Q4 2024 Pfizer Inc Earnings Call
Good day, everyone and welcome to Pfizer's fourth quarter 2024 earnings Conference call.
Today's call is being recorded.
Speaker Change: 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 and Francesca Demartino, Chief Investor Relations Officer on behalf of the Pfizer team. Thank you for joining us.
Francesca Demartino: Call is being made available via audio webcast at Pfizer.
Francesca Demartino: Earlier. This morning, we released our results for the fourth quarter and full year 2024 press release that is available on our website at Pfizer.
Speaker Change: I'm joined today by Dr. Albert boiler, our chairman and CEO and Dave <unk> our CFO.
Speaker Change: Albert and Dave have some prepared remarks, and we will then open the call for questions members of our leadership team will be available for the Q&A.
Before we get started I want to remind you that we'll be making forward looking statements discussing certain non-GAAP financial measures.
Speaker Change: Marriage, 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 advisor Dot com.
Speaker Change: Forward looking statements on the call are subject to substantial risks and uncertainties 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.
Thank you very much Francesca and good morning to everyone and thank you for joining us today.
Albert: 1024 was a strong year of execution and performance for Pfizer.
Albert: We were guided by our strategic priorities and we met or exceeded our goals for each one.
Albert: While also delivering on all financial metrics.
Albert: I am pleased with the progress we've made in executing transformative changes strengthened.
First we successfully integrated the Seaton business, one of the largest investments you've been making the past decade, creating one of the best oncology companies.
Albert: At the start of 2024.
Albert: To lead our commercial operations into two divisions U S and internationally.
Albert: And appointed two senior commercial leaders to increase focus symbol.
Malik: Mr Malik and Alexander.
Albert: Okay.
Albert: Joel upgrade our commercial capabilities.
Albert: We consolidated our external agencies down to one powerhouse global advertising.
Albert: And leverage the power of AI.
Albert: To transform our marketing and selling.
Albert: New data driven deployment of our commercial and medical resources.
Albert: Susan Mark dual targeting and social media.
Albert: The elevation of the advisor branding commercial communications are some of the strategies they have significantly greased, our commercial and medical effectiveness and the returns on it.
Albert: We are seeing the impact of these actions in our strong financial performance.
Albert: In recognition of our market leaders.
Albert: We are the top position in the 224 IQ via U S Field force ranking reports and improved our ranking to claim number two spot in 70% of the specialties, which Fox.
Albert: I'm also proud of our strong Europe pipeline progress in 2024, including more than a dozen approvals.
Albert: Seven people go study starts and a key phase III readouts.
Albert: I'm very excited with the changes in our R&D engine.
Albert: It's new leaders.
Albert: We also have more.
Albert: To create for end to end R&D units focused on oncology vaccines, internal medicine, and inflammation and immunology.
Albert: This structure fully empowers research units that can operate with a focus on agility also biotech company.
Albert: By tapping into our differentiated enterprise wide capabilities, such as AI powered drug discovery and development.
Albert: Our focus on financial discipline also has yielded good results. We ended the year with expanded margins. After a series of actions to realign our cost base.
Albert: And we start digitally deploy capital to enhance shareholder value investing nearly 11 building in support of internal R&D programs Delevering by seven point, a video and returning $9 5 billion directly to shareholders through our dividends.
Albert: Finally, we also reinforced our commitment to strong governance.
Albert: Two new board members.
Albert: Bringing deep expertise in financial markets and shareholder value creation.
Albert: All of these changes have created a strong foundation and allow us to start the new year from a position of strength.
So now let me speak about our 2025.
Albert: Last year, we had a significant emphasis on improving our commercial effectiveness in.
Albert: In 2025.
Albert: These were most improving R&D productivity.
Albert: Maintaining focus on margin expansion, what Michelle excellence and shareholder friendly capital allocation.
Albert: Let me start with R&D.
Albert: Our commercial pipeline, we believe we have a strong year of catalysts ahead of us and expect our new R&D organization to achieve multiple key milestones.
Albert: The possibility of at least four regulatory decisions up to nine potentially all phase III Readouts 13 potential people at that program starts.
Albert: For example, with.
Albert: I'd give them a site.
Albert: Our next generation highly selective CDK <unk> inhibitor candidate.
Albert: We dosed our first patient in our phase III study in first line metastatic breast cancer.
Albert: We also anticipate starting an additional first line study in combination with the biggest chunk.
Albert: Oh great.
Albert: We are co developing with Rfps.
Albert: Our a b C C.
Albert: Continuous its phase III study in second line non small cell lung cancer and this year, we expect to start a phase III start that.
Albert: First line non small cell lung costs.
Albert: Our PD L. One ADC candidate.
Albert: Thanks, you all first in class PD L. One targeting ADC.
Albert: <unk> you.
Albert: He is expected to begin two phase III studies this year.
Albert: One interest alignment of starting.
Albert: And then next squamous cell carcinoma.
Albert: And to one in second line.
Albert: Glass non small cell lung cancer, where the unmet need is significant.
Albert: We have a robust clinical development program aimed at expanding indications.
Albert: The indications.
Albert: Hello.
Albert: And this year, we anticipate the readout of the phase III start.
Speaker Change: Glass exposed the relapse refractory multiple myeloma.
Albert: If successful.
The addressable population versus the currently approved indication.
Albert: In vaccines, we expect to start the phase III study this year for our PCB 25 candidate covering 25 serotypes.
Albert: This is important foundational work that could help us bridge, two and accelerated progress without generation, we see the current debate covering more than seven serotypes.
Albert: Serotypes.
Albert: This year, we also expect to start a phase III study for our <unk> vaccine candidate.
Speaker Change: Do you mean internal bets, we remain on track to provide an upgrade of our dose optimization studies.
Albert: In the first quarter of this year.
Albert: Corporate segment, we expect to start Pete look I'll start that this year in concert that kicks.
Albert: And he believes that through our.
Albert: Our second generation COVID-19, oral antiviral candidate continues its phase III study.
Albert: We then.
Albert: Alright.
Albert: We continue to progress our portfolio of medicines that include two potential first in class try specific antibody currently in phase two.
Albert: Now, let's discuss our Congress.
Albert: 1024 was a strong year of execution and are pleased with our progress in improving performance of our newly launched products and gaining and maintaining market share for several of our core brands.
Albert: I will start.
Albert: I think the strength and impact of our oncology portfolio.
Albert: But ship philosophy, and peruse them is an important growth driver as it has already become the number one prescribed first line treatment for locally advanced metastatic <unk> cancer in the U S.
Albert: We are expecting potential registrational interim data this year.
Albert: From ongoing pivotal studies in muscle invasive bladder accounts.
Albert: If successful and approved with nearly.
Albert: The total addressable patients in the U S.
Speaker Change: Dolby Mcdole, we achieved a 27% year over year worldwide operational growth and expanded its leadership position in multiple broth tumors, which are some of the hardest to treat cancers.
Speaker Change: Yesterday, we announced that <unk> in combination with Cetuximab and for Fox seeks.
Speaker Change: So statistical statistically significant and clinically meaningful improvement in progression free survival and overall survival in patients with metastatic colorectal cancer with broth V-six condra eat in your base.
