Pfizer Inc (PFE) Q3 2026 Earnings Call Transcript

Our excellent progress showcases our momentum in advancing our strategy.

In recent months, we achieved two key regulatory decisions, one key pivotal readout and eight key pivotal study starts, alongside strong data we presented at several recent medical congresses. We are excited by the pipeline opportunities in areas of strategic focus and commercial strength. This includes late stage programs across tumor types in oncology, including multiple myeloma, breast cancer and lung cancer, with inflammation and immunology, and of course in pneumococcal vaccines.

Chris will share more detail about our recent advancement in the recent months. Our pipeline strategy is grounded in disciplined prioritization and accelerated execution, and we are confident that we are advancing our most significant opportunities for future patient impact and growth.

Today, we are raising our guidance for full year 2026 revenue and adjusted earnings per share. This reflects our strong performance through the third quarter and confidence in our ability to execute our strategy. Along with our financial discipline and the progress we continue to make with our R&D pipeline, we believe Pfizer is well positioned to drive growth towards the end of the decade and create sustained value for patients and shareholders over the long term.

We have deployed AI in our business with the goal of improving efficiency in manufacturing and sharpening how we engage physicians and patients. In R&D, we are working to accelerate innovation with faster target validation and better molecule and biomarker selection.

The recent launch of Genesis, a new pharmacovigilance platform, shows our commitment to harnessing advanced AI and intelligent automation for global safety monitoring. This typically involves a lengthy manual process for more than 600 products in over 120 countries. Genesis takes on the administrative burden so our safety scientists can spend their time where it matters most: assessing causality, detecting safety signals and protecting patients. With that, I will turn it over to Cecile.

CFO Remarks: Third Quarter 2026 Financial Results

Cecile Guegan, Chief Financial Officer and Executive Vice President – Pfizer Inc.: Thank you, Albert, and good morning.

I am proud to speak to you today as Pfizer’s CFO. I’m looking forward to continuing to work alongside the executive leadership team and lead a world class finance organization. I am genuinely excited about what we can achieve together and I will approach this role with financial discipline and a focus on translating Pfizer’s scientific and commercial progress into durable shareholder value. I am confident in our strategy and that as a team, we can deliver durable long term value for our shareholders with rigorous capital allocation and disciplined execution.

Now, I am pleased to share our third quarter results, which demonstrate continuous commercial execution and financial discipline. Revenues from our non-COVID products delivered solid growth, while product mix, productivity and cost management supported margin expansion and enabled continuous investment across our robust pipeline. This year’s performance gives us the confidence to raise our full year 2026 revenue guidance, as well as raise and narrow our adjusted diluted EPS guidance.

Now on to the results. Third quarter 2026 revenue of $16.6 billion came in ahead of our expectations, with strong 7% operational revenue growth of our non-COVID products, driven by key brands in the US and select international markets, offset by lower revenues from our COVID-19 products.

On the bottom line, third quarter 2026 reported diluted EPS was $0.56. In addition, adjusted diluted EPS of $0.87 exceeded our expectations and includes the $0.10 charge related to the Innovent transaction. This outperformance reflects cost discipline and improved productivity across the organization, even as we increase investment towards future growth drivers and advance several Phase 3 study starts.

We saw solid revenue contributions in the quarter from Eliquis, Padcev, Vyndaqel family, Nurtec and Lorbrena, while our COVID-19 products and the Prevnar family declined in the quarter.

Our launched and acquired products contributed $3.8 billion in revenues and grew 32% operationally in the quarter, primarily driven by Padcev, up $255 million, Nurtec, up $135 million and Lorbrena, up $114 million. We continue to invest behind this group of products to mitigate LOE headwinds over the next several years. In addition, this quarter’s performance demonstrates clear progress against our objective of returning to growth towards the end of the decade.

Cost Improvement Programs and Margins

Cost discipline and continued optimization across the company, including our manufacturing footprint, remain priorities. We are making meaningful progress with our productivity initiatives and remain on track to deliver nearly all of the anticipated $7.2 billion of net savings by the end of 2026 for our ongoing cost improvement programs.

As we announced last quarter, we are initiating the next phase of these programs to deliver an anticipated additional $2.5 billion of net cost savings from 2027 through 2029. These savings support increased operating efficiency and contribute favorably to our margins. At the same time, we continue to prioritize investment in pipeline programs that we believe have the greatest potential to deliver meaningful breakthroughs for patients and create long term value for our shareholders.

Adjusted gross margin for the third quarter was 77%, primarily reflecting favorable product mix and continued cost management.

When we look at the components of adjusted operating expenses of $6.8 billion, adjusted SI&A expenses increased 2% operationally, reflecting in part an increase due to a lower favorable adjustment of US healthcare reform fees year over year, offset partially by lower and targeted marketing and promotional investments toward growth drivers and ongoing cost productivity improvements.

Adjusted R&D expenses increased 18% operationally, which includes planned investment in priority, oncology and obesity programs, including several Phase 3 study starts. And acquired in-process R&D decreased 52% operationally, primarily reflecting a $650 million charge related to the Innovent transaction this quarter, compared to $1.35 billion charge in the prior year quarter related to the 3SBio transaction.

Third quarter 2026 adjusted operating margin was 36%, reflecting effective cost management, strong non-COVID revenue performance, higher investment in the business, and I will note, was tempered by the AIPR&D charge related to the Innovent transaction. And as I mentioned earlier, third quarter adjusted diluted EPS was $0.87.

Raised Full Year 2026 Guidance

Based on our year to date performance, including continued growth across our non-COVID product and disciplined execution, we are raising our full year 2026 revenue guidance by $1.5 billion at the midpoint to a range of $62 billion to $64 billion. We are reaffirming our expectation of approximately $4 billion for the COVID products, with the majority of the cumulative revenues expected in the fourth quarter, consistent with the vaccination season.

