Q3 2025 Pfizer Inc Earnings Call

November 4, 2025

And welcome to Pfizer's third quarter 2025 earnings conference call.

This call is being recorded.

At this time I would like to turn the call over to Francesca Demartino, Chief Investor Relations Officer, and senior Vice President. Please go ahead ma'am.

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

Albert Bourla: Now, given our strong performance to date and our four-quarter outlook, including our more efficient cost structure, we are raising and narrowing our full year 2025 adjusted diluted earnings per share guidance by approximately $0.08 at the midpoint, to $3 a share to $3.15 a share. I'd like to emphasize our adjusted diluted earnings per share guidance substantially de-risked the current lower-than-anticipated COVID trends. In closing, we remain committed to enhancing the value of our product portfolio and advancing innovation to further strengthen our pipeline. With a stronger balance sheet, we plan to continue deploying capital effectively. We aim to boost R&D productivity with digital tools, including AI, prioritize investments in key R&D programs, and deliver new growth through business development. Furthermore, our performance continues to exceed expectations and deliver strong results, even as the incidence of COVID remains low.

And behalf of the Pfizer team. Thank you for joining us.

This call is being made available via audio webcast at Pfizer Dot Com URL.

Speaker #5: Good day everyone and welcome to Pfizer . S third Quarter 2020 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 .

Earlier. This morning, we released our results for the third quarter of 2025, you had a press release that is available on our website at Pfizer Dot com.

I'm joined today by Doctor Albert boiler, our chairman and CEO and Dave Denton our CFO.

Speaker #5: Please go ahead , ma'am .

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 session. Before we get started I want to remind you that we will be making forward looking statements and discussing certain non-GAAP financial measures I encourage you to read the disclaimers in our slide presentation. The press release.

Speaker #6: 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 .

Albert Bourla: With a stronger balance sheet, we plan to continue deploying capital effectively. We aim to boost R&D productivity with digital tools, including AI, prioritize investments in key R&D programs, and deliver new growth through business development. Furthermore, our performance continues to exceed expectations and deliver strong results, even as the incidence of COVID remains low. This consistent performance highlights our resilience and commitment to excellence, regardless of the challenging external environment. Our efforts to enhance cost efficiency and generate improvements in operating margins by driving productivity and optimizing processes. Lastly, with the recent agreement with the US government, we can now focus on executing our strategy and our strategic priorities across our business to deliver new medicines for patients and enhance long-term shareholder value. I'd like to just close by noting that it is our expectation that we'll provide guidance for 2026, most likely by the end of this year.

Speaker #6: This call is being made available via audio webcast at pfizer.com . Earlier this morning , we released our results for the third quarter of 2025 via a press release that is available on our website at Pfizer .

We issued this morning, and the disclosures in our SEC filings, which are all available on the IR website on Pfizer Dot com.

Speaker #6: I'm joined today by Doctor Albert Bourla , our chairman and CEO , and Dave , our CFO . Albert and Dave have some prepared remarks , and we will then open the call for questions .

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 these statements with that I will turn the call over to Albert. Thank you Francesca good morning, everyone and thank you for joining our call the past few months.

Albert Bourla: This consistent performance highlights our resilience and commitment to excellence, regardless of the challenging external environment. Our efforts to enhance cost efficiency and generate improvements in operating margins by driving productivity and optimizing processes. Lastly, with the recent agreement with the US government, we can now focus on executing our strategy and our strategic priorities across our business to deliver new medicines for patients and enhance long-term shareholder value. I'd like to just close by noting that it is our expectation that we'll provide guidance for 2026, most likely by the end of this year. So with that, I'll turn it back over to Albert, and we'll begin our question and answer session.

Speaker #6: Members of our leadership team will be available for the Q&A session . Before we get started , I want to remind you that we will be making forward looking statements in discussing certain non-GAAP financial measures .

Speaker #6: 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 .

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We are really excited the bulk of future and confident that we are in a strong position to continue delivering value for patients and our shareholders.

Speaker #6: On Pfizer.com . 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 .

Our third quarter performance shows how we continued to execute with discipline and focus even while taking one major sort of as we go forward.

I'll discuss highlights, including our agreement with the U S government, which has provided.

Speaker #6: With that , I will turn the call over to Albert .

Albert Bourla: So with that, I'll turn it back over to Albert, and we'll begin our question-and-answer session.

Speaker #7: Thank you . Francesca . Good morning everyone , and thank you for joining our call . The past few months have been pivotal for Pfizer .

Great clarity of our strategic investments in innovation and growth.

Francesca DeMartino: Thank you, Dave. So Albert, please assemble the queue.

With our proposed acquisition of Minnesota, and the progress we have made since closing our licensing agreement with Citi is by you and key upcoming tough times the strength of our R&D pipeline continues to grow.

Albert Bourla: 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 2. Once again, that is Star 1 to ask a question. Our first question comes from Vamil Divan with Guggenheim Securities. Please go ahead.

Speaker #7: We are really excited about our future and confident that we are in a strong position to continue delivering value for patients and our shareholders .

Speaker #7: Our third quarter performance shows how we continued to execute with discipline and focus , even while taking on major strategic efforts . I will discuss highlights , including our agreement with the US government , which has provided greater clarity of our strategic investment in future innovation and growth .

Our landmark agreement with a U S government was an important milestone because it removes uncertainty on two critical policy fronts. We successfully addressed the administrations go to lower prescription drug costs and align prices with those in other developed countries.

Vamil Divan: Hi, Grea. Thanks for taking my question. I'm going to have to defer the Metsera question to other analysts, but I'm curious to hear what you say there. I'll just ask a couple more on the commercial side. So one, Vyndamax, obviously facing more competition there. Surprised to see the performance. There was a little bit of sequential decline. So maybe you can just comment on the pricing and sort of market share dynamics you're seeing in that space, obviously with the new competitors. And then similar question on Padcev, obviously great data that you shared at ESMO. The commercial updates for the quarter at least were a little bit less than we thought. So maybe just how you expect the muscle invasive indication, assuming you get that here soon, to impact uptake of that program and kind of drive upside towards the number that right now. Thank you.

Vamil Divan: Hi, Grea. Thanks for taking my question. I'm going to have to defer the Medera question to other analysts, but I'm curious to hear what you say there. I'll just ask a couple more on the commercial side. So, one, Vyndamax, obviously facing more competition there. Surprised to see the performance there was a little bit of a sequential decline. So maybe you can just comment on the pricing and sort of market share dynamics you're seeing in that space, obviously with the new competitors. And then similar question on Padcev, obviously great data that you shared, ESMO. The commercial updates for the quarter at least were a little bit less than we thought. So maybe just how you expect the muscle-invasive indication, assuming you get that here soon, to impact uptake of that program and kind of drive upside towards the number that right now. Thank you.

We will have a three year grace period from certain U S studies with our commitment to further invest in manufacturing in the U S.

Speaker #7: Additionally , with our proposed acquisition of Meztira and the progress we have made since closing our licensing agreement with Three's bio and key upcoming catalysts , the strength of our R&D pipeline continues to grow .

Now I want to address our proposed acquisition of them etcetera.

We believe that Novo Nordisk offer is illusory.

Speaker #7: Our landmark agreement with the US government was an important milestone because it removed uncertainty on two critical policy fronts we successfully addressed the administration's call to lower prescription drug costs and align prices with those in other developed countries .

Can not constitute superior proposal under the terms of our medicine agreement with Michelle because it violates antitrust law and there is a higher risk.

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We are encouraged by the U S Federal trade Commission's decision.

Speaker #7: And we will have a three year grace period from certain US tariffs with our commitment to further invest in manufacturing in the US .

Granted early termination of the HSR.

Francesca DeMartino: Thank you. Thank you, Vamil.

Francesca DeMartino: Thank you. Thank you, Valmel. Valmel?

Vamil Divan: Sure. Vamil, thanks for the question. So let me start with your question on Vyndaqel. And I'll just, I want to level set a couple of things about Vyndaqel, and then I'll talk about the performance in the quarter. So there's obviously new competition in the category, and it's important to note that Vyndaqel is still the only ATTR-CM product that has statistically significant reductions in both mortality and CV-related hospitalizations together and as a standalone. And it's also the only product where there is a once-daily capsule, placebo-like safety, and near-complete PCR stabilization. And we've got 90% access for Vyndamax across the US. Now, with regards to the quarter, there are a couple of different dynamics that are happening.

Vamil Divan: Sure. Vamil, thanks for the question. So let me start with your question on Vyndamax. And I'll just, I want to level set a couple of things about Vyndamax, and then I'll talk about the performance in the quarter. So there's obviously new competition in the category, and it's important to note that Vyndamax is still the only ATTR-CM product that has statistically significant reductions in both mortality and CV-related hospitalizations together and as a standalone. And it's also the only product where there is a once-daily capsule, placebo-like safety, and near-complete TTR stabilization. And we've got 90% access for Vyndamax across the US. Now, with regards to the quarter, there are a couple of different dynamics that are happening.

Waking video, which is unprecedented during the government shutdown and clears the path to completing this transaction.

Speaker #7: Now , I want to address our proposed acquisition of Meztira . We believe that Novo Nordisk offer is illusory and cannot constitute superior proposal under the terms of our merger agreement with Meztira , because it violates antitrust law and there is a high risk , it will never be consummated .

Some folding them instead of shareholder vote on November 30.

With the pending legal actions, we have taken to enforced and preserve pfizer's rights under the management agreement.

And that will be limited in the details you can address forever.

During today's call.

Speaker #7: We are encouraged by the US Federal Trade Commission's decision to grant early termination of the HSR waiting period , which is unprecedented during a government shutdown and clears the path to completing this transaction .

What I can say is that.

I'll be leaving the promise of the Pfizer and its a combination of a strong and unwavering.

We're confident it will create substantial value for shareholders and advanced innovation to bring important medicines for patients in the high growth that our pubic area of abuse.

Speaker #7: Following the shareholder vote on November 13th , with pending legal action , we have taken to enforce and preserve Pfizer's rights under the merger agreement , you understand that we will be limited in the details you can address further during today's call .

Vamil Divan: First of all, we saw very strong demand growth, and that's reinforced by our continued market share leadership, both on a TRx basis clearly, but also in terms of first-line share. Now, that volume growth was offset by two gross-to-net headwinds. One is the IRA manufacturer rebase, which we've talked about before. And the second is what we alluded to last quarter, which is payer contracting that took place in the third quarter. So Vyndamax is performing exactly where we thought it would and consistent with what we guided. And the performance continues to reflect strong diagnosis, broad access, improving affordability dynamics, and that's going to continue to grow our volume. We are seeing competition. Acoramidis is taking some first-line share from treatment-naive patients, and Amvuttra has driven minimal switching to date.

Vamil Divan: First of all, we saw very strong demand growth, and that's reinforced by our continued market share leadership, both on a TRX basis clearly, but also in terms of first-line share. Now, that volume growth was offset by two gross to net headwinds. One is the IRA manufacturer rebase, which we've talked about before. And the second is what we alluded to last quarter, which is payer contracting that took place in the Q3. So Vyndamax is performing exactly where we thought it would and consistent with what we guided. And the performance continues to reflect strong diagnosis, broad access, improving affordability dynamics, and that's going to continue to grow our volume. We are seeing competition. Attruby is taking some first-line share from treatment-naive patients, and Amvuttra has driven minimal switching to date.

Philosophy, we believe Pfizer will have distinct advantages in developing and delivering new potential treatments because of our proven scientific and commercial starts.

Our R&D infrastructure, who has global reach and extensive experience running clinical trials in a larger population.

Speaker #7: What I can say it that our belief in the promise of the Pfizer and Medicare combination is strong and unwavering . We are confident it will create substantial value for shareholders and advance innovation to bring important medicines to patients in the high growth therapeutic area of obesity .

Our teams have well established capabilities in bringing prime I guess out of Bristol pace.

We have proven we can drive it in clinical commercial instead of physical Amanda with cardiovascular brands, such as illiquid Lipitor Norvasc and it means that their family and we plan to execute in a similar way with Mircera.

Speaker #7: Plus, we believe Pfizer will have distinct advantages in developing and delivering new potential treatments because of our proven scientific and commercial strength.

We re invigorate Pfizer studying with the vertical presence.

The licensing agreement with three as buyer is another way, we can strategically enhance our pipeline.

Speaker #7: Our R&D infrastructure has global reach and extensive experience running clinical trials in large populations . Our commercial teams have well capabilities in bringing primary therapies to patients .

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Vamil Divan: And as we kind of look forward on Vyndamax, we'll see some of these dynamics continue into Q4 as well, where we expect continued volume growth, but the two GTN drivers that I described will certainly impact our net sales. But Vyndamax is performing in the way that we expected. On your question with regards to Padcev, we're again very encouraged by how Padcev is doing. For us, we look at this through two lenses. First is the 1L mUC population, where we currently have about 55% share among cisplatin ineligible patients and 45 to 50% share among cisplatin eligible patients. So there is headroom for us to continue to focus on that segment of the market.

Vamil Divan: As we kind of look forward on Vyndaqel, we'll see some of these dynamics continue into Q4 as well, where we expect continued volume growth, but the two GTN drivers that I described will certainly impact our net sales. But Vyndaqel is performing in the way that we expected. On your question with regards to Padcev, we're again very encouraged by how Padcev is doing. For us, we look at this through two lenses. First is the LEMUC population, where we currently have about 55% share among cisplatin-ineligible patients and 45 to 50% share among cisplatin-eligible patients. So there is headroom for us to continue to focus on that segment of the market.

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Speaker #7: We have proven we can drive leading clinical , commercial and strategic momentum with key cardiovascular brands such as Eliquis , Lipitor , Norvasc and the Vyndaqel family , and we plan to execute in a similar way with Meztira as we reinvigorate Pfizer's cardiometabolic presence .

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European Society for medical oncology meeting.

Looking ahead, we are excited to present additional clinical data at the upcoming society for immunotherapy of cancer meeting.

Speaker #7: The licensing agreement with Rice Bio is another way we have strategically enhanced our pipeline and currently phase two . First line metastatic colorectal cancer efficacy and safety data for 707 .

We are also encouraged by our discussions with regulators about our plants to unlock the potential of 707 with a robust clinical development program.

As we look forward to executing with 707 Pfizer has the speed of numbers, we have deep experience in the development of multi specific antibody therapeutics.

Speaker #7: The PD one VEGF bispecific was third last month at the European Society for Medical Oncology meeting . Looking ahead , we are excited to present additional clinical data at the upcoming society for Immunotherapy of Cancer meeting .

The ability to leverage unique combination regiments that make this promising cancer immunotherapy candidate a strong complement to our oncology portfolio.

Vamil Divan: I think your question with regards to how Padcev performed on consensus is related to the comment that Dave made, which is as part of integrating the Seagen products into the Pfizer portfolio in Q2, we moved from a dropship model to a wholesaler model. So that resulted in a one-time growth in our Q2 sales. So you have to grow products off of that adjusted for two to three weeks of inventory. So as we cycle into Q4, we expect the whole Seagen portfolio, including Padcev, to return to growth. And then finally, on ADC, we're excited about the possibility as a result of both the 303 and also 304 trials that are ongoing. That'll open up a patient population of close to 22,000 patients to help with the next horizon of Padcev growth.

Vamil Divan: I think your question with regards to how Padzev performed on consensus is related to the comment that Dave made, which is as part of integrating the CGEN products into the Pfizer portfolio in Q2, we moved from a dropship model to a wholesaler model. So that resulted in a one-time growth in our Q2 sales. So you have to grow products off of that adjusted for two to three weeks of inventory. So as we cycle into Q4, we expect the whole CGEN portfolio, including Padzev, to return to growth. And then finally, on ADC, we're excited about the possibility as a result of both the 303 and also 304 trials that are ongoing, and that'll open up a patient population of close to 22,000 patients to help with the next horizon of Padzev growth.

We've also made progress in advancing other key programs in our late stage R&D pipeline.

Speaker #7: We are also encouraged by our discussions with regulators about our plans to unlock the potential of 707 with a robust clinical development program .

It was reinforced by our presence.

