Q1 2026 Pfizer Inc Earnings Call

May 5, 2026

Operator 3: Good day, everyone, welcome to Pfizer's Q1 2026 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Francesca DeMartino, Chief Investor Relations Officer and Senior Vice President. Please go ahead, ma'am.

Operator: Good day, everyone. Welcome to Pfizer's Q1 2026 Earnings Conference Call. Today's call is being recorded. At this time, I would like to turn the call over to Francesca DeMartino, Chief Investor Relations Officer and Senior Vice President. Please go ahead, ma'am.

Speaker #4: Please go ahead, ma'am.

Speaker #2: 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.

Francesca DeMartino: Good morning, and welcome to Pfizer's Earnings Call. I'm Francesca DeMartino, Chief Investor Relations Officer. On behalf of the Pfizer team, thank you for joining us. This call is being made available via audio webcast at pfizer.com. I'm joined today by Dr. Albert Bourla, our Chairman and CEO, and David Denton, our CFO. Earlier this morning, we released our results for the Q1 2026 via press release that is available on our website at pfizer.com. Albert and Dave have some prepared remarks. We will then open the call for questions. Members of our leadership team will be available for this 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.

Francesca DeMartino: Good morning, and welcome to Pfizer's Earnings Call. I'm Francesca DeMartino, Chief Investor Relations Officer. On behalf of the Pfizer team, thank you for joining us. This call is being made available via audio webcast at pfizer.com. I'm joined today by Dr. Albert Bourla, our Chairman and CEO, and Dave Denton, our CFO. Albert and Dave have some prepared remarks. We will then open the call for questions. Members of our leadership team will be available for this 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.

Speaker #2: This call is being made available via audio webcast at Pfizer.com. Earlier this morning, we released our results for the first quarter 2026 via press release that is available on our website at Pfizer.com.

Speaker #2: I'm joined today by Dr. Albert Bourla, our Chairman and CEO, and Dave Denton, our CFO. Albert and Dave have some prepared remarks, and we will then open the call for questions.

Speaker #2: 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.

Speaker #2: 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 on Pfizer.com.

Francesca DeMartino: 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 on pfizer.com. Forward-looking statements on the call are subject to substantial risks and uncertainties, speak only as of the call's original date, and we undertake no obligation to update or revise any of the statements. With that, I will turn the call over to Albert.

Speaker #2: Forward-looking statements on the call are subject to substantial risks and uncertainties speak only as of the call's original date, and we undertake no obligation to update or revise any of the statements.

Speaker #2: With that, I will turn the call over to Albert.

Speaker #3: Thank you, Francesca. Good morning, everyone. Thank you for joining our call. It's a wonderful day here in New York. We've had a strong start to the year, our business continues to perform well, and we are making strategic progress.

Albert Bourla: Thank you, Francesca. Good morning, everyone. Thank you for joining our call. It's a wonderful day here in New York. We've had a strong start to the year. Our business continues to perform well, and we are making strategic progress. One of our great strengths is the ability to execute, and we have delivering on our financial commitments while we also invest to strengthen Pfizer for future growth and impact. In Q1, we exceeded expectations for both total revenues and adjusted diluted earnings per share. We have made progress so far this year in delivering our 2026 critical R&D milestones, including 3 positive phase 3 results and encouraging mixed data results for both approved and investigational medicines. We are keeping pace with our robust agenda of approximately 20 planned pivotal study starts this year.

Albert Bourla: Thank you, Francesca. Good morning, everyone. Thank you for joining our call. It's a wonderful day here in New York. We've had a strong start to the year. Our business continues to perform well, and we are making strategic progress. One of our great strengths is the ability to execute, and we have delivering on our financial commitments while we also invest to strengthen Pfizer for future growth and impact. In Q1, we exceeded expectations for both total revenues and adjusted diluted earnings per share. We have made progress so far this year in delivering our 2026 critical R&D milestones, including three positive phase III results and encouraging mixed data results for both approved and investigational medicines. We are keeping pace with our robust agenda of approximately 20 planned pivotal study starts this year.

Speaker #3: One of our great strengths is the ability to execute. And we've had delivering on our financial commitments while we also invest to strengthen Pfizer for future growth and impact.

Speaker #3: In the first quarter, we exceeded expectations for both total revenues and adjusted diluted earnings percent. We have made progress so far this year in delivering our 2026 critical R&D milestones, including three positive phase three readouts, and encouraging mid-stage readouts for both approved and investigational medicines.

Speaker #3: We are keeping pace with our robust agenda of approximately 20 planned pivotal study starts this year. We also had two significant legal developments that improved our growth profile post-2028, and of course, our cash flow outlook.

Albert Bourla: We also had two significant legal developments that improved our growth profile post 2028 and of course our cash flow outlook. Our recent settlement agreements resolving infringement of patent related to VYNDAMAX have the potential to change the growth profile of the company significantly post 2028. This gives us greater confidence that starting in 2029, we will enter a 5-year period of high single-digit revenue CAGR. Additionally, we view the recent Belgium court ruling regarding COMIRNATY contracts with EU member countries as a positive for future EPS and cash flow. The improved visibility into our cash flow provide is a positive for our longer-term capital allocation priorities including, of course, our ability to preserve and support the dividend. As we look to the rest of the year, we are clearly focused on our most impactful opportunities to create value for patients and our shareholders.

Albert Bourla: We also had two significant legal developments that improved our growth profile post 2028, and of course, our cash flow outlook. Our recent settlement agreements resolving infringement of patent related to VYNDAMAX have the potential to change the growth profile of the company significantly post 2028. This gives us greater confidence that starting in 2029, we will enter a five-year period of high single-digit revenue CAGR. Additionally, we view the recent Belgium court ruling regarding COMIRNATY contracts with EU member countries as a positive for future EPS and cash flow. The improved visibility into our cash flow provide is a positive for our longer-term capital allocation priorities, including, of course, our ability to preserve and support the dividend. As we look to the rest of the year, we are clearly focused on our most impactful opportunities to create value for patients and our shareholders.

Speaker #3: Our recent settlement agreements resolving infringement of the patent related to Vindamax have the potential to change the growth profile of the company significantly post-2028. This gives us greater confidence that, starting in 2029, we will enter a five-year period of high single-digit revenue CAGR.

Speaker #3: Additionally, we view the recent Belgium court ruling regarding Comirnaty contracts with EU member countries as a positive for future EPS and cash flow. The improved visibility into our cash flow provide is positive for our longer-term capital allocation priorities, including of course, our ability to preserve and support the dividend.

Speaker #3: As we look to the rest of the year, we are clearly focused on our most impactful opportunities to create value for patients and our shareholders.

Speaker #3: We previously served our strategic priorities for 2026, and I will walk you through the progress we are making on all four. Our long-standing acquired products had a tremendous start to the year with 22% growth.

Albert Bourla: We previously shared our strategic priorities for 2026. I will walk you through the progress we are making on all four. Our launched and acquired products had a tremendous start to the year with 22% growth. 3 of our business development transactions represent about 8% of the invested capital in recent years. They are all progressing very well. Oncology represents our most advanced and concentrated area of research and commercial focus. Our Seagen acquisition is a central reason why. Since bringing the company to Pfizer, we have transformed our oncology organization, unifying our team, expanding our commercial portfolio, and advancing a leading ADC platform. The 20% year-over-year operational revenue growth in the quarter of our Seagen products shows that we have made good progress in deepening our presence within the oncology community.

Speaker #3: Three of our business development transactions represent about 8% of the invested capital in recent years, and they are all progressing very well. Oncology represents our most advanced and concentrated area of research and commercial focus, and our seed and acquisition is a central reason why.

Speaker #3: Since beginning the since bringing the company to Pfizer, we have transformed our oncology organization unifying our team expanding our commercial portfolio and advancing a leading ADC platform.

Speaker #3: The 20% year-over-year operational revenue growth in the quarter of our seed and product shows that we have made good progress in deepening our presence within the oncology community.

Speaker #3: We continue to strengthen physician engagement and drive greater recognition of the clinical value of our medicines. We are also executing with focus to maximize the value of our matera acquisition.

Albert Bourla: We continue to strengthen physician engagement and drive greater recognition of the clinical value of our medicines. We are also executing with focus to maximize the value of our Maxera acquisition. This underpins the strategy intended to position Pfizer as a leader in the next generation of obesity therapies. We intend to advance 10 phase 3 studies this year, and we are targeting a first approval in 2028 from a portfolio that includes ultra-long-acting peptides with the potential, if successful, developed, and approved for competitive efficacy and tolerability with a differentiated monthly maintenance dosing schedule. The success we have achieved with Nurtec since our Biohaven acquisition shows the power of our leading field force and commercial capabilities at work. Nurtec contributed in the Q1 with 41% operational growth driven by robust demand for both acute and preventive migraine treatments.

Speaker #3: This underpins the strategy intended to position Pfizer as a leader in the next generation of obesity therapies. We intend to advance 10 phase three studies this year, and we are targeting a first approval in 2028 from a portfolio that includes ultra-long-acting peptides with the potential, if successful, to develop and approve for competitive efficacy and tolerability with a differentiated monthly maintenance dosing schedule.

Speaker #3: The success we have achieved with Nurtec, since our Biohaven acquisition, shows the power of our leading field force and commercial capabilities at war. Nurtec contributed in the first quarter with 41% operational growth driven by robust demand, and both for both acute and preventive migraine treatments.

Speaker #3: We continue to see a meaningful growth opportunity in the oral CGRP class of medicines for patients with migraine. Of course, 2026 is a pivotal year for R&D, and I'm pleased with our early progress this quarter.

Albert Bourla: We continue to see a meaningful growth opportunity in the oral CGRP class of medicines for patients with migraine. Of course, 2026 is a pivotal year for R&D, and I'm pleased with our early progress this quarter. While we have a large active pipeline, we rely on a rigorous and disciplined approach to focus resources where we see the greatest potential. We are targeting approximately 20 pivotal study starts, 8 key data readouts, and 4 regulatory decisions this year. Our critical R&D milestones reinforce how we are concentrating investment in key areas such as oncology, metabolic disease, and vaccines, where we have existing commercial infrastructure, scientific expertise, and significant opportunity for competitive differentiation. Nearly half our anticipated key data readouts and regulatory decision in 2026 are expected to come from oncology, where we are advancing multiple programs across areas such as breast, genitourinary, thoracic, gastrointestinal, and blood cancer.

Albert Bourla: We continue to see a meaningful growth opportunity in the oral CGRP class of medicines for patients with migraine. Of course, 2026 is a pivotal year for R&D, and I'm pleased with our early progress this quarter. While we have a large active pipeline, we rely on a rigorous and disciplined approach to focus resources where we see the greatest potential. We are targeting approximately 20 pivotal study starts, eight key data readouts, and four regulatory decisions this year. Our critical R&D milestones reinforce how we are concentrating investment in key areas such as oncology, metabolic disease, and vaccines, where we have existing commercial infrastructure, scientific expertise, and significant opportunity for competitive differentiation. Nearly half our anticipated key data readouts and regulatory decision in 2026 are expected to come from oncology, where we are advancing multiple programs across areas such as breast, genitourinary, thoracic, gastrointestinal, and blood cancer.

