good news for Pfizer, and let's go to Chris now.

Good to have good news.

<unk>.

Chris Boshoff: Thank you for the question on ELREXFIO, as you saw, we recently demonstrated the updated median overall survival data for ELREXFIO in the intent-to-treat 123 patient population in the late Lyme disease, we see an overall survival of 24.3 months, and which we believe is differentiated. ELREXFIO also has a differentiated profile in terms of the safety profile, as well as other factors, including subcutaneous administration and plus non-waste-based dosing, and a flexible dosing regimen overall. And we've now launched in 16 countries, and, in fact, in Japan, we were the first to launch, and its early days, we've also recently got approval in the EU and UK. In the US, total demand is +40% growth sequentially quarter over quarter, and early next year or during 2025, you'll see the lead out for the bigger opportunities, which are MagnetisMM-5 in the double-gloss exposed population, and then later in the year potentially MagnetisMM-32 which is post-CD38. across the continuum of care for multiple myeloma. Thank you,

Let's go to Chris <unk>.

Thank you for the question on <unk>.

So we recently demonstrated the updated median overall survival data for <unk> in the intent to treat 123 patient population in the late line disease, where we see an overall survival of $24 three months and which we believe belief is differentiated Rx deal also has a differentiated profile.

In terms of the safety profile as well as other factors, including subcutaneous administration and flat non weight based dosing and a flexible dosing regimen overall and we've now launched in 16 countries and in fact in Japan will be the first to launch and it's early days because you recently got approval in the EU and UK.

Chris Boshoff: safety profile, as well as other factors, including subcutaneous administration, plus non-waste-based

Chris Boshoff: dosing, and a flexible dosing regimen overall. And we've now launched in 16 countries. And, in fact, in Japan, we were the first to launch. And it's early days. We've also recently got approval in the EU and UK. In the US, total demand is plus 40% growth sequentially quarter over quarter, and early next year or during 2025, you'll see the lead out for

Chris Boshoff: And we've now launched in 16 countries, and, in fact, in Japan, we were the first to launch, and its early days, we've also recently got approval in the EU and UK. In the US, total demand is +40% growth sequentially quarter over quarter, and early next year or during 2025, you'll see the lead out for the bigger opportunities, which are MagnetisMM-5 in the double-gloss exposed population, and then later in the year potentially MagnetisMM-32 which is post-CD38. The overall view remains confident that we've got a very differentiated molecule that could become a back bone across the continuum of care for multiple myeloma. Thank you,

In the U S.

Telco demand is plus 40% growth sequentially quarter over quarter and early next year or during 2025, you will see the readouts for the bigger opportunities, which is magnetism fives in the double-cross exposed population and then later in the year potentially magnetism 32, which is post.

Chris Boshoff: In the US, total demand is +40% growth sequentially quarter over quarter, and early next year or during 2025, you'll see the lead out for the bigger opportunities, which are MagnetisMM-5 in the double-gloss exposed population, and then later in the year potentially MagnetisMM-32 which is post-CD38. across the continuum of care for multiple myeloma. Thank you,

Chris Boshoff: The bigger opportunities, which are Magnetism 5 in the double-gloss exposed population, and then later in the year potentially Magnetism 32 which is post-CD38.

CD 38, so overall, we remain confident that we've got a very differentiated molecule that could become a backbone across the continuum of care for multiple myeloma. Thank you Chris Operator next question. Please.

Chris Boshoff: across the continuum of care for multiple myeloma. Thank you, Bristow. Can I go next, then?

across the continuum of care for multiple myeloma. Thank you,

Albert Bourla: Thank you, Chris, Operator, next question please.

Bristow. Can I go next, then?

Alex Hammond: The next question comes from Alex Hammond with Bank of America. Thanks for taking the question. On Nurtec, can you walk us through the commercial strategy to expand share in acute and preventive usage, as well as the international market? You've mentioned focusing on physician awareness in a different way. I will be using search terms for patient access. Any more color you can provide there, thank you.

Operator: The next question comes from Alex Hammond with Bank of America.

The next question comes from Alex Hammond with Bank of America.

Alex Hammond: Thanks for taking the question, on NURTEC, can you walk us through the commercial strategy to expand share in acute and preventive usage, as well as the international market? You've mentioned focusing on physician awareness in a different way, [inaudible] for patient access, any more color you can provide there? Thank you.

Thanks for.

The question.

On <unk> can you walk us through the commercial strategy to expand share in acute and preventive visits as well as the international markets.

Mentioned, focusing on physician awareness in a different way.

Do you think infection for patient access anymore color you can provide there. Thank you.

Albert Bourla: Thank you, great questions. Aamir and and then Alexandre.

Thank you great questions I'm Marilyn Alexander.

Aamir Malik: Now it's on NURTEC in the US, I think there are a number of things that we did in the first half of the year to strengthen our demand. So we revamped all of our consumer activation efforts, we sharpened the clinical value proposition and how we communicated that, including but not only limited to the fact that we have an indication for treatment and prevention. We also realigned our field forces to ensure that we're really maximizing activation of both primary care and neurologists providers. And then we made a lot of efforts through the co-pay support and other means to just reduce friction in patients actually getting access to NURTEC once a script is written. And so what you see this quarter for us is a combination of all of those things starting to take effect.

Alex on non near ticking in the U S. I think there are a number of things that we've done in the first half of the year.

To strengthen our demand so we revamped all of our consumer activation efforts.

Sharpened the clinical value proposition, how we communicated that including but not only limited to the fact that.

We have an indication for treatment and prevention. We also realigned our field forces to ensure that we're really maximizing activation of both primary care and neurologists providers and then we made a lot of efforts through the co pay support and other means to just reduce friction in pay.

Aamir Malik: And then we made a lot of efforts through co-pay support and other means to just reduce friction in patients actually getting access to Nurtec once a script is written. And so what you see this quarter for us is a combination of all of those things starting to take effect.

Aamir Malik: And then we made a lot of efforts through the co-pay support and other means to just reduce friction in patients actually getting access to NURTEC once a script is written. And so what you see this quarter for us is a combination of all of those things starting to take effect. The Nurtec TRX was up 28% over the prior year, revenues were up close to 39% in the US. We maintained leadership from a TRX and a NRX perspective at 49% and 48%, respectively, and there were 9,000 new NURTEC writers, so that's about 85% of all new CGRP writers. So as we look forward, we continue to see strength in Nurtec demand, we'll continue to manage the gross finance dynamics of that business, but we are optimistic about where we take it. Thank you. Alexandre.

<unk> actually getting access to <unk> once a script is written and so what you see this quarter for US is a combination of all of those things starting to take effect. So nortek T. Rx was up 28% over the prior year revenues were up close to 39% in the U S. We maintained leadership from a T Rx and <unk>.

Aamir Malik: The Nurtec TRX was up 28% over the prior year, and revenues were up close to 39% in the US. We maintained leadership from a TRX and a NRX perspective at 49% and 48%, respectively. And there were 9,000 new Nurtec writers, so that's about 85% of all new CGRP writers.

And our ex perspective at 49% and 48% share respectively, and there were 9000, new near term.

That's about 85% of all new <unk> writers. So as we look forward, we continue to see strength in near term demand will continue to manage the gross to net dynamics of that business, but we are optimistic about where we take it from here.

Aamir Malik: So as we look forward, we continue to see strength in Nurtec demand. We'll continue to manage the gross finance dynamics of that business, but we are optimistic about where we take it. Thank you. Alexandre.

Albert Bourla: Thank you. Alexandre.

Alexander Yeah on the international comps were also have expanded access and the numbers of countries, where we have to introduce the products. As you know the growth that you see in the second quarter versus the first quarter of 2024 is really the effect of the introduction of <unk> in China at the beginning of this quarter.

Alexandre de Germay: Yeah, on the international front, we also have expanded access and the number of countries where we have introduced the product. As you know, the growth that you see in the second quarter, this is the first quarter of 2024, is really the effect of the introduction of Biotech in China at the beginning of this quarter. As of today, we have Biotech members in 15 countries, including some of our key markets and [inaudible], and what we see is once we get reimbursement, we have a significant uplift in demand. And so our focus now is to increase access and reimbursement in some of our key markets. Moving forward, we see significant growth behind BioNTech. And the reason behind that is that, today, at the international level, less than half of the diagnosed patients are treated with prescription medicine. So that's why we think we have an opportunity with BioNTech.

As of today, we have a yardstick reimbursement seeped in country, including some of our key markets like UK, Spain, and what we see is once we get reimbursement we had a significant at least of the demand and so our focus now is to increase access and reimbursement in some of our key market moving forward, we see significant growth behind.

Alexandre de Germay: And what we see is once we get reimbursement, we have a significant uplift in demand. And so our focus now is to increase access and reimbursement in some of our key markets. Moving forward, we see significant growth behind BioNTech. And the reason behind that is that, today, at the international level, less than half of the diagnosed patients are treated with prescription medicine. So that's why we think we have an opportunity with BioNTech.

Alexandre de Germay: Moving forward, we see significant growth behind Biotech, and the reason behind that is that there is today, at the international level, less than half of the diagnosed patients are treated with prescription medicine, so that's why we think we have an opportunity with Biotech. And we believe Alexandre, what we hear is we've got almost 55 countries registered, NURTEC in international markets, 55 markets, of course 15 we have seen already a reimbursement, and we're waiting for the remaining 40 receive reimbursement. Let's move to the next question.

And the reason behind that is there today.

At the international level less than half of the Jack in those patients that are treated with prescription medicine. So that's why we think we have an opportunity.

Alexandre de Germay: And I believe, Alexandre, that this year we got almost 55 countries registered with Nurtec on international markets, 55 markets. Of course, 15 have already received reimbursement, and we are waiting for the remaining 40 to receive reimbursement. Let's move to the next question.