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Speaker #7: As we look forward to executing with 707 , Pfizer has distinct advantages . We have deep experience in the development of Multispecific antibody therapeutics and the ability to leverage unique combination regimens that make this promising cancer immunotherapy candidate a strong complement to our oncology portfolio .

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Starting with the presidential symposium, new phase III data demonstrate the Hudson in combination with Brooke leasing them up.

The risk of recurrence and death by at least half of patients with sloppy.

Speaker #7: We've also made progress in advancing other key programs in our late stage R&D pipeline . This was reinforced by our presence at Asmo last month , with over 45 abstracts , five late breaking presentations , and recognition in Presidential Symposium , starting with the Presidential Symposium , new phase three data demonstrates that padcev in combination with Pembro Mab , reduced the risk of recurrence and death by at least half for patients with cisplatin ineligible muscle .

Ineligible muscle invasive cancer, when given before and after surgery.

This is the first and only regimen to improve survival when used before and after standard of care in this patient population.

Francesca DeMartino: Thank you, Amir. Next call, please. Next question, please.

Francesca DeMartino: Thank you, Aamir. Next call, please. Next question, please.

This unprecedented data in hand, we see the potential to substantially increase in the U S. Addressable population with approximately 18000 patients under the current label thus far.

Albert Bourla: We'll go next to David Risinger with Leerink Partners.

David Risinger: Yes, thanks very much for taking my question and congrats on the performance in the quarter. So my question is on Metsera. Could you just comment on the legal process ahead? I know that Pfizer is arguing that Novo's acquisition of Metsera would be anti-competitive, and even if the FTC doesn't allow it, it could be anti-competitive. So could you just talk us through the clock and the process for courts to hear Pfizer's arguments? Thanks very much.

David Risinger: Yes, thanks very much for taking my question and congrats on the performance in the quarter. So my question is on Medera. Could you just comment on the legal process ahead? I know that Pfizer is arguing that Novo's acquisition of Medera would be anti-competitive. And even if the FTC doesn't allow it, it could be anti-competitive. So could you just talk us through the clock and the process for courts to hear Pfizer's arguments? Thanks very much.

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Up to approximately 22500 additional patients across both she is eligible and ineligible muscle invasive bladder cancer.

Speaker #7: Invasive cancer . When given before and after surgery . This is the first and only regimen to improve survival when used before and after standard of care in this patient population .

We also presented follow up results from the single arm phase two clinical trial supporting Dolby and mixed all of it as a standard of care for patients with metastatic non small cell lung cancer harboring abroad. The 608, new pace eating these days.

Speaker #7: With this unprecedented data in hand , we see the potential to substantially increase the . US addressable population with approximately 18,000 patients under the current label in metastatic urothelial cancer .

Speaker #7: And if there are further positive data , it's approved up to approximately 22,500 additional patients across both cis eligible and ineligible muscle . Invasive bladder cancer .

This updated analysis, so the substantial medium overall survival benefit of 70.

47, six months in treatment naive patients with metastatic non small cell lung cancer with a broth V 600 in your base.

Francesca DeMartino: Thank you, Dave. As I said in my opening comments, it is very difficult for us to start commenting when we have all these legal issues pending, right, as we speak. But I will repeat what I did say, which is kind of an answer to your question, not on the timing, but we don't see how Novo's deal can be superior. It is an illegal attempt by a foreign company to do an end run around antitrust laws, taking advantage of the government's add-on. What they want to achieve is not to get the products, to destroy them. What they want is to catch and kill an emerging competitor, which is a significant antitrust concern given Novo's dominant market position. So all I can say is that we are continuing to pursue all legal resources. Thank you. Next question, please.

Francesca DeMartino: Thank you, Dave. As I said in my opening comments, it is very difficult for us to start commenting when we have all these legal issues pending, right, as we speak. But I will repeat what I did say, which is kind of an answer to your question, not on the timing, but we don't see how Novo's deal can be superior. It is an illegal attempt by a foreign company to do an end run around antitrust laws. Taking advantage of the government's add-on. What they want to achieve is not to get the products, to destroy them. What they want is to catch and kill an emerging competitor, which is a significant antitrust concern given Novo's dominant market position. So all I can say is that we are continuing to pursue all legal resources. Thank you. Next question, please.

Speaker #7: We also presented follow up results from the Pharos Single Arm phase two clinical trial , supporting Braftovi and Mektovi as a standard of care for patients with metastatic non-small cell lung cancer harboring a Braf v600e mutation mutation .

We are pleased with the continued strong year over year growth and mixed, albeit with a 30 percentage points increase in new patient starts since the October 23 launch.

We believe the results from the forest trial could establish a new benchmark with targeted combination therapies for each population base.

Speaker #7: This updated analysis showed a substantial median overall survival benefit of 70 of 47.6 months in treatment . Naive patients with metastatic non-small cell lung cancer with a Braf v600e mutation .

These results fortify the strength of our growing lung cancer portfolio.

Small molecules Abcs and our 707 bispecific.

Speaker #7: We are pleased with the continued strong year over year growth of Braftovi and Mektovi , with a 30 percentage point increase in new patient starts since the October 23rd launch .

We are confident in our potential to deliver treatments across the lung cancer spectrum.

Large and growing market expected to reach approximately 70 premiums by year 'twenty Sir.

Speaker #7: We believe the results from the Pharos trial could establish a new benchmark with targeted combination therapies for its population of patients . These results fortify the strength of our growing lung cancer portfolio that includes small molecules , ADCs and our 707 bispecific .

We also presented final overall survival results from the phase III embark trial evaluating expand the combination with <unk>.

Albert Bourla: We'll go next to Asad Haider with Goldman Sachs.

Vamil Divan: Great. Thanks for taking the question. I guess just for Albert and Dave, just a quick high-level question on BD. What's the plan if Metsera doesn't work out for some reason? And then second, on 2026, any early framing on guidance pushes and pulls specifically on how we should think about OpEx with and without Metsera? And then any additional color on how to think about the dilution you mentioned from your recent MFN deal with the administration? Thank you.

Vamil Divan: Great. Thanks for taking the question. I guess just for Albert and Dave, just a quick high-level question on BD. What's the plan if Medera doesn't work out for some reason? And then second, on 2026, any early framing on guidance, pushes, and pulls specifically on how we should think about OpEx with and without Medera? And then any additional color on how to think about the dilution you mentioned from your recent MFN deal with the administration? Thank you.

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As the first and only a <unk> based regimen to demonstrate overall survival benefit in this population. These results highlight the potential benefits of expanding in the earlier line treatment setting.

Speaker #7: We are confident in our potential to deliver treatments across the lung cancer spectrum . A large and growing market expected to reach approximately 70 billion by year 2030 .

This strengthens our position on where the product is experiencing strong demand growth in hormone sensitive prostate cancer and rapid uptake in the approximate 16000 U S patient population with non with us about the carnival Saturday of prostate cancer with high risk biochemical robots.

Francesca DeMartino: Yeah. I will send the question to Dave because there are a lot of financial also elements, and then if Andrew wants to add something on the BD.

Francesca DeMartino: Yeah. I will send the question to Dave because there are a lot of financial also elements. Then if Andrew wants to add something on the BD.

Speaker #7: We also presented final overall survival results from the phase three Embark trial , evaluating Xtandi in combination with Leuprolide and as monotherapy in non-metastatic hormone sensitive prostate cancer with high risk biochemical recurrence .

Dave Denton: Yeah. So maybe we'll start with business development. Obviously, the company has still significant resources to understand and how to deploy successfully. Transactions to bring science in-house. And we will continue to work aggressively to do so across all of our four therapeutic areas, and we continue to work across the globe to identify potential candidates for acquisition to help bring new and innovative medicines to patients. So that's still a very ongoing focused activity for the company. I think it's probably a little early to talk exactly about 2026. You heard me give a little color in the sense that clearly we're making investments today, and those investments carry over into '26 and beyond with either Medera or 3SBio to bring these innovative medicines to market. Those will have a slightly dilutive effect to our operating performance next year.

Dave Denton: Yeah. So maybe we'll start with business development. Obviously, the company has still significant resources to understand and how to deploy successfully transactions to bring science in-house, and we will continue to work aggressively to do so across all of our four therapeutic areas. We continue to work across the globe to identify potential candidates for acquisition to help bring new and innovative medicines to patients. So that's still a very ongoing focused activity for the company. I think it's probably a little early to talk exactly about 2026. You heard me give a little color in the sense that clearly we're making investments today, and those investments carry over into 2026 and beyond with either Metsera or 3SBio to bring these innovative medicines to market. Those will have a slightly dilutive effect to our operating performance next year.

Speaker #7: As the first and only Ari based regimen to demonstrate overall survival benefit in this population . This results highlight the potential benefit of xtandi in this earlier line treatment setting .

I wanted to mention.

And another update about our program in sickle cell disease.

We are very pleased that last month.

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Speaker #7: This strengthens our position for the product , but is experiencing strong demand growth in hormone sensitive prostate cancer and rapid uptake in the approximately 16,000 US patient population with non-metastatic hormone sensitive prostate cancer with high risk biochemical recurrence .

Also available studies outside of sub Saharan Africa, and individuals who have not relocated from sub Saharan Africa.

We are still engaging with the regulatory authorities.

Garmin possible next steps for you Brian.

We will look forward to sharing more details in the months ahead about our key pipeline catalysts for 2026 in the coming years.

Speaker #7: I want to mention another update about our progress in sickle cell disease . We are very pleased that last month , the FDA concluded that Pfizer may resume enrollment of studies outside of sub-Saharan Africa and in individuals who have not relocated from sub-Saharan Africa .

With disciplined execution and our continued focus on key products both in the U S and key international markets. We continue to build on our leadership position within our commercial portfolio.

Dave Denton: We will then wrap all that together with the puts and takes of '26 when we get guidance by the end of this year.

Dave Denton: We will then wrap all that together with the puts and takes of 2026 when we get guidance by the end of this year.

Our winterthur familiar products achieved 7% year over year global operational growth in the quarter strong demand during force, but this is the foundation of treatment for patients with a heart condition of ADT or cardiomyopathy, helping them live longer and avoid hospitalization.

Speaker #7: We are still engaging with regulatory authorities to determine possible next steps for Oxbryta . We look forward to sharing more details in the months ahead about our key pipeline catalysts for 2026 .

Francesca DeMartino: Thank you. Anything to add on BD, Andrew?

Vamil Divan: Yeah. I mean, I'd echo what Dave said. We are very active in all geographies, especially in China. You saw this 3SBio, which had the foundational asset to become the backbone across multiple indications. And the same is true in China and beyond across all the main therapeutic areas. We've increased the size of our team in China in particular, and we have very active efforts, and we have something to inform you. You'll certainly be the first to know.

Vamil Divan: Yeah. I mean, I'd echo what Dave said. We are very active in all geographies, especially in China. You saw this 3SBio, which had the foundational asset to become the backbone across multiple indications. And the same is true in China and beyond across all the main therapeutic areas. We've increased the size of our team in China in particular, and we have very active efforts. And we have something to inform you. You'll certainly be the first to know.

Speaker #7: In the coming years . With disciplined execution and our continued focus on key products both in the US and key international markets , we continue to build on our leadership position within our commercial portfolio , our Vyndaqel family of products achieved 7% year over year .

We are encouraged by our continued strong market leadership in international where we actually 40% growth in the quarter in total patients on treatment in the U S. Our continued double digit demand growth reflects strong diagnostic efforts broad taxes and favorable affordability Dana.

Speaker #7: Global operational growth in the quarter . Strong demand reinforced that this is the foundation of treatment for patients with a heart condition of Attr cardiomyopathy , helping them live longer and avoid hospitalization .

Francesca DeMartino: Thank you. Next question, please.

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Albert Bourla: We'll go next to Geoff Meacham with Citibank.

He or she DRP Clos in primary care penetration in the U S and internationally, we achieved growth with continued strong uptake in key markets globally, we achieved 22% year over year operational growth in the quarter.

Geoff Meacham: Morning, guys. Thanks so much for the question. I guess one for Albert or Dave. When you look at the manufacturing investments you're making as part of the MFM agreement, relative to the operational cost efficiencies, how would you rank those as priorities? I guess both seem to have three-year time frames. I'm just trying to get a sense of the incremental dollar and the strategy there. Thank you.

Geoff Meacham: Morning, guys. Thanks so much for the question. I guess one for Albert Bourla or David Denton. When you look at the manufacturing investments you're making as part of the MFN agreement relative to the operational cost efficiencies, how would you rank those as priorities? I guess both seem to have three-year time frames. I'm just trying to get a sense of the incremental dollar and the strategy there. Thank you.

Speaker #7: We are encouraged by our continued strong market leadership in international markets, and we achieved 40% growth in the quarter in total patients on treatment in the U.S.

We are pleased that our new consumer campaigns continued to perform well.

Speaker #7: Our continued double digit demand growth reflects strong diagnostic efforts , broad access , and favorable affordability dynamics . Nurtec continues to lead with the oral to lead the oral class in primary care penetration in the US .

Our team has been effective in <unk>.

Bearing new compelling clinical data with health care professional.

Another market leader in our portfolio achieved 13% year over year global operational growth in the quarter.

Dave Denton: Yeah. Clearly, there are important elements of our strategy. We're going to clearly invest in the US from a production perspective. We're working now to work through our plans with the new agreement with the US government on how to effectively deploy our capacity here in the US and further build it out. So more to come. We will also provide some color to that when we give guidance for 2026. But we will be able to improve our manufacturing operating infrastructure and at the same time invest in manufacturing here in the US. And those two are not necessarily completely in conflict with one another. We'll be able to do both.

Dave Denton: Yeah. Clearly, there are important elements of our strategy. We're going to clearly invest in the US from a production perspective. We're working now to work through our plans with the new agreement with the US government on how to effectively deploy our capacity here in the US and further build it out. So more to come. We will also provide some color to that when we give guidance for 2026. But we will be able to improve our manufacturing operating infrastructure and at the same time invest in manufacturing here at the US. And those two are not necessarily completely in conflict with one another. We'll be able to do both.

Pacifico nationally with Zimbra.

Speaker #7: In international , we achieved growth with continued strong uptake in key markets . Globally , we achieved 22% year over year operational growth in the quarter .

To expand utilization that has been established as a standard of care first line treatment for patients with locally advanced.

Zero fee comes.

Speaker #7: We are pleased that our new consumer campaigns continue to perform well and our team has been effective in sharing new , compelling clinical data with healthcare professionals , partners and other market leaders in our portfolio .

Our vaccines portfolio is a key area of focus in international markets. We are pleased with our strong performance over the prevalent in February driven.

Driven by share gains and launches in several key markets, we achieved 17% year over year international operational growth in the quarter Pfizer is the pediatric pneumococcal vaccination leader with public funding secured in about 140 national immunization programs around the world.

Speaker #7: Achieved 13% year over year global operational growth in the quarter . Padcev , in combination with Pembro , continues to expand utilization and has been established as a standard of care .

Francesca DeMartino: Thank you. Next question, please.

Albert Bourla: We'll go next to Courtney Breen with Bernstein.

Speaker #7: First line treatment for patients with locally advanced or metastatic urothelial cancer . Our vaccine portfolio is a key area of focus in international markets .

After launching in the majority of the key international markets.

Courtney Breen: Thank you so much for answering our question today. I really wanted to understand, and perhaps another question on the Medera, but from a different angle. I wanted to understand, in your mind, what factors supported Pfizer in garnering that unprecedented early termination of the waiting period from the US Federal Trade Commission? That would be really helpful. Thank you so much.

Courtney Breen: Thank you so much for answering our question today. I really wanted to understand, and perhaps another question on the Metsera, but from a different angle. I wanted to understand, in your mind, what factors supported Pfizer in garnering that unprecedented early termination of the waiting period from the US Federal Trade Commission? That would be really helpful. Thank you so much.

Our adult easily established leader among adult pneumococcal conjugate vaccines.

Speaker #7: We are pleased with the strong performance of the Prevnar family , driven by Sir gains and launches in several key markets . We achieved 17% year over year international operational growth in the quarter .

In the U S, where we did experience a year over year decline in the quarter. We are pleased with the overall performance of forever in our plan.

For adults Bremner, Ohio, and market, leading position and group will be expanding their organizational for adults over 50.

