Pfizer Inc. Q2 FY2025 earnings call

• R&D Pipeline: Progress in Elrexfio, SV, Hympavzi, C. difficile vaccine, and 3SBio deal. Elrexfio shows rapid growth and encouraging clinical data in multiple myeloma. SV has Phase III studies in non-small cell lung cancer. Hympavzi has positive Phase III data. C. difficile vaccine in Phase II. 3SBio deal brings bispecific antibody with PD-1 and VEGF targeting.
• Commercial Performance: Strength in Vyndaqel, Eliquis, Padcev, Nurtec, XTANDI, etc. Vyndaqel family has 21% Y/Y growth. Eliquis is leader in anticoagulant market. Padcev has 38% Y/Y growth. Nurtec drives strong commercial execution. XTANDI has 14% operational growth with positive trial results.
• Margin Expansion: Cost improvement initiatives, leveraging AI and automation, streamlining operations to expand margins.

Vyndaqel family: 21% year-over-year operational growth, foundation of care for ATTR cardiomyopathy patients. Eliquis: Clear leader in the anticoagulant market with robust demand. Padcev: 38% year-over-year operational growth in oncology, combination with pembrolizumab has >50% market share in first-line LA metastatic UC. Hympavzi: Positive top line data from Phase III BASIS study, once-weekly subcutaneous treatment for hemophilia. Elrexfio: Rapid growth, leading class share in new markets, median overall survival >2 years in heavily treated multiple myeloma. Sigvotatug Vedotin (SV): Phase III studies in non-small cell lung cancer, potential to change standards of care. C. difficile vaccine: Second-generation candidate in Phase II, potential to simplify dosing. 3SBio deal: Bispecific antibody SSGJ-707 targeting PD-1 and VEGF, potential to be a backbone therapy for multiple solid tumor types.

• Raised adjusted diluted EPS guidance for full year 2025 to $2.90-$3.10 per share, up from prior guidance.
• Full year 2025 revenues expected to be in the range of $61 billion to $64 billion.
• Adjusted SI&A expenses expected to be in the range of $13.1 billion to $14.1 billion, adjusted R&D to be in $10.4 billion to $11.4 billion, and adjusted effective tax rate of approximately 13%.

• Geopolitical uncertainties impacting business operations.
• Potential impact of tariffs and MFN changes on revenues.
• Competition in certain therapeutic segments affecting market share.
• Regulatory changes and their potential impact on product approvals and commercialization.

Q: Trung Huynh asked about MFN, tariffs, and CDC recommendations for COVID vaccinations.

A: Albert Bourla noted active discussions on MFN and tariffs, while David Denton mentioned underlying business strength allows absorbing impacts, and an unidentified representative discussed Comirnaty's strong quarter and expectations for the fall season.

Q: Chris Schott inquired about BD, capital allocation, and PD-1 VEGF deal.

A: David Denton explained lower leverage target due to improved cash generation, and Albert Bourla and Chris Boshoff discussed the PD-1 VEGF deal's development plan and potential impact.

Q: Alex Hammond asked about the applicability of Eliquis' DTC patient option to other products.

A: Albert Bourla stated the direct-to-consumer model is beneficial and collaborative efforts are underway.

Q: Mohit Bansal questioned the guidance and FX tailwind.

A: David Denton explained derisking COVID performance in Q3/Q4 and underlying business strength supporting guidance.

Q: Courtney Breen asked about SG&A efficiency and M&A priorities.

A: Alexandre de Germay and Aamir Malik discussed SG&A reallocation in international and U.S. markets, and Albert Bourla mentioned M&A priorities in oncology, vaccines, cardiometabolic, and IMI areas.

Q: David Risinger asked about competition from China and biotech support.

A: Albert Bourla discussed China's growing biotech presence and its impact on U.S. biopharmaceutical innovation.

Q: Kerry Holford asked about Seagen assets' growth and tax outlook.

A: David M. Denton discussed tax outlook and Albert Bourla discussed Seagen portfolio performance and growth potential.

Q: Evan Seigerman asked about Seagen assets' IRR and SV's market capture.

A: Chris Boshoff discussed Seagen assets' potential and SV's Phase III studies in non-small cell lung cancer.

Q: Carter Gould asked about policy deals and Vyndaqel growth.

A: Albert Bourla and Aamir Malik discussed policy negotiations and Vyndaqel's performance in U.S. and international markets.

Q: Asad Haider asked about policy outcomes and guidance.

A: Albert Bourla stated active discussions and modeling of scenarios but no specific outcomes disclosed.

Q: Umer Raffat asked about policy balance and balance sheet.

A: David M. Denton and Andrew Baum discussed balance sheet leverage and capital allocation priorities across various therapeutic areas.

Q: Rajesh Kumar asked about tariff impact and balance sheet leverage.

A: David M. Denton discussed leeway on leverage and capital allocation, and Albert Bourla mentioned absorption of potential impacts this year.

Q: Tim Anderson asked about IRA negotiations.

A: Albert Bourla stated ongoing negotiations with no specific disclosures on details.

Q: Steve Scala asked about MFN impact and COVID expectations.

A: David M. Denton discussed MFN impact non-disclosure and derisking COVID performance in Q3/Q4.

Q: Terence Flynn asked about pipeline updates for atirmociclib and LORBRENA.

A: Chris Boshoff discussed atirmociclib's Phase II study progress and LORBRENA's adjuvant study plans.