Paxlovid utilization will continue to be influenced by infection rates and treatment demand. In addition, we now expect full year 2026 R&D expense to be in the range of $10.8 billion to $11.8 billion.

We are raising and narrowing our full year 2026 adjusted diluted EPS guidance to a range of $2.95 to $3.05. This represents an increase of $0.10 at the midpoint while absorbing the $0.10 per share impact of the Innovent transaction. We are reaffirming all other components of our financial guidance.

Our updated outlook reflects our confidence in the non-COVID product progress across our cost improvement initiative an expectation of full year adjusted gross margin in the mid-70s percent range and continued investment in our priority pipeline progress.

Capital Allocation

Turning to capital allocation. Our capital allocation priorities remain unchanged: reinvest in the business at appropriate returns, maintain and over time grow our dividend, and deliver shareholder returns while preserving flexibility for future value enhancing actions, including share repurchases.

Following the Innovent transaction, which closed in the third quarter, our current BD capacity is approximately $6 billion. In the first nine months of 2026, we invested $9.2 billion in internal and external R&D and returned $7.3 billion to shareholders through our quarterly dividend.

Our third quarter year to date 2026 operating cash flow was $8.8 billion and leverage ended the quarter at 2.6 times, slightly below our 2026 target of 2.7 times. Given the impact of upcoming LOEs, we expect leverage to remain around current levels or modestly higher during the LOE transition period. We remain focused on maintaining a strong financial position while continuing to invest in innovation and support shareholder returns.

In conclusion, I want to leave you with two key takeaways. First, operational excellence. The non-COVID product continued to perform well, growing 7% operationally. And our launched and acquired product grew 32% operationally, providing further evidence of our strong capabilities and consistent execution.

Second, financial discipline. We are improving operating efficiency while enabling increased pipeline investment in programs we offer the greatest potential for patients and shareholders. Together, this performance demonstrates that we are executing our strategy, managing the upcoming LOE transition, and strengthen the foundation for a return to growth towards the end of the decade. With that, I’ll turn it over to Chris.

R&D Pipeline Update

Chris Boshoff, Chief Scientific Officer and President, Research & Development – Pfizer Inc.: Thanks, Cecile.

Across our four therapeutic areas, we made strong progress last quarter. I’ll provide color on recent developments for some of these programs, starting with Elrexfio, our internally discovered BCMA bispecific, which has now delivered two positive Phase 3 readouts in double class exposed multiple myeloma.

Most recently, in MagnetisMM-32, Elrexfio monotherapy demonstrated a statistically significant and clinically meaningful improvement in progression free survival versus investigator’s choice of three established standard of care regimens. This is important because the choice of three standard of care regimens provides a robust representation of how CD38 refractory multiple myeloma is treated today in a patient population that is growing as anti-CD38 therapy moves in the first line setting.

And the results themselves were strong. At the time of the interim analysis, more than 75% of patients receiving Elrexfio had not experienced disease progression or death from any cause. And the estimated 18 months progression free survival rate was approximately 68%.

Safety in MagnetisMM-32 was consistent with Elrexfio’s known profile and also potentially differentiated. With infection prophylaxis measures incorporated from the start of MagnetisMM-32, rates of Grade 3 or higher infections were lower than those observed in MagnetisMM-5, Elrexfio’s first positive pivotal trial in double class exposed multiple myeloma. For context, such infection prophylaxis measures were not in place at the start of MagnetisMM-5.

These were instituted following early deaths due to infections that were concentrated in China and two other countries during the COVID wave, impacting the overall hazard ratio of MagnetisMM-5. MagnetisMM-5 data are expected at a medical meeting before year end and will provide further information on efficacy and safety.

Taken together, these positive Phase 3 results from MagnetisMM-32 and MagnetisMM-5 strengthen our confidence in moving Elrexfio into earlier lines of treatment. We are building a compelling case of fixed dose Elrexfio monotherapy from first relapse, regardless of prior CD38 exposure. And with additional pivotal studies in newly diagnosed multiple myeloma underway, Elrexfio’s eligible patient population could grow approximately fivefold pending clinical and regulatory success.

Atirmociclib in Breast Cancer

Moving next to atirmociclib, our potential first in class highly selective CDK4 inhibitor. Building on the leadership we established with Ibrance, we are advancing atirmociclib as a potential next generation backbone for first line and early HR-positive breast cancer. Our KAT6 inhibitor, prifetrastat, is being developed in later line settings.

Atirmociclib was designed in house to improve upon CDK4/6 inhibitors, the current standard of care backbone for HR-positive breast cancer. A key limitation of this class is safety and tolerability with CDK6 inhibition being a key contributor to adverse events.

We designed atirmociclib to maximize efficacy through greater CDK4 inhibition while improving tolerability by minimizing CDK6 engagement. Atirmociclib is 33 times more selective for CDK4 versus CDK6 comparing favorably versus the standard of care.

Here are two datasets fueling enthusiasm for atirmociclib. On the left are data presented at ESMO from the Phase 2 FOURLIGHT-1 study of atirmociclib plus fulvestrant in patients with HR-positive HER2-negative breast cancer. All participants had previously received a CDK4/6 inhibitor, and notably, 92% of atirmociclib participants were randomized within three months of discontinuing a CDK4/6 inhibitor.

The atirmociclib regimen reduced the risk of disease progression or death by 40% compared to investigator’s choice of fulvestrant or everolimus plus exemestane. These results in a population with highly refractory or resistant disease increase our confidence in our ongoing Phase 3 trial of atirmociclib versus investigator’s choice of CDK4/6 inhibitor in the first line setting.

