Pfizer : Fourth Quarter 2022 Press Release

PFIZER REPORTS RECORD FULL-YEAR 2022 RESULTS AND

PROVIDES FULL-YEAR 2023 FINANCIAL GUIDANCE

• Full-Year2022 Revenues of $100.3 Billion, An All-Time High for Pfizer, Reflecting 30% Operational Growth
• • Excluding Contributions from Paxlovid and Comirnaty(1), Revenues Grew 2% Operationally
• Strong Fourth-Quarter 2022 Revenues of $24.3 Billion, Reflecting 13% Operational Growth
• • Excluding Contributions from Paxlovid and Comirnaty(1), Revenues Grew 5% Operationally
• Full-Year2022 Reported Diluted EPS(2) of $5.47, Up 42% Year-Over-Year, and Adjusted Diluted EPS(3) of $6.58, Up 62% Year-Over-Year, Both of Which Represent All-Time Highs for Pfizer
• Fourth-Quarter2022 Reported Diluted EPS(2) of $0.87, Up 48% Year-Over-Year, and Adjusted Diluted EPS(3) of $1.14, Up 45% Year-Over-Year
• • Includes a $0.32 Benefit from Lower Acquired IPR&D Expenses Compared to Fourth-Quarter 2021
• Provides Full-Year 2023 Revenue Guidance(4) of $67.0 to $71.0 Billion and Adjusted Diluted EPS(3) Guidance of $3.25 to $3.45
• • Full-Year2023 Revenues Excluding COVID-19 Products Expected to Grow 7% to 9% Operationally Compared to Full-Year 2022
  • Full-Year2023 Revenue Guidance for Comirnaty(1) of ~$13.5 Billion and Paxlovid of ~$8 Billion
  • Revenues from COVID-19 Products Expected to Grow in 2024 After Reaching a Low Point in 2023 Due to Significant Government Supply on Hand to Start the Year
  • Company Plans to Make Significant Incremental Investments in 2023 to Support Launch Products and R&D Projects that are Expected to Drive its Long-Term Growth Ambitions
• Continues to Make Progress on Pfizer's Unprecedented Number of Anticipated Launches of New Products and Indications, Including Recent Regulatory Filing Acceptances for Prevnar 20 Pediatric, its RSV Vaccine for Older Adults, Etrasimod, and its Pentavalent Meningococcal Vaccine

NEW YORK, NY, Tuesday, January 31, 2023 - Pfizer Inc. (NYSE: PFE) reported exceptional financial results for fourth-quarter and full-year 2022 and provided 2023 financial guidance(4).

The fourth-quarter 2022 earnings presentation and accompanying prepared remarks from management as well as the quarterly update to Pfizer's R&D pipeline can be found at www.pfizer.com.

EXECUTIVE COMMENTARY

Dr. Albert Bourla, Chairman and Chief Executive Officer, stated: "2022 was a record-breaking year for Pfizer, not only in terms of revenue and earnings per share, which were the highest in our long history, but more importantly, in terms of the percentage of patients who have a positive perception of Pfizer and the work we do. As proud as we are about what we have accomplished, our focus is always on what is next. As we turn to 2023, we expect to once again set records, with potentially the largest number of new product and indication launches that we've ever

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had in such a short period of time. We believe that the combination of these expected near-term launches, additional pipeline products that could potentially come to market in the medium-term, and anticipated contributions from business development, has the potential to set the company up for continued robust growth through the rest of this decade and beyond."

David Denton, Chief Financial Officer and Executive Vice President, stated: "I am very pleased with our fourth- quarter performance, which was highlighted by strong operational growth from Paxlovid, Prevnar 20, Comirnaty, Vyndaqel and Eliquis, as well as the inclusion of Nurtec ODT/Vydura and Oxbryta. For the full-year, we achieved revenues of over $100 billion, including 10 medicines or vaccines that generated revenues of more than $1 billion each, and all of this was accomplished despite operating in an environment in which foreign exchange reduced our revenues by 7%. Looking forward to 2023, we expect strong topline growth of 7% to 9% excluding our COVID-19 products and anticipated foreign exchange impacts. We are also increasing our investments behind our launch products and pipeline in order to help realize our growth goals for 2023 and beyond."

Results for the fourth-quarter and full-year 2022 and 2021(5) are summarized below.