Speaker #7: Pfizer is the pediatric pneumococcal vaccination leader with public funding secured in about 140 . National immunization programs around the world . After launching in the majority of key international markets .

Pediatric market accounting for about 60% of our revenues into the U S. We experienced delayed timing of government bulk cargo, which you have seen from time to time. So it's a question of time.

Francesca DeMartino: I'm not sure I understood the question.

Courtney Breen: The FTC clearance.

Francesca DeMartino: Why the FTC clearance?

Courtney Breen: Is there any factors that drove the early?

Courtney Breen: If there are any factors that drove the early.

Speaker #7: Prevnar adult is the established leader among adult pneumococcal conjugate vaccines in the US , where we did experience a year over year decline in the quarter , we are pleased with the overall performance of Prevnar 20 for adults .

Francesca DeMartino: If there are any factors. No, I think the FTC made their own decision. Of course, they were aware of this question, so I don't want to speak for them. But they decided that it is appropriate, in the middle of a foreign attempt to supervision, to just release our deal, which is now clear. So that's all.

Francesca DeMartino: If there are any factors. No, I think the FTC made their own decision. Of course, they were aware of this question, so I don't want to speak for them. But they decided that it is appropriate in the middle of a foreign attempt to supervision to just release our deal, which is now clear. So that's all.

I want to provide an update about the next generation PCV program.

We previously guided with phase III stock of our adult 25, well program in 2075, we are planning to start the study next year.

Speaker #7: Prevnar held a market leading position and grew with the expanded recommendation for adults over 50 . In the pediatric market , accounting for about 60% of Prevnar revenues in the US .

The SBA aligns with our approach.

Our pediatric program, we expect fourth dose data from our ongoing phase one two study early next year and funding positive data and regulatory feedback we have the potential to start both phase III programs in 2026, streamlining our development approach and aligning with our strategy to provide.

Dave Denton: I think it does further demonstrate the strength of our deal and the pathway to clearance and the pathway for us to be able to further develop these products and take them to the marketplace in a very rapid fashion. This is helpful to patients long-term. It is helpful to patients long-term under our management and our direction with these assets.

Dave Denton: I think it does further demonstrate the strength of our deal and the pathway to clearance and the pathway for us to be able to further develop these products and take them to the marketplace in a very rapid fashion. This is helpful to patients long-term. It's helpful to Pfizer's long-term under our management and our direction with these assets.

Speaker #7: We experienced a delayed timing of government bulk order , which we have seen from time to time . So it's a question of time .

Speaker #7: I want to provide an update about the next generation PCV programs . While we previously guided with phase three start of our adult 25 villain program in 2025 , we are planning to start the study next year .

Shingles vaccine across age groups.

We are committed to maintaining leadership in the PCB space and as a reminder, our 25 Ellen vaccine candidate because of the port.

Francesca DeMartino: Yeah. And folks should not be surprised, right? Because we all understand that's the epitome of antitrust conflict. The entire pipeline of Metsera, it is the entire pipeline of Novo, plus they have a dominant position with the current product that they have. Of course, the FTC would worry about that. I don't want to speak for themselves, but it is something that everybody understands. All right. Next question, please.

Francesca DeMartino: Yeah. Folks should not be surprised, right? Because we all understand that's the epitome of antitrust conflict. The entire pipeline of Medera, it is the entire pipeline of Novo, plus they have a dominant position with the current product that they have. Of course, FTC would worry about that. I don't want to speak for themselves, but it is something that everybody understands. All right. Next question, please.

Speaker #7: If the FDA aligns with our approach for our pediatric program , we expect first dose data from our ongoing phase one two study early next year , and pending positive data and regulatory feedback .

And Sheila for improved Immunogenicity for serotype, three which is one of the largest three main contributors probably more cocoa disease.

What type of city alone is estimated to close approximately 20% of invasive disease in the 65 plus population in the U S and EU.

Speaker #7: We have the potential to start both Phase 3 programs in 2026, streamlining our development approach and aligning with our strategy to provide a single vaccine across age groups.

Bruce will also achieved significant international momentum with 75% year over year operational growth in the quarter due to expanded access in key markets.

Speaker #7: We are committed to maintaining leadership in the PCV space , and as a reminder , our 25 valent vaccine candidate has the potential for improved immunogenicity for serotype three , which is one of the largest remaining contributors of pneumococcal disease .

Albert Bourla: We'll go next to Terence Flynn with Morgan Stanley.

Terence Flynn: Hi. Thanks for taking the question. Maybe two for me. You've previously talked about Elrexfio being a key driver for you over the long term. We noticed that MagnetisMM-5 trial was pushed out data into 2026. We know J&J had a similar trial in a similar patient population that just read out. So maybe could you just remind us of any potential differences here in terms of your trial versus their trial and why there might be a difference in timing given they started around the same time? And the second question, just a clarification on Paxlovid dynamics for the quarter. It looks like by our math, price per script went up over last quarter. So just wondering if there's any one-time items that we need to think about here as we think about the trends into Q4. Thank you.

Geoff Meacham: Hi. Thanks for taking the question. Maybe two for me. You've previously talked about Elrexfio being a key driver for you over the long term. We noticed that the MAGNETISMM-5 trial was pushed out data into 2026. We know J&J had a similar trial and a similar patient population that just read out. So maybe could you just remind us of any potential differences here in terms of your trial versus their trial and why there might be a difference in timing given they started around the same time? And the second question, just a clarification on Paxlovid dynamics for the quarter. It looks like, by our math, price per script went up over last quarter. So just wondering if there's any one-time items that we need to think about here as we think about the trends into Q4. Thank you.

In the U S. We are experiencing the headwinds of a more difficult to activate population as we enter the third season of RSV steel, we are continuing to strengthen our position with a 59% market share in the U S. In <unk>.

Speaker #7: Serotype three alone is estimated to cause approximately 20% of invasive disease in the 65 plus population in the US and EU . Abrysvo also achieved significant international momentum , with 75% year over year operational growth in the quarter due to expanded access in key markets in the US , we are experiencing the headwind of a more difficult to activate population as we enter the third season of RSV .

Volume in this quarter.

From the significant strategic milestones, we have achieved in recent months to our solid financial performance. During this quarter. We are demonstrating how we are building for long term value with near term execution of our 2025 strategic priorities.

By committing focus simplification and leveraging technology across our business, we are accelerating progress and improving productivity.

Speaker #7: Still , we are continuing to strengthen our position with a 59% market share in the US in zip , those volumes in this quarter from the significant strategic milestones we have achieved in recent months to our solid financial performance during this quarter , we are demonstrating how we are building for long term value with near-term execution of our 2025 strategic priorities by committing to focus , simplification and leveraging technology across our business , we are accelerating progress and improving productivity .

In the quarter, we achieved another strong gross margin performance.

Francesca DeMartino: All right. Chris?

Additionally, we were able to deliver adjusted diluted EPS.

Vamil Divan: Yeah. Thanks for the question. So MAGNETISM-5, as you know, is double-class exposed. Possibly later this year, beginning next year, it's an event-driven study. So timing could shift due to events not happening, which we cannot speculate. But as you can imagine, that's often positive if events are not happening in the study. So we'll just continue to follow the events and hopefully report early next year.

Vamil Divan: Yeah. Thanks for the question. So Magnetism V, as you know, is double-class exposed. Possibly later this year, beginning next year, it's an event-driven study. So timing could shift due to events not happening, which we cannot speculate. But as you can imagine, that's often positive if events are not happening in the study. So we'll just continue to follow the events and hopefully report early next year.

Ahead of expectations significantly even with lower infection rates contributing to a revenue decline in our COVID-19 portfolio.

Our business is performing well and we are raising the range of our adjusted diluted EPS guidance for full year 2025, while also remaining committed to our dividend.

Dave Denton: Yeah. And on the Paxlovid question, I don't think there's any material change in price. Maybe there's different channels, mix, and things of that nature, but nothing significant from that standpoint. Thank you.

Dave Denton: Yeah. On the Paxlovid question, I don't think there's any material change in price. Maybe there's different channels mix and things of that nature, but nothing significant from that standpoint. Thank you.

And without I'll turn it over to Dave.

Speaker #7: In the quarter , we achieved another strong gross margin performance . Additionally , we were able to deliver adjusted diluted EPs . That was ahead of expectations .

You Albert and good morning, everyone to begin this morning, I'd like to highlight that our solid financial performance directly reflects our continued disciplined execution of our key strategic priorities, we continue to prioritize enhance patient outcomes as well as the achievement of our financial objectives.

Francesca DeMartino: Thank you for clarifying this. Let's go to the next question, please.

Speaker #7: Significantly , even with lower infection rates contributing to a revenue decline in our Covid 19 portfolio , our business is performing well and we are raising the range of our adjusted diluted EPs guidance for full year 2025 .

Albert Bourla: We'll go next to Akash Tewari with Jefferies.

Geoff Meacham: Hey, thanks so much. I had a question on your upcoming phase 3 EZH2 readout in CRPC. I'm surprised the study isn't more prominently flagged given the potential to extend the expanded franchise. What drives your confidence that you're getting adequate target exposure after examining some of your food effect studies? And also, what's your expectations around overall survival? Could we see a 20% to 30% benefit here? Thanks so much.

Geoff Meacham: Hey, thanks so much. I had a question on your upcoming Phase 3 EVH2 readout in CRPC. I'm surprised the study isn't more prominently flagged given the potential to extend the expanded franchise. What drives your confidence that you're getting adequate target exposure after examining some of your food effect studies? And also, what's your expectations around overall survival? Could we see a 20% to 30% benefit here? Thanks so much.

Furthermore, our recent agreement with the U S government demonstrates our ability to navigate a complex external environment, our cost improvement measures have driven greater operational efficiency and streamline decision, making which is evident in our solid operating margins for this quarter.

Speaker #7: While also remaining committed to our dividend . And with that , I'll turn it over to Dave .

Speaker #8: Thank you , Albert , and good morning , everyone . To begin this morning , I'd like to highlight that our solid financial performance directly reflects our continued disciplined execution of our key strategic priorities .

Year to date margins expanded despite the unfavorable impact of the acquired in process R&D from the <unk> transaction.

Francesca DeMartino: Chris, that's for you.

Vamil Divan: Thank you very much for the question. This is another first-in-class internally discovered program, EVH2 program. We've previously shared randomized data which showed significant PFS benefit in all comers and late-line metastatic castration-resistant prostate cancer. We now have three phase 3 studies ongoing. The first one will read out, to your point, is post-abiraterone metastatic hormone-resistant prostate cancer, and that we expect in the coming months. We recently also presented data at ASCO, randomized data on the food effect to your question, which was 875mg twice a day with food and showed that the data are compatible with the dose we now use in phase 3 with reduced GIAE. So we are confident in the dose that was selected.

Vamil Divan: Thank you very much for the question. This is another first-in-class internally discovered program, EZH2 program. We've previously shared randomized data which has showed significant PFS benefit in all comers and late-line metastatic castration-resistant prostate cancer. We now have three phase 3 studies ongoing. The first one will read out, to your point, is post-abiraterone metastatic castration-resistant prostate cancer, and that we expect in the coming months. We recently also presented data at ASCO, randomized data on the food effect, to your question, which was 875mg twice a day with food, and showed that the data are compatible with the dose we now use in phase 3 with reduced GIAE. So we are confident in the dose that was selected.

Speaker #8: We continue to prioritize enhanced patient outcomes as well as the achievement of our financial objectives . Furthermore , our recent agreement with the US government demonstrates our ability to navigate in a complex external environment .

Going forward, we expect to improve our cash flow and increase flexibility across our three capital allocation pillars, our focus remains on creating long term shareholder value.

We will continue to invest in our business for the long term evidenced by a recent business development activity.

Speaker #8: Our cost improvement measures have driven greater operational efficiency and streamlined decision making , which is evident in the solid operating margins for this quarter .

Didn't we returning capital to our shareholders.

Now with that let me start with our third quarter results, then I'll touch on our cost improvement initiatives as well as our capital allocation priorities I will finish with a few comments on our 2025 guidance, which continues to improve as we move throughout this year.

Speaker #8: Year to date , margins expanded despite the unfavorable impact of the acquired in-process R&D from the three US bio transaction . Going forward , we expect to improve our cash flow and increase flexibility across our three capital allocation pillars our focus remains on creating long term shareholder value .

For the third quarter 2025, we recorded revenues of $16 7 billion, a decrease of 7% operationally versus the same period of last year, that's largely driven by a decline in our cooling products that.

Speaker #8: We will continue to invest in our business for the long term , evidenced by our recent business development activity . While prudently returning capital to our shareholders .

Francesca DeMartino: Thank you. Next question, please.

Albert Bourla: We'll go next to Kerry Holford with Berenberg.

Albert Bourla: We'll go next to Kerry Halford with Berenberg.

The decline was primarily due to <unk>, which experienced reduced demand from global level levels of disease incidents as well as last year's onetime tax loaded government stockpiling recorded in Q3 at 24 and to a lesser extent commodity.

Speaker #8: Now, with that, let me start with our third quarter results. Then I'll touch on our cost improvement initiatives, as well as our capital allocation priorities.

David Risinger: Thank you for taking the question. Just on the guidance, please, for this year, you've clearly reiterated the total revenue range of $61 to 64 billion. And when you first said that guidance, you spoke of total COVID-19 sales of around $9 billion for the year, seeing that you booked only around just over $4 billion year-to-date. Just interested in your comments around whether that nine is achievable for the full year. And if not, what other assets would you call out as likely to fill that gap and give you confidence to reiterate the total sales guidance?

David Risinger: Thank you for taking the question. Just on the guidance, please, for this year, you've clearly reiterated the total revenue range of $61 to 64 billion. And when you first said that guidance, you spoke of total COVID-19 sales of around $9 billion for the year, seeing that you booked only around just over $4 billion year to date. Just interested in your comments around whether that nine is still achievable for the full year. And if not, what other assets would you call out as likely to fill that gap and give you confidence to reiterate the total sales guidance?

Speaker #8: I'll finish with a few comments on our 2025 guidance , which continues to improve as we move throughout this year . For the third quarter of 2025 , we recorded revenues of $16.7 billion , a decrease of 7% .

With that said, our non Covid products performance was solid growing 4% operationally versus the same period about Hawaii.

Speaker #8: Operationally versus the same period of last year . That's largely driven by a decline in our Covid products . The decline was primarily due to Paxlovid , which experienced reduced demand from lower level levels of disease incidents , as well as last year's one time Paxlovid government stockpiling recorded in Q3 of 24 and to a lesser extent , commodity .

On the bottom line third quarter 25 reported diluted earnings per share was 62% and adjusted diluted earnings per share was 87.

Ahead of our expectations due to our overall gross margin and cost management performance.

I'll point out that this profit performance includes a headwind of approximately 20 cents of acquired in process R&D from the <unk> transaction.

Francesca DeMartino: Thank you, Dave. Please.

Speaker #8: With that said , our non-COVID products performance was solid , growing 4% operationally versus the same period of last on the bottom line , third quarter 25 reported diluted earnings per share was $0.62 and adjusted diluted earnings per share was $0.87 ahead of our expectations .

Dave Denton: Yes. You're absolutely right, Kerry, as you pointed out. I would say that to the low end of our guidance range from a revenue perspective, you would assume that the COVID franchise continues a very modest uptake for the balance of this year, particularly in the US. However, as you know, the COVID franchise is subject to big peaks and valleys. If there happens to be a wave of COVID in the next several months, you can see utilization spike up. So that's why the range is so large. I'll just point out that what we have done with an earnings per share guidance range is we de-risked the COVID franchise with the guidance that we provided, given that if the trends continue, we'll be closer to the low end of that range, and we will still be able to deliver on our earnings commitment.

Our results demonstrate the effectiveness of our refined commercial strategy.

We remain committed to prioritizing key products and markets.

Optimizing the global allocation of our commercial field resources and concentrating our market efforts on high priority areas. We.

Speaker #8: Due to our overall gross margin and cost management performance , I'll point out that this profit performance includes a headwind of approximately $0.20 of acquired in-process R&D from the Three's bio transaction .

We saw solid contributions across our product portfolios, primarily driven by Alex with the <unk> family of <unk>, but it was more than offset by declines in packs loading commodity.