And I believe Alexander but this year, we got almost 55 countries to register.

In our international markets 55 markets from fixed cost 15.

We received already.

Our reimbursement and we are waiting for the remaining 40 received very much let's move to the next question.

Operator: Our next question comes from Akash Tewari, with Jeffries.

Our next question comes from <unk> <unk> with Jefferies.

Akash Tewari: Hey, thanks so much, on Next Gen PREVNAR, your team's been fairly quiet on its profile, pet's say that the Next Gen product only hits 27 serotypes and not 31 like some of your peers. Why should we feel confident that Pfizer can retain a lion's share position in this market? And you mentioned the Next Gen product actually having the largest serotype coverage, does that imply greater than 31 serotypes of coverage? Thanks so much.

Hey, thanks, so much on Nextgen private or your team has been fairly quiet on its profile, let's say that the next gen product only had 27 serotypes are not 31 like some of your peers why should we feel confident that Pfizer can retain a lion's share position in this market and you mentioned the next gen product actually having the largest.

Stereotype coverage does that imply greater than 31 serotype coverage. Thanks, so much.

Michael Dolsten: Michael Thank you. As you know, we have worked over several decades on optimizing how to expand the number of serotypes while maintaining strong immune responses for as many as possible. We have not disclosed yet how many serotypes we have. We have recently pursued expansion of that next gen into phase two of both pediatric and adult, and look forward to adult data coming quite soon, which will allow us to move swiftly in that indication.

Albert Bourla: Mikael

Michael.

Mikael Dolsten: Thank you. As you know, we have worked over several decades on optimizing how to expand the number of serotypes while maintaining strong immune responses for as many as possible. We have not disclosed yet how many serotypes we have. We have recently pursued expansion of that next gen into phase two of both pediatric and adult, and look forward to adult data coming quite soon, which will allow us to move swiftly in that indication. We have made significant improvements on existing and new serotypes using new technologies, and that is these capabilities. So it's not just about having the highest number of serotypes; it's really to show the consistency and the data before you can draw any conclusions. So we remain very confident in our ability to defend our leadership position and continue to expand it through this new technology toolbox. Thank you very much, Michael. Next question.

Mikael Dolsten: Thank you, as you know, we have worked over several decades in optimizing how to expand the number of serotypes while maintaining strong immune responses for as many as possible. We have not disclosed yet how many serotypes we have, we have recently pursued expansion of that next gen into Phase II of both pediatric and adult, and look forward to adult data coming quite soon, which will allow us to move swiftly in that indication. We have made significant improvements on existing and new serotypes with new technologies, and that is these capabilities, so it's not just about having the highest number of serotypes, it's really to show the consistency and the data before you can draw any conclusions. So we remain very confident in our ability to defend our leadership position and continue to expand it through this new technology toolbox.

Thank you as you know we have worked through with several decay in optimizing how to expand the number of serotypes, while maintaining strong immune responses for as many as possible we have not disclosed yet.

We have we have recently pursued expansion of the nextgen into phase two of both pediatric and adult.

And look forward to our adult data to come quite soon which will allow us to move swiftly in depth in the indication.

Michael Dolsten: We have made significant improvements on existing and new serotypes using new technologies, and that is these capabilities. So it's not just about having the highest number of serotypes; it's really to show the consistency and the data before you can draw any conclusions. So we remain very confident in our ability to defend our leadership position and continue to expand it through this new technology toolbox. Thank you very much, Michael. Next question.

We have made significant improvement on.

Mikael Dolsten: We have made significant improvements on existing and new serotypes with new technologies, and that is these capabilities, so it's not just about having the highest number of serotypes, it's really to show the consistency and the data before you can draw any conclusions. So we remain very confident in our ability to defend our leadership position and continue to expand it through this new technology toolbox.

Existing and new serotypes through new technologies.

That is.

Deep capability. So it's not just about having the highest number of server products, it's really to show the consistency and the data before you can go and the conclusion. So we remain very.

Mikael Dolsten: So we remain very confident in our ability to defend our leadership position and continue to expand it through this new technology toolbox.

We're very confident in our ability to defend our leadership position and continue to expand its reduced new technology tools.

Thank you very much Michael next question. Please.

Albert Bourla: Thank you very much, Mikael. Next question, please.

Operator: We'll take our next question from Chris Shibutani of Goldman Sachs.

We'll take our next question from Chris <unk> with Goldman Sachs.

Chris Shibutani: Thank you, I want to ask you about your views on the IRA, in particular implications on revenue outlooks for 2025 and 2026, obviously, your employees, and your partner, Bristol, on ELIQUIS, made commentary that I think has been interpreted by the street as being that this is a dynamic that could be manageable. We appreciate your specific reflections on the Pfizer portfolio. Thank you.

Thank you I wanted to ask you about your views on the <unk> in particular implications on revenue outlook for 2025, and 2026 have been hurting their employee you partner Bristol on Everquest made commentary that I think has been interpreted by the street as being that this is a die.

<unk> that could be manageable. We appreciate your specific reflection on the Pfizer portfolio. Thank you.

Thanks, Bruce I've lost a mirror to speak a little bit about the elite specific arlinda, David can you cover the general impact of higher rate.

So pricing.

David M. Denton: Obviously, your employees, and your partner, Bristow, on Eliquis, have made commentary that I think has been interpreted by the street as being that this is a dynamic that could be manageable. We appreciate your specific reflections on the Pfizer portfolio. Thank you.

Chris as you noted.

BMS led the discussions with CMS on Alex's maximum tier priced that there. They are the NDA holder and they share their perspective on that process. During their earnings call last week honestly, we don't have much to add to what they said we share their view that we have the ability to navigate the impact of <unk> on <unk>.

David M. Denton: So thank you Chris, I'd like Aamir to speak a little bit about ELIQUIS specifically, and then, Dave, can you cover the general impact of IRAs? Chris, as you noted, VMS led the discussions with CMS on Elixir's maximum fair price because they are the NDA holder, and they shared their perspective on that process during their earnings call last week. Honestly, we don't have much to add to what they said. We share their view that we have the ability to navigate the impact of IRA on Eliquis, and Eliquis will be an important drug in our portfolio for the foreseeable future.

Albert Bourla: So thank you Chris, I'd like Aamir to speak a little bit about ELIQUIS specifically, and then, Dave, can you cover the general impact of IRAs?

Chris Boshoff: Chris, as you noted, BMS led the discussions with CMS on ELIQUIS maximum fair price because they are the NDA holder, and they shared their perspective on that process during their earnings call last week. Honestly, we don't have much to add to what they said, we share their view that we have the ability to navigate the impact of IRA on ELIQUIS, and ELIQUIS will be an important drug in our portfolio for the foreseeable future.

And <unk> will be a important drug in our portfolio for the foreseeable future.

David M. Denton: Yeah, and then I just add to that, you know, as we look at IRA across our platform, first, I think we were very fortunate at Pfizer that we had one product selected. And secondly, if you look at the remaining products that are likely to be, that could potentially be selected, they are nearing the end of their patent protection life. So if you think about it from a present value perspective, the impact on Pfizer is somewhat muted when you think about it economically. I will say this is a piece of legislation that clearly is harmful to supporting research and development in the sector. So we were hopeful that this could be changed in the future. But we will continue to actively manage our way through it. Thank you Dave. Operator, next question.

Dave Denton: Yeah, and then I just add to that, you know, as we look at IRA across our platform, first, I think we were very fortunate at Pfizer that we had one product selected. And secondly, if you look at the remaining products that are likely to be, that could potentially be selected, they are nearing the end of their patent protection life. So if you think about it from a present value perspective, the impact on Pfizer is somewhat muted when you think about it economically. I will say this is a piece of legislation that clearly is harmful to supporting research and development in the sector, so we were hopeful that this could be changed in the future, but we will continue to actively manage our way through this.

And then I would just add to that as we look at IRI across our platform first I think we were very fortunate at Pfizer that we had one products selected.

And secondly, if you look at the remaining products that are likely to be.

It could potentially be selected they are nearing the end of their patent protection life. So do you think about it from a net present value perspective, the impact on pfizer's somewhat muted as you think about it economically.

We'll say this is a.

David M. Denton: I will say this is a piece of legislation that clearly is harmful to supporting research and development in the sector. So we were hopeful that this could be changed in the future. But we will continue to actively manage our way through it. Thank you Dave. Operator, next question.

Piece of legislation that clearly.

Dave Denton: I will say this is a piece of legislation that clearly is harmful to supporting research and development in the sector, so we were hopeful that this could be changed in the future, but we will continue to actively manage our way through this.

Is harmful for supporting research and development in the sector. So we.

We are hopeful that this could be changed in the future.

But we will continue to actively manage our way through this thank you Dave.

Operator next question please.

Albert Bourla: Thank you Dave. Operator, next question.

Operator: And as a reminder, if you'd like to ask a question today, please press star one. We'll take our next question from Dave Risinger with Leerink Partners.

And as a reminder, if you'd like to ask a question today. Please press star one.

We will take our next question from Dave Risinger with Leerink partners.

David Risinger: Yes, thanks very much, and I guess I just wanted to start off by saying congratulations and best of luck to you, Mikael. So my questions are, first, could you please comment on your expectations for Phase I obesity candidates beyond once-daily DANUGLIPRON, including disclosures to watch over the next several months? And then second, Dave, could you just contextualize the $1.5 billion in COGS reductions relative to the current annual run rate of about $15 billion dollars? It seems like you're going to cut 10%, but how should we think about net reduction, i.e. net COGS declines over the next three years? Thanks so much. Yes, Michael, why don't you give a little bit on the obesity candidate? Aravind Dhani.

Yes.

Yes, thanks, very much and I guess I just wanted to start off by saying Congratulations and best of luck to you Michael.