On the right are data for atirmociclib’s Phase 2 study in early breast cancer. With a combination of atirmociclib plus letrozole, 88% of participants’ tumors demonstrated complete cell cycle arrest compared to only 18% versus letrozole alone.

These results support our plan to combine atirmociclib with the selective estrogen receptor degrader, giredestrant in a Phase 3 early breast cancer trial expected to initiate within the next few months. This study design has been aligned with regulators building on the expected approval for giredestrant in this setting.

This slide shows FOURLIGHT-1 safety and tolerability data alongside results from pivotal studies of the three approved CDK4/6 inhibitors plus fulvestrant. These are cross trial comparisons. Therefore, conclusions cannot be drawn. These data further suggest that high CDK4 selectivity drives improved safety and tolerability, enabling continuous dosing, excellent adherence, and potentially great efficacy.

Grade 3 or higher neutropenia was numerically lower with atirmociclib than with any of the approved agents with no Grade 4 or 5 neutropenia reported. Any grade diarrhea was lower than with abemaciclib and comparable to palbociclib and ribociclib. Dose reductions due to adverse events were 14% with atirmociclib compared to 32% to 43% with the approved agents.

Tivunatamig in Lung Cancer

Turning to tivunatamig. We are advancing an extensive program for this potentially best in class PD-1 VEGF bispecific antibody with over 1,200 patients treated globally and a consistent safety profile. This includes two ongoing Phase 3 trials with two additional Phase 3 trials expected to begin this year.

Updated results at ESMO strengthen our confidence as we expand tivunatamig development. Since CSCO 2025, confirmed response rate for the pivotal dose of tivunatamig plus doublet chemotherapy from the ongoing Phase 2 study have risen by roughly 20 percentage points in nonsquamous and squamous first line non-small cell lung cancer. They now stand at approximately 80%, exceeding those of tislelizumab plus chemotherapy in this study.

Median progression free survival was nearly 14 months for both histologies, an improvement of roughly four to five months versus the comparators. Notably, tislelizumab’s efficacy was consistent with historical Phase 3 results for the leading PD-1 antibody pembrolizumab, which supports the relevance of the control arms.

We are also encouraged by how tivunatamig efficacy and safety results compare with Phase 3 data for the PD-1 VEGF bispecific antibody, ivonescimab, while recognizing the limitations of cross trial comparisons.

Tilrekimig in Inflammation and Immunology

Now for I&I, tilrekimig, a potential first in class trispecific antibody. Tilrekimig was designed in house to simultaneously target multiple complementary drivers of type 2 inflammation, IL-4, IL-13, and TSLP. Phase 2 results in atopic dermatitis provide compelling proof of concept.

At the top monthly doses, tilrekimig treatment led to placebo adjusted response rate of about 50% for EASI-75, defined as a 75% or greater improvement in the Eczema Area and Severity Index.

While cross trial comparisons have limitations, these Phase 2 data suggest the potential for superiority over dupilumab, the current standard of care biologic. These secondary endpoints in our ongoing Phase 3 program are powered to test this hypothesis in a head to head setting.

For safety, tilrekimig demonstrated a favorable profile at subcutaneous doses up to 400 milligrams once every four weeks. The observed frequency of conjunctivitis and injection site reactions were lower than rates reported with dupilumab and comparable to placebo.

Beyond atopic dermatitis, tilrekimig offers a pipeline and a product opportunity targeting pathways that are validated by approved therapies across nine different diseases. Late stage studies are underway in severe asthma and moderate to severe COPD.

Pneumococcal Vaccine Program

Moving to our potential best in class pneumococcal conjugate vaccine program, building on Prevnar’s 25 plus year legacy of effectiveness and safety, we’re advancing next generation candidates designed for leading serotype and invasive disease coverage.

In pediatrics, PCV25 delivered strong Phase 2 results. All 20 serotypes shared with Prevnar 20 met the twofold post dose 4 IgG criterion historically used to establish non-inferiority. Since the pediatric licensure of Prevnar 20 in 2023, the FDA established an updated, more stringent, 1.5 fold non-inferiority criterion that is incorporated into our Phase 3 design.

Given the Phase 2 results and tighter confidence intervals expected with a much larger sample size in Phase 3, modeling predicts this criterion will be met for at least 22 of 25 serotypes in our pivotal study. Taken together with seroresponse data, functional OPA titers, and the totality of evidence approach to licensure.

These results provide confidence as we aim to deliver a best in class pediatric pneumococcal vaccine protecting against serotypes that collectively cause an estimated 84% of invasive disease cases in US children under five. This would represent an incremental increase of approximately 25 percentage points versus Prevnar 20. Our Phase 3 program is well underway with the Phase 3 lot to lot consistency study already fully enrolled.

In adults, PCV35 extends the enhanced serotype 3 technology we validated with PCV25 to other key serotypes with a Phase 1 start expected this year.

Upcoming Catalysts

Looking ahead, we expect a strong cadence of regulatory decisions, data readouts and pivotal study starts over the next 12 months. These include a readout from MEVPRO-1, which based on the current event rate is now expected in the first quarter of 2027.

If successful, MEVPRO-1 could support approval for mevrometostat, our in house discovered potential first in class EZH2 inhibitor for prostate cancer, expanding our franchise. With that, I’ll hand it back to Albert.

Closing Prepared Remarks

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you, Chris. And in closing, operational excellence is driving a commercial momentum across our key growth brands. And I would say importantly, with our launched and acquired products. Our capital allocation strategy, on the other hand, is designed to create long term shareholder value.

And our late stage pipeline progress, with a significant number of pivotal readouts expected near term, is strengthening our opportunity to extend our leadership in key areas and make a difference for patients.