Through the first nine months of 'twenty five Pfizer's recently launched and acquired products delivered seven $3 billion in revenue, while growing approximately 9% operationally versus last year.

Speaker #8: Our results demonstrate the effectiveness of our refined commercial strategy . We remain committed to prioritizing key products and markets , optimizing the global allocation of our commercial field resources , and concentrating our market efforts on high priority areas .

This lower growth rate in the third quarter as compared to Q2 was primarily driven by the timing of pediatric CDC shipments at Pratt an art and a onetime favorable impact in Q2 procedure products transitioning to a wholesale distribution model in the U S.

Francesca DeMartino: Thank you. Very clear, Dave. Let's move to the next question, please.

Speaker #8: We saw solid contributions across our product portfolios , primarily driven by Eliquis , the Vyndaqel family , and Nurtec , but it was more than offset by declines in Paxlovid and community through the first nine months of 25 , Pfizer's recently launched and acquired products delivered $7.3 billion in revenue , while growing approximately 9% operationally versus last year .

Albert Bourla: We'll go next to Mohit Bansal with Wells Fargo.

Vamil Divan: Great. Thank you very much for taking my question. Just wanted to understand the thought process around the pricing of these GLP-1 and this class of medicines, given that, I mean, even today, there's a news article out there suggesting the price could be $150 or so. So it seems like the price is only going in one direction. In that case, I mean, how do you justify the price that you're paying to Metsera and, in general, the obesity landscape over time? How do you think about that, this pricing decline for the class? Thank you.

Geoff Meacham: Great. Thank you very much for taking my question. Just wanted to understand the thought process around the pricing of these GLP-1 and this class of medicines, given that, I mean, even today, there's a news article out there suggesting the price could be $150 or so. So it seems like the price is only going in one direction. In that case, I mean, how do you justify the price that you're paying to Medera? And in general, the obesity landscape. Over time, how do you think about that, this pricing decline for the class? Thank you.

We plan to continue to invest behind these two product groups to drive the future performance and helped enable the company to largely offset our <unk> over the next several years.

Our gross our gross adjusted gross margin for the third quarter was approximately 76%, primarily reflecting the product mix in the quarter and continued strong cost management within our manufacturing footprint.

Speaker #8: This lower growth rate in the third quarter is compared to Q2 , was primarily driven by the timing of pediatric CDC shipments of Prevnar and a one time favorable impact in Q2 for Seagen products .

As a reminder, over the past two years, our adjusted gross margins have generally remained in the mid to upper seventies.

Speaker #8: Transitioning to a wholesale distribution model in the US , we plan to continue to invest behind these two product groups to drive the future performance and help enable the company to largely offset our lows over the next several years .

Excluding commodity which has a 50 50 profit split with our partner Bion Tech.

Francesca DeMartino: Yeah. Thank you. And this is also competition brings prices down. And of course, they try now to restrict competition. But anyway, yes, in our calculations, we have taken into consideration that the prices of GLP-1s probably will start going down. So I don't know what will be announced now, but in our calculations, we took already that into consideration. Thank you, Mohit. Let's go to the next question, please.

Francesca DeMartino: Yeah. Thank you. And this is also competition brings prices down. And of course, they try now to restrict competition. But anyway. Yes, in our calculations, we have taken into consideration that the prices of GLP-1s probably will start going down. So I don't know what will be announced now. But in our calculations, we took already that into consideration. Thank you, Mohit. Let's go to the next question, please.

We expect $1 $5 billion in savings from phase one of the manufacturing optimization program by the end of 'twenty seven to support our long term operating margin expansion goal.

Speaker #8: As a gross adjusted gross margin for the third quarter was approximately 76% , primarily reflecting the product mix in the quarter , and continued strong cost management within our manufacturing footprint .

Going forward cost management across our manufacturing network remains a top priority.

Speaker #8: As a reminder , over the past two years , our adjusted gross margins have generally remained in the mid to upper 70s , excluding commodity , which has a 50 over 50 profit split with our partner BioNTech , we expect $1.5 billion in savings from phase one of the manufacturing optimization program by the end of 27 to support our long term operating margin expansion goal .

Total adjusted operating expense were $7 billion for the third quarter of 25, an increase of 21% operationally versus Earl Y driven in large part by the acquired in process R&D expense per <unk> bio.

Excluding the $3 biodiesel adjusted operating expenses contracted by approximately $150 million versus last year.

Albert Bourla: We'll go next to Alex Hammond with Wolfe Research.

Albert Bourla: We'll go next to Alexandria Hammond with Wolfe Research.

Courtney Breen: Thanks for taking the question. Can you elaborate more on the reason for the delay to the initiation of the pivotal trial for the adult 25-valent pneumococcal program? You'd mentioned the caveat of if the FDA aligns with your approach. So, as a tenor, the dialogue changed with the FDA. Is there a chance that surrogate endpoints may no longer be approvable?

Alex Hammond: Thanks for taking the question. Can you elaborate more on the reason for the delay to the initiation of the pivotal trial for the adult 25-valent pneumococcal program? You'd mentioned the caveat of if the FDA aligns with your approach. So as the tenor of the dialogue changed with the FDA, is there a chance that surrogate endpoints may no longer be approvable?

And looking at the components adjusted <unk> expenses decreased 3% operationally, primarily driven by focused investments and ongoing productivity improvements that drove a decrease in marketing and promotional spend for various products.

Speaker #8: Going forward , cost management across our manufacturing network remains a top priority . Total adjusted operating expenses were $7 billion for the third quarter of 25 , an increase of 21% .

Speaker #8: Operationally versus lie driven in large part by the acquired in-process R&D expense . For Three's bio . Excluding the three's bio deal , adjusted operating expenses contracted by approximately $150 million versus last year , and looking at the components adjusted SG&A expenses decreased 3% .

Adjusted R&D expense decreased 3% operationally as well driven by a net decrease in spending due to pipeline focus and optimization, including the expansion of our digital capabilities.

Francesca DeMartino: Thank you very much. Chris?

Vamil Divan: Yeah. Thank you for the question. Across all our vaccine programs, we're obviously working very closely with the FDA and other regulators on the designs of the study and also the endpoint. PCV25, pending positive data and FDA feedback, as mentioned, we intend to start that study as well as the pediatric 25-valent program next year. So it means we will align the pediatric and the adult study. We expect the fourth dose data from the pediatric study early next year. So that helps us to coordinate the two studies. It'll just make it easier. The 25 vaccine candidate covers 25 serotypes. Particularly, I need to point out serotype 3, which we did before, because the vaccine is designed with significantly enhanced immunogenicity against serotype 3, which currently constitutes up to 20% of infections in the US and the EU.

Vamil Divan: Yeah. Thank you for the question. Across all our vaccine programs, we obviously work very closely with the FDA and other regulators on the designs of the study and also the endpoint. PCV25, pending positive data and FDA feedback. As mentioned, we intend to start that study as well as the pediatric 25-valent program next year. So it means we will align the pediatric and the adult study. We expect the fourth dose data from the pediatric study early next year. So that helps us to coordinate the two studies. It'll just make it easier. The 25 vaccine candidate covers 25 serotypes. Particularly, I need to point out serotype 3, which we did before, because the vaccine is designed with significantly enhanced immunogenicity against serotype 3, which currently constitutes up to 20% of infections in the US and the EU.

And finally acquired in process R&D expenses increased $1 $4 billion, largely resulting from the <unk> deal.

As our adjusted S. On eight R&D expenses demonstrate we continue to be disciplined with our operational expense management.

Speaker #8: Operationally , primarily driven by focused investments and ongoing productivity improvements that drove a decrease in marketing and promotional spend for various products . Adjusted R&D expense decreased 3% .

Q3 reported diluted earnings per share was <unk> 62, and our adjusted diluted earnings per share was 87.

Speaker #8: Operationally , as well , driven by a net decrease in spending due to pipeline focus and optimization , including the expansion of our digital capabilities .

We've benefited from our our efficient operating structure.

Additionally, EPS was aided by our effective tax rate, primarily driven by favorable changes in girls jurisdictional mix of earnings and tax benefits related to global income tax resolutions in multiple jurisdictions spanning multiple years, partially offset by the aforementioned <unk> acquired in cost.

Speaker #8: And finally acquired in-process R&D expenses , increased $1.4 billion , largely resulting from the three's bio deal . As our adjusted SG&A and R&D expenses demonstrate , we continue to be disciplined with our operational expense management , Q3 reported diluted earnings per share was $0.62 , and our adjusted diluted earnings per share was $0.87 , which benefited from our our efficient operating structure .

Vamil Divan: And to continue our leadership, we also continue to study our first generation with 30-plus serotypes, which we'll update you on more in 2026. Thank you.

Vamil Divan: To continue our leadership, we also continue to study our first generation with 30-plus serotypes, which we'll update you on more in 2026. Thank you.

<unk> R&D charge.

We continue to be disciplined with.

While expense management progressing multiple cost improvement programs as we remain focused on driving operating margin expansion over the coming years.

Francesca DeMartino: Thank you, Chris. We'll go to the next question, please.

Francesca DeMartino: Thank you, Chris. Over to the next question, please.

Speaker #8: Additionally , EPs was aided by our effective tax rate , primarily driven by favorable changes in jurisdictional mix of earnings and tax benefits related to global income tax resolutions in multiple jurisdictions spanning multiple years , partially offset by the aforementioned three's bio acquired in-process R&D charge .

Albert Bourla: We'll go next to Chris Schott with JPMorgan.

Phase one of the manufacturing optimization program contributed savings in the quarter in the third quarter.

Terence Flynn: Great. Thanks very much. Just maybe two MFN questions. First one's kind of bigger picture. As you think about MFN on new launches over time, what are you thinking about this suggesting for international revenues? Is this, I could read this as a net positive, that you could get higher price? I could read it as net negative because reimbursement hurdle is going to be tougher at these higher prices. It could be neutral. Just how you kind of envisioned what plays out with international as you signed that deal. And then the second one is just trying to get a little bit more color on the MFN impact for 2026. I think you mentioned some dilution there, but just any more quantitative metrics you could provide of just how much of a headwind is that for next year? Thanks so much.

Geoff Meacham: Great. Thanks very much. Just maybe two MFN questions. First one's kind of bigger picture. As you think about MFN on new launches over time, what are you thinking about this suggesting for international revenues? Is this I can read this as a net positive, that you can get higher price? I can read it as net negative because reimbursement hurdle is going to be tougher at these higher prices. It could be neutral. Just how you kind of envisioned what plays out with international as you signed that deal. And then the second one is just trying to get a little bit more color on the MFN impact for 2026. I think you mentioned some dilution there, but just any more quantitative metrics you could provide of just how much of a headwind is that for next year. Thanks so much.

In addition, we remain on track to deliver on our goal of at least $4 $5 billion in cumulative net cost savings from our ongoing cost realignment program by the end of this year.

As a reminder, in total for these programs, we expect approximately $7 7 billion in savings by the end of 'twenty seven to drive operational efficiencies strengthening our business with the potential of contributing significantly to our bottom line over this period.

Speaker #8: We continue to be disciplined with our operational expense management progressing multiple cost improvement programs as we remain focused on driving operating margin expansion over the coming years .

Speaker #8: Phase one of the manufacturing optimization program contributed savings in the quarter . In the third quarter . In addition , we remain on track to deliver on our goal of at least $4.5 billion in cumulative net cost savings from our ongoing cost realignment program .

Of these savings of approximately $500 million identified in R&D will be reinvested in the pipeline, which we expect.

By the end of 2026.

With that now let me quickly touch upon our capital allocation.

Francesca DeMartino: Yes. I'm sorry if I asked Dave to tell you, but she will tell you we will provide guidance at the end of the year, and that will incorporate everything, including that and the other things that you have talked. So I don't think you will get more words out of our mouth, no matter how much you talk to us. But on the new launches in international, of course, we are waiting to see how things may play. The price differential is not sustainable. We are speaking about a smaller basket of countries in international that are affected by that. And with these countries, we are hoping that they will understand that they need to change the way that they price their product going forward. Of course, a little bit help from the US government and USTR through trade negotiations also can make that happen.

Francesca DeMartino: Yes. I'm sure if I ask Dave to tell you, she will tell you it will provide guidance at the end of the year, and that will incorporate everything, including that and the other things that you have talking. So I don't think you will get more words out of our mouth, no matter how much you talk to us. But on the new launches in international, of course, we are waiting to see how things may play. The price differential is not sustainable. We are speaking about a smaller basket of countries in international that are affected by that. And with these countries, we are hoping that they will understand that they need to change the way that they price their product going forward. Of course, a little bit help from the US government and USTR through trade negotiations also can make that happen.

Speaker #8: By the end of this year . As a reminder , in total , for these programs , we expect approximately 7.7 billion in savings by the end of 27 to drive operational efficiencies , strengthening our business with a potential of contributing significantly to our bottom line over this period .

Yes.

It is designed to enhance long term shorter value.

Our track strategy consist of maintaining and growing our dividend overtime.

Reinvesting in that sense at the appropriate level of financial returns and making value enhancing share repurchases.

In the first nine months of this year, we've returned $7 $3 billion to shareholders via our quarterly dividend.

Speaker #8: Of these savings, approximately $500 million identified in R&D will be reinvested in the pipeline, which we expect by the end of 2026.

<unk> seven $2 billion in internal R&D.

And invested approximately $1 6 billion in business development trends actually transactions, primarily reflecting the three espial licensing deal.

Speaker #8: With that , now , let me quickly touch upon our capital allocation strategy , which is designed to enhance long term shareholder value .

Speaker #8: Our strategy consists of maintaining and growing our dividend over time , reinvesting in our business at the appropriate level of financial returns , and making value enhancing share repurchases .

As a reminder, our business development capacity after the three S. Biodiesel is approximately $13 million.

In the third quarter, we announced the planned acquisition of met Sarah for approximately $4 $9 billion with.

Speaker #8: And the first nine months of this year , we returned $7.3 billion to shareholders via our quarterly dividend , invested $7.2 billion in internal R&D , and invested approximately $1.6 billion in business development transaction transactions , primarily reflecting the three's bio licensing deal .

With additional contingent value rights tied to successful pipeline progression. The transaction is expected to be funded through a mix of available cash as well is that we.

Francesca DeMartino: And my assessment is that Howard Lutnick and the US trade representatives are highly, highly committed to make this go away. So we will see how that plays. But in theory, if the prices over there are we are not agreeing a decent way of pricing our products, clearly, we will not get reimbursement there. And we will price them to the price that will not affect the US price. Thank you. And now let's go to the next question, please.

Francesca DeMartino: And my assessment is that Howard Lutnick and the US trade representatives are highly, highly committed to make this go away. So we will see how that plays. But theoretically, if the prices over there are, we are not agreeing a decent way of pricing our products, clearly, we will not get reimbursement there. And we will price them to the price that will not affect the US price. Thank you. And now let's go to the next question, please.

We expect the deal to be dilutive through 'twenty 30, as we continue to as we've continued to invest to enable further.

Speaker #8: As a reminder of business development capacity . After the three bio deals , approximately $13 billion in the third quarter , we announced a planned acquisition of Meztira for approximately $4.9 billion , with additional contingent value rights tied to successful pipeline progression .

Promising late stage pipeline assets spin.

Specifically, we currently expect the <unk> transaction to be approximately 16 cents dilutive to 2026 adjusted EPS. Additionally.

Additionally, we expect another <unk>.

A deletion in 26 from the three aspire deal, which closed in the third quarter.

Speaker #8: The transaction is expected to be funded through a mix of available cash as well as debt . We expect the deal to be dilutive through 2030 as we continue to as we continue to invest to enable further us promising late stage pipeline assets .

With that said, we believe the two deals set up a strong potential revenue growth trajectory in 2030 and beyond.

Albert Bourla: We'll go next to Umer Raffat with Evercore ISI.

Geoff Meacham: Morning, guys. First, on Metsera, I realize this is perhaps in the hands of your M&A lawyers and antitrust lawyers, but from an R&D perspective, can we make sure you'll be evaluating all the new data that's imminent? For example, the monthly transition and how the GI tolerability holds, as well as even more importantly, the amylin plus GLP early combo data. Then separately, I was very intrigued by a phase 2b trial you guys initiated on an oral drug, enatopid derm. Could you confirm if it's a STAT6 inhibitor? And were you able to gauge the magnitude of STAT6 inhibition phase 1? Thank you.