So my questions are first could you. Please comment on your expectations for phase one obesity candidates beyond once daily Daniel Blip bron, including disclosures to watch over the next several months.

And then second Dave could you just contextualize the $1 5 billion in Cogs reductions relative to the current annual run rate of about $15 billion. It seems like youre going to cut 10%, but how should we think about net reduction I E. Net cogs declines over the next three years. Thanks, so much.

David Risinger: It seems like you're going to cut 10%, but how should we think about net reduction, i.e., net COGS declines over the next three years? Thanks so much. Yes, Michael, why don't you give a little bit on the obesity candidate? Aravind Dhani.

Albert Bourla: Yes, Mikael, why don't you give a little bit on the obesity candidate? Other than Danu.

Speaker Change: Yes, Michael why don't you give a little bit on the obesity candidates other than done.

Michael Dolsten: Yeah, as we heard from Albert, Danu is a more advanced drug with a large tolerability strength and efficacy experience, as always, in our project, we have additional drugs in the same class in phase one, it's in stage one, performing as expected. We have another mechanism of action that would combine with oral GLP, such as Danu later in the development of a life cycle, and we have other mechanisms to protect heart and kidney, that could also be part of an internal medicine, larger cardiometabolic transplant. Thank you.

Michael: Yeah as you heard from Albert.

That is the more advanced drug with our dogs, Tolerability safety and efficacy experience.

As always in our projects we have.

Additional royalties.

<unk> seen the same class.

Phase one performing as expected we have another mechanism of action that could combine with the ora lift.

Michael: Such as downward later in development of a lifecycle and we have other mechanisms to protect.

Speaker Change: Bart and Keith do that could also be part of an internal medicine Lodge your cardio metabolic franchise.

David M. Denton: And What about the cost reduction? Yeah, so let me just anchor us on a few facts here. First, the cost reduction effort that we have currently initiated is phase one of a multiple phase program. So this $1.5 billion savings is only a part of the story. We will tell more of the story as we define the program more specifically. So you get more clarity on that. Secondly, if you look at the $1.5 billion cost improvement effort, if you think about that on a cost of goods sold platform, we're probably closer to $16 billion versus $15 billion. This is an anchor point. Thank you. Operator, next question.

Albert Bourla: And What about the cost reduction for Danu?

And what about the cost reduction, yes, So let me just.

Dave Denton: Yeah, so let me just anchor us on a few facts here. First, the cost reduction effort that we have currently initiated is Phase I of a multiple phase program, so this $1.5 billion savings is only a part of the story, we will tell more of the story as we define the program more specifically, so you get more clarity on that. Secondly, if you look at the $1.5 billion dollars cost improvement effort, if you think about that on a cost of goods sold platform, we're probably closer to $16 billion dollars versus $15 billion dollars, this is an anchor point. Thank you. Operator, next question.

Anchor us on a few facts here first the cost reduction effort that we currently have initiated is phase one of a multiple phase program. So.

Speaker Change: This $1 5 billion dollar savings as is only a part of the our piece of the story, we will tell more of the story as we define the program more specifically, so you'll get more clarity on that.

Secondly, if you look at the one 5 billion cost improvement effort and do you think about that on our cost of goods sold platform, where it's probably closer to $16 billion versus $15.

At anchor.

Thank you operator next question please.

Albert Bourla: Thank you. Operator, next question, please.

Operator: We'll take our next question from Kripa Devarakonda with Truist Securities.

Speaker Change: We'll take our next question from Crippa Devra condo with Truest Securities.

Kripa Devarakonda: Hey guys, thank you so much for taking my question. I have a question on the RSV in the maternal market, how has, has there been traction in the maternal market? Are you seeing any sort of setbacks? I'm just wondering if Pfizer needs to educate, build out, or do some ground work before the market really breaks open? And then a follow up question, on PADCEV, thee are other radio ligands and ADC's that are targeting Nectin-4, how do you see the competitive landscape shaping up? Thank you

Hey, guys. Thank you so much for taking my question.

I have a question on the RSV in maternal market.

Have you gained traction in the maternal market are you seeing any sort of setbacks.

Aamir Malik: in the maternal market. Are you seeing any sort of setbacks? I'm just wondering if Pfizer needs to educate, build out, or do something

Just wondering if pfizer need to educate build out to do some groundwork before the market really breaks open and then the follow up question.

<unk> had some of their other radio liggins and Adcs targeting nekton four are there how do you see the competitive landscape shaping up thank you.

Alexandre de Germay: How do you see the competitive landscape?

Amira, Bob Mcdonnell origin sure equip us so thanks for the question I think let me start by just.

Chris Boshoff: [inaudible]

Chris Boshoff: Aamir, about maternal RSV. Sure, Srikripa, so thanks for the question.

Albert Bourla: Aamir, about maternal RSV.

Underscoring the interest that we see on maternal vaccination. So when you talk to Obgyns.

Aamir Malik: Sure, Kripa, so thanks for the question. I think, let me start by just underscoring the interest that we see in maternal vaccination. So, when you talk to OBGYNs, there's a clear preference that they have to vaccinate during pregnancy, and similarly, you hear the same from pregnant mothers. Greater than 50% prefer vaccination versus vaccinating the baby, or maternal vaccination. So, our launch on maternal did exceed our expectations, so, we saw uptake rates through the end of January with about 11% of eligible mothers taking the vaccine, and that is significantly higher than other maternal immunization at the same point in the life cycle, I think TIDVAK was less than 2% at the same time. So, the other thing I will note is it does require education, as you note, and last year's maternal ACIP recommendation occurred just after the RFC maternal vaccination season began. So, this season, we have the benefit of using the first half of the year to invest in that education of both HCPs as well as pregnant women, and we look forward to the season ahead. And the International Aging Club? Yes, a few points. Just to say that.

Speaker Change: There is a clear preference that they have to vaccinate during pregnancy and similarly.

You hear the same from pregnant mothers greater than 60% differ.

Chris Boshoff: I think, let me start by just underscoring the interest that we see in maternal vaccination. So, when you talk to OBGYNs, there's a clear preference that they have to vaccinate during pregnancy, and similarly, you hear the same from pregnant mothers. Greater than 50% prefer vaccination versus vaccinating the baby, or maternal vaccination. So, our launch on maternal vaccination did exceed our expectations. So, we saw uptake rates through the end of January with about 11% of eligible mothers taking the vaccine, and that is significantly higher than other maternal immunization at the same point in the life cycle.

Vaccination versus Vaccinating, the baby maternal vaccination. So our launch on maternal did exceed our expectations. So we saw uptake rates through the end of January with about 11% of eligible mothers taking the vaccine.

And that is significantly higher than other maternal immunization at the same point in the lifecycle I think <unk> was less than 2% at the same time. So the other thing I will note is it does require education as you know in last year's maternal Aesop recommendation.

Chris Boshoff: I think TIDVAK was less than 2% at the same time. So, the other thing I will note is it does require education, as you note, and last year's maternal ACIP recommendation occurred just after the RFC maternal vaccination season began. So, this season, we have the benefit of using the first half of the year to invest in that education of both HCPs as well as pregnant women, and we look forward to the season ahead. And the International Aging Club? Yes, a few points. Just to say that.

Aamir Malik: So, the other thing I will note is it does require education, as you note, and last year's maternal ACIP recommendation occurred just after the RFC maternal vaccination season began. So, this season, we have the benefit of using the first half of the year to invest in that education of both HCPs as well as pregnant women, and we look forward to the season ahead. And the International Aging Club? Yes, a few points. Just to say that. Following their approval, we also have made great progress on the Vaccine Technical Committee on Vaccination in Maternal. In the UK, we received positive recommendations, as well as in France, in Australia, Belgium, Australia, Argentina, so many others, including an interesting one, which is the PAL for Latin America. And now, we are progressing into

<unk> just after the RSV maternal vaccination season began so this season, we have the benefit of using the first half of the year to invest in that education of both <unk> as well as pregnant women and we look forward to the season ahead and in the restaurant or anything to add yes, very very few.

Aamir Malik: And the International Aging Club? Yes, a few points. Just to say that. Following their approval, we also have made great progress on the Vaccine Technical Committee on Vaccination in Maternal. In the UK, we received positive recommendations, as well as in France, in Australia, Belgium, Australia, Argentina, so many others, including an interesting one, which is the PAL for Latin America. And now, we are progressing into

Albert Bourla: And the International [inaudible]?

Aamir Malik: Yes, very few points, just to say that following the approval, we also had great progress on the Vaccine Technical Committee on Vaccination in Maternal. In the UK, we received positive recommendations, as well as in France, in Australia, Belgium, Australia, Argentina, so many others, and including an interesting one, which is the PAL for Latin America, and now, we are progressing into access, final access into those markets. And about the competitiveness of PaxFest, Srikrish? Thank you for the question. We're very pleased that in this quarter, as you've seen, we printed just shy of $400 million for PaxFest, with sequential quarter-over-quarter growth.

A few points just to say that following the approval. We also have the great progress on the vaccine Technical committee on vaccination and mentioned at all.

Chris Boshoff: Following their approval, we also have made great progress on the Vaccine Technical Committee on Vaccination in Maternal. In the UK, we received positive recommendations, as well as in France, in Australia, Belgium, Australia, Argentina, so many others, including an interesting one, which is the PAL for Latin America. And now, we are progressing into

In the UK, we see cause achieve recommendation as well as in France, and Australia that Jim was triage engine, so maybe ever and including an interesting one which is the power of electric.

Speaker Change: Latin America and now we are progressing into access panel access into those markets and about the competitiveness of parts or for Chris.

Chris Boshoff: And about the competitiveness of PaxFest, Srikrish? Thank you for the question. We're very pleased that in this quarter, as you've seen, we printed just shy of $400 million for PaxFest, with sequential quarter-over-quarter growth.