OVERALL RESULTS

($ in millions, except		Fourth-Quarter
per share amounts)
	2022	2021	Change
Revenues	$ 24,290	$ 23,838	2%
Reported Net Income(2)	4,995	3,393	47%
Reported Diluted EPS(2)	0.87	0.59	48%
Adjusted Income(3)	6,551	4,543	44%
Adjusted Diluted EPS(3)	1.14	0.79	45%

Full-Year

2022	2021	Change
$ 100,330	$ 81,288	23%
31,372	21,979	43%
5.47	3.85	42%
37,717	23,196	63%
6.58	4.06	62%

REVENUES

($ in millions)		Fourth-Quarter
	2022	2021	% Change
	Total	Oper.
Global Biopharmaceuticals	$ 23,922	$ 23,456	2%	13%
Business (Biopharma)(6)
Primary Care(6)	17,348	16,225	7%	20%
Specialty Care(6)	3,566	3,989	(11%)	(3%)
Oncology(6)	3,007	3,242	(7%)	(3%)
Pfizer CentreOne	$ 368	$ 382	(4%)	1%
TOTAL REVENUES	$ 24,290	$ 23,838	2%	13%

Full-Year

2022	2021	% Change
Total	Oper.
$ 98,988	$ 79,557	24%	31%
73,023	52,029	40%	49%
13,833	15,194	(9%)	(4%)
12,132	12,333	(2%)	2%
$ 1,342	$ 1,731	(22%)	(19%)
$ 100,330	$ 81,288	23%	30%

Beginning in the first quarter of 2022, Pfizer implemented changes to its Adjusted(3) financial measures with respect to acquired in-process research and development (IPR&D) costs and amortization of intangibles. More

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information about these changes and their impact on the periods presented can be found in the Non-GAAPFinancial Measure: Adjusted Income section of this press release.

Beginning in the third quarter of 2022, Pfizer has made several organizational changes to further transform its operations to better leverage its expertise in certain areas and in anticipation of potential future new product or indication launches. These changes include establishing a new commercial structure within Biopharma focused on three broad customer groups (primary care, specialty care and oncology)(6), optimizing our end-to-end R&D operations and further prioritizing our internal R&D portfolio, as well as realigning certain enabling and platform functions across the organization to ensure alignment with this new operating structure.

Prior period amounts have been revised to conform to the current period presentation for all changes discussed above.

Business development activities(7) completed in 2021 and 2022(5) impacted financial results in the periods presented. Some amounts in this press release may not add due to rounding. All percentages have been calculated using unrounded amounts. References to operational variances pertain to period-over-period changes that exclude the impact of foreign exchange rates(8).

2023 FINANCIAL GUIDANCE(4)

Pfizer's 2023 financial guidance is presented below. This guidance includes management's expectations for contributions from the entire company, including Comirnaty(1) and Paxlovid.

	2022 Actual Results	2023 Financial Guidance
Revenues	$100.3 billion	$67.0 to $71.0 billion
Operational(8) Growth/(Decline) vs. Prior Year	30%	(33%) to (29%)
Growth/(Decline) vs. Prior Year	23%	(33%) to (29%)
Adjusted(3) Diluted EPS	$6.58	$3.25 to $3.45
Operational(8) Growth/(Decline) vs. Prior Year	71%	(50%) to (47%)
Growth/(Decline) vs. Prior Year	62%	(51%) to (48%)

The midpoint of the guidance range for revenues reflects a 31% operational decrease compared to 2022 revenues. Company revenues are anticipated to be lower in 2023 than in 2022 due entirely to expected revenue declines for Pfizer's COVID-19 products.

Excluding COVID-19 products, the Company continues to expect 7% to 9% operational revenue growth in 2023.

Revenue guidance for Pfizer's COVID-19 products is as follows:

• Comirnaty(1) revenues of approximately $13.5 billion, down 64% from actual 2022 results.

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• Paxlovid revenues of approximately $8 billion, down 58% from actual 2022 results.
• In contrast to previous years, guidance for both products is no longer based primarily on expected deliveries under existing signed or committed supply contracts, but now also includes, among other things, anticipated sales through traditional commercial markets in the U.S. in the second half of 2023.

The midpoint of the guidance range for Adjusted(3) diluted EPS reflects a 49% operational decrease compared to 2022, primarily driven by anticipated lower revenues from COVID-19 products, higher spending to support anticipated near-term launches and greater investments in certain late-stage pipeline projects.