Speaker #3: While we have a large active pipeline, we rely on a rigorous and disciplined approach to focus resources where we see the greatest potential. We are targeting approximately 20 pivotal study starts, eight key data readouts, and four regulatory decisions this year.

Speaker #3: Our critical R&D milestones reinforce how we are concentrating investment in key areas such as oncology, metabolic disease, and vaccines, where we have existing commercial infrastructure, scientific expertise, and significant opportunity for competitive differentiation.

Speaker #3: Roughly half our anticipated key data readouts and regulatory decisions in 2026 are expected to come from oncology. Where we are advancing multiple programs across areas such as breast, the new theory of thoracic gastrointestinal and blood cancer.

Speaker #3: During the quarter, we presented notable EV-304 study findings for Paxlovid at ASCO GU. The results show that Paxlovid and pembrolizumab reduce the risk of recurrence or death by nearly 50% in patients with cisplatin eligible muscle invasive bladder cancer.

Albert Bourla: During the quarter, we presented notable EV-304 study findings for Padcev at ASCO GU. The results show that Padcev and pembrolizumab reduces the risk of recurrence or death by nearly 50% in patients with cisplatin-eligible muscle-invasive bladder cancer. Combined with the recent compelling data from the EV-303 trial, this highlights the potential for this regimen to become the new standard of care for patients with muscle-invasive bladder cancer, regardless of cisplatin eligibility. Bladder cancer is diagnosed in more than 600,000 patients a year globally, including an estimated 85,000 in the US. MIBC represents approximately 30% of all these bladder cancer cases. The positive top-line results we saw last week from the Phase 3 MagnetisMM-5 study of ELREXFIO represent a meaningful step towards our goal of reaching more patients earlier in the course of their disease.

Speaker #3: Combined with the recent compelling data from the EV-303 trial, this highlights the potential for this regimen to become the new standard of care for patients with muscle invasive bladder cancer regardless of cisplatin eligibility.

Speaker #3: Bladder cancer is diagnosed in more than 600,000 patients this year globally, including an estimated 85,000 in the US. MIBC represents approximately 30% of all these bladder cancer cases.

Speaker #3: The positive top-line results we saw last week from the phase three Magnetis MN5 study of Elrexfio represent a meaningful step towards our goal of reaching more patients earlier in the course of their disease.

Speaker #3: In this study, Elrexfio significantly improved progression-free survival for double-class exposed patients with relapsed or refractory multiple myeloma, who received at least one prior line of treatment.

Albert Bourla: In this study, ELREXFIO significantly improved progression-free survival for double-class exposed patients with relapsed or refractory multiple myeloma who received at least 1 prior line of treatment. This is a significant opportunity to address patient need. Multiple myeloma, an aggressive and currently incurable blood cancer, is the 2 most common type of blood cancer worldwide, with over 36,000 new cases each year in the US and over 187,000 new cases globally. During the quarter, we also saw randomized phase 2 data for atirmociclib, our potential first-in-class CDK4 inhibitor in patients with HER2-negative breast cancer who received prior CDK4/6 inhibitor-based treatment. This data suggests atirmociclib has the potential to differentiate from the CDK4/6 inhibitor class with improved efficacy and tolerability, reinforcing our confidence in the molecule.

Speaker #3: This is a significant opportunity to address patient needs. Multiple myeloma and aggressive and currently incurable blood cancer is the second most common type of blood cancer worldwide, with over 36,000 new cases each year in the United States, and over 187,000 new cases globally.

Speaker #3: During the quarter, we also served randomized phase two data for Adimocyte, our potential first-in-class CDK4 inhibitor in patients with HR2 HER2 negative prior CDK4/6 inhibitor phase three.

Speaker #3: This data suggests Adimocyte has the potential to differentiate from the CDK4/6 inhibitor class with improved efficacy and tolerability. Reinforcing our confidence in the molecule.

Speaker #3: Looking ahead, we remain focused on accelerating this investigational medicines development in first line and early breast cancer. Where it may provide even greater impact for patients.

Albert Bourla: Looking ahead, we remain focused on accelerating this investigational medicine's development in first-line and early breast cancer, where it may provide even greater impact for patients. We view this as an important opportunity to deliver a next-generation backbone therapy building on Pfizer's long commitment to patients with breast cancer. In vaccines, we have been working with regulators on the pathway for expanding coverage through our next-generation pneumococcal conjugate vaccine to extend our leadership in this competitive space. Yesterday, we initiated our Phase 3 program for our 25-valent pediatric vaccine candidate with increased valency and next-generation serotype 3 technology. I am also pleased to provide an update on our strategy in the adult market. We have decided to advance directly to our fifth-generation adult vaccine candidate. Today, I'm proud to share for the first time that it includes coverage for 35 serotypes.

Speaker #3: We view this as an important opportunity to deliver a next-generation backbone therapy, building on Pfizer's long commitment to patients with breast cancer. In vaccines, we have been working with regulators on the pathway for expanding coverage through our next-generation pneumococcal conjugate vaccine, to extend our leadership in this competitive space.

Speaker #3: Yesterday, we initiated our phase three program for our 25 valent pediatric vaccine candidates with increased valency and next-generation serotype 3 technology. I am also pleased to provide an update on our strategy in the adult market.

Speaker #3: We have decided to advance directly to our fifth-generation adult vaccine candidate. And today, I'm proud to share for the first time that it includes coverage for 35 serotypes.

Speaker #3: We believe this gives us the strongest opportunity to maintain our current market leadership in the adult market over the long term, and we expect to enter clinical development this year.

Albert Bourla: We believe this gives us the strongest opportunity to maintain our current market leadership in the adult market over the long term, and we expect to enter clinical development this year. In I&I, we announced a positive readout in March from a phase 2 trial of duodecima, our investigational tri-specific antibody in atopic dermatitis. We intend to advance a broad clinical development program for this investigational medicine, which was discovered in-house at Pfizer and is currently being evaluated in atopic dermatitis and also in asthma and COPD. We remain on track with our commitment and our continued focus on what matters most, maximizing the long-term value of our pipeline for patients as our goal. We are investing with strategic discipline and focus to build the foundational supporting our aim of high single-digit 5-year revenue CAGR.

Speaker #3: In INI, we announced a positive readout in March from a Phase 2 trial of tiroretumib, our investigational tri-specific antibody in atopic dermatitis. We intend to advance a broad clinical development program for this investigational medicine, which was discovered in-house at Pfizer and is currently being evaluated in atopic dermatitis and also in asthma and COPD.

Speaker #3: We remain on track with our commitment and are continuing to focus on what matters most, maximizing the long-term value of our pipeline for patients as a whole.

Speaker #3: We are investing with strategic discipline and focus to build a foundational supporting our aim of high single-digit five-year revenue cake. It's vital that our R&D organization has the resources to advance our robust pipeline, including both internally discovered programs and opportunities we have added through strategic moves, such as our acquisition of METERA and our e-licensing agreements with 3S Bio and Yalfal.

Albert Bourla: It's vital that our R&D organization has the resources to advance our robust pipeline, including both internally discovered programs and opportunities we have added through strategic moves, such as our acquisition of Medsera and our in-licensing agreements with Freya's Bayer and GalHao. Our commercial teams are leaders in translating scientific progress into real-world impact. We are furthering investments to provide them with capabilities, technology, and support, helping our medicines reach the right patients at the right time, so we can deliver sustained value. We also remain deeply committed to our shareholders. We intend to maintain and over time grow our dividend as we continue to deliver and build long-term value. Embedding the use of artificial intelligence across our company is a key strategic priority, and we are driving continued progress in R&D, commercial, manufacturing, and core enterprise functions.

Speaker #3: Our commercial teams are leaders in translating scientific progress into real-world impact. We are furthering investments to provide them with capabilities, technology, and support, helping our medicines reach the right patients at the right time, so we can deliver sustained value.

Speaker #3: We also remain deeply committed to our shareholders. We intend to maintain and, over time, grow our dividend as we continue to deliver and build long-term value.

Speaker #3: Embedding the use of artificial intelligence across our company is a key strategic priority, and we are driving continued progress in R&D, commercial, manufacturing, and core enterprise functions.

Speaker #3: We are empowering our colleagues to accelerate innovation by pairing frontier AI tools tailored to function and role, with comprehensive and continuously updated training. One of the areas where we see the most substantial promise is the discovery development and delivery of new medicines and vaccines.

Albert Bourla: We are empowering our colleagues to accelerate innovation by pairing frontier AI tools tailored to function and role with comprehensive and continuously updated training. One of the areas where we see the most substantial promise is the discovery, development, and delivery of new medicines and vaccines. Leveraging the power of AI to compress timelines and improve decision-making is central to our innovation strategies. We are embedding AI into each functional line of R&D. Pfizer has a vast repository of small and large molecule translational and clinical data, and AI is creating the opportunity to unlock insights that could drive a significant impact on how we discover and develop medicines and vaccines. With that now, I will turn it over to Dave to speak about the financial performance of the company.

Speaker #3: Leveraging the power of AI to compress timelines, and improve decision-making, is central to our innovation strategy. We are embedding AI into each functional line of R&D, Pfizer has a vast repository of small and large molecule translational and clinical data, and AI is creating the opportunity to unlock insights that could drive a significant impact on how we discover and develop medicines and vaccines.

Speaker #3: So without now, I will turn it over to Dave to speak about the financial performance of the company. Great, thank you, Albert, and good morning.

David Denton: Great. Thank you, Albert, good morning. Let me begin by highlighting that our strong Q1 performance reflects the continued disciplined execution across our strategic priorities and importantly, continued progress in repositioning the company for sustainable growth. We are making targeted investments today to drive revenue growth later in the decade and beyond. Looking ahead, Pfizer is entering a new phase. Our launched and acquired products, combined with a strengthening pipeline, are positioning the company with the ability to deliver growth towards the end of the decade. While we remain focused on managing near-term LOE headwinds, we are actively building the foundation for durable long-term value creation. With that as context, I'll review our Q1 results, discuss our capital allocation priorities, and conclude with an update on our 2026 guidance, which we are reaffirming today.

Dave Denton: Great. Thank you, Albert, good morning. Let me begin by highlighting that our strong Q1 performance reflects the continued disciplined execution across our strategic priorities and importantly, continued progress in repositioning the company for sustainable growth. We are making targeted investments today to drive revenue growth later in the decade and beyond. Looking ahead, Pfizer is entering a new phase. Our launched and acquired products, combined with a strengthening pipeline, are positioning the company with the ability to deliver growth towards the end of the decade. While we remain focused on managing near-term LOE headwinds, we are actively building the foundation for durable long-term value creation. With that as context, I'll review our Q1 results, discuss our capital allocation priorities, and conclude with an update on our 2026 guidance, which we are reaffirming today.

Speaker #3: Let me begin by highlighting that our strong first-quarter performance reflects the continued disciplined execution across our strategic priorities, and importantly, continued progress in repositioning the company for sustainable growth.