Aamir Malik: And about the competitiveness of PADCEV, Chris? Thank you for the question. We're very pleased that in this quarter, as you've seen, we printed just shy of $400 million for PaxFest, with sequential quarter-over-quarter growth.

Albert Bourla: And about the competitiveness of PADCEV, Chris?

Thank you for the question, we're very pleased that in this quarter as you've seen we printed just shy of 400 million capacity with sequential quarter over quarter growth of 15000.

Chris Boshoff: Thank you for the question. We're very pleased that in this quarter, as you've seen, we printed just shy of $400 million for PADCEV, with sequential quarter-over-quarter growth of 15%, and based on the claims data through the end of May, we are seeing U.S. first-line share increasing into the low 50% range, and as you know, the next opportunity is obviously in [inaudible] Bladder cancer, with two ongoing studies being conducted by Merck, which can expand the population to include and an additional 28,000 addressable patients. So overall, we are seeing that PADCEV with PEMBROLIZUMAB is becoming entrenched in the first-line setting as the standard of care, and future studies, including future nectin, [inaudible] medicines, radioligands, or ADCs, will likely have to do studies against PADCEV+PEMBROLIZUMAB in the first-line setting, which could be challenging.

15%.

Chris Boshoff: Based on the claims data through the end of May, we are seeing U.S. first-line share increasing into the low 50% range, and as you know, the next opportunity is obviously in muscle and vasoplasm. Bladder cancer, with two ongoing studies being conducted by Merck, which can expand the population to include and an additional 28,000 addressable patients. So overall, we are seeing that access with. Membranolizumab is becoming entrenched in the first-line setting as the standard of care, and future studies, including future Nectin, childhood medicines, radioligands, or ADC, will likely have to do studies against Adcet plus Membranolizumab in the first-line setting, which could be challenging.

Based on the claims data through the end of May we are seeing U S. First lunch increasing into the low 50% range and as you know the next opportunity is obviously in muscle invasive bladder cancer with two ongoing studies being conducted by luck, which can expand the population to an additional 28000 addressable patients. So.

Chris Boshoff: Bladder cancer, with two ongoing studies being conducted by Merck, which can expand the population to include and an additional 28,000 addressable patients. So overall, we are seeing that access with. Membranolizumab is becoming entrenched in the first-line setting as the standard of care, and future studies, including future Nectin, childhood medicines, radioligands, or ADC, will likely have to do studies against Adcet plus Membranolizumab in the first-line setting, which could be challenging.

Chris Boshoff: and an additional 28,000 addressable patients. So overall, we are seeing that access with. Membranolizumab is becoming entrenched in the first-line setting as the standard of care, and future studies, including future Nectin, childhood medicines, radioligands, or ADC, will likely have to do studies against Adcet plus Membranolizumab in the first-line setting, which could be challenging.

Overall, we are seeing that Pat said with Pembina as a map is becoming entrenched in the first line setting as the standard of care and future studies, including future Nekton targeted medicines, where do you like unsold Adc's will likely have to do studies against and pass it plus remember there's a map in the first.

Chris Boshoff: Membranolizumab is becoming entrenched in the first-line setting as the standard of care, and future studies, including future Nectin, childhood medicines, radioligands, or ADC, will likely have to do studies against Adcet plus Membranolizumab in the first-line setting, which could be challenging.

On setting, which which could be challenging thank.

Chris Boshoff: Thank you, Chris. Next question, please. Our next question comes from Truong Huynh with UBS. Hi guys, thanks for the questions. Firstly, on Prevnar, there wasn't so much commentary in your prepared remarks here, just interested in the quarter; was that impacted by any one-offs? and Has there been any stocking dynamic or de-stocking at play here given the approval of Pat Batchelor and that anticipated launch? And then, secondly, just after we saw some early Catholics' data in breath, the presenter was very, very excited. We've had to talk about the opportunity here, how quickly we can get this through clinical studies, and when we can see the next set of longer-term data. Thanks very much.

Albert Bourla: Thank you, Chris. Next question, please.

Thank you Chris next question please.

Our next question comes from Truong Huynh with UBS. Hi guys, thanks for the questions. Firstly, on Prevnar, there wasn't so much commentary in your prepared remarks here, just interested in the quarter; was that impacted by any one-offs? and Has there been any stocking dynamic or de-stocking at play here given the approval of Pat Batchelor and that anticipated launch? And then, secondly, just after we saw some early Catholics' data in breath, the presenter was very, very excited. We've had to talk about the opportunity here, how quickly we can get this through clinical studies, and when we can see the next set of longer-term data. Thanks very much.

Operator: Our next question comes from Trung Huynh with UBS.

Speaker Change: Our next question comes from Trung Nguyen with UBS.

Trung Huynh: Hi guys, thanks for the questions, firstly, on PREVNAR, there wasn't so much commentary in your prepared remarks there, just interested in the quarter, was that impacted by any one-offs? And has there been any stocking dynamic or de-stocking at play here given the approval of [inaudible] and that anticipated launch? And then, secondly, just after we saw some early [inaudible] data in breath, the presenter was very, very excited. Can you perhaps talk about the opportunity here? How quickly we can get this through clinical studies, and when we can see the next set of longer-term data? Thanks very much.

Hi, guys. Thanks for the questions.

Firstly on Prem Dod that wasn't so much commentary in your prepared remarks, just interested in the quarter was that impacted by any one offs.

And has there been any stocking dynamics or destocking of play here, given the approval and that anticipated launch.

And then secondly, just ask we saw some early.

Data impressed that presents and were very very excited can you perhaps talk about the opportunity here how quickly can we get nice spring clinical studies and when can we see the next set of longer term data. Thanks very much.

Aamir Malik: Aamir, what about the stock? Yeah, so I'm just going to provide context on the U.S. performance dynamics. So the change year-over-year is predominantly a result of lower adult demand due to shrinkage of the opportunity size in that market, and the quarter-to-quarter change that you see is a function of the CDC order timing for pediatric vaccines, which tends to be quite lumpy, as well as some of the adult vaccination dynamics of both shrinkage and seasonality. And I think it's important to continue to think about these two segments very differently in the

Albert Bourla: Aamir, what about the stocking?

EMEA was up all of this is a nice stocking so I'm pregnant I'll just provide context on the U S performance dynamics, so the change year over year.

Aamir Malik: Yeah, so I'm just going to provide context on the U.S. performance dynamics. So the change year-over-year is predominantly a result of lower adult demand due to shrinkage of the opportunity size in that market, and the quarter-to-quarter change that you see is a function of the CDC order timing for pediatric vaccines, which tends to be quite lumpy, as well as some of the adult vaccination dynamics of both shrinkage and seasonality. And I think it's important to continue to think about these two segments very differently in the US, so with pediatrics, as Albert mentioned in his remarks, we exited Q2 with a share of 81%, which is up 71% in August. And then the adult market continues to behave differently in the US in that it is contracting because there are just fewer eligible 65+ adults and a more difficult to activate younger population, and that's the same population that Merck's B116 will be launching.

It's predominantly a result of lower adult demand due to shrinkage of the opportunity size in that market in the quarter to quarter change that you see as a function of the CDC order timing for pediatric vaccines, which tends to be quite quite lumpy as well as some of the adult vaccination dynamics of both shrinkage and seasonality.

I think it's important to continue to think about these two segments very differently in <unk> in the U S. So with pediatrics is as Albert had mentioned in his remarks, we exited Q2 with a share of 81%, which is up 71% in August and then the adult market continues to behave differently in the U S and that is contracting.

Alexandre de Germay: So with pediatrics, as Alpert mentioned in his remarks, we exited Q2 with a share of 81 percent, which is up 71 percent in August. And then the adult market continues to behave differently in the U.S. in that it is contracting because there are just fewer eligible 65-plus adults and a more difficult to activate younger population, and that's the same population that Merck's B.1.1.6 will be launching And in the international market? International, as you see, the first quarter and second quarter together, we grew by 6 percent. And this is in line with our expectations.

So with pediatrics, as Alpert mentioned in his remarks, we exited Q2 with a share of 81 percent, which is up 71 percent in August.

And then the adult market continues to behave differently in the US in that it is contracting because there are just fewer eligible 65+ adults and a more difficult to activate younger population, and that's the same population that Merck's B116 will be launching And in the international market? International, as you see, the first quarter and second quarter together, we grew by 6 percent. And this is in line with our expectations.

Aamir Malik: And then the adult market continues to behave differently in the US in that it is contracting because there are just fewer eligible 65+ adults and a more difficult to activate younger population, and that's the same population that Merck's B116 will be launching.

Because there are just fewer eligible 65 plus adults.

And a more difficult to activate younger population and that's the same population that merck's view.

And in the international market? International, as you see, the first quarter and second quarter together, we grew by 6 percent. And this is in line with our expectations.

And in the international market?

One six will be we'll be launching into.

Alexandre de Germay: International, as you see, the first quarter and second quarter together for the [inaudible] grew by 6%, and this is in line with our expectations. What we see is, of course, we are going to capitalize on the very strong franchise that we have on PREVNAR 13 with 140 exclusive NIP around the globe. And so as we get PREVNAR 20, we think we're going to launch this product and switch from 13 to 20. Now in adults, it's a very interesting dynamic because in adults, our vaccination was in Europe and outside of developed countries quite limited, now that we see PREVNAR 20 registered and validated by VTC, we see significant pick-up. And I will give you an example, in Germany, we got a VTC recommendation for 60 and above, all comers, and uptick from 18 to 59, and there in Germany, since the beginning of the year, we've seen significant growth. We expect that we will have similar trends in other major markets in Europe.

Irrational markets International as you see our first quarter second quarter to get us for the first half we grew by 2%.