I’m confident Pfizer is well positioned for growth towards the end of this decade and for long term shareholder value creation. We have line of sight to our aim of delivering a risk adjusted high single digit revenue CAGR from year end 2028 through year end 2033. Now we will move to Q&A, and operator, please assemble the queue.

Question-and-Answer Session

OPERATOR: Thank you. Our first question today will come from Chris Schott with JPMorgan. Your line is now open.

Chris Schott, Analyst – J.P. Morgan: Great. Thanks so much for the questions. I just had two pipeline ones. Maybe first on the trispecific tilrekimig. How are you thinking about the positioning of this one in atopic derm as we consider, I guess, first line versus second line usage as we just think about the very strong data you presented versus a very well entrenched standard of care?

And maybe just a second part of that, just talk about the timelines for the indications beyond AD that you’re pursuing?

The second question was then just pivoting over to the upcoming Phase 2a amylin and combo data that we’re going to see. Here, can you just help set some expectations about how you’re thinking about that data and then the type of titration schedule that’s being used in that study just to help us frame out what we’re going to see with that readout? Thanks so much.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: No, thank you. Chris, would you like to cover the timelines of trispecific and of course the amylin and berobenatide questions. And then maybe Alexandre, you can speak a little bit about the commercial positioning.

Chris Boshoff, Chief Scientific Officer and President, Research & Development – Pfizer Inc.: Thank you very much for the question. So as you know, we’ve now started the Phase 3 program for tilrekimig in atopic dermatitis, two studies. One of those studies include a head to head against dupilumab.

And we also started the Phase 2/3 study, a continuous design for COPD and Phase 3 studies for severe asthma with expected readouts in 2028 and 2029.

Regarding amylin GLP-1, as you’re aware, the SOLIS-1 study has now completely recruited. That is the robustly designed Phase 2b study for amylin single agent and amylin plus berobenatide in different doses and different titrations. We expect the readout for that study for efficacy the second half of 2027.

The ongoing Phase 1, Phase 2a study, we’ll give an update at end of this year, recognising that study was designed for safety and PK, clinical pharmacology, not for efficacy.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you. And then what about the positioning of the trispecifics?

Alexandre de Germay, Chief International Commercial Officer and Executive Vice President – Pfizer Inc.: Thanks for the questions. I think we all know that this is a very large category. What we have learned with our Cibinqo and overall dermatology franchise is there is a lot of patients’ profile that requires different type of therapy and we see that very much with the JAK versus the MAB and we see that there are some patients that actually move from one to the other, they drop off.

There is a lot of circulation of those patients. We are building capabilities across US and internationals and we see that we are making good progress. For instance, as you saw in this quarter, in international we reached $100 million combined our two assets in dermatology for the quarter.

So we start having a nice base and as I said, as we move into the result of the study, we will be able to actually capture some of those lapsed patients and naive patients with a very specific profile that we are defining. So first in class, strong efficacy and clearly unmet medical need in this category.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you very much. Next question please.

OPERATOR: Our next question comes from Dave Risinger with Leerink Partners. Please go ahead.

David Risinger, Analyst – Leerink Partners: Yes, thanks very much. And I wanted to say congratulations to Cecile on your new role as CFO of Pfizer and look forward to working with you.

My question is on U.S. net price in the third quarter and going forward. Could you comment on any gross to net benefits to net sales in the third quarter, from any 340B scrubbing? And discuss U.S. net price prospects looking forward in the near term? Thank you.

Cecile Guegan, Chief Financial Officer and Executive Vice President – Pfizer Inc.: Thanks very much. First, for your good wishes. So as it relates to the pricing in Q3, with the exception of, as we were expecting, the impact on Eliquis, which started in Q3 January price decreased, I would say there is not really any very material change into our gross-to-net dynamics during the third quarter. So the performance that we are seeing is, for the most part, driven by strong market performance and volume rather than dynamics around the gross-to-net.

As we are looking into the future, obviously, I’m not commenting today on 2027, but we will obviously reflect into our guidance for 2027 the various dynamics that we are seeing, being IRA with two of our products entering into the MFP in 2027 and any of the dynamics around the 340B impact and changes, including the credit rebate model implemented starting in January and also obviously some of the MFN impacts that we have following the agreement we have with the government.

But as a summary, the performance into Q3 is really a reflection of the strong execution rather than dynamics around gross to net that we don’t continue.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Very well, thank you very much. Next question, please.

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

Umer Raffat, Analyst – Evercore ISI: Hi, guys. Thanks for taking my question. Albert, there’s clearly been a lot of progress on SG&A improvements over the last couple of years, and I acknowledge that. It’s not step function, but there’s been improvement. But then, I recall Dave, before he moved on, had mentioned that majority of the total net cost savings of $7.2 billion will be delivered by the end of ’26.

So when I look now back at the Pfizer P&L, I’m seeing SG&A and R&D was about $24.5 billion back in 2022. It’s about the same in 2026 as well. And I acknowledge R&D has gone up a bit. SG&A has come back a bit, but the broader dynamics on OpEx are still broadly in that $24 billion to $25 billion camp.

And I guess, how do you think about that heading into the dividend integrity, the cost lever heading into patent expiries? Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Cecile, why don’t you take this question?

Cecile Guegan, Chief Financial Officer and Executive Vice President – Pfizer Inc.: Yes. So as I mentioned earlier, we are on track to delivering the $7.2 billion of savings that we had implemented as part of our first phase of the cost improvement programs. Those savings were in different places. One, in our manufacturing footprint for cost, two in R&D but reinvested and we are indeed increasing our R&D investment in order to support the pipeline product and program that we have in addition to obviously the acquisition that we made.