Geoff Meacham: Morning, guys. First, on Medera, I realize this is perhaps in the hands of your M&A lawyers and antitrust lawyers, but. From an R&D perspective, can we make sure you'll be evaluating all the new data that's imminent? For example, the monthly transition and how the GI tolerability holds, as well as, even more importantly, the amylin plus GLP-1 early combo data. And then separately, I was very intrigued by a phase 2b trial you guys initiated on an oral drug for atopic dermatitis. Could you confirm if it's a STAT-6 inhibitor? And were you able to gauge the magnitude of STAT-6 inhibition phase 1? Thank you.

And lastly for the first nine months of 25 operating cash flow was approximately $6 $4 billion, which includes the $1 $85 billion upfront payment for the <unk> transaction.

Speaker #8: Specifically , we currently expect the Meztira transaction to be approximately $0.16 dilutive to 2026 adjusted EPs . Additionally , we expect another $0.05 of dilution in 26 from the three's bio deal , which closed in the third quarter .

Our gross leverage at the end of the third quarter was approximately two seven times.

That said upon the close of the <unk> transaction, our leverage is expected to be above the two seven times target.

Speaker #8: With that said , we believe the two deals set up a strong potential revenue growth trajectory in 2030 and beyond . And lastly , through the first nine months of 25 , operating cash flow was approximately $6.4 billion , which includes the $1.35 billion upfront payment for the three transaction .

We expect to bring our leverage back down to the target levels over time to continue to support a balanced allocation of capital between Reinvestments and direct return to shareholders.

Francesca DeMartino: Yeah. Thanks. Look, on the Medera, it's easy if they provide us data or if they publicize data. Of course, we are eager to see them. And we believe it will be positive. On the second question, I will ask Chris to comment.

Francesca DeMartino: Yeah. Thanks. Look, on the Metsera, it's easy if they provide us data or if they publicize data. Of course, we are eager to see them. We believe it will be positive. On the second question, I will ask Chris to comment.

Now, let me turn to our full year 2025 guidance as Albert noted in September we reached a new voluntary agreement with the U S. Government that will help ensure U S patients pay lower prices prescription medications, while providing the clarity we need to focus on our business and our investments in future innovation we agree.

Speaker #8: Our gross leverage at the end of the third quarter was approximately 2.7 times . That said , upon the close of the Meztira transaction , our leverage expected to be above the 2.7 times target we expect to bring our leverage back down to the target levels over time to continue to support a balanced allocation of capital between Reinvestments and direct return to shareholders .

Vamil Divan: Thank you, Umar, to ask a question regarding our INI portfolio. I just want to check. Are you referring to PF9820?

Vamil Divan: Thank you, Umer, to ask a question regarding our I&I portfolio. I just want to check. Are you referring to PF-9820?

<unk> has no impact on our 2025 guidance, but we expect a dilutive impact to our 2020 financial outlook.

Francesca DeMartino: I don't think you can remember.

Francesca DeMartino: I don't think you can refer to it.

Vamil Divan: Okay. Okay. So you are correct. That is a STAT inhibitor. I want to point out that we currently have a very differentiated INI portfolio with at least five molecules in-house discovered and developed. Most of these are at a significantly accelerated speed, including, obviously, p40 TL1A, which we co-developed, which is being co-developed with Roche, which covers IL-12 and IL-23 and the p40. Our two tri-specifics are covering IL-4, IL-13, TSLP, IL-33. Both of those now entering phase 2 for atopic dermatitis and for other TH2-related diseases. Litfulo with the ongoing phase 3 trial in nonsegmental vitiligo, which is a JAK3 inhibitor, also differentiated in-house. And then the STAT6 early, just entering phase 2, could be potentially first-in-class oral. We're currently further optimizing dose and formulation and hope to update you on that program in 2026. Thank you.

Vamil Divan: Okay. Okay. So you are correct. That is a STAT3 inhibitor. I want to point out that we currently have a very differentiated I&I portfolio with at least five molecules in-house discovered and developed. Most of these at a significantly accelerated speed, including, obviously, p40-TL1A, which we co-developed, which is being co-developed with Roche, which covers IL-12 and IL-23 and p40. Our two trispecifics covering IL-4, IL-13, TSLP, IL-33, both of those now entering phase 2 for atopic dermatitis and for other TH2-related diseases. Ritlecitinib with the ongoing phase 3 trial in non-segmental vitiligo, which is a JAK3-selective inhibitor, also differentiated in-house. And then the STAT6 early, just entering phase 2, could be potentially first-in-class oral. We're currently further optimizing dose and formulation and hope to update you on that program in 2026. Thank you.

We continue to expect full year 2025 revenues to be in the range of $61 billion to $64 billion.

Speaker #8: Now, let me turn to our full year 2025 guidance. As Albert noted, in September we reached a new voluntary agreement with the U.S. government that will help ensure U.S. patients pay lower prices for medication while providing the clarity we need to focus on our business and our investments in future innovation.

Non COVID-19 products continued to perform very well operationally and ahead of our plan. However, we note there is softness in our Cobra products due to lower vaccination rates and COVID-19 infection rates and.

In addition, our guidance assumes a favorable impact to revenues from foreign exchange rates.

Speaker #8: The agreement has no impact on our 2025 guidance , but we expect a dilutive impact to our 2020 financial outlook . We continue to expect full year 2020 revenues to be in the range of 61 to $64 billion , non-COVID products continued to perform very well operationally and ahead of our plan .

Furthermore, we now expect adjusted R&D to be a range of $10 billion to $11 billion and our effective tax rate to be approximately 11%.

Additionally, adjusted <unk> remains unchanged.

Now given our strong performance to date, and our fourth outlet, including our more efficient cost structure, we are raising and narrowing our full year 2025, adjusted diluted earnings per share guidance by approximately eight cents at the midpoint to $3 a share to $3.15 a share.

Speaker #8: However , we note there is softness in our Covid products due to lower vaccination rates and Covid infection rates . In addition , our guidance assumes a favorable impact to revenues from foreign exchange rates .

Speaker #8: Furthermore, we now expect adjusted R&D to be in the range of $10 billion to $11 billion, and our effective tax rate to be approximately 11%.

Francesca DeMartino: Thank you very much. Next question, please.

I'd like to emphasize our adjusted diluted earnings per share guidance substantially derisked, the current lower than anticipated corporate trends.

Albert Bourla: We'll go next to Steve Scala with TD Cowen.

Stephen Scala: Oh, thank you so much. Two questions. What does the drug pricing deal with Trump allow Pfizer to do that other companies will not be able to do other than, of course, AstraZeneca? And secondly, on Metsera, so the data looks more similar than different than competitors, and Metsera disclosures haven't been completely transparent, raising serious questions. Many other big-cap pharmas have passed over Metsera when pursuing other products, validating the MeToo point. Nothing in all this justifies a bidding war or even a protracted legal battle. Is Pfizer's determination to persist underpinned by substantial confidentiality data, confidential data, or simply the desire to be a player in obesity? Or does Pfizer agree with the points that I just said, and could it just walk away? Thank you.

Courtney Breen: Oh, thank you so much. Two questions. What does the drug pricing deal with Trump allow Pfizer to do that other companies will not be able to do other than, of course, AstraZeneca? And secondly, on Medera, so the data looks more similar than different than competitors, and Medera disclosures haven't been completely transparent, raising serious questions. Many other big-cap pharmas have passed over Medera when pursuing other products, validating the me-too point. Nothing in all this justifies a bidding war or even a protracted legal battle. Is Pfizer's determination to persist underpinned by substantial confidentiality data, confidential data, or simply the desire to be a player in obesity? Or does Pfizer agree with the points that I just said, and could it just walk away? Thank you.

Speaker #8: Additionally , adjusted SG&A remains unchanged . Now , given our strong performance to date and our fourth quarter outlook , including our more efficient cost structure , we are raising and narrowing our full year 2020 five adjusted diluted earnings per share guidance by approximately $0.08 at the midpoint to $3 a share to $3.15 a share .

In closing, we remain committed to enhancing the value of our product portfolio and advancing innovation to further strengthen our pipeline with a stronger balance sheet, we plan to continue deploying capital effectively.

We aim to boost R&D productivity with digital tools, including AI prioritize investments in key R&D programs and to deliver new growth through business development.

Speaker #8: I'd like to emphasize our adjusted diluted earnings per share guidance substantially derisked the current lower than anticipated Covid trends . In closing , we remain committed to enhancing the value of our product portfolio and advancing innovation to further strengthen our pipeline with a stronger balance sheet , we plan to continue deploying capital effectively .

Furthermore, our performance continues to exceed expectations and deliver strong results, even as the incidence of Covid remains low <unk>.

This consistent performance highlights our resilience and commitment to excellence.

Regardless of the challenging external environment R.

Our efforts to enhance cost efficiency and generate improvements in operating margins by driving productivity and optimizing processes.

Speaker #8: We aim to boost R&D productivity with digital tools , including AI , prioritize investments in key R&D programs and deliver new growth through business development .

Lastly, with the recent agreement with U S. Government, we can now focus on executing our strategy and our strategic priorities across our business to deliver new medicines for patients and enhance long term shareholder value.

Francesca DeMartino: Thank you. On the first one, on the drug prices and what we have that other companies may not have, I can't answer because I don't know what the other companies are having. As you know, the discussions are between the administration and individual companies, which also ensures that there's no undisclosed issues. And also, of course, if they are confidential, because that's also what the administration and the agreements portray that we should keep confidentiality of those. So I know what we are getting. Some of that has been public, and some of that is part of the overall very lengthy deal. But I don't know what others will take. On the Metsera, look, we have seen the data.

Francesca DeMartino: Thank you. On the first one, on the drug prices and what we have that other companies may not have, I can't answer because I don't know what the other companies are having. As you know, the discussions are between the administration and individual companies, which also ensures that there's no antitrust issues. And also, of course, if they are confidential, because that's also what the administration and the agreements portray that we should keep confidentiality of those. So I know what we are getting. Some of that has been public, and some of that is part of the overall very lengthy deal. But I don't know what others will take. On the Medera, look, we have seen the data.

Speaker #8: Furthermore , our performance continues to exceed expectations and deliver strong results even as the incidence of Covid remains low . This consistent performance highlights our resilience and commitment to excellence , regardless of the challenging external environment .

I'd like to just close by noting that is our expectation that we will provide guidance for 2026, most likely by the end of this year.

So with that I'll turn it back over to Albert will begin our question and answer session Spinnaker, Dave. So please assemble the queue.

Speaker #8: Our efforts to enhance cost efficiency and generate improvements in operating margins by driving productivity and optimizing processes . Lastly , with the recent agreement with US government , we can now focus on executing our strategy and our strategic priorities across our business to deliver new medicines for patients and enhance long term shareholder value .

Yeah.

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

You may remove yourself from the queue at any time by pressing star two.

Once again that is star one to ask a question.

Our first question comes from formal Divan with Guggenheim Securities. Please go ahead.

Speaker #8: I'd like to just close by noting that as our expectation that we'll provide guidance for 2026 , most likely by the end of this year .

Hi, great. Thanks for taking my question I may have to defer them that Sir a question. The other analysts, but I'm curious to hear what you say there I'll just ask a couple more on the commercial side to one the next obviously you've taken the more competition there surprised to see that performance.

Speaker #8: So with that , I'll turn it back over to Albert , and we'll begin our question and answer session .

Francesca DeMartino: We did extensive due diligence, and we priced the asset into a price that we thought offers tremendous value to the shareholders of Medera and to shareholders of Pfizer because those assets that we like in our hands, of course, will provide significant competitive edge. What you see now, it is, I repeat, an effort to catch and kill this emerging competitor, which is Pfizer. And to do that by evading the antitrust scrutiny and virtually get control, de facto control of the company, as they will become the major shareholder and the major creditor without any regulatory scrutiny. So that's all I have to say. And we will see how things go.

Francesca DeMartino: We did extensive due diligence, and we priced the asset into a price that we thought offers tremendous value to the shareholders of Metsera and to shareholders of Pfizer because those assets that we like in our hands, of course, will provide significant competitive edge. What you see now, it is, I repeat, an effort to catch and kill this emerging competitor, which is Pfizer, and to do that by evading the antitrust scrutiny and virtually get control, de facto control of the company, as they will become the major shareholder and the major creditor without any regulatory scrutiny. So that's all I have to say. And we will see how things go.

Speaker #7: Thank you, Dave. So, operator, please assemble the queue.

Speaker #5: At this time , if you would like to ask a question , please press star one on your telephone keypad . You may remove yourself from the queue at any time by pressing star two .

The sequential decline can you just comment on the pricing.

Speaker #5: Once again , that is star one . To ask a question . Our first question comes from Devon with Guggenheim Securities . Please go ahead .

The market share dynamics youre seeing in that space or is it with new competitors and then similar question on pads.

Great data that you showed at ESMO.

Actual uptake for the quarter, a little bit less than we thought so maybe just how you expect the muscle invasive indication assuming you get that.

Speaker #9: Hi . Great . Thanks for taking my question . I'm going to have to defer them at Sarah . Questions to other analysts .

Speaker #9: But I'm curious to hear what you say there . I'll just ask a couple more on the commercial side . So one Vyndamax obviously the more competition there , surprised to see the performance .

Soon to impact uptake of that.

Programming.

Kind of lineups Edwards number that right now.

Thank you.

Speaker #9: There was a little bit of sequential decline . So maybe you can just comment on the pricing and sort of market share dynamics you're seeing in that space .

Sure.

All right. Thanks for the question. So let me start with your question on <unk> and I'll, just I want to level set a couple of things about Linda and I'll talk about the performance in the quarter.

Speaker #9: Obviously with the new . Competitors and then similar question on passive . Obviously great data that you shared at the commercial uptake for the quarter was a little bit less than we thought .

So there is obviously new competition in the category and it's important to note that Linda is still the only <unk> product that has statistically significant reductions in both mortality and CV related hospitalizations together and as a standalone and it's also the only product where there is a once daily capsule placebo like.

Speaker #9: So maybe just how you expect to muscle-invasive indication, assuming you get that here soon, to impact uptake of that program and kind of drive upside to where the numbers are right now.

Operator: Let's move to our next question, please.

Albert Bourla: Our next question comes from Evan Seigerman with BMO.

Stephen Scala: Hi, guys. Thank you so much for taking my question. Assuming Metsera closes, what near-term factors must you consider to continue growing the dividend and then deliberating data, as you had said? When do you think you may be able to also start to repurchase shares, or is that less of a priority with all this BD? Thank you so much.

Operator: Hi, guys. Thank you so much for taking my question. Assuming Medera closes, what near-term factors must you consider to continue growing the dividend and then deliberating data, as you had said? When do you think you may be able to also start to repurchase shares, or is that less of a priority with all this BD? Thank you so much.

Speaker #9: Thank you .

Speaker #7: Thank you , thank you Amir .

Safety and near complete TCR stabilization, and we've got 90% access or <unk> across the U S. Now with regards to the quarter. There are a couple of different dynamics.

Speaker #10: Sure . Vamil thanks for the question . So let me start with your question on Vinda , and I'll just I want to level set a couple of things about Vinda , and then I'll talk about the performance in the quarter .

Speaker #10: So there's obviously new competition in the category . And it's important to note that Vinda is still the only Attr-cm product that has statistically significant reductions in both mortality and CV related hospitalizations together .

That are happening first of all we saw very strong.

Operator: Yeah. Evan? Very good question. Obviously, you've seen us over the last year and a half or two years really lean into productivity across our platform. That productivity has allowed us to deliver from roughly four times to 2.7 times. That's given us increased flexibility to do both business development as well as maintain and grow our dividend over time. That cycle of improvement and productivity is something that we've now embedded in the company. We will continue to do that. We will continue to do that across the enterprise. We will continue to prioritize ourselves from an R&D perspective. Clearly, we have several assets that we think are key to the growth of this company by the end of the decade.