Alexandre de Germay: What we see is, of course, we are going to capitalize on the very strong franchise that we are on PREVNAR 13 with 140 exclusive NIP around the globe. And so as we get PREVNAR 20, we're going to launch this product and switch from 13 to 20. Now in adults, it's a very interesting dynamic because in adults, our vaccination was in Europe and outside of developed countries quite limited. Now that we have PREVNAR 20 registered and validated by VTC, we see significant pick-up. And I will give you an example.

And this is in line with our expectation what we see is of course, we are going to capitalize on the very strong franchise that we have that 13 with 140, excuse EDA and IP around the globe and so as we can self fund <unk> going to launch these products and switch from <unk> to 'twenty now in adults, it's very interest.

And dynamic because in adults Opex nation was in Europe and our.

Outside of the Gulf countries quite units now that we see playing out 'twenty registered.

<unk> data by DTC, we see significant pickup and let me give you. An example in Germany. We got to did you say recommendations for 60 and above all comers and at risk from 18 to 59 and Theyre in Germany since the beginning of the year with significant growth, we see that Google App similar trends in other major markets in Europe.

Alexandre de Germay: And I will give you an example, in Germany, we got a VTC recommendation for 60 and above, all comers, and uptick from 18 to 59, and there in Germany, since the beginning of the year, we've seen significant growth. We expect that we will have similar trends in other major markets in Europe.

Alexandre de Germay: In Germany, we got a VTC recommendation for 60 and above, all numbers.

Alexandre de Germay: And there, in Germany, since the beginning of the year, we've seen significant growth. We expect that we will have similar trends in other major markets in Europe.

Albert Bourla: Thank you, and Chris?

Thank you Chris and thank you very much for the question on Cat six.

Chris Boshoff: Thank you very much for the question on KAT6. KAT6 is a first in category medicine, we're very proud that this medicine was conceptualized and discovered at our laboratories in La Jolla. As you've seen, with the most recent data, the object response rate is over 35%, the same durable responses, and it is well tolerated. We therefore plan to initiate a Phase III program over the next 6 months, and you'll learn more about that, but thank you for the question, we're also excited about PADCEV.

<unk> six is a first in category medicine, we are very proud that this medicine was conceptualized and discovered at our laboratory sinter Hoya as you've seen with the most recent data objective response rate over 35% durable responses and well tolerated. We therefore plan to initiate a phase III program over the next six months and.

Bruce: We therefore plan to initiate a phase 3 program over the next 6 months, and you'll learn more about that. Thank you for the question. We're also excited about that.

You'll learn more about that but thank you for the question. We are also excited about cuts here. Thank.

Albert Bourla: Thank you, we are very excited about this. Next question, please.

Thank you we are very excited about it the next question. Please.

Operator: Our next question comes from Carter Gould with Barclays.

Our next question comes from Carter Gould with Barclays.

Carter Gould: Great, good morning, thank you for taking the question. I guess, first of all, just a clarification, I guess when we think about the PK [inaudible] about a month ago, are we going to see any of that data prior to the dose optimization data reading out early next year? And then as we think about timelines for Danuglipron, some of your European peers have talked about potentially moving faster than I think some of the timelines that are generally thrown out there, including potentially as reaching market as early as 2028. Does Pfizer have sort of similar plans? Or think such plans would be feasible for Danuglipron? Any color on that front would be helpful. Thank you. Michael?

Great. Good morning. Thank you for taking the question I guess the first one just a clarification I guess when we think about the the PK data from data that got topline.

Michael Dolsten: Thank you for taking the question. I guess, first of all, just a clarification. I guess when we think about [inaudible] About a month ago, are we... any of that data prior to the dose optimization data reading out early next year? And then as we think about timelines and GLP-1, some of your European peers have talked about potentially moving faster than I think some of the timelines that are generally thrown out there, including potentially. Does Pfizer have any sort of similar plans, or think such plans would be feasible for danoglopron? Any color on that front would be helpful. Thank you. Michael?

Good morning.

Are we going to see any of that data prior to the dose optimization data reading out early next year and then as we think about timelines for Dan a clip Ron some of your European peers have talked about.

Potentially moving faster than I think some of the timelines that are generally thrown out there, including potentially reaching market as early as 2028.

Pfizer have sort of similar plans, where think such plans would be feasible for Dana clip Ron any color on that front would be helpful. Thank you.

Michael.

Albert Bourla: Mikael?

Mikael Dolsten: Yes, for your questions, we'll likely present a comprehensive data set on PK after collecting all the data from the two studies, but we are looking into what's the best way to share it in a timely manner. We have some of the most aggressive timelines when we agree a protocol with the regulatory agency and pending data, and as Albert has said, if that becomes the case that we move forward with pending data, you can bet that, like every Pfizer program, it will be verified. Thank you Mikael, next question, please.

Yes for your questions.

We will likely present, a comprehensive data set from PK after collecting.

All the data from the two studies, but we.

We are.

We're looking into what's the best way to sharing your time there.

We have some of the most aggressive timelines when we agree.

Agreed protocol with the regulatory agency pending data and as Alberto said.

We've come to the case.

We move forward pending data you can bet like every price a program it will be very fast.

Thank you Michael.

Next question please.

The next question comes from Chris Schott with J P. Morgan.

Albert Bourla: Thank you Mikael, next question, please. The next question comes from Chris Schott with JP Morgan

Albert Bourla: Thank you Mikael, next question, please.

Operator: The next question comes from Chris Schott with JP Morgan

Chris Schott: Great, just two questions for me, just kind of back to Danu again, I guess just to get a picture, do you expect the once-daily formulation will have an improved tolerability profile versus the twice-daily? And any part of that, as we think about the additional data you're getting, will you get additional efficacy or tolerability data from these ongoing studies, or is it really just PK, and just as you're trying to make a decision here, I just want to try to better understand what you're going to have available to consider. And then the second question I had was just on RSV.

Great just two questions from me just kind of like Dan you again.

I guess just bigger picture do you expect the once daily formulation will have an improved tolerability profile versus the twice daily.

And maybe part of as we think about the additional data Youre getting will you get additional efficacy or tolerability data from these ongoing studies or is it really just PK understood as youre trying to make a decision here just wanted to try to better understand what youre going to have available to consider and then the second question I had was just on RSV. It sounds like some encouraging contracting updates.

Speaker Change: But can you just elaborate a bit more in the market as a whole.

Is this a market you expect to grow in the U S. This year as I guess on one hand, and balancing more visibility on who should be targeted covered post as CIP, but at the same time. There is no <unk> recommendation, yet and there could be maybe some challenges for pharmacy is trying to ferret, whose high risk and who is not in that 60 to 74 year old population. So just sort of balance those two together do you expect the.

Market as a whole is growing this year. Thank you.

Given that.

For the interest of time, let me tell you about the Daniel we have said that multiple times that is going to be PK data right. Now we have done with <unk> 1400 pace.

Michael Dolsten: I guess just to give you an idea, do you expect the once-daily formulation will have an improved tolerability profile versus the twice-daily? And maybe part of that, as we think about the additional data you're getting, will you get additional efficacy or tolerability data from these ongoing studies, or is it really just PK? And just as you're trying to make a decision here, I just want to try to better understand what you're going to have available to consider. And then the second question I had was just about RSV.

So we feel very comfortable about the profile, we know the product right. Now. The question is if we have a formulation that will allow us to take this product into phase III registration, enabling studies, we made an announcement.

Because we feel but what we saw from the first round of testing multiple formulations. We felt encouraged that we have several that can deliver in one but it was a perfect one and it is the one but because it was the best a hole and now we are going to test.

Also we can't speculate is tolerability will be better or not because of once a day compared to twice a day, because we don't have the data but the.

As I.

I said in my prepared remarks for Darden the profile, but.

The Dod you're right now has based on the 1400 patients that we have seen is very competitive ballroom durability of efficacy with whatever we have seen from others in the auto space, So far and in terms of timing right now.

With everything we know we are the only one that was to be data.

Chris Schott: And then the second question I had was just on RSV, it sounds like some encouraging contracting updates, but can you just elaborate a bit more on the market as a whole? Is this a market you expect to grow in the U.S. this year? [inaudible] I'm balancing more visibility on who should be targeted and covered post-ACIP, but at the same time, there's no revamped recommendation yet, and there could be maybe some challenges for pharmacies, [inaudible] who's high-risk and who's not in that 60- to 74-year-old population. So just as I balance those two together, do you expect the market as a whole is growing this year? Thank you.

And the oral <unk> one after of course.

So right now for everything we know we should be the second after literally.

Daniel progressing toward registration, enabling studies.

Now, let's go to zero Okay.

Albert Bourla: It sounds like some encouraging contracting updates, but can you just elaborate a bit more on the market as a whole? Is this a market you expect to grow in the U.S. this year? If I'm on it, I'm balancing more visibility on who should be targeted and covered post-ACIP, but at the same time, there's no revamped recommendation yet, and there could be maybe some challenges for pharmacies, who are high-risk and who're not in that 60- to 74-year-old population. So just as I balance those two together, do you expect the market as a whole is growing this year? Thank you.

So so Chris what I would say is we are only in the second season now of a standing market right. So you had the first season last year. This year with the <unk> recommendation as I mentioned earlier, we think that that provides clarity and it strengthens our need.

Albert Bourla: Chris, given that, for the interest of time, let me tell you about Danu. We have said it multiple times, but it's going to be PK data right now, we have done with Danu 1,400 patients, so we feel very comfortable about the profile, we know the product. Right now, the question is if we have a formulation that will allow us to take this product into phase three, registration, and enabling studies. We made an announcement because we feel that what we saw from the first round of testing multiple formulations, we felt encouraged that we have several that can deliver and one that it was the preferred one, and it is the one because it was the best of all, and now we are going to test it. Also, we can't speculate if tolerability will be better or not because of once a day compared to twice a day because we don't have the data. But as I said in my prepared remarks for Daniu, the profile that Daniu right now has, based on the 1,400 patients that we have seen, is very competitive both on polarability and efficacy with whatever we have seen from others in the oral space so far. And in terms of timing, right now.