And then on the SI&A side, mostly coming from the commercial and marketing expenses as well as G&A. So what we are seeing today in our operating expenses I would then relate to just the third quarter, which had some one time dynamics that drove the SI&A up. We are still expecting, based on guidance, to see a decline in SI&A versus last year. So that’s the first piece that I would say.

Going forward, we have announced our second phase of the program with a $2.5 billion of savings, both in SG&A and in our cost of manufacturing. Those will translate into savings. We are expecting to see those translating and mitigating the margin erosion as part of the LOE transition in 2027 to 2029.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you very, very much, Cecile. Next question.

OPERATOR: We’ll go next to Akash Tewari with Jefferies. Your line is now open.

Akash Tewari, Analyst – Jefferies: Hey, thanks so much. Just a couple. I know in the spring, you had a 45-50 patient biomarker analysis on your STAT6, and you were going to make a decision on whether to go from stage one to stage two. Is there an update on that program? And really, how do you think about TARC reduction and biomarker reduction to what we’ve seen with some of the degraders?

And then on your GLP-1 amylin, I think your Phase 3, you just updated on clinical trials to 201 patients. I think it was originally planned to be closer to 400. Any color on what drove that decision with the amylin GLP-1 combo with Metsera? Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Chris, both questions goes to you.

Chris Boshoff, Chief Scientific Officer and President, Research & Development – Pfizer Inc.: Okay. Thank you very much. So the first on STAT6, potentially first in class oral STAT6 program. Thanks for the question. This is an area very important for us for the I&I portfolio. As we previously stated, we’ve adapted the program to incorporate some additional DDI studies. So we should give you a readout for the STAT6 later this year.

Regarding the amylin and berobenatide, as I stated earlier, the SOLIS-1 study is fully recruited. That study is for efficacy reading at end of next year and the Phase 1/2a study was adapted for the additional PK studies we are doing. But there’s nothing material changes to the trial.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you. Next question please.

OPERATOR: We’ll go next to Vamil Divan with Guggenheim. Your line is now open.

Vamil Divan, Analyst – Guggenheim Securities: Great. Thanks for taking my questions. Again, maybe on the pipeline. One, we noticed that you posted a new Phase 1 trial for your PI3K inhibitor on ClinicalTrials.gov last week. Heard what you said around atirmociclib and your KAT6. Curious if you can maybe just talk about how you see that assets are fitting into your broader breast cancer strategy?

And then the other question may be coming from ESMO. We saw the VOLGA data that AstraZeneca released that could suggest maybe less need for the use of fewer cycles of Padcev in patients with bladder cancer. Curious if you have any reactions to that data set or how it might impact how you think the use of Padcev may play out in the future. Thanks.

Chris Boshoff, Chief Scientific Officer and President, Research & Development – Pfizer Inc.: Yes. So firstly, the PI3K, we started a Phase 1 study on an internally discovered PIK3CA inhibitor. Reminder that gedatolisib with Celcuity is also a Pfizer discovered medicine. We have an ongoing clinical trial with Relay with their PI3K alpha pan-mutant isoform selective inhibitor called zovegalisib. And also in combination with atirmociclib.

The advantage of atirmociclib is we do not see DDIs, which has been experienced with all the other CDK4/6 inhibitors combining with the PIK3CA. So it’s a potentially significant advantage to your point up to 40% of breast cancer, ER-positive breast cancer, up to 20%, 25% of HER2-positive breast cancer will harbor a PIK3CA mutation. So it’s an important area for us.

The second question was on the VOLGA data. Just I’ll start briefly. Firstly, this reinforces the use of Padcev for muscle invasive bladder cancer. It reinforces the use of Padcev in combination with the PD-1 for muscle invasive bladder cancer.

It also reinforces the confidence we have in the study. We’ve just started EV-309, which is bladder sparing pembrolizumab in a bladder sparing setting as well as the ongoing planned Phase 3 trial with Padcev plus tivunatamig, which should also start later this year.

I just want to remind on the VOLGA study, this was a non-cisplatin eligible population. Pathological complete remission was lower than what we’ve seen with pembro plus Padcev, which is important, including slightly lower event free survival. And most importantly, this is a curative-intent setting, so we’re not clear yet which patients can be deescalated. So that’s important for physicians. Who can you actually give less therapy to? Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you very much. Next question, please.

OPERATOR: We’ll go next to Evan Seigerman with BMO Capital Markets. Your line is now open.

Evan Seigerman, Analyst – BMO Capital Markets: Thank you so much for taking my question. Cecile, so as you inherit the capital allocation framework established by your predecessor, how do you think about the marginal dollars that you can invest from here between internal R&D and other bolt on, you talked about BD capacity, deleveraging and eventually restarting buybacks. Where do you currently see the highest prospective return for shareholders?

Cecile Guegan, Chief Financial Officer and Executive Vice President – Pfizer Inc.: Yes. Thanks, Evan. So our priorities are clear, and they are not changing versus what was in place. I think we have a solid plan to get us through LOE and post LOE. So our priorities, invest for growth, maintain and grow our dividend over time, and then keep a strong balance.

So through the LOE period, our operating cash flow, financial assets and access to capital markets will give us the ability to continue to invest and maintain the dividend. As we go post LOE period, our operating cash flow grows with the levers and we have other options to continue to increase shareholder value and in that situation share repurchases become again one of the levers that we have in order to be able to continue to enhance the shareholder value.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you very much. Next question, please.

OPERATOR: We’ll go next to Steve Scala with TD Cowen. Please go ahead.

Steve Scala, Analyst – TD Cowen: Oh, thank you. Two questions. Given the pushout of MEVPRO-1, were there any changes to MEVPRO-2 and MEVPRO-3 timelines? So that’s the first question.