Speaker #3: We are making targeted investments today to drive revenue growth later in the decade and beyond. Looking ahead, Pfizer is entering a new phase. Our launch and acquired products, combined with a strengthening pipeline, are positioning the company with the ability to deliver growth towards the end of the decade.

Speaker #3: While we remain focused on managing near-term LOE headwinds, we are actively building the foundation for durable, long-term value creation. And with that as context, I'll review our first-quarter results, discuss our capital allocation priorities, and conclude with an update on our 26 guidance, which we are reaffirming today.

Speaker #3: In the first quarter of '26, revenues were $14.5 billion, exceeding our expectations and representing an operational increase of 2%. Excluding our COVID products, the underlying business delivered approximately 7% operational revenue growth, reflecting solid demand across key brands and continued strong commercial execution.

David Denton: In Q1 of 2026, revenues were $14.5 billion, exceeding our expectations and representing an operational increase of 2%. Excluding our COVID products, the underlying business delivered approximately 7% operational revenue growth, reflecting solid demand across key brands and continued strong commercial execution. On the bottom line, Q1 reported diluted earnings per share was $0.47 and adjusted diluted earnings per share was $0.75, also exceeding our expectations. In addition to our strong revenue, this outperformance also reflects our ongoing commitment to managing our cost base and to drive productivity across the organization. Our results this quarter demonstrate the effectiveness of our refined commercial strategy. We saw solid contributions across our product portfolio, primarily driven by Padcev, ELIQUIS, Nurtec, LORBRENA, and the Vyndaqel family, each reflecting focused execution in our key therapeutic areas.

Dave Denton: In Q1 of 2026, revenues were $14.5 billion, exceeding our expectations and representing an operational increase of 2%. Excluding our COVID products, the underlying business delivered approximately 7% operational revenue growth, reflecting solid demand across key brands and continued strong commercial execution. On the bottom line, Q1 reported diluted earnings per share was $0.47 and adjusted diluted earnings per share was $0.75, also exceeding our expectations. In addition to our strong revenue, this outperformance also reflects our ongoing commitment to managing our cost base and to drive productivity across the organization. Our results this quarter demonstrate the effectiveness of our refined commercial strategy. We saw solid contributions across our product portfolio, primarily driven by Padcev, ELIQUIS, Nurtec, LORBRENA, and the Vyndaqel family, each reflecting focused execution in our key therapeutic areas.

Speaker #3: On the bottom line, first-quarter reported diluted earnings per share was 47 cents, and adjusted diluted earnings per share was 75 cents. Also exceeding our expectations.

Speaker #3: In addition to our strong revenue, this outperformance also reflects our ongoing commitment to managing our cost base and to drive productivity across the organization.

Speaker #3: Our results this quarter demonstrate the effectiveness of our refined commercial strategy. We saw solid contributions across our product portfolio, primarily driven by PADCEF, Eliquis, Nurtec, Lorbrena, and Evindequel family, each reflecting focused execution in our key therapeutic areas.

Speaker #3: Our launch and acquired products delivered 3.1 billion dollars in the first quarter, and revenues grew by approximately 22% operationally. These results demonstrate the early impact of a portfolio transition and our investment strategies.

David Denton: Our launched and acquired products delivered $3.1 billion in Q1, and revenues grew by approximately 22% operationally. These results demonstrate the early impact of our portfolio transition and our investment strategies. We continue to invest behind these product groups to support their growth, which we expect will enable the company to partially offset upcoming LOE headwinds over the next several years. Adjusted gross margin for Q1 was approximately 76%, primarily the result of product mix during the quarter and ongoing cost control measures. I do wanna note accrued royalty expense was higher this quarter and dampened gross margin compared to Q1 of last year. With that said, strong cost management across our manufacturing footprint remains a top priority.

Dave Denton: Our launched and acquired products delivered $3.1 billion in Q1, and revenues grew by approximately 22% operationally. These results demonstrate the early impact of our portfolio transition and our investment strategies. We continue to invest behind these product groups to support their growth, which we expect will enable the company to partially offset upcoming LOE headwinds over the next several years. Adjusted gross margin for Q1 was approximately 76%, primarily the result of product mix during the quarter and ongoing cost control measures. I do wanna note accrued royalty expense was higher this quarter and dampened gross margin compared to Q1 of last year. With that said, strong cost management across our manufacturing footprint remains a top priority.

Speaker #3: We continue to invest behind these product groups to support their growth, which we expect will enable the company to partially offset upcoming LOE headwinds over the next several years.

Speaker #3: Adjusted gross margin for the first quarter was approximately 76%, primarily the result of product mix during the quarter and ongoing cost control measures. I do want to note accrued royalty expense was higher in this quarter and dampened gross margin compared to the first quarter of last year.

Speaker #3: With that said, strong cost management across our manufacturing footprint remains a top priority. As a reminder, over the past several years, our adjusted gross margins have generally remained in the mid to upper 70s, when excluding Comirnaty, which has a 50/50 profit split with our partner BioNTech.

David Denton: As a reminder, over the past several years, our adjusted gross margins have generally remained in the mid to upper seventies when excluding COMIRNATY, which has a 50/50 profit split with our partner BioNTech. We continue to expect approximately $700 million in savings from our phase one of our manufacturing optimization program this year with approximately $175 million realized in this quarter. Total adjusted operating expenses were $5.5 billion for Q1 2026, an increase of 4% operationally versus Q1 of last year. Now looking at the components, adjusted SI&A expenses decreased 5% operationally, primarily reflecting lower marketing and promotional spending on various products from more targeted investments and ongoing productivity improvements, as well as lower spending in corporate enabling functions.

Dave Denton: As a reminder, over the past several years, our adjusted gross margins have generally remained in the mid to upper seventies when excluding COMIRNATY, which has a 50/50 profit split with our partner BioNTech. We continue to expect approximately $700 million in savings from our phase one of our manufacturing optimization program this year with approximately $175 million realized in this quarter. Total adjusted operating expenses were $5.5 billion for Q1 2026, an increase of 4% operationally versus Q1 of last year. Now looking at the components, adjusted SI&A expenses decreased 5% operationally, primarily reflecting lower marketing and promotional spending on various products from more targeted investments and ongoing productivity improvements, as well as lower spending in corporate enabling functions.

Speaker #3: We continue to expect approximately 700 million dollars in savings from our phase one of our manufacturing optimization program this year, with approximately 175 million realized in this quarter.

Speaker #3: Total adjusted operating expenses were 5.5 billion dollars for the first quarter of '26, and increase of 4% operationally versus the first quarter of last year.

Speaker #3: And now looking at the components, adjusted SIA expenses decreased 5% operationally, primarily reflecting lower marketing and promotional spending on various products, from more targeted investments and ongoing productivity improvements, as well as lower spending in corporate enabling functions.

Speaker #3: Adjusted R&D expenses increased 11% operationally, primarily driven by an increase in spending in certain oncology and obesity product candidates. First quarter 2026 adjusted operating margin was strong at 38%, and above pre-pandemic levels, demonstrating effective cost management as well as revenue performance.

David Denton: Adjusted R&D expenses increased 11% operationally, primarily driven by an increase in spending in certain oncology and obesity product candidates. Q1 of 2026 adjusted operating margin was strong at 38% and above pre-pandemic levels, demonstrating effective cost management as well as revenue performance. We have already made meaningful progress on our productivity initiatives and remain on track to deliver the majority of the anticipated $7.2 billion in total net cost savings by the end of 2026. Looking ahead, we will continue to identify opportunities to further enhance efficiencies while prioritizing investments that support future growth. Turning to the bottom line, Q1 reported diluted earnings per share again was $0.47, and our adjusted diluted earnings per share was $0.75, which benefited from our strong non-COVID revenue and efficient operating structure. With that, let me turn to our capital allocation strategy.

Dave Denton: Adjusted R&D expenses increased 11% operationally, primarily driven by an increase in spending in certain oncology and obesity product candidates. Q1 of 2026 adjusted operating margin was strong at 38% and above pre-pandemic levels, demonstrating effective cost management as well as revenue performance. We have already made meaningful progress on our productivity initiatives and remain on track to deliver the majority of the anticipated $7.2 billion in total net cost savings by the end of 2026. Looking ahead, we will continue to identify opportunities to further enhance efficiencies while prioritizing investments that support future growth. Turning to the bottom line, Q1 reported diluted earnings per share again was $0.47, and our adjusted diluted earnings per share was $0.75, which benefited from our strong non-COVID revenue and efficient operating structure. With that, let me turn to our capital allocation strategy.

Speaker #3: We have already made meaningful progress on our productivity initiatives and remain on track to deliver the majority of the anticipated $7.2 billion in total net cost savings by the end of '26.

Speaker #3: And looking ahead, we will continue to identify opportunities to further enhance efficiencies while prioritizing investments that support future growth. Turning to the bottom line, Q1 reported diluted earnings per share again was 47 cents, and our adjusted diluted earnings per share was 75%.

Speaker #3: 75 cents, which benefited from our strong non-COVID revenue and efficient operating structure. Now with that, let me turn to our capital allocation strategy. Our strategy is designed to enhance long-term shareholder value while preserving flexibility.

David Denton: Our strategy is designed to enhance long-term shareholder value while preserving flexibility. It includes reinvesting in the business at appropriate returns, maintaining and over time growing our dividend, and preserving optionality for future value-enhancing actions, including share repurchases. In Q1, we invested $2.5 billion in internal R&D, returned $2.4 billion to shareholders via the quarterly dividend, and our completed business development activity was minimal. We closed on the sale of our stake in Veev in the second quarter, providing us with approximately $1.65 billion in net proceeds after taxes and customary closing costs. Our BD capacity, when including the Veev proceeds, is approximately $7 billion. Q1 2026 operating cash flow was $2.6 billion and leverage into the quarter at approximately 2.8 times.

Dave Denton: Our strategy is designed to enhance long-term shareholder value while preserving flexibility. It includes reinvesting in the business at appropriate returns, maintaining and over time growing our dividend, and preserving optionality for future value-enhancing actions, including share repurchases. In Q1, we invested $2.5 billion in internal R&D, returned $2.4 billion to shareholders via the quarterly dividend, and our completed business development activity was minimal. We closed on the sale of our stake in Veev in the Q2, providing us with approximately $1.65 billion in net proceeds after taxes and customary closing costs. Our BD capacity, when including the Veev proceeds, is approximately $7 billion. Q1 2026 operating cash flow was $2.6 billion, and leverage into the quarter at approximately 2.8x.

Speaker #3: It includes reinvesting in the business at appropriate returns, maintaining and over time growing our dividend, and preserving optionality for future value-enhancing actions, including share repurchases.

Speaker #3: In Q1, we invested 2.5 billion dollars in internal R&D, returned 2.4 billion dollars to shareholders via the quarterly dividend, and our completed business development activity was minimal.

Speaker #3: We closed on the sale of our stake in Veeve in the second quarter, providing us with approximately 1.65 billion dollars in net proceeds, after taxes and customer closing costs.