Chris, given that, for the interest of time, let me tell you about Danu. We have said it multiple times, but it's going to be PK data right now, we have done with Danu 1,400 patients, so we feel very comfortable about the profile, we know the product. Right now, the question is if we have a formulation that will allow us to take this product into phase three, registration, and enabling studies. We made an announcement because we feel that what we saw from the first round of testing multiple formulations, we felt encouraged that we have several that can deliver and one that it was the preferred one, and it is the one because it was the best of all, and now we are going to test it.

Albert Bourla: We know the product. Right now, the question is whether we have a formulation that will allow us to take this product into phase three, registration, and enabling studies. We made an announcement because we feel that what we saw from the first round of testing multiple formulations, we felt encouraged that we have several that can deliver and one that was the preferred one, and it is the one because it was the best of all, and now we are going to test it.

We made an announcement because we feel that what we saw from the first round of testing multiple formulations, we felt encouraged that we have several that can deliver and one that it was the preferred one, and it is the one because it was the best of all, and now we are going to test it. Also, we can't speculate if tolerability will be better or not because of once a day compared to twice a day because we don't have the data. But as I said in my prepared remarks for Danu, the profile that Danu right now has, based on the 1,400 patients that we have seen, is very competitive both on tolerability and efficacy with whatever we have seen from others in the oral space so far. And in terms of timing, right now.

Albert Bourla: We made an announcement because we feel that what we saw from the first round of testing multiple formulations, we felt encouraged that we have several that can deliver and one that it was the preferred one, and it is the one because it was the best of all, and now we are going to test it. Also, we can't speculate if tolerability will be better or not because of once a day compared to twice a day because we don't have the data.

Albert Bourla: Also, we can't speculate if polarability will be better or not because of once a day compared to twice a day because we don't have the data. But as I said in my prepared remarks for Daniu, the profile that Daniu right now has, based on the 1,400 patients that we have seen, is very competitive both on polarability and efficacy with whatever we have seen from others in the oral space so far. And in terms of timing, right now.

Also, we can't speculate if tolerability will be better or not because of once a day compared to twice a day because we don't have the data. But as I said in my prepared remarks for Daniu, the profile that Daniu right now has, based on the 1,400 patients that we have seen, is very competitive both on polarability and efficacy with whatever we have seen from others in the oral space so far. And in terms of timing, right now.

Albert Bourla: But as I said in my prepared remarks for Danu, the profile that Danu right now has, based on the 1,400 patients that we have seen, is very competitive both on tolerability and efficacy with whatever we have seen from others in the oral space so far. And in terms of timing, right now, with everything we know, we are the only one with two big data on an oral GLP-1 after, of course, [inaudible]. So, right now, for everything we know, we should be the second after [inaudible] if this Danu progresses into registration-enabling status. Now, let's go to RSVN, Aamir. So, Chris, what I would say is we are only in the second season now of a standing market, right? So, you had your first season last year.

Albert Bourla: With everything we know, we are the only one with two big data on an oral GLP-1 after, of course, release. So, right now, for everything we know, we should be the second after release if this value progresses to registration-enabling status. Now, let's go to RSVN. So, Chris, what I would say is we are only in the second season now of a standing market, right? So, you had your first season last year.

Aamir Malik: So, Chris, what I would say is we are only in the second season now of a standing market, right? So, you had your first season last year, this year, with the ACIP recommendation, as I mentioned earlier, we think that that provides clarity and strengthens the need for those identified in the recommendation to get a vaccine. And we've had another six months plus of opportunity to educate ACPs, as well as consumers, and we see a growing relevancy and urgency among people who vaccinate, so, we do think that the opportunity is [inaudible]. Thank you very much.

Aamir Malik: This year, with the ACIP recommendation, as I mentioned earlier, we think that that provides clarity and strengthens the need for those identified in the recommendation to get a vaccine. And we've had another six months plus of opportunity to educate ACPs, as well as consumers. And we see a growing relevancy and urgency among people to vaccinate. So, we do think that the opportunity is there. Thank you very much.

Need for those identified in the recommendation to get a vaccine and we've had another.

Six months plus of opportunity to educate hcp's has them all as consumers and we see growing relevancy and urgency of people to vaccinate. So we do think that the opportunity set expands.

Thank you operator next question.

Albert Bourla: Thank you, operator next question.

Operator: The next question comes from Tim Anderson with Wolf Research.

The next question comes from Tim Anderson with Wolfe Research.

Tim Anderson: Thank you, going back to IRA, so CMS is down to make the disclosure of the negotiators pricing on the first list of 10 drugs, but you know, a very big production. They don't claim it's a major win over the industry, or course it depends on how those prices compare to net prices, not list. My understanding is it's possible to get this news from CMS earlier than September 1st, possibly this week ahead of the congressional recess in early August. If you agree, it's possible we might get this news early? Thank you. You know, I don't know.

Thank you going back to IRA.

CMS is down to make the disclosure of negotiated prices in the first list of 10 drug.

Albert Bourla: The price is on the first list of 10 drugs, but you know, it's a very big production. They don't claim it's a major win over the industry, but it depends on how those prices compare to net prices, not list prices.

A very big production.

It will claim its a major win over the industry of course, it depends on how those prices compare to net prices not lift.

Albert Bourla: My understanding is it's possible to get this news as early as September 1st, possibly this week ahead of the congressional hearing. If you agree, it's possible. You know, I don't know.

My understanding is it possible to get this news from CMS earlier than September one, possibly this week ahead of the congressional recess in early August.

Do you agree with possible we might get this news early thank you.

You know I don't noise.

Speaker Change: Have the decision, making so they will do what they think I come to <unk>.

Comment on that.

I know <unk> discussed that theme, but so I will emphasize once more.

Albert Bourla: Tim, I don't know. They have the decision-making, so they will do what they think, I can't comment on that. I know they discussed that thing, so I will emphasize once more. If TMS says that that was a big win for them against [inaudible] so what I would say was the whole low of IRA. It is a very big loss for innovation and for the crown jewel of the American industry, which is life science technology physics. But, you know, it is the law of the land. And we are doing our best to make sure that we minimize any impact, particularly in the future, because for now, the days that said we were probably the next few years. The NGVs that are at stake for us are quite small because, We were fortunate not to have them, up to four products, so let's pick only one.

Albert Bourla: They have the decision-making power, so they will do what they think. I can't comment on that. I know they discussed that thing, so I will emphasize once more. If TMS says that that was a big win for them against the family, so what I would say was the whole low of IRA. It is a very big loss for innovation and for the crown jewel of the American industry, which is life science technology physics.

If CMS says that was a big win for ov against the foreign language, but what I would say it was as a whole.

Low right. It is a very big loss for innovation.

For the Crown Jewel of American industry, which is the life science technology, but.

Albert Bourla: But, you know, it is the law of the land. And we are doing our best to make sure that we minimize any impact, particularly in the future, because for now, the days that said we were probably the next few years. The NGVs that are at stake for us are quite small because, We were fortunate not to have them, up to four products, so let's pick only one.

It is worth it basically is the law of the land.

And we are doing our best to make sure what you mean.

Albert Bourla: But, you know, it is the law of the land, and we are doing our best to make sure that we minimize any impact, particularly in the future, because for now, as the days that said we were probably the next few years. The NGVs that are at stake for us are quite small because mostly we were fortunate not to have them, up to four products, so let's pick only one. Next question please.

<unk> impact, particularly in the future because for now.

Dave as I said, we were probably in the next few years.

The NPV that's at stake for Us, it's quite small because we.

Speaker Change: We were fortunate not to have.

After four products selected boundary wall.

Next question please.

Sure.

Operator: Our next question comes from Steve Scala with TD Cowen.

Our next question comes from Steve Scala with PD Cowen.

Ste: Oh, thank you so much, I have two questions. First, do you expect VYNDAQEL to grow up to the LOE, or will competitors crush their sales and take a majority share before that? Certainly, it seems VYNDAQEL faces some significant challenge. And secondly, assuming no booster doses, does Pfizer still peg peak RSV vaccine sales at $2 billion plus? That was guidance first provided in December 2022, and do you think you can capture a majority share this fall? Thank you. Aamir, why don't you take the first one?

Steve Scala: Oh, thank you so much, I have two questions. First, do you expect VYNDAQEL to grow up to the LOE, or will competitors crush their sales and take a majority share before that? Certainly, it seems VYNDAQEL faces some significant challenge. And secondly, assuming no booster doses, does Pfizer still peg peak RSV vaccine sales at $2 billion plus? That was guidance first provided in December 2022, and do you think you can capture a majority share this fall? Thank you.

Thank you so much two questions first do you expect <unk> to grow up to the low <unk> or will competitors pressure sales and take majority share before that certainly seems into cow faces some significant challenge.

And secondly, assuming no booster doses. This pfizer still peg peak RSV vaccine sales at $2 billion plus that was guidance first provided in December 2022.

And do you think you can capture a majority share of this fall. Thank you.

Albert Bourla: Aamir, why don't you take the first one?

I mean, why don't you take the first one sure so Steve and then maybe what's going on now and then what's to come with competition. So Linda is continuing to grow at a very healthy clip.

Aamir Malik: Sure, so, Steve, on VYNDA, maybe what's going on now and then what's to come with competition. So, VYNDA is continuing to grow at a very healthy cliff, this is the result of multiple factors, a very important one of which is that we are focused on expanding our HCP base that we're targeting, as well as really investing in diagnosing and identifying patients. Diagnosis remains the biggest unmet need in this condition, because almost half of patients are still undiagnosed, so, we do see a lot of growth opportunity in VYNDA. Now, for this year, it may not continue as the same cliff that we've seen in Q1 and Q2 because we had a big bolus of enrollment patients at the beginning of the year, partially as a result of some of the IRA reforms, and the incremental diagnose is becoming harder and harder to find.