Dave Denton: Yeah. Evan's a very good question. Obviously, you've seen us over the last year and a half or two years really lean into productivity across our platform. That productivity has allowed us to deliver from roughly 4x to 2.7x. That's given us increased flexibility to do both business development, as well as maintain and grow our dividend over time. That cycle of improvement and productivity is something that we've now embedded in the company. We will continue to do that. We will continue to do that across the enterprise. We will continue to prioritize ourselves from an R&D perspective. Clearly, we have several assets that we think are key to the growth of this company by the end of the decade.

NAND growth.

Reinforced by our continued market share leadership, both on a Trs basis.

Clearly, but also in terms of the first line share now that.

Speaker #10: And as a standalone . And it's also the only product where there is a once daily capsule placebo like safety and near complete TTR stabilization .

Volume growth was offset by a tube gross to net headwinds one is the IR a manufacturer rebates, which we've talked about before and the second is what we alluded to last quarter, which is payer contracting that took place in the third quarter. So then the Max's performing exactly where we thought it would and consistent with that.

Speaker #10: And we've got 90% access for vyndamax across the US . Now , with regards to the quarter , there are a couple of different dynamics that that are happening .

Speaker #10: First of all , we saw very strong demand growth , and that's reinforced by our continued market share leadership both on a TRX basis , clearly , but also in terms of first line share .

With what we guided and performance continues to reflect strong diagnosis broad access improving affordability dynamics and that's going to continue to grow our volume. We are seeing competition that <unk> is taking some first line share from $2.98 and <unk> has driven minimal switching.

Speaker #10: Now that volume growth was offset by two gross to net headwinds , one is the IRA manufacturer rebates , which we've talked about before and the second is what we alluded to last quarter , which is payer contracting that took place in the third quarter .

Dave Denton: We are going to invest behind those assets from a pipeline perspective, and we're going to invest behind the categories of products that we've either acquired and/or recently launched because those will ultimately allow us to offset the LOEs over the next several years. So we'll be able to do all of that. Share repurchases is an important lever for us. In the near term, it's not a tool that we're going to use. We have to get the balance sheet back to where we need to be. And again, we have business priorities that come in the forefront of that at this point. Great question. Thank you.

Operator: We are going to invest behind those assets from a pipeline perspective, and we're going to invest behind the categories of products that we've either acquired and/or recently launched because those will ultimately allow us to offset the LOEs over the next several years. So we'll be able to do all of that. Share repurchases is an important lever for us. In the near term, it's not a tool that we're going to use. We have to get the balance sheet back to where we need to be. And again, we have business priorities that come in the forefront of that at this point. Great question. Thank you.

To date and as we kind of look forward on that.

We will see some of these dynamics continue into Q4 as well, where we expect continued volume growth, but the T. G can drivers that I described will certainly impact our net sales, but vendors performing in the way that we expected.

Speaker #10: So Vyndamax is performing exactly where we thought it would . And consistent with with what we guided and performance continues to reflect strong diagnosis , broad access , improving affordability dynamics .

On your question with regards to Pat Seth.

Speaker #10: And that's going to continue to grow our our volume . We are seeing competition . It truly is taking some first line share from treatment .

We're again very encouraged by how Pat said.

Francesca DeMartino: Okay. So now I think let's get the last question.

Francesca DeMartino: Okay. So now I think. Let's get the last question.

Is doing.

Speaker #10: Naive patients and Amvuttra has driven minimal switching to date . And as we kind of look forward on on Vinda , we'll see some of these dynamics continue into Q4 as well , where we expect continued volume growth .

Or us we look at this through two lenses first is the <unk> population, where we currently have about 55% share among this pattern in eligible patients and 45% to 50% share among cisplatin eligible. So there is headroom for us to continue to focus on that segment of the market.

Albert Bourla: Our last question comes from Rajesh Kumar with HSBC.

Vamil Divan: Good morning. Two questions, if I may. I appreciate you cannot say a lot about Metsera at this juncture. Just from a modeling perspective, if we are thinking of additional balance sheet capacity for dealmaking, how much capacity would you assume, assuming that you are keeping some capacity away from Metsera at the moment in 2026, on your own internal budgeting? That would be really helpful. And just on the Seagen, I appreciate the deal has just closed and some of the trials have just started. When can we expect to see data news flow come out of that deal? Is it more a 2027 event, or do we have any interim readouts or updates in 2026?

Vamil Divan: Good morning. Two questions, if I may. I appreciate you cannot say a lot about Medera at this juncture. Just from a modeling perspective, if we are thinking of additional balance sheet capacity for deal-making, how much capacity would you assume, assuming that you are keeping some capacity away from Medera at the moment, in 2026 on your own internal budgeting? That would be really helpful. And just on the 3SBio, I appreciate the deal has just closed and some of the trials have just started. When can we expect to see data news flow come out of that deal? Is it more a 2027 event, or do we have any interim readouts or updates in 2026?

Speaker #10: But the two GTN drivers that I described will certainly impact our our net sales . But vendors performing in the way that we expected .

I think your question with regards to how Thats performed on now on consensus is related to the comment that Dave made which is as part of integrating the season.

Speaker #10: On your question with regards to to to pat , you know , we're again , very encouraged by how Pat Seth is doing .

Speaker #10: You know , for us , we look at this through two lenses . First is the allium UC population where we currently have about 55% share amongst cisplatin ineligible patients .

Into the Pfizer portfolio in Q2, we moved from a drop ship model to a wholesaler model. So that resulted in a one time growth in our Q2 sales. So you have to grow products off of that adjusted for two to three weeks of inventory. So as we cycle into Q4, we expect the whole <unk> portfolio.

Speaker #10: And 45 to 50% share among cisplatin eligible patients . So there is headroom for us to continue to focus on that segment of the market .

<unk> got assets.

Speaker #10: I think your question with regards to how pazza performed on on Consensus is related to the comment that Dave made , which is as part of integrating the Seagen products into the Pfizer portfolio in Q2 , we moved from a dropship model to a wholesaler model so that resulted in a one time growth in our Q2 sales .

Turning to growth and then finally on <unk>, we're excited about about the possibility as a result of both the 303 and also three or four trials that are ongoing and that will open up a patient population of close to 22000 patients to help with an exercise in the past.

Francesca DeMartino: Thank you. I think Dave can answer Metsera modeling.

Francesca DeMartino: Thank you. I think Dave can answer. Medera modeling.

Thank you I'm here next caller. Please next question please.

Speaker #10: So you have to grow products off of that , adjusted for 2 to 3 weeks of inventory . So as we cycle into Q4 , we expect the whole portfolio , including Padcev , to to return to growth .

Operator: Yeah. So as you think about BD capacity, as I said in my prepared remarks, we have approximately $13 billion of capacity as we enter here into the Q3. So with that.

Dave Denton: Yeah. So as you think about BD capacity, as I said in my prepared remarks, we have approximately $13 billion of capacity as we enter here into the third quarter. So with that.

Okay.

We'll go next to David Risinger with Leerink partners.

Francesca DeMartino: Chris, let's understand Chris.

Francesca DeMartino: Chris, let's understand. The previous bio.

Yes, thanks very much for taking my question and congrats on the performance in the quarter. So my question is on that Sir could you just comment on the legal process ahead I know that.

Speaker #10: And then finally , on Mike , we're excited . About about the possibility as a result of both the 303 and also 304 trials that are ongoing and that will open up a patient population of close to 22,000 patients to help with the horizon of growth .

Vamil Divan: Yeah, the data flows. So just a reminder that after 2025, we shared phase 2 monotherapy, all differentiated by phase 2 monotherapy data. And first-line non-small cell lung cancer showing the overall objective response of 65%. At ESMO, phase 2 combo data plus chemotherapy, FOLFIRI, or modified FOLFOX6 was shown for first-line metastatic colorectal cancer. And that was showing a response rate of close to 60%. At CT, we provide additional data, combination data in lung cancer. You've just seen we posted two phase 3 programs starting now this year in first-line non-small cell lung cancer and in first-line colorectal cancer. And in the coming weeks, we'll also provide the full development plan to you at event, and that will show the breadth and the depth of our clinical development program for 707.

Vamil Divan: Yeah, the data flows. So just a reminder that after 2025, we shared phase 2 monotherapy or differentiated by phase 2 monotherapy data. And first-line non-small cell lung cancer showing the overall objective response of 65%. At ESMO, phase 2 combo data plus chemotherapy FOLFIRI or modified FOLFOX6 was shown for first-line metastatic colorectal cancer. And that was showing a response rate of close to 60%. At CT, we provide additional data, combination data in lung cancer. You've just seen we posted two phase 3 programs starting now this year in first-line non-small cell lung cancer and in first-line colorectal cancer. And in the coming weeks, we'll also provide the full development plan to you. At an event, and that will show the breadth and the depth of our clinical development program for 707.

<unk>.

Is arguing that.

Novo's acquisition of <unk>.

Speaker #7: Thank you . Amir . Next caller please . Next question please .

Sarah would be anti competitive and even if you.

The FTC doesn't allow it it could be anti competitive.

Speaker #5: We'll go next to Dave Risinger with Leerink Partners .

Speaker #11: Yes . Thanks very much for taking my question . And congrats on the performance in the quarter . So my question is on Meztira .

So could you just talk us through the clock and the process for courts to hear Pfizer's arguments. Thanks very much.

Speaker #11: Could you just comment on the legal process ahead ? I know that Pfizer is arguing that Novo's acquisition of Meztira would be anti-competitive , and even if you know , the FTC doesn't allow it , it could be anti-competitive .

Thank you, Dave as I said in.

In my opening comments it is very difficult for us. So we'll start commenting when we have all this useless pending right as we speak but I would repeat what I did say, which is kind of an answer to your question not only the timing, but we don't see how novel deal can be severe.

Francesca DeMartino: Thank you, Chris. So thank you very much, all, for your attention. It has been successful in achieving a series of significant strategic milestones. We delivered solid performance during the quarter, and we are confident in our business. That's why we are raising our guidance for our adjusted diluted EPS. Of course, we maintain our full-year revenue despite the low COVID trends right now. So thank you for your interest in Pfizer, and I hope you have a wonderful week

Francesca DeMartino: Thank you, Chris. So thank you very much all for your attention. It has been successful in achieving a series of significant strategic milestones. We delivered solid performance during the quarter, and we are confident in our business. And that's why we're raising our guidance for our adjusted diluted EPS. And of course, we maintain our non-COVID revenue despite the lowest COVID trends right now. So thank you for your interest in Pfizer, and I hope you have a wonderful week.

Speaker #11: So, could you just talk us through the clock and the process for courts to hear Pfizer's arguments? Thanks very much.

It is an illegal attempts by a foreign company to do an end run around antitrust laws.

Taking advantage of the government shutdown.

Speaker #7: Thank you . Dave . As I said in my opening comments , it is very difficult for us to start commenting when we have all this legal issues pending , right ?

What they want to watch it.

Not to get the products.

What they want is to catch and kill and emerging competitors. So quickly is a significant.

Speaker #7: As we speak . But I will repeat what I did say , which is kind of an answer to your question , not on the timing , but we don't see how novos deal can be superior .

Concern given normal its dominant market position.

So all I can say with this talk that we are continuing to pursue all legal resources. Thank you.

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

Speaker #7: It is an illegal attempt by a foreign company to do an end run around antitrust laws , taking advantage of the government shutdown .

Next question please.

Well go next to Assad Hader with Goldman Sachs.

Speaker #7: What they want to achieve , not to get the products to destroy them . What they want is to catch and kill an emerging competitor , which is a significant and strong concern given Novo's dominant market position .

Great. Thanks for taking my question I guess, just for Outback and Dave just a quick high level question on BD, what's the plan to fulfill it doesn't work out for some reason.

And then second on 2026 any early framing on guidance pushes and pulls specifically on how we should think about opex within without et cetera, and then any additional color on how to think about the dilution you mentioned from your recent MSN deal with the administration.

Speaker #7: So all I can say is that we are continuing to pursue all legal resources . Thank you . Next question please .

I understand your question today, because they're in local find themselves so elements and they need to answer once they have something on the BD.

Speaker #5: We'll go next to Asad Haider with Goldman Sachs .

Yes, so maybe we'll start with business development, obviously, the company has still significant resources to understand and how to deploy successfully.

Speaker #12: Great . Thanks for taking the question . I guess just for Albert and Dave , just a quick high level question on BD .

Speaker #12: What's the plan if it doesn't work out for some reason ? And then second , on 2026 , any early framing on guidance pushes and pulls specifically on how we should think about opex with and without with Sara .

Transactions to bring science in house, and we will continue to work aggressively to do so across all of our core therapeutic areas and we continue to work.

Speaker #12: And then any additional color on how to think about the dilution you mentioned from your recent MFN deal with the administration . Thank you .

Across the globe to identify potential candidates of forest.

Speaker #13: Yeah , I .

Speaker #7: Will send the question to Dave , because there are a lot of financial also elements . And then it's Andrew wants to add something on the BD .

Acquisition to help bring new and innovative patient medicines to patients. So that's still a very ongoing.

Speaker #8: Yeah . So so maybe we'll start with business development . Obviously the company has still significant resources to understand and how to deploy successfully transactions to bring science in-house .

Focused activity for the company I think it's probably a little early to talk exactly about 2026.

You heard me give a little color in the sense that clearly, we're making investments today in those investments carry over into 'twenty, six and beyond with either met Sarah <unk> bio to bring these innovative medicines to market those will have a slightly a dilutive effect to our operating performance next year.

Speaker #8: And we will continue to work aggressively to do so across all of our four therapeutic areas . And we continue to work across the globe to identify potential candidates for acquisition to help bring new and innovative patient medicines to patients .

We will then wrap all that together with the puts and takes of 26, when we give guidance by the end of this year.

Speaker #8: So that's still a very ongoing , focused activity for the company . I think it's probably a little early to talk exactly about 2026 .

Anything to add on BD I'm sorry, yes.

Speaker #8: You heard me give a little color in the sense that clearly we're making investments today . And those investments carry over into 26 and beyond with either Meztira or threes , bio to bring these innovative medicines to market .

I mean, I'd Echo what <unk> said, we are very active in all geographies, especially in China.

<unk>, III aspire, which adds a foundational asset to become the backbone across multiple indications and the same is true in China and beyond across all the main therapeutic areas with increased the size of our team in China in particular, and we have very active assets and we have something to add.

Speaker #8: Those will have a slightly dilutive effect to our operating performance next year . We will then wrap all that together with the puts and takes of 26 .

And for me, you'll suddenly be this estimate.

Speaker #8: When we give guidance . By the end of this year .

Thank you next question please.

Speaker #7: Thank you . Anything to add on BD Andrew ?

Yeah.

Speaker #14: Yeah I mean I'd echo what Dave said . We are very active in all geographies , especially in China . You saw the three S bio which adds a foundational asset to become the backbone across multiple indications .

We'll go next to Geoff Meacham with Citibank.

Morning, guys. Thanks, so much for the question I guess, one for our or Dave when you look at the manufacturing investments, you're making as part of the MSN agreement.

Speaker #14: And the same is true in China . And beyond , across all the main therapeutic areas . We've increased the size of our team in China in particular .

Relative to the operational cost efficiencies.

You rank those as priorities I guess, both seem to have three year Timeframes I'm, just trying to get a sense of the incremental.

Speaker #14: And we have very active efforts . And we have something to inform you . You'll certainly be the first to know .

Dollar and the strategy there. Thank you.

Speaker #7: Thank you . Next question , please .

Yes.

Clearly there are important elements of our strategy, we're going to clearly invest in the U S. From a production perspective, we're working now to work through our plans with the new agreement with U S government on how to effectively deploy our capacity here in the U S and further build it out so more to come we will.

Speaker #5: We'll go next to Jeff Meacham with Citibank .

Speaker #15: Morning , guys . Thanks so much for the question . I guess one for Albert or Dave . When you look at the manufacturing investments you're making as part of the MFN agreement relative to the operational cost efficiencies , how would you rank those as priorities ?

Also we'll provide some color to that and we give guidance for 2026, but we will be able to improve our operating manufacturing operating infrastructure and at the same time invest in manufacturing here at the U S. Those two are not necessarily completely in conflict with one another we will be able to do both.