Speaker Change: We are very excited with a robust improvement in PFS and OS and are looking forward to presenting this data in a scientific conference.
Speaker Change: Hello, Brenda a treatment for adults with <unk>.
Speaker Change: Out positive metastatic non small cell lung cancer achieved 77% worldwide year over year operational growth and is emerging as a potential standard of care in the first line setting.
Speaker Change: Following Les Zeus unprecedented crown trial data showing 60% of patients were alive without disease progression. After five years <unk> seen a double digit salary increase in the first line in both new patient starts and new prescribers.
Speaker Change: <unk> is.
Speaker Change: Our strong performance in 2024 with more than 30 million in full year revenues.
Speaker Change: And increasing overall share within the class of BCA may directed bio specific antibodies for patients with triple class exposed to relapse.
Speaker Change: Refractory multiple myeloma in the United States.
Speaker Change: I also wanted to comment about our COVID-19 portfolio.
Speaker Change: We continue to see stabilizing popcorn in the disease burden with a strong correlation between the COVID-19 burden of disease and Ox club utilization.
Speaker Change: We see the same stabilizing partners in the U S vaccination rates at relatively low levels.
Speaker Change: Our assumptions for 2025.
Speaker Change: On par with these 2023 and 2024 buckets.
Speaker Change: And with the multi year contracts, we have secured in international markets. We are confident about our COVID-19 portfolio.
Speaker Change: Continue to be predictable and durable contributor to our business.
Speaker Change: In another key category, our vintage <unk> family of products achieved continuing momentum with 90% year over year growth in the U S and 32% operational growth in international markets.
Speaker Change: We drove progress in diagnosing more patients and improving access to this treatment from four.
Speaker Change: <unk> amyloid cardiomyopathy.
Speaker Change: <unk> is our core brands with Pfizer was 10% worldwide year over year operational growth.
Speaker Change: Prescribed to millions of patients and we continue to strengthen its leadership position in a growing oral anticoagulant mark.
Speaker Change: We are also pleased with the ongoing positive momentum with 36% worldwide year over year operational growth driven by strong commercial execution.
Speaker Change: It is a leader in the euro since ERP class used for treating and preventing migraine with about 49% market share and we see opportunities for continued growth.
Speaker Change: Our respiratory vaccines, our presort and prevalence Wendy also our key products in our commercial portfolio.
Speaker Change: We have achieved a market leadership position for the season.
Speaker Change: Those four are breached.
Speaker Change: Within approximately 13 percentage points increase in market set.
Speaker Change: We remain confident in our ability to retain our position sort of strong commercial execution.
Speaker Change: Even as we see a decrease in the total adult RSV market.
Speaker Change: Driven by a reduction in vaccination rates in the U S. What are the older adult indications.
Speaker Change: Well see positive momentum in key regions, such as Europe, and Latin America and are also seeing strong demand for our maternal indication.
Speaker Change: Reasonable season.
Speaker Change: Good day cumulative Mcdonough origination right.
Speaker Change: Nearly three points.
Speaker Change: Compared to last season.
Speaker Change: With Brendan we are confident that we are well positioned for strong sustained leadership with over 87% market setting the U S across indications.
Speaker Change: The pediatric market accounts for approximately two thirds of our revenue our revenues and we also continue to make progress for the adult indication in key international markets.
We are encouraged by opportunities to maintain our leadership in the PCB space with our next generation HCV twenty-five candidate mentioned earlier.
In phase one we demonstrated potential improvement immunogenicity for serotype three one was the largest contributors of disease at approximately 20% of invasive disease in adults, aged 65 and older in the United States and Europe.
Speaker Change: Across our commercial portfolio in 2025.
Speaker Change: Im confident that we are in a strong position to build in our 2020 for succession, but chief commercial excellence in all key categories of oncology cardiovascular migraine vaccines in Ireland.
Speaker Change: With that I will turn it over to David Thank.
David Thank: Thank you Albert and good morning, everyone I'll build on Albert's comments by reinforcing that we are very pleased with our financial results for both the fourth quarter as well as the full year of 2024. These results demonstrate that our focus and execution against our strategic priorities are driving both positive patient outcomes as well as finance.
Speaker Change: And operational strength.
Speaker Change: In addition to our strong top line performance our cost reduction programs are creating a more efficient organization driving operating margin improvement.
Speaker Change: And as we move into 2025. These efforts will continue to lay the groundwork for potential increased capital returns and reinforce our commitment to maintaining and growing our dividend, while enhancing long term shareholder value.
Speaker Change: With that said, let me start with our full year and fourth quarter results, then I'll touch on our capital allocation priorities I'll finish up with a few comments on our 2025 guidance, which we are reaffirming today and our near term expectations that will continue to drive our growth potential in the latter half of the decade.
Speaker Change: For the full year of 2024, we recorded revenues of $63 $6 billion versus $59 $6 billion last year importantly, our operational revenue growth when excluding contributions from our cobot products was 12% exceeding our expectations of 9% to 11%.
Speaker Change: Full year 2024, adjusted gross margins expanded to 74% as we continued to drive cost improvements across our manufacturing network.
Speaker Change: On the bottom line, we reported full year 2024 diluted EPS of $1.41 versus <unk> 37 last year and adjusted diluted earnings per share of $3 and <unk> 11 cents versus a dollar and 84 cents last year significantly ahead of expectations due to our overall.
Speaker Change: Strong P&L performance.
Speaker Change: Now turning to the fourth quarter performance versus the same period of LOI, Let me walk down the P&L.
Total company revenues were $17 $8 billion versus $14 6 billion in the fourth quarter of last year.
Speaker Change: Once again, our non COVID-19 products exhibited robust performance with revenues of $13 $7 billion, reflecting 11% operational year over year growth.
Speaker Change: This performance continues to show that will refine commercial approach is working we continue to focus on key products and geographies.
Speaker Change: We've refined how we allocate our commercial field resources globally, and we further optimizing our marketing resources into key priority areas with strong saw strong contributions across our product portfolio, primarily driven by the vendor Cal family pad SAB, Alec quests and Eurotech partially.
Speaker Change: Set by declines in Brisbane with Xeljanz.
Speaker Change: Adjusted gross margin in the fourth quarter was approximately 68% primarily the result of a net unfavorable mix related to our COVID-19 products, primarily due to the Cove commodity profit split with <unk> and applicable royalty expenses. This was partially offset by ongoing focus on cost.
Speaker Change: Management across our manufacturing network as I previously mentioned.
Speaker Change: And as we previously communicated long term improvements in gross margin will remain a key focus for the company over the next few years, we expect to begin to achieve initial savings from phase one of our manufacturing optimization program in the latter part of 2025 and continue to expect approximately $1.
Speaker Change: $5 billion in savings from this first phase by the end of 2027.
Speaker Change: We continue to evaluate other strategies to improve our network structure and as well as our product portfolio.
Speaker Change: And we plan to share more information on those components of the program once it becomes available.
Speaker Change: Total adjusted operating expenses are essentially flat operationally at seven $3 billion in the fourth quarter of 2024 and I will note that this amount includes spending acquired via our <unk> transaction.