This is the result of multiple factors are very important one of which is be focused on expanding our HCP base that we're targeting as well as really investing in diagnosing and identifying patient diagnose.

Diagnosis remains the biggest unmet need in this condition because theres almost half of patients that are still undiagnosed. So we do see a lot of growth opportunity and Linda now for this year. It may not continue at the same clip that we've seen in Q1 and Q2, because we had a big bolus of enrollment of patients in the beginning of the year, partially as a result of.

Aamir Malik: So, we do see a lot of growth opportunity in VINDA. Now, for this year, it may not continue as the same cliff that we've seen in Q1 and Q2 because we had a big bolus of enrollment patients at the beginning of the year, partially as a result of some of the IRA reforms, and the incremental diagnoses are becoming harder and harder to find.

Aamir Malik: Now, for this year, it may not continue as the same cliff that we've seen in Q1 and Q2 because we had a big bolus of enrollment patients at the beginning of the year, partially as a result of some of the IRA reforms, and the incremental diagnose is becoming harder and harder to find, but we do expect continued growth with VYNDAQEL. As far as competition, there's still a lot that needs to be understood exactly about the competitors, their data, their profile, what actions they're going to take. But what I will say is that we obviously welcome more treatment options for patients, but there's a lot that we're very confident in with VYNDA. There's a body of clinical evidence that includes five-year follow-up clinical trial data and real-world evidence, including statistically significant mortality and TB hospitalization data that is in our label, as well as quality-of-life benefits that we think continue to position VINDA well. But, of course, with competition coming in, we will take that into consideration and provide further guidance as things evolve. Thank you.

Some of the <unk> reforms, and the incremental diagnoses become harder and harder to find but we do expect continued growth with <unk> as far as competition.

Aamir Malik: But we do expect continued growth with VYNDAQEL. As far as competition is concerned, there's still a lot that needs to be understood exactly about the competitors, their data, their profile, and what actions they're going to take. But what I will say is that we obviously welcome more treatment options for patients, but there's a lot that we're very confident in with VINDA. There's a body of clinical evidence that includes five-year follow-up clinical trial data and real-world evidence, including statistically significant mortality and TB hospitalization data that is in our label, as well as quality-of-life benefits that we think continue to position VINDA well. But, of course, with competition coming in, we will take that into consideration and provide further guidance as things evolve. Thank you.

There's still a lot that needs to be understood exactly about the competitors their data their profile what actions are going to take but what I will say is that we obviously welcome more treatment options for patients, but there's a lot that we're very confident in <unk>. There's a body of clinical evidence that includes five year follow up clinical trial date.

Aamir Malik: There's a body of clinical evidence that includes five-year follow-up, clinical trial data and real-world evidence, including statistically significant mortality and CB hospitalization data that is in our label, as well as quality-of-life benefits that we think continue to position VYNDA well. But, of course, with competition coming in, we will take that into consideration and provide further guidance as things evolve. Thank you.

And real World evidence.

Including statistically significant mortality and CV hospitalization data that is in our label.

As well as quality of life benefits that we think continue to position <unk> well, but of course with competition coming and we will take that into consideration and provide further guidance says as things evolve. Thank you and again in the interest of time speaks for the <unk>.

Albert Bourla: Thank you, and, again, in the interest of time, for the RSV, when we provided the $2 billion dollars, it was in the framework of a pipeline asset, what is the key potential annually? We don't give them once the products are registered, typically, projections, not even for the peak years. But what I would say, if anything, things have become more promising since the time that we gave these $2 billions because we were all surprised how much the medical community and the recommended authorities are putting emphasis on the disease. So that's my comment, sorry I couldn't be more specific to you. Next question, please.

Albert Bourla: And, again, in the interest of time, for the RSV, when we provided this $2 billion, it was in the framework of a pipeline asset. What is the key potential annually? We don't give them once the products are registered. Typically, projections are not even... for the peak years. But what I would say, if anything, things have become more promising since the time that we gave these two billions because we were all surprised how much the medical community and the recommended authorities are putting emphasis on the disease. So that's my comment. Sorry I couldn't be more specific to you. Next question, please.

Zvi.

When we provided 2 billion.

What's in the in the framework of a pipeline asset what is the potential timing of it.

We don't get once the products are registered it typically <unk>.

Not even.

For the peak years, but what I would say if everything if any.

It seems to have become more promising since the time that we gave.

Billions, because we were also price.

What's.

The medical community and better commended authorities are putting emphasis on busy so.

That's my comments, Saudi I couldn't be more specific.

Next question please.

Vamil Divan: Our next question comes from Vamil Savan with Guggenheim Security. Great, thanks for taking my questions; maybe a couple I could.

Operator: Our next question comes from Vamil Divan with Guggenheim Securities.

Our next question comes from <unk> Divan with Guggenheim Securities.

Vamil Divan: Great, thanks for taking my questions, maybe a couple, I could [inaudible] I assume for PCV next gen is similarly aggressive, maybe you can just comment on sort of the time you think it takes to get that product to market, given you're now in Phase II? And then the second one's more related to PAXLOVID, in the first quarter, you had big adjustments in well above expectations, but it's not like the guidance.

Great. Thanks for taking my questions, maybe a couple if I could when.

Albert Bourla: I could warn you a touch about the excessive time that I'm going to be speaking.

Speaker Change: You talked about the aggressive timelines and obesity.

Albert Bourla: I assume PCV next gen is similarly aggressive; maybe you can just comment on sort of the time you think it takes to get that product to market, given you're now in phase two.

Assume for PCV nexgen it similarly.

So maybe you can just comment on sort of a timing thing again.

Just to get that product to market. Given you are now in phase II and then the second one is more related to <unk> in the first quarter you had the big.

Vamil Divan: And then the second one's more related to PAXLOVID, in the first quarter, you had big adjustments in well above expectations, but it's not like the guidance, now, this of course you are reading the guidance, I'm curious if you can comment on anything you're seeing from the channel that was prescribing the conference rates, the guidance. Now, and then so tied to that, is that the main driver for the increase Post-margins expectations? [inaudible] of the product mix and cost management for combination, but just anything you can maybe parse out for the main drivers of that. Yes, for the next gen, I will make it easy. We announced that we were entering into phase 2 studies both in pediatrics, and so one can calculate, you can't comment on how long it will take because these are event-driven studies, particularly when you go into phase 3, so we don't know how long that will take, and we don't comment at this stage, but let's go to Paxlovid next.

Aamir Malik: and then the second one's more related to Paxlovid. In the first quarter, you had big adjustments and came in well above expectations, but it's not like the guidance.

Adjustments and you came.

Came in well above expectations, but to not raise the guidance now this quarter you are raising the guidance I'm curious if you can comment on anything youre seeing through the channels or what's sort of driving the confidence to raise the guidance now and then.

Albert Bourla: Yes, for the next gen, I will make it easy. We announced that we entered into Phase II studies both in pediatrics, and so one can calculate, you can't comment how long it will take because these are event-driven studies, particularly when you go into Phase 3. So we don't know how long that will take, and we don't comment at this stage, but let's go to PAXLOVID and explain the dynamics of it.

Aamir Malik: Now, this code you are reading is the guidance. Curious if you can comment on anything you're seeing from the channel that was prescribing the conference rates and guidance. Now, and then so tied to that, is that the main driver for the Post-emergent, so expectations are any of the product mix and cost management, so combination, but just anything you can maybe parse out for the main drivers of that. Yes, for the next gen, I will make it easy. We announced that we were entering into phase 2 studies both in pediatrics, and so one can calculate, you can't comment on how long it will take because these are event-driven studies, particularly when you go into phase 3, so we don't know how long that will take, and we don't comment at this stage, but let's go to Paxlovid next.

Aamir Malik: and the channel that was prescribing the conference release, the guidance, now and then. So tied to that is that the main driver for the Post-margin, so expectations that any of the product mix and cost management is a combination, but just anything can maybe be parsed out for the main drivers of that. Yes, for the next gen, I will make it easy.

Hi to that is that the main driver of sort of the increased gross margin expectations.

The product mix and cost management, it's a combination but.

Just seeing if you can maybe parse out what was it.

Albert Bourla: Yes, for the next gen, I will make it easy. We announced that we entered into Phase II studies, both in pediatrics, and so one can calculate, we can't comment on how long it will take because these are event-driven studies, particularly when you go into Phase III. So we don't know how long that will take, and we don't comment at this stage. But let's go to Paxlovid and explain the dynamics of it.

Drivers of that impact thank you.

Albert Bourla: We announced that we are entering into phase two studies, both in pediatrics, and so one can calculate how long it will take. We can't comment on how long it will take because these are event-driven studies, particularly when you go into phase three. So we don't know how long that will take, and we don't comment at this stage.

Yeah, so the nexgen that would make it music, we as we announced that we enter into phase two studies, both in pediatric and so one can calculate to complement how long would take because these are event driven studies, particularly what did you go into phase III right. So we don't know how long.

Albert Bourla: But let's go to Paxlovid and explain the dynamics. Yeah, so for Pax in the US, you know, you pointed to the momentum in Q1, which I'll remind you was a combination of both true health benefits as well as ongoing utilization that was very high given the wave of COVID infections. What happened then is that in the first half of Q2, infections were low, and the very clear trend that we see with Paxlovid is that when there is a COVID infection wave, we have healthy Paxlovid utilization.

But let's go to Paxlovid and explain the dynamics.

I will take.

