Upload
terrybear11
View
672
Download
4
Embed Size (px)
DESCRIPTION
Citation preview
Asia Investor Meeting
30 November 2007J W Marriott
Valid as of November 30, 2007
IntroductionPfizer Overview
Amal NajSVP, WW Investor Development & Strategy
Asia Investor Meeting
Valid as of November 30, 2007
3
Forward-Looking Statement and Non-GAAP Financial Information
Our discussions during this meeting will include forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ are discussed in Pfizer’s 2006 Annual Report on Form 10-K and in our reports on Form 10-Q and Form 8-K.
Also, the discussions during this meeting will include certain financial measures that were not prepared in accordance with generally accepted accounting principles. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in Pfizer’s Current Report on Form 8-K dated October 18, 2007 and Quarterly Report on Form 10-Q dated November 5, 2007.
These reports are available on our website at www.pfizer.com in the "Investors—SEC Filings" section.
Our discussions during this meeting will include forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements. The factors that could cause actual results to differ are discussed in Pfizer’s 2006 Annual Report on Form 10-K and in our reports on Form 10-Q and Form 8-K.
Also, the discussions during this meeting will include certain financial measures that were not prepared in accordance with generally accepted accounting principles. Reconciliations of those non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in Pfizer’s Current Report on Form 8-K dated October 18, 2007 and Quarterly Report on Form 10-Q dated November 5, 2007.
These reports are available on our website at www.pfizer.com in the "Investors—SEC Filings" section.
Valid as of November 30, 2007
4
Welcome to Pfizer
We Are the WorldWe Are the World’’s Leading Healthcare Company with:s Leading Healthcare Company with:
A 157-year history originating in Brooklyn, NY
Approximately $48 billion in annual sales in over 150 countries in 2006
About 90,000 colleagues worldwide
Serves over 38 million patients worldwide
The largest privately funded biomedical R&D organization –$7.6 billion in 2006
A 157-year history originating in Brooklyn, NY
Approximately $48 billion in annual sales in over 150 countries in 2006
About 90,000 colleagues worldwide
Serves over 38 million patients worldwide
The largest privately funded biomedical R&D organization –$7.6 billion in 2006
Valid as of November 30, 2007
5
AriceptCabaserDilantinGeodon/ZeldoxLyricaNeurontinRelpaxXanax/Xanax XRZoloft
AriceptCabaserDilantinGeodon/ZeldoxLyricaNeurontinRelpaxXanax/Xanax XRZoloft
DiflucanSelzentry/CelsentriSulperazonUnasynVfendViraceptZithromax/ZmaxZyvoxZyrtec/Zyrtec D
DiflucanSelzentry/CelsentriSulperazonUnasynVfendViraceptZithromax/ZmaxZyvoxZyrtec/Zyrtec D
GenotropinSomavertGenotropinSomavert
XalatanMacugenXalatanMacugen
EndocrineEndocrine
OncologyOncology
Infectious & Respiratory Disease
Infectious & Respiratory Disease
Cardiovascular/Metabolic
Cardiovascular/Metabolic
OphthalmologyOphthalmology
2007 Key Pharmaceutical Products by Therapeutic Area
Central Nervous System
Central Nervous System
Arthritis & PainArthritis & Pain
UrologyUrology
AromasinCamptosarEllence/PharmorubicinSutent
AromasinCamptosarEllence/PharmorubicinSutent
Accupril/AccureticCaduetCardura/Cardura XL Chantix/ChampixGlucotrol/Glucotrol XLInspraLipitorNorvasc/IstinProcardia/Procardia XLTikosyn
Accupril/AccureticCaduetCardura/Cardura XL Chantix/ChampixGlucotrol/Glucotrol XLInspraLipitorNorvasc/IstinProcardia/Procardia XLTikosyn
Detrol/Detrol LAViagraDetrol/Detrol LAViagra
Celebrex/CelebraCelebrex/CelebraValid as of November 30, 2007
6
Recently Launched Products
Launched in the U.S. since 2005 Valid as of November 30, 2007
7
Pharmaceutical Portfolio By 2006 Sales
$200M+
$500M+
$1B+
$12B+
$2B+
CARDURACARDURA
Source: Pfizer Inc. 2006 Pfizer Annual Report Valid as of November 30, 2007
8
HorsesHorses
CatsDogsCatsDogs
Dairy CattleBeef CattleSwine
Dairy CattleBeef CattleSwine
Pfizer Animal HealthPfizer Animal Health
Not Just Pharmaceuticals…
Valid as of November 30, 2007
9
Industry and Pfizer Are Facing Many Challenges