Speaker Change: Looking at the components, specifically adjusted <unk> expenses decreased 4% operationally driven primarily by a decrease in marketing and promotional spend for various products, including both commodity impacts little bit partially offset by an increase in spending for certain oncology and recently launched and acquired <unk>.
<unk>.
Speaker Change: Adjusted R&D expenses increased 8% operationally driven primarily by a net increase in spending mainly to develop certain product candidates acquired from CGM, partially offset by lower spending on certain ongoing vaccine programs and certainly as a result of our cost realignment program.
Speaker Change: Continue to be disciplined with our operational expense management and delivered on our goal of at least $4 billion in net cost savings from our cost realignment program.
Speaker Change: Q4 reported diluted earnings per share was seven cents and our adjusted diluted earnings per share was <unk> 63, any freighting from our top line performance as well as our efficient operating structure.
Speaker Change: Partially offset by a higher effective tax rate driven primarily by jurisdictional mix.
Speaker Change: In support of our goal to enhance R&D productivity and a focus on high impact medicines, our first our fourth quarter GAAP results reflect strategic decisions and our development plans and updated long range revenue forecast for several medicines.
Speaker Change: And as a result, we recorded approximately $2 $9 billion in noncash intangible asset impairments related to several medicines in development as well as several inline products.
Speaker Change: These decisions reinforce our focus on future growth as well as innovation.
Speaker Change: Now, let me quickly touch upon our capital allocation strategy, which is designed to enhance long term shareholder value.
Speaker Change: Our strategy consists of maintaining and growing our dividend over time reinvesting.
Speaker Change: Reinvesting in our business at an appropriate level of financial return and finally, making value enhancing share repurchases after delevering our balance sheet.
Speaker Change: In 2024, we've returned $9 $5 billion to shareholders via our quarterly dividend.
Speaker Change: We invested $10 8 billion in internal R&D and as expected completed business development activity was minimal.
Speaker Change: Our commitment to deleveraging our capital structure to a gross leverage target of three and a quarter times by the end of 2025 remains a key priority.
Speaker Change: In support of that goal in 2024, we de Levered by approximately seven 8 billion pain.
Speaker Change: Paying down approximately $2 $3 billion in maturing debt and approximately $5 5 billion in commercial paper.
Speaker Change: And in January of 'twenty, five we monetize another tranche of our Healy on shares which for reporting for reporting purposes as of Q1 'twenty five event.
Speaker Change: We received approximately $3 billion of net cash proceeds and now our ownership from Kiwi enbridge reduced from approximately 15% to approximately 7%.
Speaker Change: We intend to monetize our remaining Haley investment in a prudent fashion during 2025.
Speaker Change: Overall in Q4, we generated robust operating cash flows which combined with the most recent helium net sales proceeds of approximately $3 billion resulted in significant free cash flow generation as we enter 2025.
Speaker Change: Our objective remains to Delever and return to a more balanced allocation of capital between Reinvestments and direct return to shareholders over time.
Speaker Change: Given we issued our full year 2025 financial guidance on December the 17, let me just hit a few highlights we expect total company full year 'twenty five revenues to be in the range of 61 billion to 64 billion and full year 'twenty five adjusted diluted earnings per share to be in the range of $2 80.
Speaker Change: The $3 a share which reflects our expectation of strong contributions across our product portfolio as well as our focus on disciplined cost management.
Speaker Change: Importantly, we believe the steps taken to right size, our cost base will put us on a strong footing towards increased operational efficiency and support our goal to return to pre pandemic operating margins.
Speaker Change: And further support of this initiative, we now expect to deliver overall net savings of $4 5 billion from our ongoing cost relying programs by the end of 2025, while continuing to advance programs that will improve cost of goods sold in the years to come.
Speaker Change: As a reminder, the impact of the IRA Medicare part D. Redesign is expected to be a net headwind to the companys revenue of approximately $1 billion across our product portfolio damp.
Speaker Change: <unk> growth by approximately one 6% versus 2024.
Speaker Change: The impact of catastrophic coverage is expected to exceed the potential volume benefit from the reduction of the patient out of pocket cap lead.
Speaker Change: Leading to a negative impact beginning in early in the year, while the positive impact of lower patient out of pocket costs is expected to build throughout this year.
Speaker Change: As the IRT has felt more acutely in higher priced medicines, we expect <unk> to reach catastrophic coverage.
Speaker Change: Earlier in the year.
Speaker Change: And due to these changes we expect a higher gross to net impact on our revenues for all drugs in the beginning of 2025.
Speaker Change: That is expected to moderate throughout the remainder of the year when compared to 2024.
Speaker Change: And lastly, I will mention that we continue to monitor currency fluctuation as the year progresses.
So in closing let me just emphasize several key aspects of our business.
Speaker Change: We believe our financial targets for 2025 are both reasonable and achievable reinforcing our commitment to operational excellence.
Speaker Change: We also believe our revenue volatility is largely in the past as COVID-19 related uncertainties have diminished.
Speaker Change: Additionally, our cost improvement programs has set the stage for ongoing margin expansion.
Speaker Change: We will continue our focus and execution to maximize the commercial value of our product portfolio.
And our new R&D leader leadership is committed to driving value, creating innovation and strengthening our pipeline.
Speaker Change: And lastly, we have a clear path to reloading, our balance sheet, enabling enhanced capital deployment in pursuit of additional opportunities to strengthen our business and create value for our shareholders. We are dedicated to maintaining and growing our dividend and meeting our delivering delevering targets by the end of 'twenty.
Speaker Change: 25, providing for a more balanced capital allocation.
Speaker Change: And with that I'll turn it back to Albert to start the Q&A. Thank you, David but before we turn to questions I would like to close the year with one comment.
Speaker Change: Pfizer knows how to execute as well when we set our focus on something.
We sold what we could do in 2020, when we rapidly developed and prepared to manufacture billions of doses.
Speaker Change: With 19 vaccine in 'twenty, one when repeated the same with box globally and in 'twenty two when we're successful commercialization, we exceeded 100 billion in full year of it.
Speaker Change: In 2023, despite the difficulties with it.
Speaker Change: Based COVID-19 expectations, we invested in our future with a big bank in oncology with the acquisition of <unk>.
Speaker Change: And last year, we exceeded expectations for repeated with four consecutive quarters of strong financial performance from our disciplined commercial execution.
Speaker Change: Now as we are directing singular focus and our proven ability to execute on our R&D pipeline. We are confident that we are well positioned to drive meaningfully improves productivity and with that operator, please assemble the queue.
Speaker Change: At this time, if you would like to ask a question. Please press star one on your telephone keypad.
Speaker Change: You may remove yourself from the queue at any time by pressing star two.
Speaker Change: Once again that is star one to ask a question.
Operator: We'll go first to Steve Scala with PD Cowen. Please go ahead.
Steve Scala: Thank you so much I have two questions first on the Daniel <unk> dose optimization data, it's apparently still on track for the first quarter of this year what is the range of possible outcomes and is dropping this version of the.
Steve Scala: Compound a possibility and what would be the next step second question is Chris Bosh off I assume he's on the line under the heading of Nothing's perfect can you share with us two or three things in the Pfizer R&D portfolio or system that you think need to be fixed new leaders usually.