Second question is for Cecile. So you started at Pfizer when Warner-Lambert was being consolidated, have been through the acquisitions of Pharmacia, Wyeth, and Seagen, and many BD deals including that for Eliquis. I think it could be argued that Pfizer’s most successful products have come through deals. And in each of those years, as it is now, Pfizer viewed its pipeline as very good.

So given this history, why doesn’t Pfizer make another big deal its primary focus, or would you say that the pipeline is significantly better now than at any time in the last 25 years? Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Good question. Cecile, what do you think?

Cecile Guegan, Chief Financial Officer and Executive Vice President – Pfizer Inc.: Thank you. And just for the record, I came with Wyeth and not so I don’t have the history on all the deals, but I think Wyeth was one of the best acquisitions that we did. And I’ve seen since then a transformation of Pfizer and a strengthening definitely of our pipeline over the last 25 years.

So what I would say is, in terms of our priorities, right, so we have, as Albert reiterated earlier, we have invested very significantly over the past few years in key transactions and key acquisitions that are today already driving success. We’re talking about Padcev, we’re talking about Nurtec, and we see a lot of opportunities that still remains in the pipeline in Seagen, in Metsera. So where we have a lot to execute, both commercially on the R&D side and on the commercial side.

So really, as we at BD going forward and considering our capital allocation priorities, our focus is really on more bolt on acquisitions that are going to complement the large and rich portfolios that we have in the four therapeutic areas that we are having. So looking at BD acquisition is obviously strategically aligned, building upon our expertise, and then obviously providing the financial returns, appropriate returns that we would be expecting.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you, Cecile. Chris, do want to comment a little bit on the timelines of MEVPRO? And given the interest on the product, maybe, Aamir, also you say a few things about the potential.

Chris Boshoff, Chief Scientific Officer and President, Research & Development – Pfizer Inc.: Thank you very much. I’ll be brief. Since we last spoke about it, the targets have been updated for MEVPRO-1 and MEVPRO-2. A reminder, these are event driven studies based on when we expect events to happen. So MEVPRO-1 will now read out Q1 2027 and MEVPRO-2 Q3 2027. And as you’ve seen at ESMO, we’ve got additional data including compelling 8.9 months PFS.

Just a correction. MEVPRO-2 is actually Q4 2027, the updated in ClinicalTrials.gov. Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: And I think MEVPRO-1 you expect around February.

Chris Boshoff, Chief Scientific Officer and President, Research & Development – Pfizer Inc.: Around February, correct. This is the projections right now based on the way that events are accruing.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Aamir, why are we so excited about mevrometostat in terms of the commercial opportunity?

Aamir Malik, Chief U.S. Commercial Officer and Executive Vice President – Pfizer Inc.: I think three things are probably why we’re excited. One, I would just remind everybody that our current commercial footprint is anchored in the US alongside Astellas. Mevrometostat for us is a fully global opportunity in the US and outside the US. So that is very significant and exciting.

Second, as Chris mentioned, MEVPRO-2 and MEVPRO-3, across MEVPRO-1, 2 and 3, I think we have the potential to position mevrometostat as a multi indication franchise. That gives us lots of surface area to compete in.

And finally, if we just think of the total patient populations, we’re talking about over 50,000 in the US, close to 50,000 in the EU, four in UK, another 14,000 in Japan, and 30% of that population could be addressed even with MEVPRO-1. So there’s a significant patient population, a global opportunity, and clearly an area that we have deep commercial expertise. Those are the things that get us excited about it.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you, Aamir. And sometimes people forget that Xtandi, which is one of our very big and strong products, we basically have half of the Xtandi in the US, and that’s it. Here, we are going to have the whole US and the whole global international market. Next question, please.

OPERATOR: We’ll go next to Geoff Meacham with Citi. Please go ahead.

Geoff Meacham, Analyst – Citi: Great. Morning, everyone. Thanks so much for the question. Just had two. The first bigger picture, Albert, from a policy perspective, I know obviously hard to have certainty on, especially given today, but as you look to 2027, what are your thoughts on the potential risks of changes to MFN or perhaps greater scrutiny on the prior OUS agreements?

And the second question for Chris on berobenatide. And you guys have started a lot of studies across metabolic indications and beyond obesity, diabetes. I want to get your thoughts on expanding berobenatide as a combo strategy into inflammation or neuropsych or even oncology, for example? Obviously, the science is really evolving here on GLP-1 synergies. Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Really thank you, Geoff. On the policy perspectives, clearly, policy affects a lot our industry, and we are monitoring it very carefully. We are waiting to see what will happen today in the elections. But I think that, in any case, it looks like we will have a split government.

So I don’t think that many things can move legislation wise. I don’t expect any changes in MFN. I think the agreements are signed and are going until the end of the term of this government. And I expect that there will be a renewed interest in the Congress to investigate several things. But I don’t expect policy changes, frankly.

It’s a very big contrast vis a vis what I was telling you a year ago. In 2025, I was really scared about the implications that either tariffs or MFN could have. I think through the successful navigation of those issues, we brought the stability that it is now projected to last and has brought, I think, this confidence back to the investors to invest in industry in our sector. Now with that, I will turn it to Chris to comment on the GLP-1 and other things.

Chris Boshoff, Chief Scientific Officer and President, Research & Development – Pfizer Inc.: Yeah, I’ll just quickly start. So our goal is initially to establish berobenatide as a potentially best in class monthly subcutaneous GLP-1 for obesity and this is globally. We are starting, as you’ve seen, additional studies now for knee osteoarthritis as well as for obstructive sleep apnea with or without PAP. And we also will announce additional Phase 3 studies in the coming months.