Speaker #3: Our BD capacity when including the Veeve proceeds is approximately 7 billion dollars. First quarter '26 operating cash flow was 2.6 billion dollars, and leverage ended the quarter at approximately 2.8 times.

Speaker #3: And as just a reminder, given the LOE headwinds over the next few years, we expect leverage to remain around the current levels for even slightly higher through the transition period.

David Denton: As just a reminder, given the LOE headwinds over the next few years, we expect leverage to remain around the current levels or even slightly higher through the transition period. I will also mention that we made our final TCJA repatriation tax payment of approximately $2.6 billion in April. Based on our performance to date and continued execution, we are reaffirming our full year 2026 guidance today. We continue to expect total company revenues in the range of $59.5 billion to sixty-two and a half billion dollars and adjusted diluted earnings per share in the range of $2.80 to $3 a share. This outlook reflects our expectation of strong contributions across our product portfolio, adjusted gross margins in the mid-70s range, disciplined cost management, and continued investments to support growth by the end of this decade.

Dave Denton: As just a reminder, given the LOE headwinds over the next few years, we expect leverage to remain around the current levels or even slightly higher through the transition period. I will also mention that we made our final TCJA repatriation tax payment of approximately $2.6 billion in April. Based on our performance to date and continued execution, we are reaffirming our full-year 2026 guidance today. We continue to expect total company revenues in the range of $59.5 to 62.5 billion and adjusted diluted earnings per share in the range of $2.80 to $3 a share. This outlook reflects our expectation of strong contributions across our product portfolio, adjusted gross margins in the mid-70s range, disciplined cost management, and continued investments to support growth by the end of this decade.

Speaker #3: I will also mention that we made our final TCJA repatriation tax payment of approximately 2.6 billion dollars in April. Based on our performance to date and continued execution, we are reaffirming our full year '26 guidance today, we continue to expect total company revenues in the range of 59.5 billion dollars to 62.5 billion dollars, and adjusted diluted earnings per share in the range of $2.80 to $3 a share.

Speaker #3: This outlook reflects our expectation of strong contributions across our product portfolio, adjusted gross margins in the mid-70s range, disciplined cost management, and continued investments to support growth by the end of this decade.

Speaker #3: As a reminder, sustained low disease levels of COVID will likely continue to weigh on Paxlovid utilization over the next several months. And additionally, our plan assumes that the majority of Comirnity sales will occur towards the end of the year and consistent with the vaccination season.

David Denton: As a reminder, sustained low disease levels of COVID will likely continue to weigh on PAXLOVID utilization over the next several months. Additionally, our plan assumes that the majority of COMIRNATY sales will occur towards the end of the year and consistent with the vaccination season. As always, we continue to monitor currency fluctuation as the year progresses. In closing, over the next several years, our focus remains on investing in key assets while managing upcoming LOE events, primarily from this year through 2028. As we look towards the end of the decade, growth is expected to be driven by our advancing R&D pipeline and the continued progress of our launched and acquired products. Following the VYNDAMAX settlement, we now have a clear line of sight to a high single-digit five-year revenue CAGR post 2028.

Dave Denton: As a reminder, sustained low disease levels of COVID will likely continue to weigh on PAXLOVID utilization over the next several months. Additionally, our plan assumes that the majority of COMIRNATY sales will occur towards the end of the year and consistent with the vaccination season. As always, we continue to monitor currency fluctuation as the year progresses. In closing, over the next several years, our focus remains on investing in key assets while managing upcoming LOE events, primarily from this year through 2028. As we look towards the end of the decade, growth is expected to be driven by our advancing R&D pipeline and the continued progress of our launched and acquired products. Following the VYNDAMAX settlement, we now have a clear line of sight to a high single-digit five-year revenue CAGR post 2028.

Speaker #3: And as always, we continue to monitor current fee fluctuation as the year progresses. In closing, over the next several years, our focus remains on investing in key assets while managing upcoming LOE events.

Speaker #3: Primarily from this year through 2028, as we look towards the end of the decade, growth is expected to be driven by our advancing R&D pipeline and the continued progress of our launched and acquired products.

Speaker #3: Following the VindaMax settlement, we now have a clear line of sight to a high single-digit five-year revenue CAGR post-2028. Furthermore, this event, combined with our legal win in the Belgium court regarding the EU Comirnaty contract, will enhance our cash flow post-2028.

David Denton: Furthermore, this event, combined with our legal win in the Belgium court regarding the EU COMIRNATY contract, will enhance our cash flow post 2028. We continue to position Pfizer for durable long-term growth and shareholder value. With that, I'll now turn the call back over to Albert to begin the Q&A session.

Dave Denton: Furthermore, this event, combined with our legal win in the Belgium court regarding the EU COMIRNATY contract, will enhance our cash flow post 2028. We continue to position Pfizer for durable long-term growth and shareholder value. With that, I'll now turn the call back over to Albert to begin the Q&A session.

Speaker #3: We continue to position Pfizer for durable long-term growth and shareholder value. And with that, I'll now turn the call back over to Albert to begin the Q&A session.

Speaker #2: Thanks, Dave. My score for now operator, please assemble the queue.

Albert Bourla: Thanks, Dave. Nice quarter. Now, operator, please assemble the queue.

Speaker #3: Thank you. If you'd like to ask a question, press star one on your keypad. To leave the queue at any time, press star two.

Operator 3: Our first question today comes from Vamil Divan with Guggenheim.

Speaker #3: Once again, that is star one to ask a question. And our first question today comes from Valmal al Devon with Guggenheim. Your line is now open.

Operator: Thank you. If you'd like to ask a question press star one on your keypad. To leave the queue at any time press star two. Once again that is star one to ask a question. Our first question today comes from Vamil Divan with Guggenheim.

Speaker #4: Great. Thanks for taking the question. So I'll keep it to one. And I think there's a lot of focus on the upcoming ABA meeting. I'm just curious if you can kind of clarify exactly what we should expect to see there.

Vamil Divan: Great. Thanks for, thanks for taking the question. I'll keep it to one. I think a lot of focus on the upcoming ADA meeting. I'm just curious if you can just kind of clarify exactly what we should expect to see there. I know a lot of us see VESPER-3, but any other data that we should expect from a Pfizer perspective? Then I think you've been talking about hosting an investor event in conjunction with the meeting. Curious if there's any other details you can share around that as well. Thanks.

Speaker #4: I know we'll obviously see Vesper 3. But any other data that we should expect from a Pfizer perspective? And then I think you've been talking about hosting an investor event in conjunction with the meeting.

Speaker #4: So curious if there's any other details you can share around that as well. Thanks.

Albert Bourla: Chris, the question is for you. How much of the data you're going to disclose in the ADA?

Speaker #2: So Chris, the question is for you, how much of the data you're going to disclose in the ADA? And thank you very much for the question.

Albert Bourla: Chris, the question is for you. How much of the data you're going to disclose in the ADA?

Chris Boshoff: Thank you very much for the question. It's obviously a very important program. We're excited with the progress and since the close of Becerra, as you know, we had exceptional execution, not only in the clinical development, but also on the commercial development side and as well as CMC and on the pharmaceutical sciences as well as the devices. Details base 3, detailed data from VESPER-3 will be shared. The top-line data we presented last time at the full Q-twenty-five earnings. Data from VESPER-1, the open label extension will be shared, as well as data from VESPER-2, which is weekly perbenetide, our new name for our GLP-1, with or without titration in participants with type 2 diabetes will be shared. We will not share yet at ADA data on Amylin mono.

Speaker #2: It's obviously very important program. We're excited with the progress. And since the close of Metsera, as you know, we had exceptional execution, not only the clinical development, but also on the commercial development side.

Speaker #2: And as well as CMC and on the pharmaceutical sciences as well as the devices. Details phase three detailed data from Vesper 3 will be shared.

Speaker #2: The top-line data we presented last time at the Q4 2025 earnings. Data from Vesper 1, the open-label extension, will be shared as well as data from Vesper 2, which is weekly. Better Benetype, our new name for our GLP-1, with or without titration in participants with type 2 diabetes, will be shared.

Speaker #2: We will not share yet at ADA. Data on Amilin mono, we expect 24 weeks monotherapy and 28 weeks combination with the Amilin and GLP-1.

Chris Boshoff: We expect 24 weeks monotherapy and 28 weeks combination with the Amylin and GLP-1. That will be shared in H2 of this year.

Speaker #2: That will be shared in the second half of this year.

Speaker #5: Thank you, Chris. Next question, please.

Albert Bourla: Thank you, Chris. Next question.

Speaker #3: Our next question comes from Dave Reisinger with Lyrinc Partners. Your line is now open.

Operator 3: Our next question comes from David Risinger with Leerink Partners. Your line is now open.

Operator: Our next question comes from Dave Risinger with Leerink Partners. Your line is now open.

Speaker #4: Yes. Thanks very much. So my questions are on your oncology readouts. This year, that could move the needle for the company. Could you comment on your expectations for SV and MEVRO pivotal readouts this year?

David Risinger: Yes. Thanks very much. My questions are on your oncology readouts this year that could move the needle for the company. Could you comment on your expectations for RSV and mevrometostat pivotal readouts this year? Separately, if you could just please provide an update on your restructuring of corporate strategy and business development operations at the company. Thank you.

Dave Risinger: Yes. Thanks very much. My questions are on your oncology readouts this year that could move the needle for the company. Could you comment on your expectations for RSV and mevrometostat pivotal readouts this year? Separately, if you could just please provide an update on your restructuring of corporate strategy and business development operations at the company. Thank you.

Speaker #4: And then separately, if you could just please provide an update on your restructuring of corporate strategy and business development operations at the company. Thank you.

Albert Bourla: Great. Thank you very much, Dave. Let me take the second one and then address the SV and the member. We did some changes in our organizational structure that are aligned with our constant effort to simplify. We have reduced the members of my executive team by 4 over the next couple of years. Over the last two years. The business development moved under Chris Boshoff because most of the business development are right now related with R&D pipeline and choices. We see significant improvement in any friction that could exist and how smooth things could work by doing that. We also moved the commercial development, which is all the commercial strategies that were sitting in that group into the global marketing of the organization.

Speaker #2: Great, thank you very much, Dave. Let me take the second one, and then Chris will address the SV and the MEVRO. We did some changes in our organizational structure that are aligned with our constant effort to simplify.

Speaker #2: We have reduced the members of my executive team by four over the next couple of years. Last year, the last two years. So the business development moved under Chris Bossom because most of the business development are right now related with R&D pipeline and choices.

Speaker #2: We see significant improvement in the any friction that could exist and how smooth things could work by doing that. We also moved the commercial development, which is all the commercial strategies that were sitting in that group into the global marketing of the organization.

Albert Bourla: That creates also significant amount of synergies by having global and new products, global marketing to deal with new products and with our old products. That went under Amir. Alexander took over the responsibility to manage the portfolio management team. He's the new chair, he is focusing on prioritizing the pipeline. The strategy group moved to my chief of staff, so in the office of the CEO, where I can have also better supervision. This is the change that happened into our organization. We feel that they are consistent with everything we were planning, which is simplification of our business. Chris?