Steve Scala: Say, they want to move quicker, but sometimes they also thoroughly go through the portfolio and shed. Many projects is that also a possibility. Thank you.
Steve Scala: Chris.
Steve Scala: So we start with <unk>, so for Daniel just to be clear, we and as we stated previously we now targeting first quarter to have data from the ongoing.
Steve Scala: Dose optimization and formulation study the PK study and we are on track to deliver that in Q1, and we haven't seen the data yet, but obviously that data will then determine decisions for the future I think your problem on.
Steve Scala: On your second question.
Steve Scala: Recently announced we've already focused our portfolio, but we've now established fall into and therapeutic areas oncology vaccines internal medicine and ini.
Steve Scala: Part of that will be to focus on those opportunities that could provide the biggest value both for patients. But also provides us. So you will see given the coming months there'll be further focus and execute and accelerate dose medicines, we believe could be potential future blockbusters.
Steve Scala: Steve Youre right. It gives you some of the new leaders are taking their time to assess but.
Steve Scala: The good news with Chris is that new.
Steve Scala: Really the Pfizer organization.
Steve Scala: I'm very impressed with the speed.
Speaker Change: And both business, but he is deploying as James has already announced the reorganization of certain selected a lot of leaders and very focused on our pipeline and collaborations.
Andrew: Andrew box. So next question please.
Speaker Change: We will go next to Geoff Meacham with Citibank. Please go ahead.
Geoff Meacham: Good morning, everyone and thanks for the question.
Geoff Meacham: Just had a couple of quick ones. So for the Covid franchise, you guys talked about stabilizing revenue for this year, maybe just give us some level of conviction in your level of investments in this in this business.
Geoff Meacham: Kind of going forward I think most investors would like for it to kind of be viewed as just maybe upside to the story.
Geoff Meacham: And then from a capital allocation perspective.
When you guys think about the appetite for FERC potential BD as you re prioritize or look at the pipeline.
Geoff Meacham: And evaluate a lot of the assets and say early to mid development just wanted to get a sense from you guys for the appetite for.
Geoff Meacham: Growing out the number of Tas, if you had more optimization to do that can be achieved through a through BD. Thank you very much.
Geoff Meacham: Amit.
Speaker Change: So Jeff on Covid, maybe I'll start with tax law that you saw Albert described we have multiple years now.
Speaker Change: Reference, where <unk> utilization tracks directly to the level of disease outbreaks and the year of 2024 was was no different so we know that to be the case and we've also put in place a very effective commercial model impacts love. It that allows us to deliver on that and continue to improve.
Speaker Change: In fact, if you look at 2024, we had higher physician treatment rates than 'twenty three and we also had gains in market share versus versus 23. So we know we have a model that works and with regards to resource allocations, we have targeted our resource modeling <unk>. So that we are investing the <unk>.
Speaker Change: Places, where it's relevant when it's relevant so we have a very very tailored model and I think you see that in the results we had a very big summer.
Speaker Change: And early fall waves of Covid in 'twenty four.
Speaker Change: And then we add a milder and shorter winter weight and you see that reflected impacts load utilization and we've also ensured that we had the right pricing model in place and put in place a new agreement with the U S government on our <unk> contract that defines the eligibility for the USG pack going forward.
Speaker Change: There is clarity on that for January February and going into March and then with regards to the vaccinations on.
Speaker Change: Commodity again, we saw a pattern in 'twenty four is that very closely mirrored 'twenty three so vaccination rates were quite stable again here. We also saw an improvement in our market share position.
Speaker Change: For community and we are confident that our commercial execution, both with regards to the retail setting in the non retail setting will continue to put us in good stead as we move forward.
Speaker Change: Thank you and now of course in the international sale.
Speaker Change: I'm here, who have contracts with our multi year contracts.
Speaker Change: They are covering not only this year, but the year after.
Speaker Change: So all of that makes us feel like this is a very stable and predictable revenue stream.
Speaker Change: With regard to capital allocation and then.
Speaker Change: Maybe also Andre gets implemented.
Speaker Change: Just Albert I'll be real quick from a capital allocation perspective.
Very pleased with the company's cash flow generation throughout 2024, as we've continued to enhance our cash flow yield number one number two continue to aggressively delever and now as we enter 2025 will be in a position from a cash and a deleveraging perspective to have a more balanced capital allocation strategy.
Speaker Change: <unk>, allowing us to do a slightly bigger business development.
Speaker Change: Programs, if so if such if so desired in 2025 and with that maybe I'll pass it over to Andrew to give some context around how we're thinking about that.
Andrew: Yes, so to recap what Chris says with narrows at current therapeutic areas for oncology vaccines.
Andrew: And it's had a medicine, that's fair to say that there is a fairly broad areas that big buckets that you can put lots of therapeutic indications in.
Andrew: If we were to explore.
Andrew: Adjacencies, so indeed therapeutic areas way start to size that havent been active I think lastly, we will be looking that truly breakthrough science that is tractable with a drug second an unmet medical need that we feel that can be monetized and thirdly, and most importantly, we have to have the talent with it in order to develop those assets. If we go into that therapeutic area.
Speaker Change: That is one that is familiar to us, but we don't have historic back later Todd. Thank you very much Andrew and David next question. Please.
Speaker Change: We will go next to Chris Schott with J P. Morgan. Please go ahead.
Chris Schott: Got it great. Thanks, so much just two questions from me just coming back to capital deployment, Dave just to build on those comments you talked about slightly larger BD transactions can you just help size the range of what Pfizer is able to look at it from here and how you think about balancing business development versus share repo, which I know what I think you've talked about as you started to delever would be part of the story.
Speaker Change: The second is on the RSV market.
Speaker Change: Can you just talk a little bit about the thinking on the size of the opportunity from here and the potential for growth given some of the 2024 results.
Speaker Change: Both the U S as well as globally. Thank you.
Speaker Change: Okay, yes, so as far as capital deployment goes Chris I think the good news is the company has a very robust cash flow generation capabilities and over time, we'll be able to do both dividends as well as BD as well as value enhancing share repurchases, specifically as we come into 2025, given the strength of the company from a cash.
Speaker Change: Cash flow perspective.
Speaker Change: We have the capacity in the $10 billion to $15 billion ZIP code from a business development perspective within 2025, if we chose to.
Speaker Change: Our focus in that area. Thank you.
Speaker Change: And Alexandra the RSV.
Speaker Change: Quickly in the U S.
Speaker Change: Firstly the market did decrease in 2024, and that's something that we have been signaling for quite some time. This was because of shifts in <unk> as well as the.
Speaker Change: Early adopters of the vaccine in 2023, the important thing for us the things that we can control the strength of our commercial execution led us to the leading market share of doses shipped to end customers at 50% for 2024 and an improvement in the shots in arms market share by 18 percentage points versus <unk>.
Speaker Change: Last year and our maternal indication also performed very well tripling the uptake from from last season now as we look forward in the absence of any major policy or a step change in 'twenty five the RSV market without that is likely not to grow but there are a lot of catalysts for midterm growth one is any pause.
Speaker Change: The updates to year round vaccination second age expansion for 2018 to 59 year olds that at risk, where we have great data as well as potential re vaccination recommendations as data becomes more available. So those are midterm growth catalysts and in the meantime, we remained confident in our ability to execute as that evolves.
