PFIZER INC Q3 FY2024 earnings call

• Oncology: Had a strong year with 31% YOY growth. XTANDI grew 28%, TALZENNA 77%. PADCEV-Pembrolizumab combo is top first-line treatment in U.S. for advanced bladder cancer. LORBRENA had 31% growth in thoracic cancer.
• Pipeline: Advancing next-gen ADCs, EZH2 inhibitor, atirmociclib and vepdegestrant in breast cancer, fourth-gen and fifth-gen vaccines, RSV and Lyme disease vaccine candidates, TAXICOVID and EBUSATRELVI in antivirals, ritlecitinib in vitiligo, and trispecific antibodies.
• Commercial Performance: NURTEC had 28% prescription growth. Prevnar20 achieved 83% pediatric and 97% adult market share. ABRYSVO had over 50% market share in U.S. sales, clinic, and retailers. PAXLOVID saw better-than-expected growth. VYNDAQEL family up 63%, CIBINQO up 74%, Litfulo launched for severe alopecia areata.
• Cost Reduction: Targeting $4B in net cost savings by year-end, with manufacturing optimization program aiming for $1.5B savings by 2027.

Total company revenues for the third quarter of 2024 were $17.7 billion, representing 32% operational growth. COVID-19 products contributed significantly, with PAXLOVID generating $2.7 billion in revenue (including $442 million for the U.S. Government Strategic National Stockpile) and COMIRNATY contributing $1.4 billion. Non-COVID products had revenues of $13.6 billion, showing 14% operational year-over-year growth. Oncology delivered 31% year-over-year performance growth, with XTANDI up 28% and TALZENNA up 77%. Prevnar20 achieved 83% market share in pediatric and 97% in adults. ABRYSVO had over 50% market share of sales, retailers, and clinics out of wholesalers in the U.S., and PAXLOVID saw better-than-expected growth during the quarter.

Raised full-year 2024 revenue guidance to $61B-$64B, adjusted diluted EPS to $2.75-$2.95. COVID-19 product revenues expected at $10.5B ($5B COMIRNATY, $5.5B PAXLOVID). Expect gross margins in mid-70s for full year. Aim to delever balance sheet to a gross leverage target of 3.25x.

Market uncertainties affecting revenue projections. Competition in biopharma and vaccine markets. Regulatory challenges for new product approvals. Impact of activist investor perspectives on capital deployment.

Q: Chris Shibutani from Goldman Sachs asked about the obesity pipeline and strategy.

A: Albert Bourla and Mikael Dolsten discussed danuglipron, GIP antagonist, and the approach to oral vs injectable in obesity.

Q: Kripa Devarakonda from Truist asked about cachexia program and registrational trial.

A: Albert Bourla and Mikael Dolsten talked about endpoints and market opportunity.

Q: Umer Raffat from Evercore asked about activist engagement and Seagen pipeline.

A: Albert Bourla and Chris Boshoff discussed Seagen integration and pipeline progress.