Aamir Malik: Yeah, so for PAX in the US, you know, you pointed to the momentum in Q1, which I'll remind you was a combination of both true health, as well as ongoing utilization that was very high given the wave of COVID infections. What happened then is that in the first half of Q2, infections were low, and the very clear trend that we see with PAXLOVID is when there is a COVID infection wave, we have healthy PAXLOVID utilization. So starting in May, all the way through June, there was increased COVID infection waves, and our PAXLOVID utilization followed. So we had about 35,000 treatment courses a week in April and May, peaking to about 100,000 in June. So we have seen continued utilization. Now, it is trickier for wholesalers and end customers to manage utilization around a disease that is a little bit unpredictable. So we did enter Q2 with higher than normal inventory levels.

We don't comment at this stage, but let's go to explore with them explain the dynamics.

So we're packs in <unk> in the U S.

You pointed to the momentum in Q1, which I'll remind you is a combination of both the true up as well as ongoing utilization that was very high given the wave of Covid infection. What happened then is in the first half of Q2 infections were low and the very clear trend that we see with tax loaded is when there is a COVID-19.

Infection wave, we have healthy tax levied utilization so.

Albert Bourla: So starting in May, all the way through June, there were increased COVID infection waves, and our Paxlovid utilization followed. So we had about 35,000 treatment courses a week in April and May, peaking to about 100,000 in June. So we have seen continued utilization. Now, it is trickier for wholesalers and end customers to manage utilization around a disease that is a little bit unpredictable. So we did enter Q2 with higher than normal inventory levels.

So starting in May all the way through June there was increased COVID-19 infection waves and opex level utilization followed so we had about 35000 treatment courses of weak in April and May kicking to about 100000 in in June.

Aamir Malik: So we had about 35,000 treatment courses a week in April and May, peaking to about 100,000 in June, so we have seen continued utilization. Now, it is trickier for wholesalers and end customers to manage utilization around a disease that is a little bit unpredictable, so we did enter Q2 with higher-than-normal inventory levels, but the wave of utilization that we've seen in Q2 has helped normalize those inventory levels. And all of this dynamic, combined with the fact that we've built a commercial model to successfully get PAXLOVID to those who need it, including very healthy coverage with commercial payers, 90% of pharmacies across the US already participating in our USG Pax program, and a simplified model for delivering that Pax program to patients. When there is a COVID infection wave, we're confident about Paxlovid utilization. And just real quickly, as you think about the guidance, I think your question was, was this what you were saying? The technicians have told me to wait a moment, please, otherwise we will stop the call here.

Aamir Malik: So we had about 35,000 treatment courses a week in April and May, peaking to about 100,000 in June, so we have seen continued utilization. Now, it is trickier for wholesalers and end customers to manage utilization around a disease that is a little bit unpredictable, so we did enter Q2 with higher-than-normal inventory levels, but the wave of utilization that we've seen in Q2 has helped normalize those inventory levels. And all of this dynamic, combined with the fact that we've built a commercial model to successfully get PAXLOVID to those who need it, including very healthy coverage with commercial payers. 90% of pharmacies across the US already participating in our USG Pax program, and a simplified model for delivering that Pax program to patients, when there is a COVID infection wave, we're confident about Paxlovid utilization.

So we have seen continued utilization now is trickier for the wholesalers and end customers to manage utilization around a disease that is a little bit unpredictable. So we did enter Q2 with higher than normal inventory levels, but the wave of utilization that we've seen in Q2.

Albert Bourla: But the wave of utilization that we've seen in Q2 has helped normalize those inventory levels. And all of this dynamic, combined with the fact that we've built a commercial model to successfully get Paxlovid to those who need it, including very strong coverage with commercial payers, 90% of pharmacies across the US already participating in our USG Pax program, and a simplified model for delivering that Pax program to patients. When there is a COVID infection wave, we're confident about Paxlovid utilization. And just real quickly, as you think about the guidance, I think your question was, was this what you were saying? The technicians have told me to wait a moment, please, otherwise we will stop the call here.

<unk> has helped normalize those inventory levels and all of this dynamic combined with the fact that we've built a commercial model to successfully.

<unk> of it to those who need including a very healthy coverage with commercial payers, 90% of pharmacies across the U S already participating in our USG pack program and a simplified model for delivering that Pat program to patients.

When there is a COVID-19 infection wave, we're confident about types of liberty utilization.

And then just real quickly as you think about the guidance I think your question was this what was.

Aamir Malik: 90% of pharmacies across the US already participating in our USG Pax program, and a simplified model for delivering that Pax program to patients, when there is a COVID infection wave, we're confident about Paxlovid utilization.

Aamir Malik: And just real quickly, as you think about the guidance, I think your question was, was this what was dri- you were saying? The technicians have told me to wait a moment, please, otherwise we will stop the call here.

Aamir Malik: And just real quickly, as you think about the guidance, I think your question was, was this what was dri-

Albert Bourla: The technicians have told me to wait a moment, please, otherwise we will stop the call here.

But the commission just told me.

One moment, please otherwise we will stop the call here.

Operator: We'll take our final question from Evan Seigerman with BMO Capital Markets.

We will take our final question from Evan <unk> with BMO capital markets.

Evan Seigerman: Hey guys, thank you for squeezing in at the end. I would love some comments on VYNDAQEL, given the strength this quarter. You really came in ahead of consensus, do you expect this continuing in the back half of the year into 2025? And just given the IT, you know, in the next couple of years expiring, what can you do to extend this given how, you know, given the strength of this franchise? Thank you so much. Aamir. Evan.

Hey, guys. Thank you for squeezing me in at the end.

<unk> for some comments on vendor call given the strength. This quarter you really came in ahead of consensus do you expect that continuing in the back half of the year and into 'twenty five and just given the IP in the next couple of years expiring what can you do to extend this given how given the strength of this franchise. Thank you so much.

Aamir Malik: Do you expect this continuing in the back half of the year into 2025? And just given the IT, you know, in the next couple of years expiring, what can you do to extend this given how, you know, given the strength of this franchise? Thank you so much. Aamir. Evan.

Yes Amir.

Evan Seigerman: Aamir. Evan.

Albert Bourla: Aamir.

Aamir Malik: Evan, so this, as I mentioned earlier, yes, we do expect to see continued growth momentum for VYNDA in the back half of this year, and going forward, for the reasons I described earlier, it may not be at the level that we saw in the first half of the year because of the Q1 bolus of patients. But the combination of what we're doing in terms of physician expansion, investment in driving diagnosis, and tailwinds from IRA reform do give us conviction around short-term VYNDA growth. Yeah, and when it comes to, you know, IEP right now.

Aamir Malik: So this, as I mentioned earlier, yes, we do expect to see continued growth momentum for VINDA in the back half of this year and going forward, but for the reasons I described earlier, it may not be at the level that we saw in the first half of the year because of the Q1 bolus of patients. But the combination of what we're doing in terms of physician expansion, investment in driving diagnosis, and tailwinds from IRA reform do give us conviction around short-term VINDA growth. Yeah, and when it comes to, you know, IEP right now.

And then.

As I mentioned earlier, yes, we do expect to see continued growth momentum for vendor in the back half of this year and going forward for the reasons I described earlier it may not be at the level that we saw in the first half of the year because of the Q1 bolus of patients, but the combination of what we're doing in terms of physician expansion.

Investment in driving diagnosis and.

Tailwind from IAA reform do give us conviction around short term than account growth, yes, and when it comes to IP right now it's very difficult once the product is getting <unk> to.

Albert Bourla: Yeah, and when it comes to, you know, IEP right now, it's very difficult, once a product is getting generic, to be able to fight with a new molecule unless you have substantial differentiation, and, you know, VYNDAQEL has tremendous efficacy. So, we do not expect that the market will continue to be as big, particularly for us, after the seed generics enter in brief, so, thank you for the question. So I just want to make some closing remarks, we had a very strong first half of the year, and we are confident that we will deliver on our full year financial commitments in 2024. We are driving progress with solid execution as we continue to sell patients and grow our business, execution makes the difference. Thank you for your interest in Pfizer, and we hope you have a wonderful day.

Albert Bourla: It's very difficult, once a product is becoming generic, to be able to fight with a new molecule unless you have substantial differentiation, and, you know, Vimdeco has tremendous efficacy. So, we do not expect that. The market will continue to be as big, particularly for us, after the seed generics have entered it.

To be able to five with a new molecule unless you have substantial differentiation in <unk> has tremendous efficacy. So we do not expect.

The market will continue being as big particularly for us after we see dynamics and their inventory.

Albert Bourla: So, thank you for the question. I just want to make some closing remarks. We had a very strong first half of the year, and we are confident that we will deliver on our full year financial commitments in 2024. We are driving progress with solid execution as we continue to sell patients and grow our business. Execution makes the difference. Thank you for your interest in Pfizer, and we hope you have a wonderful day.

So thank you for the question so.

Albert Bourla: So I just want to make some closing remarks, we had a very strong first half of the year, and we are confident that we will deliver on our full year financial commitments in 2024. We are driving progress with solid execution as we continue to sell patients and grow our business, execution makes the difference. Thank you for your interest in Pfizer, and we hope you have a wonderful day.

I wanted to make some closing remarks that we had a very strong first half of the year and we are confident that we will deliver on our full year financial commitments in 24, we're driving progress with solid execution as we continued to stroke patients and grow our business.

Execution.

The difference thank you for your interest in <unk>.

Operator: This does conclude today's program, thank you for your participation, you may disconnect at any time.

This does conclude today's program. Thank you for your participation you may disconnect at any time.

Operator: [inaudible]

Speaker Change: Okay.

Okay.

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Okay.

Speaker Change: Uh-huh.

[music].

Yes.

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Okay.

[music].

Hello, Matt.

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Uh huh.

[music].

Okay.

Yeah.

Okay.

Uh-huh.

Hum.

[music].

Hmm.

Mhm.

[music].

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