In 2027, you’re absolutely correct, we hope to announce some additional studies looking at the backbone of our portfolio, including I&I, potential in oncology. You’re right, this is an area. And you’ll also see the acceleration of Phase 1 programs and current programs that’s pre clinically that’s highly differentiated in this space.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you. Very good. Next question please.

OPERATOR: We’ll go next to Alex Hammond with Wolfe Research. Your line is open.

Alex Hammond, Analyst – Wolfe Research: Thank you. Two from me. So as you look at Sciwind Biosciences’ GLP-1 launch in China, how are both the obesity and the diabetes markets playing out so far, And how is that shaping your thoughts on the commercial opportunity for berobenatide OUS?

And then on the Lyme disease vaccine, can you update us on the regulatory path forward following the recent submission in Europe? How are your discussions with FDA progressing, and are there any meaningful differences between the FDA and EMA? Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: I’m not sure I understood the second question.

Alex Hammond, Analyst – Wolfe Research: Lyme disease.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Lyme vaccine. Ah, the Lyme vaccine. Okay, yes. So thank you, Alex, very much. Alexandre, maybe you speak a little bit about our GLP-1 in China and what to expect from it.

Alexandre de Germay, Chief International Commercial Officer and Executive Vice President – Pfizer Inc.: That’s right. So thanks for the question. As you said, Alex, we’ve introduced ecnoglutide in China at the end of April of this year, and we are satisfied with the way we are progressing.

We’re learning a lot through the launch of ecnoglutide in China and the things that we are clearly understanding is they are very different segments within these overall chronic weight management categories with patients that are all qualifying for the definition of chronic weight management but some of them have more an aesthetic driven purpose with a very different profile of product that they will be looking at and their way of acquiring this product is actually very different than the way on the other opposite direction, which are very heavy people looking for much more efficacy, tolerability, it becomes a second point.

So clearly, what we are learning is it’s confirming our strategy that if we want to be successful in chronic weight management, you need to have a portfolio. And you need to have a portfolio also because you will need to activate all those different channels. And the cost of activations of those channels will be amortized across the portfolio. So those are very, very key confirmations of our strategy.

Now specifically to ecnoglutide, as you know, we also understood from the get go that to be successful in chronic weight management in China in particular, you need two things. Of course you need a good profile and we have a very competitive profile, but you also need to have type 2 diabetes because it’s opened up the hospital channel, but it also opened up for local regulations the e-commerce channels. I’m very happy to say that since the end of October, we actually got the approval of type 2 diabetes which opened up that channel.

Second thing, our competitors have also access to reimbursements and this is very important to compete effectively. And so I’m also very happy to report that since June we passed the NRDL committees and now we’re expecting the final review by the end of this month so that hopefully we can introduce our products into the overall hospital reimbursement system. The combination of those two things will really be the start of our penetration of the market. Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: From my perspective, it’s fascinating to see how the commercial model around the obesity is so different than anything else. And for us, reminds us really the times of the Viagra launch because there are a lot of similarities. People are willing to pay out of pocket for products that they value, irrelevant if they are reimbursed or not. That creates dramatically different size in the international markets.

The second was that because of the consumer nature of this launch, the e-commerce and the Internet as it happened with Viagra, that was the first product that was available basically on internet, plays a key role.

And of course, we are pretty much into that space already, rather than if we have already launched an obesity product, because our vaccines and Paxlovid and our, excuse me? And our migraine products, they are really having significant channels through the PfizerForAll, which is our consumer, let’s say, web port to the website.

So I think we are learning a lot right now in China after we have learned a lot in our biography. And to add another dimension, AI is changing the way that promotions are happening right now. And not only at the physician’s level, actually, even more importantly at the patient’s level.

So we are learning a lot and we are very happy that we are entering this market because I think it is cut for our capabilities. With that, I will ask Chris to comment on the Lyme disease.

Chris Boshoff, Chief Scientific Officer and President, Research & Development – Pfizer Inc.: Thank you for the question. We all know Lyme disease incidence is now, the burden of the disease is increasing globally. The EMA has validated the MAA for Pfizer and Valneva’s Lyme disease vaccine candidate. With the validation, the CHMP will now begin its assessment of the MAA. And the CHMP is expected to issue an opinion on marketing authorization 2027.

We’ve also now filed in Canada, and we continue our discussions with the FDA and should provide an update regarding this in Q4 of this year. Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Alexandre, any comments here?

Alexandre de Germay, Chief International Commercial Officer and Executive Vice President – Pfizer Inc.: Yeah, no, I think it’s very exciting opportunity just to remind you that we already have an FSME franchise in Europe and we know how to activate tick borne populations in those endemic areas because we have a sales force, we have a commercial play with pharmacies and so we are very excited with the opportunity.

The level of awareness of the population is significantly higher than what we have in FSME. So as we have built these muscles commercially, once we have the approval, we’re very much looking forward for the opportunity to commercialise this vaccine.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Yeah, and the awareness of the disease, of course, in the US, it’s skyrocketing right now because we do have an increase of severity and incidence. So we are looking forward to concluding the discussion with FDA and submitting our file. Let’s go to the next question, please.

OPERATOR: Our next question comes from Michael Yee with UBS. Please go ahead.

Michael Yee, Analyst – UBS: Great. Thanks. Maybe two quick pipeline questions for Chris. On MEVPRO, you guys continue to be pretty bullish. I know there was a formulation change to lower the Cmax and improve the tolerability. Maybe you could comment on how you feel about dropouts and the change in formulation to drive your effect?

And then tilrekimig, your trispecific, again, you’re pretty bullish on, can you just comment on neutralizing antibodies or ADAs, things that can be tricky for bispecifics and trispecifics and how you feel about that? Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Chris?