Speaker #15: I guess both seem to have three year time frames . I'm just trying to get a sense of the of the incremental dollar and the strategy there .

Speaker #15: Thank you .

Speaker #8: Yeah . Clearly there are important elements of our strategy . We're going to clearly invest in the US from a production perspective . We're working now to work through our plans with the new agreement with US government on how to effectively deploy our capacity here in the US and further build it out so more to come .

Thank you next.

Next question please.

Yeah.

We'll go next to Courtney brain with Bernstein.

Speaker #8: We will also also provide some color to that when we give guidance for 2026 , but we will be able to improve our operating , manufacturing , operating infrastructure and at the same time invest in manufacturing here in the US .

Thank you so much.

During our question today.

I really wanted to understand and perhaps another question on them at.

A different angle.

And in your mind.

That is supported by that.

Speaker #8: And those two are not necessarily completely in conflict with one another . We'll be able to do both .

Garnering that unprecedented early termination of the waiting period from the U S. Federal Trade Commission that would be really helpful. Thank you so much.

Speaker #7: Thank you . Next question please .

I'm not sure I understood the question.

Speaker #5: We'll go next to Courtney Breen with Bernstein .

The FTC clearance.

The FTC clearance or any factors that drove the early if there are any.

Speaker #6: Yeah .

Speaker #16: Thank you so much for answering our question today. I really wanted to understand and perhaps another question on the era, but from a different angle.

No I think that we have to see made their own decision of course. They were aware of this question. So I don't want to speak.

Speaker #16: I wanted to understand in your mind what factors supported Pfizer in garnering that unprecedented early termination of the waiting period from the US Federal Trade Commission ?

For them, but they decided that it is appropriate in the middle of a photo and attempt to suburban so.

Speaker #16: That would be really helpful . Thank you so much .

Release, all deal, which is not clear. So that's that's all I think it does further demonstrates the strength of our deal and the pathway to clearance in the pathway for us to be able to further develop these products and take them to the.

Speaker #7: I'm not sure I understood the question .

Speaker #6: The FTC clearance .

Speaker #7: Why the FTC clearance ?

Speaker #6: Is there any factors that drove the early .

Speaker #7: If there are any factors ? No , I think the FTC made their own decision . Of course , they were aware of of this question .

Our marketplace in a very rapid fashion. This is helpful to patients long term. It is helping to help oil prices long term under our management and our direction with these assets.

Speaker #7: So I don't want to speak for them . But they decided that it is appropriate in the middle of a foreign attempt to supervision , to just release our deal , which is now clear .

So don't be surprised because we.

We all understand that the epitome of Underthrust country.

The Empire pipeline, though.

Speaker #7: So that's that's all .

Speaker #8: I .

Speaker #17: Think it does further .

This is the entire pipeline of novel collages, they've heard of it.

Speaker #8: Demonstrate the strength of our deal and the pathway to clearance and the pathway for us to be able to further develop these products and take them to the marketplace in a very rapid fashion .

Dominant position with a car.

Product of course efficacy.

With worry about that but I don't want to speak for themselves, but it is something about that as everybody understands.

Speaker #8: This is helpful to patients long term as helping to helpful to prices long term . Under our management and our direction . With these assets .

Next question please.

Well go next to parents Flynn with Morgan Stanley.

Speaker #13: Yeah .

Speaker #7: And should not be surprised . Right . Because we all understand that the epitome of antitrust conflict , the entire pipeline of Mansehra , it is the entire pipeline of novel .

Okay.

Hi, Thanks for taking the question maybe two for me.

Previously you talked about <unk> being a key driver for you over the long term, we noticed that magnitude of them five trial was pushed out data into 2026, we know J&J had a similar trial.

Speaker #7: Plus they have a dominant position with a current product that they have . Of course , FTC would worry about that , but I don't want to speak for themselves .

Speaker #7: But it is something that it is . Everybody understands . All right . Next question , please .

A similar patient population that just read out. So maybe you can just remind us of any potential differences here in terms of your trial versus their trial and why there might be a difference in timing given they started around the same time.

Speaker #5: We'll go next to Terence Flynn with Morgan Stanley .

Speaker #13: Hi . Thanks for taking the question . Maybe two for me . You've previously talked about Elrexfio being a key driver for you over the long term .

And then second question just a clarification on <unk> dynamics for the quarter it looks like by our math.

Price per script went up over last quarter. So just wondering if there is any one time items that we need to think about here as we think about the trends in the fourth quarter. Thank you.

Speaker #13: We noticed that Magnetism Five trial was pushed out, with data expected in 2026. We know J&J had a similar trial in a similar patient population that just read out.

Alright, Chris Yes. Thanks for the question so mechanism five because she knows debit cloth exposed.

Speaker #13: So maybe you could just remind us of any potential differences here in terms of your trial versus their trial and why there might be a difference in timing , given they started around the same time .

Possibly later this year beginning next year is an event driven study.

So timing could shift gateway batesville happening, which we cannot speculate but as you can imagine it often pocket that if things sort of happen in studies that will just continue to follow their banks and hopefully.

Speaker #13: And the second question is just a clarification on dynamics for the quarter . It looks like , by our math , you know , price per script went up over last quarter .

Speaker #13: So just wondering if there's any one time items that we need to think about here as we think about the trends into fourth quarter .

And early next year.

And on the <unk> question I don't think there's any material change in price, we have maybe there's different channels.

Speaker #13: Thank you . .

Speaker #7: All right , Chris .

Mix and things of that nature, but nothing significant from that standpoint. Thank you. Thank you for clarifying data, let's go to the next question.

Speaker #18: Yeah , thanks Paxlovid for the question . So magnetism five , as you know , is double class exposed . Possibly later this year beginning next year is an event driven study .

We'll go next to <unk> with Jefferies.

Speaker #18: So timing could shift due to events not happening which we cannot speculate . But as you can imagine , it's that's often positive if events are not happening in the study .

Hey, Thanks, so much I had a question on your upcoming phase III ADH to readout and CRT C I'm surprised the.

Speaker #18: So, we'll just continue to follow the events and hopefully report early next year.

He said he isn't more prominently flagged given the potential to extend the candy franchise, what drives your confidence that you are getting out of a target exposure. After examining some of your food effect study and also what's your expectations around overall survival could we see a 20% to 30% benefit here. Thanks, so much.

Speaker #8: Yeah . In the Paxlovid question , I don't think there's any material change in price . We have . Maybe there's different channels mix and things of that nature , but nothing significant from that standpoint .

Speaker #7: Thank you . Thank you for clarifying those . Let's go to the next question . Please .

Chris That's for you. Thank you very much for the question. This is another person thoughts internally discovered program.

Speaker #5: We'll go next to a cash Tewari with Jefferies .

Speaker #19: Hey , thanks so much . I had a question on your upcoming phase three EZH2 readout in CrPC . I'm surprised this study isn't more prominently flagged , given the potential to extend the Xtandi franchise .

<unk> two program, we previously shared randomized data, which showed significant PFS benefit in all comers in late line.

<unk> resistant prostate cancer.

Speaker #19: What drives your confidence that you're getting adequate target exposure ? After examining some of your food effect studies ? And also , what's your expectations around overall survival ?

And we now have.

Three phase III studies ongoing the first one would readout the appointed post other retro metastatic hormone resistant prostate cancer that we expect.

Speaker #19: Could we see a 20 to 30% benefit here ? Thanks so much , Chris .

The coming months.

We recently also presented data at <unk> and randomized data on the food effect to your question, which was 875 milligrams twice a day with food and it showed that the data compatible with the dose may not use in phase III with reduced G. I E. So we are confident that dose was selected.

Speaker #7: That's for you .

Speaker #18: Thank you very much for the question . This is another first in class internally discovered program or EZH2 program . We've previously shared randomized data , which we showed significant PFS benefit in all comers and late line metastatic castration resistant prostate cancer .

Thank you next question please.

Speaker #18: And we now have three phase three studies ongoing . The first one will read out to your point is post other at Ron metastatic hormone resistant prostate cancer and that we expect in the coming months .

We'll go next to Kerry Holford with Ehrenberg.

Thanks for taking my call.

Sure.

Actually the guidance, finishing retooling to protect them.

Speaker #18: We recently also presented data at Asco randomized data on the food effect . To your question , which was 875mg twice a day with food and showed that the data of with the dose we now use in phase three with reduced GI .

61 to 64.

But when he has said that guidance.

Oh, okay. Okay.

19 9 billion.

Got it.

Speaker #18: So we are confident in the dose that was selected .

Yeah.

Thank you.

And year round.

Speaker #7: Thank you. Next question, please.

Oh, okay.

Speaker #5: We'll go next to Kerry Holford with Berenberg .

Test coming you'll come in.

Whether that's <unk>.

Even though.

Speaker #20: Thank you for taking my question . Just on the guidance , for this year , you've clearly reiterated the total revenue range of 61 to 64 .

Yeah.

And if not.

And you called out.

So that he can fill that gap.

Oh, sorry.

Okay.

Speaker #20: And when you first said that guidance , you spoke of total Covid 19 sales of around $9 billion for the year , seeing that you booked only around just over four year to date , just interested in your comments around whether that nine is still achievable for the full year and if not , what are assets would you call out as likely to fill that gap and give you confidence ?

Hi.

Thank you Dave Please yes, youre absolutely right Kerry as you pointed out I would say that to the low end of our guidance range from a revenue perspective, but assume that the COVID-19 franchise continues a very modest uptake for the balance of this year, particularly.

Particularly in the U S. However.

However, as you know the Covid franchise is subject to big peaks and valleys. If there happens to be a wave of COVID-19 in the next several months you can see utilization.

Speaker #20: To reiterate , the total sales guidance ?

Spike up so that's why the range is so large I will just point out that what we have done with an earnings per share guidance range as we derisk. The COVID-19 franchise with the guidance that we provided given that if the trends continue we'll be closer to the low end of that range and we will still be able to deliver on our earnings.

Speaker #7: Thank you . Dave , please .

Speaker #17: Yes . On .

Speaker #8: You're absolutely right , Kerry . As you pointed out , I would say that to the low end of our guidance range from a revenue perspective , would assume that the Covid franchise continues a very modest uptake for the balance of this year , particularly in the US .

Speaker #8: However , as you know , the Covid franchise is subject to big peaks and valleys . If there happens to be a wave of Covid in the next several months , you can see utilization spike up .

Right.

Thank you very clear all day, let's move to the next question. Please.

We'll go next to Mohit Bansal with Wells Fargo.

Speaker #8: So that's why the range is so large . I'll just point out that what we have done with an earnings per share guidance range is we've de-risked the Covid franchise with the guidance that we've provided , given that if the trends continue , we'll be closer to the low end of that range and we will still be able to deliver on our earnings commitment .

Great. Thank you very much for taking my question.

Just wanted to understand the thought process around the pricing of the DLP run in this class of medicines given that I mean, even today. There is a news article out there, suggesting the price could be around $50.

So it seems like the banks is only growing in both direction in that case I mean, how do you justify the price that you would be getting to mid <unk>.

Speaker #7: Thank you . Very clear , Dave . Let's move to the next question , please .

Speaker #5: We'll go next to Mohit Bansal with Wells Fargo .

And in general.

B C landscape.

Speaker #21: Great . Thank you very much for taking my question . Just wanted to understand the thought process around the pricing of these GLP-1 .

The time, how do you think about that for this pricing.

Passenger decline.

Thank you.

Yes, I think this is also competition, bringing prices down.

Speaker #21: And this class of medicines . Given that , I even today there's a news article out there suggesting the price could be $150 or so .

Of course, they try them out two or three competition, but anyway.

Yes, we in our calculations, we have taken into consideration.

Speaker #21: So it seems like the price is only going in one direction . In that case . I mean , how do you justify the price that you are being you're paying to mezzetta and in general , the the obesity landscape over time , how do you think about that with this pricing , pricing decline for the class ?

<unk>.

Prices local agility launch program that we started going down.

So I don't know what will be announced now.

In our calculations with <unk>.

Already got into consideration.

Speaker #21: Thank you .

Thank you all right, let's go to the next question. Please.

Speaker #7: Yeah . Thank you . This is also competition brings prices down . And of course they try now to restrict competition . But anyway the yes we in our calculations we have taken into consideration that the prices of GLP-1 probably will start going down .

We'll go next to Alex Salmond with Wolfe Research.

Thanks for taking the question can you elaborate more on the reason for the delay to the initiation of the pivotal trial for the adult twenty-five valent Pneumococcal program you'd mentioned the caveat of FBR.

T a aligns with your approach so the tenor of the dialogue changed the FDA is there a chance that surrogate endpoints may no longer be applicable.

Speaker #7: So I don't know what will be announced now , but in our calculations , we took already that into consideration . Thank you .

Thank you very much Chris Yeah. Thank you for the question.

Speaker #7: Mohit . Let's go to the next question . Please .

Cross all our vaccine programs, we obviously working very closely with the FDA and other.

Speaker #5: We'll go next to Alex Hammond with Wolfe Research .

The regulators on the design of the study and also the endpoint.

Speaker #22: Thanks for taking the question . Can you elaborate more on the reason for the delay to the initiation of the pivotal trial for the adult 25 valent pneumococcal program ?

<unk> 25.

Pending positive data and FDA feedback, we as mentioned, we intend to start that study as well as the pediatric twenty-five valent program and next year. So it means we will align the pediatric and the adult study we expect the post dose data from the pediatric study early next year, so that helps us to court.

Speaker #22: You mentioned the caveat of if the FDA aligns with your approach . So as the tenor of the dialogue change with FDA , is there a chance that surrogate endpoints may no longer be approvable ?

Speaker #7: Thank you very much , Chris .

Speaker #18: Yes . Thank you for the question . Across all our vaccine programs , we obviously working very closely with the FDA and other regulators on the designs of the study and also the endpoint PCV 25 pending positive data and FDA feedback .

The two studies that will just make it easier and the 25 vaccine candidates that was 25 serotypes, particularly I need to point out serotype, three which we did before because the back from its designed to significantly enhance immunogenicity against stereotypes III, which currently constitutes up to 27% of the infections in the U S.

Speaker #18: We as I mentioned , we intend to start that study as well as the pediatric 25 valence program next year . So it means we will align the pediatric and the adult study .

In the EU and to continue our leadership we also.

Tinnitus study, our first generation, but 30, plus serotypes, which will update you on board.

Speaker #18: We expect the fourth dose data from the pediatric study early next year , so that helps us to coordinate the two the two studies .

Thank you.

Speaker #18: So we'll just make it easier . The 25 vaccine candidate covers 25 serotypes , particularly to point out serotype three , which we did before because the vaccine is designed with significantly enhanced immunogenicity against serotype three , which currently constitutes up to 2,020% of infections in the US and the EU .

Thank you Chris.

Operator next question please.

We'll go next to Chris Schott with J P. Morgan.

Great. Thanks, very much just maybe two questions.

Questions first one kind of bigger picture as you think about MFN on new launches overtime.

Are you thinking about the suggesting for international revenues is this I guess I can read this as a net positive and higher price.

Speaker #18: And to continue our leadership , we also continue to study our first generation with 30 plus serotypes , which will update you on more in 2026 .

I can read it as net negative because reimbursement hurdle is going to be tougher at these higher prices that can be neutral or just.

Speaker #18: Thank you .

Speaker #7: Thank you Chris . Operator the next question , please .

But how you kind of envision what plays out with International was you signed that deal and then the second one is just trying to get a little bit more color on the.

Speaker #5: We'll go next to Chris Schott with J.P. Morgan .

Speaker #23: Great . Thanks very much . Just maybe two questions . First one is kind of bigger picture as you think about MFN on new launches over time .

Impact for 2026, Thank you mentioned some dilution there, but just any more quantitative metrics you can provide just like how much of a headwind is that for next year. Thanks. So much.

Speaker #23: What what are you thinking about this suggesting for international revenues . Is this like I could read this as a net positive that you could get higher price .

Yes, I am sorry, if I ask the value that you would tell you we will provide guidance.

The end of the year.

Speaker #23: I could read it as net negative because reimbursement hurdles is going to be tougher at these higher prices . It could be neutral .