Speaker #2: And that creates also a significant amount of synergies by having global and new products, global marketing deal with new products, and with our own products.

Speaker #2: That went under Amir. Alexander took over the responsibility to manage the portfolio management team. He's the new chair. And he is focusing on prioritizing the pipeline.

Speaker #2: And then the strategy group moved to my chief of staff. So in the office of the CEO, where I can have also better supervision.

Speaker #2: So this is the change that happened in our organization, and we feel that it is consistent with everything we were planning, which is the simplification of our business.

Speaker #2: Chris, thank you very much. So to start with SV, important program for us. Integrant Beta 6 is a highly differentiated target, overspacing 90% of lung cancers and little expressing normal tissue in the lung.

Chris Boshoff: Thank you very much. To start with SV, important program for us. integrin αvβ6 is a highly differentiated target, overexpressed in 90% of lung cancers and little expressed in normal tissue in the lung. We were encouraged by the first line data, I mean the phase 1 data which we shared, albeit a single arm experience with a median overall survival of approximately 16.3 months. The second line study, just a reminder, is focused on non-squamous based on the signals we've seen. Phase 3 study against docetaxel. The study statistically powered should it be positive for overall survival. It will also be clinically meaningful. Just a reminder, we also have an ongoing phase 3 trial in the TPS high, TPS more than 50. Data will be shared at ASCO from the phase 1 experience.

Speaker #2: And we were encouraged by the first-line data, which we—I mean, the Phase 1 data—which we shared, albeit a single-arm experience, with a median overall survival of approximately 16.3 months.

Speaker #2: The second line study, just a reminder, is focused on non-squamers based on the signals we've seen. And phase three study against Dotytaxel. The study statistically powered should it be positive for overall survival, it will also be clinically meaningful.

Speaker #2: Just a reminder, we also have an ongoing phase three trial in the TTS high, TPS more than 50. Data will be shared at ASCO from the phase one experience.

Speaker #2: This is Pembro versus Pembro Plus SV. A reminder that last year we shared data for that combination of PD-L1 high, a handful of patients, but everyone responded in that population so it was 100% response rate in a small population.

Chris Boshoff: This is pembrolizumab versus pembrolizumab plus SV. A reminder that last year we shared data for that combination of PD-L1 high. Handful of patients, but everyone responded in that population, so it was a 100% response rate in a small population. For mevrometostat, again, an important differentiator, highly specific differentiator, EZH2. The first study that we’ll read out is MEVRO-1, which is in patients post-abiraterone, a significant unmet need, of enzalutamide versus Sorry, enzalutamide plus EZH2 versus physician’s choice of enzalutamide or docetaxel. That should read out middle or second half of this year. Thank you.

Speaker #2: For Meprometastat, again, an important differentiated, highly specific differentiated, easy H2. The first study that we'll read out is MEVRO 1, which is in patients post-aber significant unmet need.

Speaker #2: Of enzalutamide versus sorry, enzalutamide plus EZH2 versus physician's choice of enzalutamide or Dotytaxel. And that should read out middle or second half of this year.

Speaker #2: Thank you.

Speaker #5: Thank you, Chris. Operator, next question.

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

Speaker #3: Our next question comes from Chris Shot with JPMorgan. Your line is now open.

Operator 3: Our next question comes from Chris Schott with JPMorgan.

Operator: Our next question comes from Chris Schott with JPMorgan.

Chris Schott: Hi. Great. Thanks so much for the questions. Maybe just two for me. First, maybe for Dave or the broader team. I know you typically don't raise guidance with Q1, but does seem like a very solid start to the year from a revenue perspective. Can you just talk generally about the business trends versus your expectations and just how you're thinking about the year progressing from here? A second question for me was on BD capacity. You mentioned $7 billion. I guess just given the VYNDAMAX clarity, could the company look at larger transactions if the right deal were to present itself, or is the focus still much more on the internal pipeline and then maybe smaller tuck-ins from here? Thank you.

Speaker #6: Great. Thanks so much for the questions. Maybe just two for me. First, maybe for Dave for the broader team. I know you typically don't raise guidance with 1Q, but it does seem like a very solid start to the year from a revenue perspective.

Speaker #6: Can you just talk generally about the business trends versus your expectations and just the how you're thinking about the year progressing from here? And the second question for me was on BD capacity.

Speaker #6: You mentioned $7 billion. I guess, just given the Vendamax clarity, could the company look at larger transactions if the right deal were to present itself, or is the focus still much more on the internal pipeline and maybe smaller tuck-ins from here?

Speaker #6: Thank you.

Speaker #2: Yeah. Chris, Dave here. Thank you. Yes. I think to your first question, companies off to a really solid start in Q1. If you look kind of up and down and across the board from a product perspective, we exceeded expectations on top line and bottom line.

David Denton: Chris, Dave here. Thank you. Yes, I think to your first question, company's off to a really solid start in Q1. If you look kind of up and down and across the board from a product perspective, we exceeded expectations on top line and bottom line. So, yes, setting ourselves up really well for delivery for the balance of the year. As you well know, Chris, I have a philosophy of not really adjusting in Q1. I think as you well know, if you look at our COVID franchise, it will always be H2 weighted because of the seasonality of this. So we are, if anything, have de-risked delivery on that without raising guidance. So, absent that, we probably would be raising guidance. How's that? So, again, strong performance.

Dave Denton: Chris, Dave here. Thank you. Yes, I think to your first question, company's off to a really solid start in Q1. If you look kind of up and down and across the board from a product perspective, we exceeded expectations on top line and bottom line. So, yes, setting ourselves up really well for delivery for the balance of the year. As you well know, Chris, I have a philosophy of not really adjusting in Q1. I think as you well know, if you look at our COVID franchise, it will always be H2 weighted because of the seasonality of this. So we are, if anything, have de-risked delivery on that without raising guidance. So, absent that, we probably would be raising guidance. How's that? So, again, strong performance.

Speaker #2: And so yes, setting ourselves up really well for delivery for the balance of the year. As you well know, Chris, I have a philosophy of not really adjusting in Q1.

Speaker #2: I think as you well know, if you look at our COVID franchise, it will always be back half weighted because of the seasonality of this and so we are if anything have de-risked delivery on that without raising guidance.

Speaker #2: So absent that, we probably would be raising guidance. How's that? So again, strong performance. Secondly, as I said, we do have $7 billion in BD capacity.

David Denton: Secondly, as I said, we do have $7 billion in BD capacity. Obviously, this development from a legal perspective actually gives us more confidence in our cash flow delivery over the next several years. We constantly look at BD and understand what is appropriate strategically to do from a BD perspective to support the needs of the company and deliver long-term value.

Dave Denton: Secondly, as I said, we do have $7 billion in BD capacity. Obviously, this development from a legal perspective actually gives us more confidence in our cash flow delivery over the next several years. We constantly look at BD and understand what is appropriate strategically to do from a BD perspective to support the needs of the company and deliver long-term value.

Speaker #2: Obviously, this development from a legal perspective actually gives us more confidence in our cash flow delivery over the next several years. And we constantly look at BD.

Speaker #2: And understand what is appropriate strategically to do from a BD perspective to support the needs of the company and deliver long-term value.

Speaker #5: Thank you, Dave. Next question.

Albert Bourla: Thank you, Dave. Next question.

Speaker #3: Thank you. Our next question comes from Carrie Halford with Barenberg. Your line is now open.

Operator 3: Thank you. Our next question comes from Kerry Holford with Berenberg.

Operator: Thank you. Our next question comes from Kerry Holford with Berenberg.

Speaker #7: Thank you for taking the question. Just old community, I wonder if you can just talk a little bit more about the vaccination rates you're expecting.

Kerry Holford: Thank you for taking the question. Just on COMIRNATY, I wonder if you can just talk a little bit more about the vaccination rates you're expecting this year within the US and international regions. Just coming back to the international region, can you talk a little bit more about the existing European contracts reminders for those?

Speaker #7: This year within the US and international regions. And then just coming back to the international region, can you talk a little bit more about the existing European contracts?

Speaker #7: Remind us of those existing phase payments. And, in the context of that recent Belgian court decision—the two items there together—how should we think about the evolution of ex-US sales?

Asad Haider: Existing phase payments. In the context of that recent Belgian court decision, the two items read together, how should we think about the evolution of ex-US sales for that vaccine?

Kerry Holford: Existing phase payments. In the context of that recent Belgian court decision, the two items read together, how should we think about the evolution of ex-US sales for that vaccine?

Speaker #7: So that vaccine.

Speaker #2: Okay. Let's start with the international and then we move to Alexander. And then Amir will speak about the vaccination rates in the US.

Albert Bourla: Okay, let's start with international, and then we move with Alexandre, and then Amir will speak about vaccination rates in the US.

Albert Bourla: Okay, let's start with international, and then we move with Alexandre, and then Aamir will speak about vaccination rates in the US.

Alexandre de Germay: Yes. Good question. Just two quick context. The decline that you see in Q1 on COMIRNATY has nothing to do with vaccination. It's really the effect of last year. We shipped our last contract elements of our contract with the UK. We don't have that contract anymore in 2026, and that's why you have a reduction. It doesn't really talk about the vaccination rate. Actually, we went through the vaccinations numbers in Europe in 2025, and mostly stable versus 2024. Of course, you have differences. For instance, in France, the vaccination rate is around 25% of the adult. In Spain, it's gonna be around 35%. Those rates are stable, and we see governments willing to continue to invest and increase awareness of their older and at-risk population to get vaccination.

Speaker #5: Yes. Good question. Just two quick context. The decline that you see in Q1 on community has nothing to do with vaccination. It's really the effect of last year.

Speaker #5: We shipped our last elements of our contract with the UK, so we don't have that contract anymore in 2026. And that's why you have a reduction.

Speaker #5: But it hasn't really talked about the vaccination rate. Actually, we went through the vaccinations numbers in Europe in 2025. And mostly stable versus 2024.

Speaker #5: Of course, you have differences for instance, in France, the vaccination rate is around 25%, although adults in Spain is going to be around 35%.

Speaker #5: But those rates are stable. And we see governments willingness to continue to invest and increase awareness of their older and at-risk population to get vaccination.

Speaker #5: In 2026, we will work with those government across the European Union to actually continue to execute our contract. The same way we did in previous years.

Alexandre de Germay: In 2026, we will work with those government across the European Union to actually continue to execute our contract the same way we did in the previous years. With regard to the legal case and the court's judgments on 1 April 2026, the court judgment is very clear. We started to work with the governments in Poland and Romania to actually execute the judgment, and we're discussing the best path forwards to implement that judgment.

Speaker #5: Now, with regard to the legal case and the court judgments on April 1, 2026, the court judgment is very clear. And we've started to work with the governments in Poland and Romania to actually execute the judgment.

Speaker #5: And we're discussing the best path forward to implement that judgment. Thank you, Alexander. So, Amir, what about the US?

Albert Bourla: Thank you, Alexandre. Amir, what about the US?