Financial guidance for Adjusted diluted EPS(3) is calculated using approximately 5.75 billion weighted average shares outstanding, and assumes no share repurchases in 2023.

Other components of Pfizer's 2023 financial guidance are presented below.

Adjusted(3)	Cost of Sales as a Percentage of Revenues	28.0% to 30.0%
Adjusted(3)	SI&A Expenses	$13.8 to $14.8 billion
Adjusted(3)	R&D Expenses	$12.4 to $13.4 billion
Acquired IPR&D Expenses(4)	Approximately $0.1 billion
Adjusted(3)	Other (Income)/Deductions	Approximately $1.5 billion of income
Effective Tax Rate on Adjusted(3) Income	Approximately 15.0%

Pfizer's 2023 financial guidance is based on estimates and assumptions which are subject to significant uncertainties, particularly with regard to the anticipated performance of Comirnaty(1) and Paxlovid, for which patient demand could be significantly impacted by the infectiousness and severity of the predominant strains of the SARS-CoV-2 virus during 2023.

Key assumptions incorporated within the guidance follow.

Key Assumptions for 2023 Guidance		Commentary
Operational revenue growth compared to 2022	7% to 9%	Growth expected to be split among each of three
excluding COVID-19 products	categories: launch, acquired and in-line products
Incremental SI&A spend to support anticipated		Investments to support short- and long-term growth
new launches, acquired assets and commercial	~$1.3 billion
aspirations
launch of COVID-19 products
Incremental R&D spend to support high-value	~$1.5 billion	Includes, among others: GLP-1, elranatamab,
pipeline programs and acquired assets	respiratory combination vaccines

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Comirnaty - 2023 Guidance Assumptions		Commentary
Estimated proportion of U.S. population that	~24%	Compared to ~31%† in 2022; Decrease due to
receives a vaccine	fewer primary vaccinations and lower compliance
Estimated number of doses per vaccinated person	~1.3 doses	Compared to ~1.4 doses† in 2022; Decrease due to
per year, on average	fewer primary vaccinations
Estimated Comirnaty market share - U.S.	~64%	Consistent with share achieved with most recent
bivalent booster in 2022†
Estimated total demand for Comirnaty doses -	~65 million	Compared to ~92 million doses† in 2022
U.S. (includes use of existing government supply)	doses
Assumed timing for delivery of the contracted	Re-phased over	Negotiations on re-phasing of delivery timelines
multiple years
doses of Comirnaty to the European Commission	are ongoing
(not all in 2023)

Paxlovid - 2023 Guidance Assumptions		Commentary
Estimated number of total reported symptomatic		Compared to ~110 million† in 2022; Increase due
~112 million	to expected waning of population immune
infections - global*, excluding China
	protection due to reduced vaccination rates
Estimated proportion of symptomatic COVID-19	~17%	Compared to ~12%† in 2022 (partial year only);
patients treated with an oral antiviral treatment -	Increase due to greater awareness/education and
global*, excluding China		full-year implementation
Estimated Paxlovid share of oral antiviral market -	~90%	Consistent with share achieved in 2022†
global*, excluding China
Estimated total demand for Paxlovid - global*,		Compared to ~12 million courses† in 2022 (partial
~17 million	year only); Increase due to broad product
excluding China (includes use of existing
courses	availability, greater awareness/education and full-
government supply)
	year implementation
Paxlovid sales to China	Assumes no sales	Temporary National Reimbursement Drug List
after April 1, 2023	currently set to end on April 1, 2023

General - 2023 Guidance Assumption		Commentary
Estimated timing for transitioning Comirnaty and	Second half of	Assumes prior absorption of existing government
Paxlovid to commercial market in the U.S.	2023	supply

* Only includes markets where Paxlovid is available, and only includes individuals age 12+/18+ where authorized/approved in accordance with local labeling.

† Actual 2022 market data is derived from a combination of public data sources and internal market research.

CAPITAL ALLOCATION

During full-year 2022, Pfizer deployed its capital in a variety of ways, which primarily include the following two broad categories:

• Reinvesting capital into initiatives intended to enhance the future growth prospects of the company, including:
  ▪ $11.4 billion invested in internal research and development projects, and

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