Speaker Change: So on the international fronts.
Speaker Change: Chris the what we saw.
Speaker Change: <unk> seen this quarter is the beginning of the financial impact of the work we've done in approving and getting through the BTC and the payers for a reasonable and.
Speaker Change: Well in the countries, where we were where we received a positive <unk> and got reimbursement we start to see great execution working hand in hand with the authority in HCP. Let me give you. Two example in much the only organization so.
Speaker Change: The U K after winning the exclusives tender.
Speaker Change: Ask a professional vaccinated with <unk> over 60% of the eligible pregnant women. He just more clubs in Q4 in France at a competitive setting a reasonable was administered to over 40% of the age of a pregnant woman Q4 alone.
Speaker Change: Clearly, we see a potential as we move into 2025 in the in the in my a great opportunity to expand usage and to expand the vaccination and of course that is not just in the developed market, but also in the emerging market and flat for instance, as you knew had reasonable westley stood at the Pan America also organization and <unk>.
Speaker Change: So starting this year, we can have Latin America country, So stopped <unk>.
Speaker Change: Contracting at Brazil now in the eight we start also to to see some traction and the vaccination campaign in the UK already reached 44% of eligible population and regional vaccination was granted late 2024 in the about half of the German population.
Speaker Change: And we're expecting to get the full German population access in Q1 2025, So again on both merchant organization and order hurdles plenty of opportunity to grow. Thank you next question. Please.
Mill Devine: We will go next to the mill Devine with Guggenheim Securities. Please go ahead.
Mill Devine: Okay, great. Thanks for taking my question. So maybe a couple if I could on the pipeline so <unk>.
Speaker Change: Balan, you mentioned starting phase III in adults. This year just curious if you can comment on what you've seen so far it's Keith gives you comfort and moving it forward when we might see the data publicly and also any updates on the pediatric population and when you where things stand there and then the second one is on the chrome app.
Mill Devine: And just.
Speaker Change: Jonathan cancer Cachexia, what youre starting to phase III.
I noticed in the phase two heart failure program you increase the patient enrollment significantly there just curious if you can provide any perspective on what drove that change and just maybe a broader views on on the harp opportunity for that product. Thanks.
Speaker Change: And so first spoke PCB 25, us and I'll. Let mentioned this is an ongoing phase II study with potential best in class vaccine and the phase II studies ongoing in both adults and pediatrics.
Speaker Change: As we've mentioned earlier serotype three is very important and is emerging as a very important serotype with up to 20% to 30% of.
Speaker Change: The population exited about serotype three so we're very pleased that we're not seeing what looks like best in class Immunogenicity against the title III on the pediatric panel as you mentioned the study is ongoing so we hope to provide additional data later this year, but everything we've seen so far suggests to us that we've got.
Speaker Change: Improved immunogenicity off PCB 25. This is our current vaccine just to remind as well we do have that first generation vaccine 30, plus that's also now preclinical development that we hope to launch in phase. One later this year on pumps that go back very quickly. We're excited about the data pool and cancer Cachexia and.
Speaker Change: Can I take this study and should start later this year.
Speaker Change: <unk> III experience and we stopped the development of the cardiovascular study. Thank you.
Speaker Change: And.
Speaker Change: I wanted to spend the size of the developments throughout this year.
Speaker Change: <unk> started the gloves.
Speaker Change: Involves the development of <unk> 25, so defined described visit which is development and regulatory.
Speaker Change: Will allow us to accelerate.
Speaker Change: 30, plus by investing now in 25, which will come earlier of course. The market. Then I think there was a question also on the penetration or placebo alright.
Alright, now book the African.
Speaker Change: And Oh, we have.
Speaker Change: Glad you got a high market. So we reported 7% market Sir next question Bruce.
Speaker Change: We'll go next to Courtney Greene with Bernstein. Please go ahead.
Courtney Greene: Hi, everyone. Thanks for taking my call today.
Speaker Change: And thanks for the details on kind of how you're thinking about the R&D organization.
Speaker Change: Just a clarifier and perhaps you can help us understand the strategy a little bit more here it sounds like youre shifting into four R&D organization. They also had reference to end to end area. So can you talk about whether these are similar or different to how oncology with set up earlier this year.
Speaker Change: Earlier last year and then additionally, can you talk a little bit about how you're allocating investment across R&D across those four separate and Jen how are you, making sure that the bar is high and all of those different therapeutic areas and ensuring we've got the right prioritization given the interconnect southeast Louisiana.
Speaker Change: Oh. Thank you that's a great question, so Chris start and then Andre.
Speaker Change: So thank you very much for the questions of oncology as you stated since the beginning of 2023 be at an end to end organization collaborating discovery early stage development late stage development as well as medical and we already had that in vaccine since 2009 and now we've pulled the same structure for ini and inter.
Speaker Change: General Medicine.
Speaker Change: Financially or both those will be end to end organizations for quicker decision, making and quicker over between discovery phase one of the big problems early development into late Phase development, Andrew regarding the quarterly you hit upon that critical question. So historically when you look back.
Speaker Change: No shortage.
Speaker Change: Testing class breakthrough molecules that we have successfully shepherded through development.
Some of that is really have not delivered in terms of financial revenues and therefore, its shareholders and the key issue is really ensuring that we have successful portfolio prioritization, bringing back commercial lens. So much earlier during the process of having estimates.
Speaker Change: Arrived in an unbiased way in that dynamic subjects, continuing aggravation. So its in my role as chair of the PMT since I joined Faiza partnering with Chris we've been working through that pipeline, starting with our late stage assets, but then moving earlier to make sure that decisions, we make drug by drug indication by indication are ones that they're going to delay.
Speaker Change: The value for shareholders as well as the patients.
Speaker Change: Thank you for the question correct.
Speaker Change: So to say.
Speaker Change: And say look you know Laura.
Speaker Change: The organization, but as we said right now I think is very very very strong capabilities.
Speaker Change: As proven with the number of approvals, but we had 13 alright.
Speaker Change: Last year and even the same numbers 23, no one.
Speaker Change: Even close to these numbers.
Speaker Change: See our success rates at 17% compared to 10 11 options or very few <unk>.
Speaker Change: As rates and.
Speaker Change: Time to the market, we are hedging approximately five six years when most of the industries and seven to eight years after regroup. However.
Speaker Change: Looking back.
Speaker Change: I don't think we necessarily we could have done way better in choosing the right products to focus our R&D capabilities, which is I think what now Greece, Andrew with the commercial assessments.
Speaker Change: We'll try to do the good news.
Speaker Change: If it was a question of capabilities to improve our R&D productivity that would be a multi year.
Speaker Change: And when it is a question of a refocusing your investments with us.
Speaker Change: Way more.
Speaker Change: Great.
Speaker Change: I am very optimistic about the results will come out.
Speaker Change: <unk> had a very good without let's go to the next question.
Evan: We'll go next to Evan <unk> with BMO capital markets. Please go ahead.
Speaker Change: Hi, guys. Thank you so much for taking my question and congrats on all the progress so given RFK juniors approval by the Senate Finance Committee. This morning can you walk me through how you plan on working with him as a likelihood of HHS, especially with his views on vaccine and general skepticism of the pharma industry.