Albert Bourla: Thank you, Alexandre. Aamir, what about the US?

Amir: Vaccination rates in the US obviously is very different for every segment. In COVID with COMIRNATY, there was a narrowing of the label, so we did see a shrinking of the market a bit. In the case of RSV, we obviously now going past our third seasons with a tougher to activate adult population, but growing on the maternal space, and there's population dynamics with Prevnar, both with kids and adults. We see ups and downs in the vaccination rates as a result of those dynamics. But what I feel very good and very confident about is the way that we're executing in that market. If you look at every single one of our teams, we have market-leading positions.

Speaker #6: Vaccination rates in the US, obviously, it's very different for every segment. In COVID with community, there was a narrowing of the label. So we did see a shrinking of the market a bit.

Aamir Malik: Vaccination rates in the US obviously is very different for every segment. In COVID with COMIRNATY, there was a narrowing of the label, so we did see a shrinking of the market a bit. In the case of RSV, we obviously now going past our third seasons with a tougher to activate adult population, but growing on the maternal space, and there's population dynamics with Prevnar, both with kids and adults. We see ups and downs in the vaccination rates as a result of those dynamics. But what I feel very good and very confident about is the way that we're executing in that market. If you look at every single one of our teams, we have market-leading positions.

Speaker #6: In the case of RSV, we always see now going past our third seasons with a tougher to activate adult population, but growing on the maternal space.

Speaker #6: And there's population dynamics with Prevnar, both acute and adults. So we see ups and downs in the vaccination rates as a result of those dynamics.

Speaker #6: But what I feel very good and very confident about is the way that we're executing in that market. So if you look at every single one of our vaccines, we have market-leading positions.

Speaker #6: So Briscoe at more than 60%. Community more than 60%. Prevnar peaked now at 84%. And Prevnar adult even after many months of competition from Mark Holding's share steady at 70%.

Amir: ABRYSVO at more than 60%, COMIRNATY more than 60%, Prevnar Kids now at 84%, and Prevnar Adult, even after many months of competition from market, holding share steady at 70%. I feel very good about the way that we're executing in a slightly turbulent market.

Aamir Malik: ABRYSVO at more than 60%, COMIRNATY more than 60%, Prevnar Kids now at 84%, and Prevnar Adult, even after many months of competition from market, holding share steady at 70%. I feel very good about the way that we're executing in a slightly turbulent market.

Speaker #6: So I feel very good about the way that we're executing in a slightly turbulent market.

Speaker #5: Thank you for the confidence, Amir. I share it with you. Next question, please.

Albert Bourla: Thank you for the confidence, Amir. I share it with you. Next question, please.

Speaker #3: Our next question comes from Umar Rafat with Evercore ISI. Your line is now open.

Operator 3: Our next question comes from Umer Raffat with Evercore ISI. Your line is now open.

Operator: Our next question comes from Umer Raffat with Evercore ISI. Your line is now open.

Speaker #8: Hi guys. Thanks for taking my question. And I appreciate some of the comments you made around maintaining the dividend. I just thought I would approach it from two different angles.

Umer Raffat: Hi, guys. Thanks for taking my question. I appreciate some of the comments you made around maintaining the dividend. I just thought I would approach it from two different angles, if I may. First, I guess, what's the likelihood that Pfizer entertains a transformative M&A in near or medium-term, which could end up impacting dividend as we've seen in history? Secondly, Albert, I guess, how are you personally, but also the board, thinking about your tenure at Pfizer and how it ties to dividend integrity beyond? Thank you very much.

Speaker #8: If I may, first, I guess what's the likelihood that Pfizer entertains a transformative M&A in near or medium term? Which could end up impacting dividend as we've seen in history.

Speaker #8: And then secondly, Albert, I guess how are you personally, but also the board, thinking about your tenure at Pfizer and how it ties to dividend integrity beyond?

Speaker #8: Thank you very much.

Speaker #2: Hello. We never say never. And we always look at every business possible business combination. For an M&A, if you're asking me if right now we think that we are going to go for something very big, a big merger, no.

Albert Bourla: Look, we never say never, and we always look at every possible business combination for an M&A. If you are asking me if right now we think that we are going to go for something very big, a big merger, no. We think that right now, in the next two years, it is the time to execute on AI transformation of this organization. That requires not the disruption of mega merger. I would say that we are open to everything, and we are looking at everything that can create shareholder value, but it is not right now very high in our list to find something like that. The second question, how I see my tenure, I see it like continuing.

Speaker #2: We think that right now, in the next few years, it is the time to execute on AI transformation of this organization. And that requires not the disruption of mega mergers.

Speaker #2: So, I would say that we are open to everything, and we are looking at everything that can create shareholder value. But it is not, right now, very high on our list to find something like that.

Speaker #2: The second question, how I see my tenure—I see it continuing. And I have said multiple times that I was very proud of what we were able to achieve with COVID.

Albert Bourla: I said multiple times that I was very proud for what we were able to achieve with COVID, but then if you are spoiled with this feeling of satisfaction, you want to do it again. I'm planning to do it again, and hopefully, with the cancer and obesity and vaccines this time. Next question.

Speaker #2: But then if you are spoiled with this feeling, satisfaction, you want to do it again. So I'm planning to do it again. And hopefully, with cancer and obesity and vaccines this time.

Speaker #5: Next question.

Speaker #3: Our next question comes from Assad Hader with Goldman Sachs. Your line is now open.

Operator 3: Our next question comes from Asad Haider with Goldman Sachs.

Operator: Our next question comes from Asad Haider with Goldman Sachs.

Asad Haider: Great. Thanks for taking the question. Albert, just going back to last December's guidance call, you highlighted $17 billion of annual revenue impacted by LOEs by 2030. Now with the Vyndaqel patent settlement extending that to mid-2031, your comments that you are aiming to achieve high single-digit, 5-year revenue growth, starting in 2029. Just if you could double-click on that a little bit more, just looking at the pipeline and the current BD aperture that you just described, just level set us on any updated thoughts on bridging the gap around how we should be thinking about the levers to drive this growth against the stacked LOEs. Just related, embedded in this high single-digit CAGR, what are the assumptions around your base business such as COVID and the current oncology products? Thank you.

Speaker #8: Great. Thanks for taking the question. Albert, just going back to last December's guidance call, you highlighted 17 billion of annual revenue impacted by LOEs by 2030.

Speaker #8: And now with the defamatous patent settlement extending that to mid-2031, your comments that you are aiming to achieve high single-digit five-year revenue growth starting in 2029.

Speaker #8: Just if you could double-click on that a little bit more, just looking at the pipeline and the current BD aperture that you just described, just level set us on any updated thoughts on bridging the gap around how we should be thinking about the levers to drive this growth against the stacked LOEs.

Speaker #8: And then just related, embedded in this high single-digit CAGR, what are the assumptions around your base business, such as COVID and the current oncology products?

Speaker #8: Thank you.

Speaker #5: Yes. It is easier, of course, to forecast the base business because it's constant. So that it is following the normal trends that we expect based on product by product.

Albert Bourla: Yes. It is easier, of course, to forecast the base business because, you know, it's a constant, it is following the normal trend that we expect based on product by product. The LOEs also are easy to predict because they have a certainty of occurrence. Right now, you're right, with this 2.5 years delay of the LOE of a product that is $6 billion plus, it is providing significant, as you can understand, opportunity for cash flows, EPS, and changing the growth profiles. That's why we spoke now because with this uncertainty going about our projections about the growth profiles, which we said it is starting in 2029. It's a 5-year high single-digit CAGR.

Speaker #5: The LOEs also are easy to predict, because they have the certainty of occurrence. Right now, you're right—with this two-and-a-half-year delay, the LOE of a product that is $6 billion-plus is providing significant, as you can understand, opportunity for cash flows, EPS, and changes to the growth profiles.

Speaker #5: That's why we spoke now, because with this uncertainty going, about our projections about the growth profile, which we said it is starting in '29.

Speaker #5: It's a five-year high single-digit CAGR. How that is built is with the current portfolio, with the decline through the LOEs, and with the additions of pipelines that are heavily risk-adjusted.

Albert Bourla: How that is built, is built with the current portfolio, with the decline through the LOEs, and with the additions of pipeline, but they are heavy risk-adjusted. It's not that we are having binary events. The pipeline are multiple as you know. We have a series of readouts right now that will affect the revenues in 2029. I think I feel confident about that because when it is a large number of pipeline assets risk-adjusted, statistics usually work. Those that will fail, will fail, and those that will succeed, will succeed. The risk adjustment takes into consideration about that. Very confident about the growth trajectory of the company, starting in 2029. I'm also very confident that we navigate the LOEs, as you saw right now, very well.

Speaker #5: So, it's not that we are having a binary event. The pipelines are multiple, as you know. We have a series of readouts right now that will affect the revenues in '29.

Speaker #5: And so I think when I feel confident about that because when it is a large number of pipeline assets risk-adjusted, statistics usually work. And those that will fail will fail.

Speaker #5: And those that will succeed, will succeed. But the risk adjustment takes that into consideration. So, very confident about the growth trajectory of the company.

Speaker #5: Starting in '29. And I'm also very confident that we navigate the LOEs, as you saw right now, very well, started already this year, the LOEs.

Albert Bourla: It started already this year, the LOEs. I also want to emphasize that always the strategy for LOEs was new and acquired products to do well because they were launched and acquired to offset the LOEs. They are growing 22% this year. They are already on $3.1 billion in a quarter. If you, without saying without the guidance, but if you multiply by four, just to give you, we are talking about over $12 billion this year and growing. You know, the $17 billion of LOEs now after Vyndaqel, they are more 14 to 15 rather than 17. I think it looks good. Looks good. Thank you. Next question.

Speaker #5: I also want to emphasize that the strategy for LOEs has always been that new and acquired products need to do well because they were launched and acquired to offset the LOEs.

Speaker #5: They are growing 22% this year. They are already on 3.1 billions of dollars in a quarter. If you, without saying that at the guidance, but if you multiply by four, just to give you, we are talking about over $12 billion this year, and growing, and the 17 billions of LOEs now after FINDA, there are more 14 to 15 rather than 17.

Speaker #5: So, I think it looks good. Looks good. Thank you. Next question.

Speaker #3: Our next question comes from Evan Seekerman with BMO Capital Markets. Your line is now open.

Operator 3: Our next question comes from Evan Seigerman with BMO Capital Markets. Your line is now open.

Operator: Our next question comes from Evan Seigerman with BMO Capital Markets. Your line is now open.

Speaker #8: Hi, guys. Thank you so much for taking my question. I really want to touch on capital deployment, specifically when it comes to share repurchases.

Evan Seigerman: Hi, guys. Thank you so much for taking my question. I really want to touch on capital deployment, specifically when it comes to share repurchases. Dave, I know that that's been, you know, a method that you've wanted to employ. Now with clarity on VYNDAMAX and the CAGR post-2028, what other, what else do you need to see to potentially start buying back shares, especially at these levels? Thank you so much.

Speaker #8: Dave, I know that that's been a method that you've wanted to employ now with clarity on Vindamax and What other what else do you need to see to potentially start buying Thank you so much.