We'll incorporate everything including is up and the other things that cause us talking so I don't think it will.

Speaker #23: Just directionally talk about how you kind of envisioned what plays out with international as you signed that deal. And then the second one is just trying to get a little bit more color on the MFN impact for 2026.

That the more works out of her mouth.

No matter, how much you torture, but on.

On the on the early launches in international of course, we are waiting to see how things may play.

Speaker #23: I think you mentioned some dilution there, but just any more quantitative metrics you could provide of just how much of a headwind that is for next year?

<unk>.

Price differential is not sustainable we are speaking about the smaller basket of competency in international.

Speaker #23: Thanks so much .

Speaker #7: Yes , I'm sorry if I asked Dave to tell you that she will tell you . It will provide guidance . At the end of the year , and that will incorporate everything , including that and the other things that she has spoken .

Affected by that and with this our countries. We are hoping they will understand that they need to change the way they price their products.

Speaker #7: So I don't think you will get more words out of our mouth . No matter how much you torture . But on the on the new launches in international , of course we are waiting to see how things may play .

Going forward of course, a little bit, California, U S government and USD or sort of trade negotiations also can make about popping in my.

Our assessment is that the.

Speaker #7: The price differential is not sustainable . We are speaking about the smaller basket of countries in international that are affected by that . And with this countries , we are hoping that they will understand that they need to change the way that they price their products going forward .

Howard Lutnick and the U S trade representative is fine behind it.

We are committed to make basically go away. So we will see.

However place, but the theoretical if oh the prices over there are there. They are not we are not the Green addition way of pricing our products are there, we will not get reimbursement there and to apprise them to the price that will not affect the U S price.

Speaker #7: Of course , a little bit help from the US government and USTR through trade negotiations also can make that happen . And my assessment is that our and the US trade representatives are highly , highly committed to make this go away .

Thank you and now let's go to the next question. Please.

Well go next to Omar <unk> with Evercore ISI.

Good morning, guys first on Matera I realize this is perhaps in the hands of your M&A lawyer than antitrust lawyers, but.

Speaker #7: So we will see how that plays . But in theoretical , if the price is over , there are they are not we are not agreeing .

From an R&D perspective can we make sure you'll be evaluating all the new data. That's imminent for example, the monthly transition and how the Gi tolerability hold as well as even more importantly, the amylin towards glib early common data and then separately I was very intrigued by our phase two B trial, you guys initiated on an oral drug in atopic derm.

Speaker #7: Decent way of pricing our products . Clearly we will not get reimbursement there and we will price them to the price that will not affect the US price .

Speaker #7: Let's thank you . And now let's go to the next question . Please .

Speaker #5: We'll go next to Umer Raffat with Evercore ISI .

Could you confirm if it's a stat six inhibitor and were you able to gauge the magnitude of that 600 patient phase one thank you.

Speaker #24: Good morning guys . First on Matsura , I realize this is perhaps in the hands of your M&A lawyers and antitrust lawyers , but from an R&D perspective , can we make sure you'll be evaluating all the new data that's imminent ?

Yeah. Thanks.

But it's not as easy if they provide us a data oriented publicize date of course, we will Oh, we are eager to see the.

Speaker #24: For example , the monthly transition and how the GI tolerability holds , as well as even more importantly , the Amlin plus Glip early combo data .

We've been able to reproduce.

On the second question I will ask Chris to comment on.

Speaker #24: And then separately , I was very intrigued by a phase two trial . You guys initiated on an oral drug in atopic derm .

To ask a question regard regarding out ini portfolio I just wanted to check are you referring to <unk> 98.

Speaker #24: Could you confirm if it's a Stat6 inhibitor and were you able to gauge the magnitude of Stat6 inhibition ? Phase one . Thank you .

Two zero.

I don't think you're going to ramp up okay.

Okay.

That is a step inhibitor I want to point out that we currently have a very differentiated ini portfolio with at least five molecules in house discovered and developed most of these are significantly accelerated speed, including obviously equal detail, while naive, which we co develop which is being co developed with Roche which covers.

Speaker #7: Yeah . Thank you . Look on the easy . If they provide us data or if they publicize data , of course we will .

Speaker #7: We are eager to see them . And we believe it will be positive . On the second question I will ask Chris to to comment .

Speaker #18: Thank you . To ask a question regarding regarding our Iiai portfolio . I just want to check . Are you referring to pH 9820 ?

I have 12, but out of 'twenty three.

T 40 out to try to specifics and covering IL four IL 13 T. S. L. P O IL 33, both of those now entering.

Speaker #7: I don't think you can come back .

Speaker #18: Okay , okay , so you are correct . That is a stat inhibitor . I want to point out that we currently have a very differentiated iiai portfolio with at least five molecules in house discovered and developed .

Phase III for atopic dermatitis other th two related diseases.

With the ongoing phase III trial in <unk>.

Non segmental and vitiligo, which is a JAK III.

Speaker #18: Most of these are a significant accelerated speed , including obviously P40 TL1A , which we co-developed , or which is being co-developed with Roche , which covers IL 12 and IL 23 via P40 .

<unk> inhibitor also differentiate it in house and then step six early just entering phase two could be potentially first in class oral b currently and further optimizing dose and formulation and hope to update you on that program into 2026. Thank you. Thank you very much next question. Please.

Speaker #18: Our two twice Pacifics I'm covering IL four , IL 13 , Tslp , IL 33 . Both of those now entering phase two for atopic dermatitis and for other Th2 related diseases .

We'll go next to Steve Scala with PD Cowen.

Speaker #18: Litfulo . With the ongoing phase three trial in non-segmental vitiligo , which is a jak3 tek TEC inhibitor , also differentiated in house and then the stat6 early just entering phase two could be potentially first in class oral .

Oh. Thank you so much two questions what does the drug pricing deal with Trump allow Pfizer to do that other companies will not be able to do other than of course astrazeneca.

And then secondly, unmet Sarah so the data looks more similar than different than competitors and macera disclosures haven't been completely transparent raising serious questions. Many other big kept farmers have passed over met Sarah when pursuing other products validating the me two point nothing.

Speaker #18: We currently further optimizing dose and formulation and hope to update you on that program in 2026 . Thank you .

Speaker #7: Thank you very much . Next question please .

Speaker #5: We'll go next to Steve Scala with TD Cowen .

Speaker #25: Oh , thank you so much . Two questions . What does the drug pricing deal with Trump allow Pfizer to do that . Other companies will not be able to do other than of course AstraZeneca .

Nothing in all this justifies a bidding war or even a protracted legal battle, it's pfizer's determination to persist underpinned by substantial confidentiality data confidential data or simply the desire to be a player in obesity or this Pfizer agreed.

Speaker #25: And secondly , on Meztira . So the data looks more similar than different than competitors . And Meztira disclosures haven't been completely transparent .

With the point.

Speaker #25: Raising serious questions . Many other Big Cap pharma's have passed over meztira when pursuing other products , validating the Me point . Nothing in all this justifies a bidding war or even a protracted legal battle is Pfizer's determination to persist , underpinned by substantial confidentiality data , confidential data , or simply the desire to be a player in obesity ?

And I, just said and could you just walk away. Thank you.

On the first one on the drug pricing at what we said the other combat as main okay I can't answer because I don't know what the other companies.

As you know the discussions are between.

The administration on an individual companies, which also have stores or there is no antitrust issues.

And also of course is there a confidence because that's sort of what the administration.

Speaker #25: Or does Pfizer agree with the points that I just said , and could it just walk away ? Thank you .

The agreements portray that people should keep confidentiality, although set so I know what we are getting some of that because it's been public and some of that is part of the overall.

Speaker #7: Thank you Steve . On the first one on the drug pricing and what we have that other companies may not have . I can't answer because I don't know what the other companies are having .

Legacy deal about.

I don't know what others that will take.

Speaker #7: As you know , the discussions are between the administration and individual companies , which also ensures that there is no antitrust issues and also , of course , there are confidential because that's also what the administration and the agreements for trade that we should keep confidentiality of those .

On the Mats era.

We have seen the data with these expensive due diligence and we price.

The Asa.

But we sold.

Tremendous.

Volume.

The shareholders.

And there's a whole there's so far is it because the answer is that we like in our hands of course.

Speaker #7: So I know what we are getting . Some of that has been public and some of that is part of the overall very lengthy deal .

Provides a significant competitive edge.

What you see now it is a herpes.

Speaker #7: But I don't know what others that will take on the Meztira . Look , we have seen the data . We did extensive due diligence and we price the asset into a price that we thought offers tremendous value to the shareholders of Meztira and to shareholders of Pfizer , because those assets that we like in our hands , of course , will provide significant competitive edge .

The effort to constant Q are visa American competitor, which has surprised us.

And to do that by innovating the antitrust.

The scrutineer.

We are surely get control de facto control of the company.

It becomes a major stockholder and the major creditor without any.

Regulatory sort of it so that's all I have to say.

Speaker #7: What you see now , it is , I repeat , an effort to catch and kill our this emerging competitor , which is Pfizer .

I'm.

I want to see how things go.

Right.

Okay.

Let's move to our next question please.

Speaker #7: And to do that by evading the antitrust scrutiny and virtually get control de facto control of the company , as they will become the major shareholder and the major creditor without any regulatory scrutiny .

Our next question comes from Evan <unk> with BMO.

Alright. Thank you so much for taking my question you know assuming that there are close to what near term factors must be considered to continue growing the dividend and then Delevering. David you had said when do you think you may be able to also start to repurchase shares or is that less of a priority you know with all of the BD. Thank you so much.

Speaker #7: So that's all I have to say . And I'm , you know , we will see how things go .

Yeah very good question, obviously, you've seen us over the last year and a half or two years really lean into productivity across our platform that productivity has allowed us to delever from roughly four times to two seven times, that's giving us increased flexibility to do both business development is.

Speaker #8: Let's move to our next question , please .

Speaker #5: Our next question comes from Evan Seigerman with BMO .

Speaker #26: Hi , guys . Thank you so much for taking my question . Assuming Meztira closes , what near factors must you consider to continue growing the dividend and then Delevering , Dave , as you had said , when do you think you may be able to also start to repurchase shares , or is that less of a priority ?

Well as maintain and grow our dividend over time that cycle of improvement in productivity is something that we've now embedded in the company. We will continue to do that we will continue to do that across the enterprise. We will continue to prioritize ourselves from an R&D perspective, clearly we have several assets that we think.

Speaker #26: You know , with all this ? BD ? Thank you so much . Yeah .

Speaker #8: Evan , very good question . Obviously you've seen us over the last year and a half or two years . Really lean in to productivity across our platform .

Our key to the growth of this company by the end of the decade, we are going to invest behind those assets from a pipeline perspective, and we're going to invest behind the categories of products that we've either acquired <unk> recently launched because those will ultimately allow us to offset the oes over the next several years. So we will be able to do.

Speaker #8: That productivity has allowed us to delever from roughly four times to 2.7 times. That's given us increased flexibility to do both business development, as well as maintain and grow our dividend over time.

Speaker #8: That cycle of improvement and productivity is something that we've now embedded in the company . We will continue to do that . We will continue to do that across the enterprise .

All of that share repurchases is an important lever for us.

Speaker #8: We will continue to prioritize ourselves from an R&D perspective. Clearly, we have several assets that we think are key to the growth of this company.

In the near term, it's not a tool that we're going to use we have to get the balance sheet back to where we need to be and we.

We again, we have business priorities that come in the forefront of that at this point great question. Thank you.

Speaker #8: By the end of the decade , we are going to invest behind those assets from a pipeline perspective , and we're going to invest behind the categories of products that we've either acquired and or recently launched , because those will ultimately allow us to offset the lows over the next several years .

So now I think Oh, let's get the last question.

Yeah.

Our last question comes from Rochester Kumar with HSBC.

Good morning.

Speaker #8: So we'll be able to do all of that . Share repurchases is an important lever for us in in the near term . It's not a tool that we're going to use .

Two questions if I may.

I appreciate you cannot say a lot about them et cetera at this junction.

Speaker #8: We have to get the balance sheet back to where we need to be , and we we again , we have business priorities that come in the forefront of that at this point .

Just from.

Modeling perspective.

Thinking.

Additional balance sheet capacity for deal making.

Speaker #8: Great question . Thank you .

Speaker #7: Okay . So now I think let's get the last question .

How much capacity would you assuming that you were keeping some capacity away from it.

Speaker #5: Our last question comes from Rajesh Kumar with HSBC .

In 2026.

On your own internal budgeting.

Speaker #27: Good morning . Two questions , if I may appreciate you cannot say a lot about Meztira at this junction just from . You know , modeling perspective , if we are thinking of additional balance sheet capacity for deal making , how much capacity would you assume ?

That would be really helpful and just on the.

I appreciate the deal have just closed and some of the positive profit.

When can we expect to see data news will come out of that deal.

More a 2027.

Or do we have any interim readout or updates in 'twenty three.

Speaker #27: Assuming that you are keeping some capacity away from at the moment in 2026 on your own internal budgeting , that that would be really helpful and just on the three's bio .

Thank you I think David can answer them.

Et cetera modeling, yes, so as you think about BD capacity as I said in my prepared remarks, we have approximately $13 billion of capacity as we enter here into the third quarter, so with that Chris let's understand the interest, but yet the data flows. So just to remind at Astro 2025, we shared phase II monotherapy.

Speaker #27: Appreciate the deal has just closed and some of the trials have just started . When can we expect to see data newsflow come out of that deal ?

Speaker #27: Is it more of a 2027 event, or do we have any interim readouts or updates in 2026? Thank you.

Or.

Phase two monotherapy data in first line non small cell lung cancer, showing the <unk> objective is probably 65% at ESMO phase II combo data plus chemotherapy laughter. All modified ballpark six was shown for first line metastatic the effects of a solid metastatic colorectal cancer and that was showing it was.

Speaker #7: Thank you. I think Dave can answer the modeling.

Speaker #8: Yeah. So as you think about BD capacity, as I said in my prepared remarks, we have approximately $13 billion of capacity as we enter here into the third quarter.

Sponsorship of closer to 60% at Citigroup provides additional data combination data in lung cancer and <unk>.

Speaker #8: So with that .

Speaker #7: Chris , lets understand the .

Speaker #18: Yeah , the data flows . So just a reminder , Asco 2025 , we shared phase two monotherapy or the shared by 35 .

You've just seen we posted two phase III program is starting now this year in first line non small cell lung cancer and first line colorectal cancer and in the coming weeks will also provide the full development plan to use them.

Speaker #18: Phase two monotherapy and data . In first line non-small cell lung cancer showing the overall response objective response of 65% at Ismo phase two combo data plus chemotherapy xelox or modified Folfox six was shown for first line metastatic castration .

And that will be show the broad.

And the depth of our clinical development program for 707.

Speaker #18: Sorry, metastatic colorectal cancer, and that was showing a response rate of close to 60% at 60. We provide additional data combination data in lung cancer.

Thank you Bruce so thank you very much all for your attention only to have been successful in achieving a series of significant strategic milestones.

Speaker #18: And you've just seen we posted two phase three programs starting now this year in first line non-small cell lung cancer and in first line colorectal cancer .

Delivered solid performance during the quarter and we are confident in our business.

That's why you are raising the rates of our adjusted diluted EPS of course, we maintain our in store revenue. Despite the lowest coffee so right now our trends.

Speaker #18: And in the coming weeks , we'll also provide the full development plan to you at an event . And that will be show the broad , the the breadth and the depth of our clinical development program for 707 .

So thank you for very between Pfizer and hope you have a lot more weight.

Speaker #7: Thank you . Chris . So thank you very much all for your attention . We have been successful in achieving a series of significant strategic milestones .

This does conclude today's program.

You for your participation you may disconnect at any time.

Speaker #7: We delivered a solid performance during the quarter , and we are confident in our business . And that's why we are raising the rates of our adjusted diluted EPs .

Yeah.

[noise].

Speaker #7: And of course , we maintain our revenue despite the lowest Covid right now . Trends . So thank you for your interest in Pfizer and I hope you have a wonderful week .

Okay.

[music].

Yeah.

Okay.

Yeah.

Yes.

Yeah.

Uh huh.

Yeah.

Okay.

Yeah.

[music].

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