Evan: Yes.
Evan: It was also important that the Senate Committee voted.
Evan: So I think just a confirmation on the slippery select secure right now of course, we will see what the full Senate.
Evan: Look I mean, we are.
With a trombonist trace them as a part of my listening in particular was because.
Evan: Okay very good.
Evan: So many myself I said very long lasting relationship with the president.
Evan: What's the mandate do you already have the operation of our work.
Evan: When we develop.
Evan:
Evan: And.
Evan: I know that the presence of any problems for what she was able to accomplish since it has made public statements on that.
Speaker Change: We met with Mr. Timothy.
Speaker Change: Actually the President previously became it because these are all sort of together and we try to understand.
Speaker Change: He is with us.
Speaker Change: I felt was more not on these things.
Speaker Change: We clearly disagree likely to vaccines, but when bad things.
Speaker Change: We can agree.
Speaker Change: Can do things together.
Speaker Change: And those are things in chronic diseases, and cardiovascular diseases and most importantly concept, we'd see something about these very very high in the minds of the president.
Speaker Change: And it is also verifies the mindful.
Speaker Change: <unk>.
Speaker Change: Making few times also after our remarks.
Speaker Change: Uh huh.
Speaker Change: Expect.
Speaker Change: We will have our collaborations.
Speaker Change: My do I expect that we will like you don't have anything on vaccines.
Speaker Change: I don't know, but I think.
Speaker Change: Probably as.
Speaker Change: As I hear all of the statements that have been done by him and biodiesel.
Speaker Change: Or a more tempered view.
Speaker Change: On the policy direction the vaccine so that's I don't want to speak about it.
Speaker Change: I think there are.
Speaker Change: A lot of opportunities are probably outweigh the risks, but we said with a radical change, but we will see from the thrombosis experience where actually we.
Speaker Change: We are seeing now with the Trump administration so.
Speaker Change: Im cautiously optimistic.
Speaker Change: Now, let's move to the next question.
Crippa: We will go next to Crippa <unk> with <unk> Securities. Please go ahead.
Crippa: Hey, guys. Thank you so much for taking my question and congratulations on all the progress I have a question on your breast cancer franchise.
Crippa: <unk> announced the strategy for developing your CDK, four and frontline plus line breast cancer as monotherapy and also in combination with <unk>.
Speaker Change: That Doug the ear protag as the landscape evolves with other CDK four six inhibitor is different combinations, how do you see.
Crippa: Pfizer's portfolio in breast cancer evolves over the next few years.
Speaker Change: Do you see this.
Speaker Change: The strategy is getting a piece of the project pie or are there areas within your CDK, four and yet with web deck, where you think you could establish a niche.
Speaker Change: And also with the phase two data from Vivek expected anytime in first quarter, what needs to happen with these data for to be considered competitors. Thank you.
Speaker Change: Great. Thank you very much. Thank you for the question. We are very fortunate because we've got a lot of Optionality numb breast cancer I will start with CDK full we believe this is a best in class CDK inhibitor and what we've seen for compliance and the write off.
Speaker Change: He specifically treatment related aes is well its discontinuation we are very optimistic that CDK full could not only replace I brands, but all CDK <unk> inhibitors earlier line breast cancer.
Speaker Change: In first line as well as potentially in the future we'll send the adjuvant in the adjuvant setting as Albert has mentioned we are pleased that the first nine studies ongoing that.
Speaker Change: TDK Paul.
Speaker Change: The fact that a combination with letrozole.
Speaker Change: To your point, we also expect the readout for bad debt in the second line setting with the deal with study that includes ESR. One population. It's about it's all comer population and that medicine potentially could become a replacement for backbone in decline treatment. We are planning starting the first line setting.
Speaker Change: Binding.
Speaker Change: Plus CDK full in first line <unk> positive breast cancer. I also had just quickly want to mentioned CDK and cat six because cat six is a differentiated epigenetic molecule. This is a first in category medicine, you have seen the data very exciting very encouraging data in later line disease and we are accelerating that also into the registry.
Speaker Change: The study with an ongoing phase III trial in second line, plus ER positive breast cancer.
Speaker Change: Thank you was that a question also for value.
Speaker Change: Okay. Good.
Speaker Change: Let's go now to the next.
Speaker Change: Uh huh.
Question. Please.
Speaker Change: We'll go next with parents Flynn with Morgan Stanley. Please go ahead.
Speaker Change: Great. Thanks, so much for taking the question maybe.
Speaker Change: Maybe two from me on the pipeline.
Speaker Change: On <unk> first just on the on the commercial side can you talk about what youre seeing in terms of uptake at the academic versus community centers are you seen any any broadening out into the community setting or is that really going to be contingent on getting some of the earlier line data that youre expecting later this year from the phase.
Speaker Change: III trial, and then on Dan a quick Bryan on the dose optimization study can you just kind of clarify how much data you are going to share later this quarter, where we get weight loss data when we get tolerability data how much data will be in the initial press release. Thank you.
Speaker Change: Thank you.
Speaker Change: Yes, we're very excited about the momentum on <unk>, we continue to see increasing share in new patient starts quarter over quarter.
Speaker Change: In the class and the uptick.
Speaker Change: Also does include community receptivity and awareness on new account adoption and obviously with the whole slew of trials, assuming they're successful to follow I think theres a lot of momentum behind <unk> and over the course of this year, we expect it to grow rapidly.
Speaker Change: Driven primarily by increased demand in our top 100 accounts as well as increased adoption in the community setting, which I think positions <unk> very very well for the future as we expand indications into earlier lines of therapy in 'twenty and beyond Thank you and myself I was quite impressed with.
Speaker Change: The community Oncologists uptake of this product as quickly as a company in the U S. But also we have very good news for all of it hurts you in the restaurant market Alexandra Yes. It is.
Speaker Change: <unk> commercially launched and already six markets in 2024.
Speaker Change: Out of our top 15 markets quite a fast penetration and of course in 2025 were expecting because it gets an additional 18 market for additional local top 15 markets will launch this year.
Speaker Change: The combination of the extent axis shows the performance of the brands, where we already have.
Speaker Change: The product gives us great confidence <unk> related growth and to give you a sense.
Speaker Change: Japan is the second largest market outside of the U S and we had a significant and very rapid.
Speaker Change: In Japan, where <unk> was introduced first to market BCA may be specific and that's we've seen an immediate acceleration of digitization actually deep into the community.
Speaker Change: In Japan.
Speaker Change: When we launch with our other product <unk> specific like in the UK, Spain, and Italy, all markets, where we have demonstrated that <unk> leadership and we expect to continue with a state of ship position in 2025. So the combination of increased access and where we already introduced the gross.
Speaker Change: Expenses there are two reasons why we believe the product is available in general direction, because we do think that it is a mega blockbuster becomes.
Speaker Change: Do you need to understand that already in the first year was it more of a $170 million of saying this is a very nice and the case this triple refractory which means.
Speaker Change: But sort of duration of treatment.
Speaker Change: They are really after.
Speaker Change: Everything else, but thrive as we move to have four phase III studies.