Speaker #5: Yeah. Evan, great question. We always look at our capital allocation strategy and balance between the three options that we have. At the moment, our focus is really on investing in our R&D platform and in business development to drive long-term value.

David Denton: Yeah, Evan, great question. We always look at our capital allocation strategy and balancing between the three options that we have. At the moment, our focus is really on investing in our R&D platform and in business development to drive long-term value. With the development in these court cases, that does give us a bit more confidence in our cash flow over time. You'll see as the capital allocation, share repurchase level will come back into greater consideration going forward. Great question. Something we always look at, and we're always looking to do what's best for the company and shareholders long term.

Dave Denton: Yeah, Evan, great question. We always look at our capital allocation strategy and balancing between the three options that we have. At the moment, our focus is really on investing in our R&D platform and in business development to drive long-term value. With the development in these court cases, that does give us a bit more confidence in our cash flow over time. You'll see as the capital allocation, share repurchase level will come back into greater consideration going forward. Great question. Something we always look at, and we're always looking to do what's best for the company and shareholders long term.

Speaker #5: With the development in these court cases, that does give us a bit more confidence in our cash flow over time. So you'll see us the capital allocation share So great question.

Speaker #5: Something we always look at. And we're always looking to do what's best for the company and shareholders long-term. Thank you, Dave. Very clear. Next question, please.

Albert Bourla: Thank you, Dave. Very clear. Next question, please.

Speaker #3: Our next question comes from Courtney Breen with Bernstein. Your line is now open.

Operator 3: Our next question comes from Courtney Breen with Bernstein. Your line is now open.

Operator: Our next question comes from Courtney Breen with Bernstein. Your line is now open.

Speaker #6: Hi, FIZER team. Thanks for taking the question today. I just wanted to probe a little bit more on SIGVOTATEC, Vodoten, and positioning in that frontline setting all come as relative to the symbiotic lung 01 study that you've already started with the PD1 Vegef.

Courtney Breen: Hi, Pfizer team. Thanks for taking the question today. I just wanted to probe a little bit more on sigvotatug vedotin and positioning in that frontline setting, all comers relative to the Symbiotic-Lung-01 study that you've already started with the PD-1 VEGF. I also note that you've got kind of a phase 1, 2 running, combining these two assets. Can you help contextualize that new phase 3 all comers that you intend to start this year for SV first line, and how that may be positioned relative to Symbiotic-Lung-01? Thank you so much.

Speaker #6: I also note that you've got kind of a phase one two running combining these two assets. And so you can can you help us contextualize that new phase three all comers that you intend to start this year for SV first line?

Speaker #6: And how that may be

Speaker #6: much.

Speaker #5: All right, Chris.

Albert Bourla: All right, Chris.

Chris Boshoff: Thank you very much for the question. Lung cancer is obviously a very significant unmet need, and having a number of shots on goal now with a very differentiated portfolio gives us confidence that we can continue to play an important role in lung cancer beyond just in the targeted therapies like lorlatinib. For RSV, we are very encouraged by the data we've seen for the combination of pembrolizumab plus RSV in the PD-1, PD-L1 high population, where we previously showed in a small cohort of patients that they all responded in the PD-L1 high to that combination. The phase 3 study that's ongoing for pembrolizumab versus pembrolizumab for RSV, that study is recruiting well in the first line setting, and we're confident for the readout for that study.

Speaker #7: Thank you very much for the question. Lung cancer is a greater consideration going forward. Obviously, a very significant unmet need. And having a number of shots on goal now with a very differentiated portfolio gives us confidence that we can continue to play an important role in lung cancer beyond just in the targeted therapies like loratadine.

Speaker #7: For SV, we are very encouraged by the data we've seen for the combination of pembrolizumab plus SV in the PD1 high population where we previously showed in a small number of small code of patients that they all responded in the PD1 high to that combination.

Speaker #7: So the phase three study that's ongoing for pembrolizumab versus pembrolizumab for SV, that study is recruiting well in the first-line setting. And we're confident for the readout for that study.

Chris Boshoff: Ongoing also is the second line study, which is against docetaxel, which was encouraged by the previous data we've seen, albeit in a single arm experience with a median overall survival of 16.3 months. That study should read out mid-year. That's docetaxel versus RSV second line powered for, obviously, for overall survival. If it's positive, I said, as I said earlier, it will be clinically meaningful. Ongoing studies being planned also for the broader population in combination with chemo plus pembrolizumab, We will share some of the data later this year for the early data for that combination.

Speaker #7: Ongoing also is the second-line study, which is against dosage Taxol. Which was encouraged by the previous data we've seen, albeit in a single-arm experience with a medium overall survival of 16.3 months.

Speaker #7: So that study should readout mid-year. That's dosage Taxol. Versus SV second-line powered for obviously for overall survival and if it's positive as I said earlier, it will be clinically meaningful.

Speaker #7: And then ongoing studies being planned also for the broader population and combination with chemo plus pembrolizumab. And we will share some of the data at later this year for the early data for that combination.

Speaker #7: In terms of 4404, at ASCO, we will share the Phase 2 data of 4404 monotherapy in first-line PD-L1 expressing non-small cell lung cancer. As you know, we recently shared data at AACR, where we repeated the pre-clinical and early data generated by 3S Bio in China.

Chris Boshoff: In terms of 4404, at ASCO, we will share the Phase 2 data of 4404 monotherapy in first-line PD-L1 expressing non-small cell lung cancer. As you know, we recently shared data at AACR, where we repeated the preclinical and early data generated by Threebio in China. We're really confident that this is a differentiated molecule. The binding against VEGF is, we shown at AACR, is better, it's higher affinity than what's seen with bevacizumab or that's seen with competitive VEGF PD-1 molecules. Confident in the molecule. We'll share more data later this year with a broad program starting, including in combination with chemo.

Speaker #7: So we're really confident that this is a differentiated molecule. And the binding against BGFA is we've shown at AACR is better is higher affinity affinity than what's seen with bevacizumab or that's seen with competitive BGF PD1 molecules.

Speaker #7: So confident in the molecule. We'll share more data later this year with a broad program starting including in combination with chemo. And just a reminder at ASCO, we'll also share data with 4401 plus chemo in first-line advanced recurrent endometrial cancer.

Alexandre de Germay: Just a reminder, ASCO will also share data with PF-08634404 plus chemo in first-line advanced recurrent endometrial cancer, another program that we plan to start a phase 3 program in.

Chris Boshoff: Just a reminder, ASCO will also share data with PF-08634404 plus chemo in first-line advanced recurrent endometrial cancer, another program that we plan to start a phase 3 program in.

Speaker #7: Another program that we plan to start a Phase 3 program in.

Speaker #5: Thank you, Chris. The next question, please. Last question.

Albert Bourla: Thank you, Chris. The next question please. The last question.

Speaker #3: Thank you. Our final question comes from Louise Chen with Scotiabank. Your line is now open.

Operator 3: Thank you. Our final question comes from Louise Chen with Scotiabank. Your line is now open.

Operator: Thank you. Our final question comes from Louise Chen with Scotiabank. Your line is now open.

Louise Chen: Hi. Thanks for taking my question. I wanted to ask you, which key products do you think will drive the re-acceleration of your growth in 2029 and beyond? Regarding the international obesity opportunity, just curious what you learned from the launch of your GLP-1 in China. Thank you.

Speaker #8: Hi, thanks for taking my question. I wanted to ask you, which key products do you think will drive the reacceleration of your growth in 2029 and beyond?

Speaker #8: And then regarding the international obesity opportunity, just curious what you've learned from the launch of your GLP-1 in China. Thank you.

Speaker #5: Yeah. Alexander, let's start with you again this time. Because the obesity in international has of course, the Lilly numbers have surprised how big the international market is.

Albert Bourla: Yeah. Alexandre, let's start with you again this time because the obesity in international has, of course, the Lilly numbers have surprised how big the international market is. Also speak about key products that will drive your growth.

Speaker #5: And then also speak about key products that will drive your growth in 2029. And then Amir, US key products that will drive growth in 2029.

Alexandre de Germay: Yeah.

Albert Bourla: -in 2029. Amir, US key products that will drive growth in 2029. Please.

Speaker #5: Please.

Speaker #7: So quick question on the econoglutide launch in China. Of course, it's very, very early day. We really launched the product Monday last week. So I mean, it's only a week.

Alexandre de Germay: A quick question on the ecnoglutide launch in China. Of course, it's very, very early day. We really launched the product Monday last week, it's only a week, I can't really talk to you about the penetration of ecnoglutide in China. What is really interesting here is actually the incidence of chronic weight in China is quite high, 15% of the Chinese population. Considering the size of the China population, that makes it one of the larger market for chronic weight management. That's the reason why we decided on February of this year to actually do this collaboration with Sywin Bioscience for the commercialization of ecnoglutide in China. Since then, we got the approval and commercialized this asset.

Speaker #7: So I can't really talk to you about the penetration of econoglutide in China. But what is really interesting is actually the incidence of chronic weight in China is quite high, 15% of the Chinese population and considering the size of the China population, that makes it one of the larger markets for chronic weight management.

Speaker #7: And that's the reason why we decided on March on February of this year to actually do this collaboration with Taiwin Bioscience for the commercialization of econoglutide in China.

Speaker #7: And since then, we got the approval and commercialized this asset. Econoglutide has a very interesting profile, and actually, it's demonstrating in a placebo-controlled study a 15.1% weight loss at 48 weeks, which is on par with the best GLP-1s with this biased mechanism of action of GLP-1.

Alexandre de Germay: ecnoglutide has a very interesting profile, and actually is demonstrating in a placebo-controlled study, a 15.1% weight loss at 48 weeks, which is on par with the best GLP-1. With this bias mechanism of action of GLP-1, we are bringing to market a very effective asset with a good tolerability profile. Of course, we are going to leverage our very strong primary care capabilities in China that puts Pfizer China as one of the leading in primary care. The combination of the very attractive clinical profile, plus our knowledge in this area will, we believe, make us a leader in this category.

Alexandre de Germay: Ecnoglutide has a very interesting profile, and actually is demonstrating in a placebo-controlled study, a 15.1% weight loss at 48 weeks, which is on par with the best GLP-1. With this bias mechanism of action of GLP-1, we are bringing to market a very effective asset with a good tolerability profile. Of course, we are going to leverage our very strong primary care capabilities in China that puts Pfizer China as one of the leading in primary care. The combination of the very attractive clinical profile, plus our knowledge in this area will, we believe, make us a leader in this category.

Speaker #7: The thing that we have, we are bringing to market a very effective asset with a good tolerability profile. And of course, we're going to leverage our very strong primary care capabilities in China that put Pfizer China as one of the leaders in primary care.

Speaker #7: So the combination of a very attractive clinical profile plus our knowledge in this area will we believe mark us a leader in this category.

Speaker #7: And we're not coming very late into the market because remember, Lilly really introduced their asset in the beginning of last year. So it's not like we're coming many years after the introduction of those assets.