Chris Boshoff, Chief Scientific Officer and President, Research & Development – Pfizer Inc.: Thank you very much. On the first question on mevrometostat, as you pointed out, did for the Phase 3 study adapted to have a more tolerable dose with food where we decreased the Cmax but similar AUC to what we’ve seen in Phase 1. So we’re very confident in the PK data and the dose that was selected for the Phase 3 study.

Regarding tilrekimig, we have not seen functional neutralizing antibodies or functional ADAs thus far. You’re absolutely correct, for any bispecific or trispecific that’s a long term risk. But so far we haven’t seen anything impacting efficacy and in fact longer term follow-up on the studies we previously demonstrated or show us that we do not have an impact on efficacy. So, so far so good.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Good. Let’s keep it that way if you can, please. Next question, please.

OPERATOR: Our final question today comes from Asad Haider with Goldman Sachs. Your line is now open.

Asad Haider, Analyst – Goldman Sachs: Great. Thanks for taking the question, and congrats on the quarter, Cecile, and also many congrats and best of luck to you. A couple for you. First, just on 2027, appreciate the context provided earlier on price dynamics with respect to IRA and 340B, etcetera. But just any additional high level qualitative framing on other pushes and pulls next year to be aware of ahead of formal guidance? How should we be thinking about your guidance philosophy relative to Dave’s, so to speak?

And then looking at longer term, you are reiterating line of sight to high single digit revenue CAGR towards the end of the decade off of a 2028 base, as well as citing operating leverage and margin expansion given the cost realignment initiatives. But consensus numbers are not really modeling that. There does seem to be a disconnect on both revenue and the earnings lines versus your own expectations.

So as you examine Street forecasts, what are the key assumptions that you think are getting most mis-modeled in the P&L relative to your own internal expectations as you look out towards that period? Thank you.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Cecile, please make the comments on both.

Cecile Guegan, Chief Financial Officer and Executive Vice President – Pfizer Inc.: So thanks, Asad, for your question and also for your good wishes. So we’ll provide 2027 guidance around middle of December, like we did last year. So I will only for now provide high level key drivers that we are seeing in 2027.

One obviously is the LOE impact, not only in the US with Ibrance and Xtandi and some other products, but also in international where we are seeing Eliquis being added at the end of 2026. The other thing that I would say is, obviously, offsetting that is the ramp up of our launched and acquired portfolio, which again, as you have seen, is having a very strong performance and opportunity for growth.

And then obviously pricing and including MFN and IRA, which we will reflect in our guidance. And then, on our cost initiative program that will allow us to continue to, one, invest towards the growth drivers that we have on the SI&A marketing and commercial space, and then increase the productivity and labor savings, both on the commercial spend and as well on the general and administrative spend. So that’s the key trends for 2027, but again, more to come as we release guidance later in the year.

As it relates to our high single digit growth aspiration versus the Street, is if you look at where that difference is coming from, it’s not really coming from one place on one product, and so is our growth trajectory either.

So what we are seeing as a building block for our growth trajectory are obviously, one, is a continued growth of our new and acquired product, not only because the market is still growing, our penetration is still increasing, but also on top of it, we are bringing new indications onto those products in order to be able to continue to address more patients and grow our presence on the market.

The second thing is on the pipeline. So while there are some obvious products that are making a key difference in our view versus our view, obesity being one, some of the oncology products being one, what I will say is our growth trajectory doesn’t rely on one single product or one single therapeutic area.

We have a broad portfolio of products, several Phase 3 ongoing as well as upcoming catalysts over the 18 to 24 months, which should give confidence to the outside world also to see the opportunities that we are having in bringing breakthrough to patients in significant area of unmet need.

Albert Bourla, Chairman and Chief Executive Officer – Pfizer Inc.: Thank you, Cecile. I would add that me as a CEO, when I see the difference between our internal projections and the Street projections, that of course creates to me the urgency to check our assumptions to make sure that in light of different opinions from the analysts, we are correct or not.

So we have done that repeatedly. And we came to the conclusion that we tell you that we expect to have a high single digit from ’28 to ’33. And we know very well where are the discrepancies between the products. And as Cecile said, there are not only on the pipeline, which many analysts, they do not cover.

So you have the phenomenon that from 12, 13 analysts that are forming the overall performance of the year. And it’s 31. For some products, only five analysts. They have this one and the others, they don’t. This is something that is expected in pipeline.

But we see also very big discrepancies in already launched new products that there is a big difference. I will mention two as just examples that I think people need to reevaluate their assessment. One, it is regarding Nurtec, that we are already close to $2 billion this year, if you annualise it, and the Street has us almost $2.5 billion by year 2030. So I think there is a discrepancy there.

I will also mention another example of Elrexfio, where for a competing product, the Street is forecasting $5 billion and for us $600 million. We aspire to present a profile that is very similar in efficacy and better in tolerability and in side effects. Now, it remains to be proven, but I don’t think the $600 million versus $5 billion is justifiable, even with the current information.

So I think that as more information is coming for our pipeline and the results, I think as more information is coming for the performance actually of the new products and that includes new launches and acquired products, I think the Street probably will start adjusting their numbers and there will be a conversion possibly.

Closing Remarks

But with that, I think that we come to the end of our call. I want to say that I’m very proud of our performance through the third quarter and the execution. And my thanks goes to my Pfizer colleagues.

As I visit with our people, and I do that in our labs and in manufacturing sites and in markets across the world, I see a team with tremendous talent, dedication, striving for breakthroughs that change patients’ lives. We look forward to sharing additional updates about our progress. And thank you for joining our call today, and thank you for your interest in Pfizer.

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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