Speaker Change: One three this year and not only the population so we're going to be different place, but also expand significantly the duration of treatments and therapies through as we go to the next line in the first line of business. So we think about.
Speaker Change: In the U S and international this product.
Speaker Change: We will become a very big oncology product profiles and without legs.
Speaker Change: Don you.
Speaker Change: Yes, just like we said it earlier so in Q1, we expect the PK data we have a target for that remember this is looking at different formulations and will determine the dose selection for once a day tablet once a day.
Speaker Change: Broach for a potential.
Speaker Change: Taking forward into a registration strategy, although you mentioned weight loss weight loss is secondary.
Speaker Change: Secondary endpoint on this study this is the smallest studies and in unit study. So it may not be that reliable for wiped out on the small number of patients.
Speaker Change: Thanks next question.
Speaker Change: We'll go next to Mohit Bansal with Wells Fargo. Please go ahead.
Mohit Bansal: Okay. Thank you very much for taking my question.
Speaker Change: So maybe if you can talk a little bit about <unk>.
Speaker Change: How are you seeing that I'm not sure, but you did talk about the market share ahead, but in terms of <unk>.
Speaker Change: How are you seeing the market share evolving.
Speaker Change: Now that also have X nuance has an expansion in the next two assays also nor added eligibility in terms of age. So can you talk a little bit about these dynamics and how do you see market evolving here.
Speaker Change: Alright, let's start with international and in regards to the U S for things.
Speaker Change: Alright.
Speaker Change: So.
Speaker Change: As you know international two third of the business come from the pediatric indication and that kind of to match.
Speaker Change: Macro view, we saw printing up Luke pneumococcal vaccine we have that.
Speaker Change: Maintain gigs CVT, an IP in about 140 markets around the world. So that gives you the sense of the breadth of our.
Speaker Change: Our offer.
Speaker Change: Local callbacks and as we move over the times intention is of course to replace upgrade law 13 to our printed out 'twenty. So now of course they are.
Speaker Change: Now we go into the details in emerging market, we have a very large cohort of babies every year. So around the 76 million new baby and of course alongside a great collaborations as the Gassy organization, we have commercial organizations, which we have demonstrated this year double digit growth of off trade now.
Speaker Change: Franchise with great execution in emerging market now in the developed market following.
Speaker Change: Is the Japan approval remember in March already of 20 of 2024, which started to gain the GTC approval and funding and where do we start to see that we see that we are recapturing very quickly.
Speaker Change: Of the business I went to competition. So give you. An example in Japan 20 as I said was approved in March we got the DTC.
Speaker Change: Commendation in October and our market share in first dose went from 3% in September 286% in December. So we see that's going to play that play to <unk> gets approved we really have an opportunity to regain that business and on the absolute size here again, we've seen a very strong growth in 2020.
Speaker Change: So that will continue to expect.
Speaker Change: A significant gross just because we are expanding access in more mature markets with operating that 'twenty adults.
Speaker Change: And millions of euros, and let me start with the adult market. We have right now a very strong position in the adult market now we are going to face competitive pressure over the course of 2025 from <unk>.
Speaker Change: But we are confident that we will continue to maintain meaningful market share a lot of that has to do with our commercial execution as well as the fact that many okay.
Speaker Change: Accounts, particularly non retail accounts preferred a stock of singles vaccine. So we'll see that evolve over the course of the year and while we don't think that theres much catch up opportunity in the 65, plus we also think there is growth opportunity in the $50 to 64 age group that brings about 30 million adults into the eligible population. So those will be the dynamics in that.
Speaker Change: In adult now impede there again, we have very significant market share and on the theme of improved market share across all of our vaccines. We saw 12 percentage point improvement from August to August 23 to December 24 in our pediatric market share and here. We expect this to be a much more stable market we plan to.
Speaker Change: To retain that kind of leadership share and we expect volumes to be more stable here. Okay. Thank you very much next question.
Speaker Change: We'll go next to David Risinger with Leerink partners. Please go ahead.
David Risinger: Yes, thanks, very much and thanks for all the updates so.
Speaker Change: My question is just going back to RFK Juniors. So assuming he is confirmed as H H.
David Risinger: Terry.
And given his history of suing manufacturers in his commentary.
David Risinger: Lawsuits in the hearings last week could you just help us understand his ability as HHS secretary to remove U S vaccine liability protections that manufacturers currently benefit from and allow manufacturers to freedom to.
David Risinger: To develop and sell vaccines that save lives. Thank you.
David Risinger: Yes look I don't want to comment because these are all.
David Risinger: But I believe.
David Risinger: The liabilities so samit.
David Risinger: Congress of Hulu, So I don't think anyone can say that without <unk>.
David Risinger: I E I know.
David Risinger: But creates a turbulent market.
David Risinger: The market today with RFA.
David Risinger: It was almost certain that you will get confirmed and.
David Risinger: We have engaged.
With Jim early enough so that we can mitigate all these <unk>.
David Risinger: She does it seems like I said in the past because during the hearings of.
David Risinger: Of course clearly.
David Risinger: As Keith stated missile excuse, but if people are asking for some of the things you said in the past I think about you won't find the product in the industry. The pharmacokinetics total medical community and the total scientific community and Payors.
David Risinger: They don't want to see a reduction in <unk>, because that's a very cost effective way of controlling healthcare costs and more of an important.
David Risinger: This is not what the Trump administration and we'd like to see another categorized.
David Risinger: So.
David Risinger: I would say about.
David Risinger: I feel cautiously optimistic.
David Risinger: They will be very very prudent with everyday prices.
David Risinger: Let's go to the next question.
Speaker Change: We'll go next to Trung Nguyen with UBS. Please go ahead.
Trung Nguyen: Hi, guys. Thanks for the questions just two for me so firstly going back to <unk> I think a mandated potential policy changes in RSV. So do you have any insight if there's going to be a discussion from asset on re vaccination cohort expansion this year.
Speaker Change: I guess that could be a positive for you guys.
Speaker Change: And then too.
Speaker Change: On pad saves potential registrational muscle invasive bladder cancer trial.
Speaker Change: In General I think cystectomy is used to cure patients in this setting.
Speaker Change: Just wondering how you're going to position this and how quick could you penetrate this population if approved thanks very much.
Speaker Change: Thank you very quickly narrow number isn't one of them would go well.
Speaker Change: What I would just map showing where the catalyst that could.
Speaker Change: Could result in a market expansion for a bristow obviously, its too early and not our place to comment on what exactly is it going to take on it.
Chris: Chris from Hudson.
Chris: Thank you for the question reminded that this is <unk> bin.
Chris: <unk> been driven studies, so we hope by the end of this yet, but if the bank doesn't happen, there's a little bit.
Muscle invasive about 20 28000 population in the U S alone so it could more than double as we mentioned triple. The population. Currently eligible currently there is no standard of care treatment other than surgery cystectomy for patients considered cisplatin eligible. So there are two studies one spot.
Chris: Platinum eligible and one puts this button in eligible for the cisplatin eligible. The current currently is dominated by new adjuvant chemotherapy. So there's a real need for both <unk> and adjuvant and adjuvant treatment and to replace chemotherapy in the setting of cisplatin eligible database and.