Alexandre de Germay: We're not coming very late into the market because remember, Lilly really introduced their asset in beginning of last year. It's not like we're coming many years after the introduction of this asset. As I said, I'm very optimistic, both due to the profile of this asset and the capability that we have developed in China. When it comes into the growth engine of the international, there are I just want to step back one second. If you look at the quarter and the fact that our non-COVID primary care grew double-digit growth. We delivered $2 billion this quarter. Remember, we closed last year with a double-digit growth on primary care.

Speaker #7: So as I said, I'm very optimistic both due to the profile of this asset and the capability that we have developed in China. Now, when it comes into the growth engine of the international, there are I just want to step back one second.

Speaker #7: If you look at the quarter and the fact that our non-COVID primary care grew double-digit growth, we delivered $2 billion this quarter. Remember, we closed last year with double-digit growth on primary care.

Speaker #7: Now, if you look at the specialty cares, about 1.5 billion this quarter with delivering a double-digit growth again, that was on the back of a double-digit growth last year.

Alexandre de Germay: Now, if you look at the specialty care, so that $1.5 billion this quarter, we're delivering a double-digit growth again. That was on the back of a double-digit growth last year. There are assets in those different area that will continue to power our growth. If I come back to primary care, our vaccines are growing very strongly. The reason why we are growing very strongly on vaccine is because both on pneumococcal and on RSV, we have the large population. If you look at, as you know, in pneumococcal, this is a very, this is a very, it's a very large population, and two-third of our, our vaccine business come from pediatrics. Of course, we have a large pediatric population to continue to grow, so both in maternal immunization and of pneumococcal.

Speaker #7: And there are assets in those different areas that will continue to power our growth. If I come back to primary care, our vaccines are growing very strongly.

Speaker #7: And the reason why we are growing very strongly on vaccine is because both of them are controlled and on RSV. We have a large population.

Speaker #7: If you look at as you know, in pneumococcal, this is a very this is a very it's a very large population. And two-thirds of our vaccine business come from pediatrics.

Speaker #7: And of course, we have a large pediatric population to continue to grow. So both in maternal immunization and of pneumococcal. So the vaccines have a potential to grow in pediatric and in adult.

Alexandre de Germay: The vaccines have a potential to grow in pediatric and in adults. Of course, a big growth in at the end of the decades will come from the Medsera assets in chronic weight management because there are two elements of that. One, it's an underserved category with a large epidemic across the world, right? In some of the emerging market, we have a very high prevalence in Saudi, in Brazil, in Mexico of obesity. Our presence in those market will, with a strong primary care, will allow us to actually unpack this potential.

Speaker #7: Of course, a big growth at the end of the decade will come from the MedSera assets in chronic weight management, because there are two elements of that.

Speaker #7: One, it's an underserved category with a large epidemic across the world, right? In some of the emerging markets, we have a very high prevalence in Saudi, in Brazil, in Mexico of obesity.

Speaker #7: And our presence in those markets will with a strong primary care will allow us to actually enter this potential. But also, it is a cash market which also is a big advantage in Europe, in Japan, and other developed markets where right after approval, we can introduce those products, which is not the case today in many of our categories because it takes a lot of time for reimbursement negotiation with the payer.

Alexandre de Germay: Also it is a cash market, which also is a big advantage in Europe, in Japan and other developed market where right after approval, we can introduce those products, which is not the case today in many of our category because it takes a lot of time for reimbursement negotiation with the payer. You see, we have an in-line asset that will continue to power the growth, and we are bringing assets like the Medsera that will go straight to market. Of course, the oncology asset will come, but it will take longer for reimbursement negotiation.

Speaker #7: So you see, we have an inline asset that will continue to power the growth, and we are bringing assets like MedSera that will go straight to market.

Speaker #7: And of course, the oncology asset will come. But it will take longer for reimbursement negotiation.

Speaker #5: Thank you, Alexander. Amir, now excite us for US.

Albert Bourla: Thank you, Alexandre. Amir, now Excedrros for US.

Albert Bourla: Thank you, Alexandre. Aamir, now Excedrros for US.

Amir: Louise answered the question. There's many things that give us confidence about driving growth in the US in 2029. If you take the first category, we have products that are on the market today that have a lot of upside to them. If you think about Padcev, all of our recent growth has been primarily driven by la/mUC. We're at the high 50% penetration there, and we've got lots of upside in MIBC, EV-303 and EV-304. There's a lot of headroom for growth there. Secondly, you look at products like Nurtec, we've got a lot of tailwind behind us now, but only 60% of people who write a triptan have yet to write an oral CGRP. There's a lot of headroom for growth, and we're executing really well against that.

Speaker #7: Louise answered the question. There's many things that give us confidence about driving growth in the US in 2029. If you take the first category, we have products that are on the market today that have a lot of upside to them.

Aamir Malik: Louise answered the question. There's many things that give us confidence about driving growth in the US in 2029. If you take the first category, we have products that are on the market today that have a lot of upside to them. If you think about Padcev, all of our recent growth has been primarily driven by la/mUC. We're at the high 50% penetration there, and we've got lots of upside in MIBC, EV-303 and EV-304. There's a lot of headroom for growth there. Secondly, you look at products like Nurtec, we've got a lot of tailwind behind us now, but only 60% of people who write a triptan have yet to write an oral CGRP. There's a lot of headroom for growth, and we're executing really well against that.

Speaker #7: So if you think about Paxlovid, all of our recent growth has been primarily driven by LAMUC. We're at the high 50% penetration there. And we've got lots of upside in MIDC303 and 304.

Speaker #7: So there's a lot of headroom for growth there. Secondly, you look at products like Nurtec—we've got a lot of tailwind behind us now.

Speaker #7: But only 60% of people who write a triptan have yet to write an oral CGRP. So there's a lot of headroom for growth. And we're executing really well against that.

Amir: Second, you look at some of our existing large franchises. We have a lot of confidence in what's gonna happen with Vyndaqel. Now with two and a half years of additional exclusivity gives us the opportunity to invest and to continue to grow diagnosis. We are doing a great job defending our existing patient base, as well as ensuring that it is the choice, the top choice for new patient starts. We think we have a lot of momentum on franchises like that as well. Just to complement what Alexandre was saying, if I think about new areas of growth, we talked a lot about the oncology assets already, but obviously we're very excited about what we have to bring to the market in obesity.

Speaker #7: Second, you look at some of our existing large franchises. We have a lot of confidence in what's going to happen with Venda. Now, with two and a half years of additional exclusivity, it gives us the opportunity to invest.

Aamir Malik: Second, you look at some of our existing large franchises. We have a lot of confidence in what's gonna happen with Vyndaqel. Now, with 2.5 years of additional exclusivity, gives us the opportunity to invest and to continue to grow diagnosis. We are doing a great job defending our existing patient base, as well as ensuring that it is the choice, the top choice for new patient starts. We think we have a lot of momentum on franchises like that as well. Just to complement what Alexandre was saying, if I think about new areas of growth, we talked a lot about the oncology assets already, but obviously we're very excited about what we have to bring to the market in obesity.

Speaker #7: And to continue to grow diagnosis and we are doing a great job defending our existing patient base as well as ensuring that it is the choice the top choice for new patient starts.

Speaker #7: And so we think we have a lot of momentum on franchises like that as well. And then just to complement what Alexander was saying, if I think about new areas of growth, we talked a lot about the oncology assets already.

Speaker #7: But obviously, we're very excited about what we have to bring to the market in obesity. The assets speak for themselves. But what I'm particularly excited about is the fact that we have unique capabilities as a company to win in this area.

Amir: The assets speak for themselves, but what I'm particularly excited about is the fact that we have unique capabilities as a company to win in this area, both in terms of our ability to activate consumers and patients in very different ways, as well as our legacy in this space and the fact that almost 60% of physicians who are going to write these products, we already touched today through a combination of our field forces. Those combinations are just some examples of what gives us confidence to grow in 2029.

Aamir Malik: The assets speak for themselves, but what I'm particularly excited about is the fact that we have unique capabilities as a company to win in this area, both in terms of our ability to activate consumers and patients in very different ways, as well as our legacy in this space and the fact that almost 60% of physicians who are going to write these products, we already touched today through a combination of our field forces. Those combinations are just some examples of what gives us confidence to grow in 2029.

Speaker #7: Both in terms of our ability to activate consumers and patients in very different ways, as well as our legacy in this space and the fact that almost 60% of physicians who are going to write these products, we already touched today through a combination of our well-feel courses.

Speaker #7: So those combinations are just some examples of what gives us confidence to grow in 2029 and beyond.

Speaker #5: Thank you, Amir. And thank you, everyone, for your attention. Our strong performance in the quarter reflects the impact of our continued focus and discipline execution.

Albert Bourla: Thank you, Amir. Thank you everyone for your attention. Our strong performance in the quarter reflects the impact of our continued focus and disciplined execution. We are engaging with precision to maximize the value of our commercial portfolio, and we are seeing the result in our financial performance. In R&D, we are making meaningful progress with a robust slate of critical milestones ahead in 2026 that we believe will further demonstrate the strength and breadth of our pipeline. I want to thank my Pfizer team. I believe we have the best team Pfizer ever had. They are dedicated to our purpose, continue to deliver, and embrace our commitment to creating long-term value for patients and for our shareholders. Thank you for joining the call today, and thank you for your interest in Pfizer.

Albert Bourla: Thank you, Aamir. Thank you everyone for your attention. Our strong performance in the quarter reflects the impact of our continued focus and disciplined execution. We are engaging with precision to maximize the value of our commercial portfolio, and we are seeing the result in our financial performance. In R&D, we are making meaningful progress with a robust slate of critical milestones ahead in 2026 that we believe will further demonstrate the strength and breadth of our pipeline. I want to thank my Pfizer team. I believe we have the best team Pfizer ever had. They are dedicated to our purpose, continue to deliver, and embrace our commitment to creating long-term value for patients and for our shareholders. Thank you for joining the call today, and thank you for your interest in Pfizer.

Speaker #5: We are engaging with precision to maximize the value of our commercial portfolio, and we are seeing the result in our financial performance. On our end, you are making meaningful progress with a robust slate of critical milestones ahead in 2026 that we believe will further demonstrate the strength and breadth of our pipeline.

Speaker #5: I want to thank my Pfizer team I believe we have the best team Pfizer ever had. They are dedicated to our purpose, continue to deliver and embrace our commitment to creating long-term value for patients and for our shareholders.

Speaker #5: Thank you for joining the call today. And thank you for your interest in Pfizer. We look forward to sharing further updates as we execute our priorities throughout the year.

Albert Bourla: We look forward to sharing further updates as we execute our priorities throughout the year.

Operator 3: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

Operator: Thank you. This brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

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Q1 2026 Pfizer Inc Earnings Call

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Pfizer

PFE

Earnings

Q1 2026 Pfizer Inc Earnings Call

Tuesday, May 5th, 2026 at 2:00 PM

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Pfizer

Earnings

Q1 2026 Pfizer Inc Earnings Call

PFE

Tuesday, May 5th, 2026 at 2:00 PM

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