Chris: Of course with cisplatin ineligible disease, it will completely change the future treatment paradigm. So it'd be very excited if these studies are positive the lumpy seen we've got confidence in these data from earlier studies. So yes. Thank you Chris.
Speaker Change: We'll go next to <unk> <unk> with Jefferies. Please go ahead.
Speaker Change: Hey, thanks, so much.
Speaker Change: Can you kind of got Brian It looks like Youre, using a bilayer immediate relief and matrix technology here, but you don't actually passenger bilayer formulation until the second half of your weight loss trial.
Speaker Change: Is that what youre waiting on before you make a formal update or is it perhaps the Lilly Ofer <unk> data. That's also been a factor into this decision. Thank you.
Speaker Change: I don't think we would have disclosed that technology I know that there are speculations into the marketplace, but we.
Speaker Change: We haven't.
Speaker Change: The technology, so I'm not sure we can say much but Chris you want to add anything no I don't think that you're at right now yes. Okay.
Speaker Change: Next we'll go to the next which.
Chris Schott: We'll go next to Chris <unk> with Goldman Sachs. Please go ahead.
Chris: Great. Thank you a quick one on the pipeline and another on business gentlemen strategy on the pipeline I notice in phase III <unk> advance the <unk> antagonist is that something that you'll be continuing to share data on particularly as a monotherapy and do you have any efforts ongoing to do a combination in terms of business development strategy.
Speaker Change: The vocabulary you used included a capacity, perhaps in the 10% to $15 billion ZIP code and I'm curious to know what you are solving for and I ask this in part because historically there had been a view of using cash to acquire $25 billion in revenue by the end of the decade, but now when we think about where we are in this decade.
Speaker Change: And we can could be solving for structurally there seem to be approaches.
Speaker Change: Assets from China for instance, many of your competitors are doing this are you solving for near term revenues or are you looking to use other methods, including perhaps partnerships or M&A that would be helpful. Thank you.
Speaker Change: Yes.
Speaker Change: Finally, a little bit on the on the BD industrial consignment.
Speaker Change: Consignments.
Speaker Change: Very clear, but so far we have acquired $20 billion of Paris.
Speaker Change: Firstly revenue.
Speaker Change: We are very consequent, but he was very helpful.
Speaker Change: So thoughts so fossil group right.
Speaker Change: Looking forward of course, we are looking more strategy.
Speaker Change: <unk> is right now.
Speaker Change: It will enhance pipeline in the areas that we would like to play rather than near term revenues on BD.
Speaker Change: I would ask Andrew to comment and then if you could speak about the deep on backwards.
Andrew: Sure So hi, Chris Nice to hear your voice so on the BP side.
Speaker Change: <unk>.
Speaker Change: That said the keyword, which is strategic so everything we do will be to create strategic plans of building around our core competences.
Speaker Change: Building competencies in areas that maybe have not been in previously if that's what we decided to audio points regarding China. It has not escaped our attention of course, the innovation from China across multiple therapeutic areas and indeed that was most evident with oncology. Some years ago now is expanding most therapeutic areas and most of the fast followers, but I expect.
Speaker Change: That will change as well, it's an area that we're very very active and we continue to halfway fruitful discussions and that's.
Speaker Change: While we get confidence for us.
Speaker Change: A very strong footprint in China.
Speaker Change: I think there was one non commercial bookings are very strong R&D footprint.
Speaker Change: Looking at the site and there's nobody goes there are progressing very fast and identifying what's it's Chris.
Speaker Change: The gift that antagonist this as potentially first in class oral small molecule <unk> antagonist is currently in an ongoing phase two placebo controlled study evaluating the <unk> antagonist in adults with obesity on the background of <unk> one receptor agonist if the data from the phase two.
Speaker Change: Study are positive we might potentially be able to develop also fixed dose combination, including with G. L. P. One including potentially done differently in the future. Thank you next question. Please.
We'll go next to Alex Hammond with Wolfe Research. Please go ahead.
Alex Hammond: Thanks for squeezing me in on <unk> with new competitors on the market and on the way can you walk us through how we should think about the near term commercial dynamics, where could we see the largest share impact newly prescribed patients are switches. Thank you.
Speaker Change: Thank you Alex.
Speaker Change: Tinder, obviously had very significant momentum in 'twenty four you saw the growth rates and that was due in large part to the commercial efforts and the attention and investment we put behind it we.
We saw improvement in diagnosis rate as well as new patient starts and we also did benefit from what was a onetime bolus of annual enrollment of patients in the first quarter of 'twenty four due to favorable affordability. So as we look into 25, there is theres, both headwinds and <unk> and we're confident in the growth.
Speaker Change: As Linda obviously at a different rate than it grew in <unk> and 'twenty four.
Speaker Change: We do see increased diagnosis education growth and the prescriber base and they will continue to be favorable affordability conditions.
Speaker Change: But we do expect that there will be some headwinds obviously you referred to two new market entrants.
Speaker Change: That will have some impact that remains to be seen both on switching patients as well as new patient starts I think it's also important to remember that there will be.
Speaker Change: Impact of IRI on Tinder and the effect it has on the calendar as nation of our GTS with more.
Speaker Change: And the impact coming earlier in the year as we reached the catastrophic phase now with all of that said I think we remain really confident and excited with vendor. We've got a robust clinical profile that has data both from the clinical trial and the long term extension, we got five five year real world data on <unk>, We've got strong access and we are.
Speaker Change: And there our position as the standard of care.
Speaker Change: Let's move to the last question.
Tim Anderson: Our last question comes from Tim Anderson with Bank of America. Please go ahead.
Tim Anderson: Thank you Ivan.
Tim Anderson: Question on just obesity strategy so.
Tim Anderson: To me a late entrant companies with.
Tim Anderson: One lead asset might struggle in let's say a real clinical differentiation.
Tim Anderson: Could be in a better position if they are a collection of assets.
Tim Anderson: There is naturally turnkey solutions out there in terms of <unk>.
Tim Anderson: Companies of any larger company could either partner with or acquire outright.
Tim Anderson: <unk> Pfizer looking at SP efforts in this regard either partnership or acquisition.
Tim Anderson: Could bring you one or more assets that arent far away from being in phase III.
Tim Anderson: Andrew.
Tim Anderson: Yes, Hi, Tim So I agree with your assertion that <unk>.
Tim Anderson: <unk> is a heterogeneous and likely require a.
Tim Anderson: Set of tools a cup of St.
Tim Anderson: <unk> and different delivery devices in order to manage what is that lifelong protection.
Tim Anderson: These assets do exist.
Scott: Scott's at some hospitals failures, but you can imagine that of course, we are looking at all the opportunities and trying to understand what's the most value to patients and obviously to Pfizer shareholders.
Tim Anderson: Thank you very much.
Tim Anderson: That concludes our call. Thank you all for your interest.
Speaker Change: 23 before it was a strong year of performance.
Speaker Change: Our 2025, so I think just priorities are very clear, we are planning to execute as well.
Speaker Change: As we executed in 2000 funded Paul Thank you very much and have a nice day.
Speaker Change: This does conclude today's program. Thank you for your participation you may disconnect at anytime.
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: This meeting is no longer being tracked.
Speaker Change: [music].
Okay.
Speaker Change: Okay.