Unprecedented Patent Expirations
Generic Competition
Pricing Pressures
Fewer New Drug Approvals by the FDA
Research and Development Productivity
Unprecedented Patent Expirations
Generic Competition
Pricing Pressures
Fewer New Drug Approvals by the FDA
Research and Development Productivity
Valid as of November 30, 2007
10
Immediate Priorities to Changewith the Industry
Maximize Our Near and Long-Term Revenues
Establish a Lower and More Flexible Cost Base
Create Smaller, More Focused and More Accountable Operating Areas
Engage More Productively with Customers, Patients, Physicians and Other Collaborators
Make Pfizer a Great Place to Work
Maximize Our Near and Long-Term Revenues
Establish a Lower and More Flexible Cost Base
Create Smaller, More Focused and More Accountable Operating Areas
Engage More Productively with Customers, Patients, Physicians and Other Collaborators
Make Pfizer a Great Place to Work
Valid as of November 30, 2007
11
TSRTSR
Focus on Total Shareholder Return
CostManagement
CostManagement
Revenue Growth Strategy
Revenue Growth Strategy
CultureCulture
Capital Allocation Strategy
Capital Allocation Strategy
Valid as of November 30, 2007
12
$0.06 $0.06$0.08
$0.09$0.11
$0.13$0.15
$0.17$0.19
$0.24
$0.29
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007
(Quarterly Dividend per Share)(Quarterly Dividend per Share)
Dividend Growth
Strong Operating Cash Flow Has Supported Dividend Growth
18% CAGR Over Past Ten Years
40 Consecutive Years of Dividend Increases
21% Increase in 2007 Dividend
Strong Dividend Yield
Strong Operating Cash Flow Has Supported Dividend Growth
18% CAGR Over Past Ten Years
40 Consecutive Years of Dividend Increases
21% Increase in 2007 Dividend
Strong Dividend Yield
Amounts reflect stock splits in 1997 and 1999 Valid as of November 30, 2007
13
Financial Highlights ($ Millions, Except Per-Share Amounts)($ Millions, Except Per-Share Amounts)
Results Impacted by Loss of US Exclusivity for Results Impacted by Loss of US Exclusivity for 2 Key Products and Charges Related to Exubera2 Key Products and Charges Related to Exubera
1 Adjusted Income and its components and Adjusted Diluted EPS are defined as Reported Net Income and its components and Reported Diluted EPS, excluding Purchase Accounting Adjustments, Acquisition-Related Costs, Discontinued Operations, and Certain Significant Items.
3%1.63 1.68 7%0.54 0.58 Adjusted Diluted EPS1
(2%)11,935 11,711 1%3,922 3,963 Adjusted Income1
(42%)1.35 0.78 (76%)0.46 0.11 Reported Diluted EPS
(45%)9,888 5,420 (77%)3,362 761 Reported Net Income
(1%)$35,768 $35,548 (2%)$12,280 $11,990 Reported Revenues
ChangeChange2006200620072007ChangeChange2006200620072007
Nine Months (YTD)Nine Months (YTD)Third QuarterThird Quarter
Valid as of November 30, 2007
14
2007 Financial Guidance
3% to 5% Decline From 2006Lipitor RevenuesLipitor Revenues
$12.0 to $13.0 BillionCash Flows from OperationsCash Flows from Operations
22.0%Effective Tax RateEffective Tax Rate44
$2.10 to $2.15Adjusted Diluted EPSAdjusted Diluted EPS11
$1.01 to $1.10Reported Diluted EPSReported Diluted EPS
Approximately $7.5 BillionAdjusted R&D ExpensesAdjusted R&D Expenses11
Decrease of approx. $600 Million versus 2006 on a constant currency basis3 to approx. $15.1 Billion
Adjusted SI&A ExpensesAdjusted SI&A Expenses11
Approximately 15.5%Adjusted Cost of SalesAdjusted Cost of Sales1,1, 22
$47.5 to $48.0 BillionRevenuesRevenues
1 See Slide 13 for definition. 2 As a Percentage of Revenues3 At 2006 Exchange Rates 4 On Adjusted Income1 Valid as of November 30, 2007
15
2008 Financial Guidance
1 See Slide 13 for definition. 2 At 2006 Exchange Rates 3 On Adjusted Income1
4 Represents primarily the total of Adjusted Cost of Sales1, Adjusted SI&A expenses1, and Adjusted R&D expenses1
$18.0 to $19.0 BillionCash Flows from OperationsCash Flows from Operations
22.0% to 22.5%Effective Tax RateEffective Tax Rate33
$2.31 to $2.45Adjusted Diluted EPSAdjusted Diluted EPS11
$1.75 to $1.93Reported Diluted EPSReported Diluted EPS
Reduction of at least $1.5 to $2.0 Billion from 2006 on a constant currency basis2
Adjusted Total CostsAdjusted Total Costs44
$46.5 to $48.5 BillionRevenuesRevenues
Valid as of November 30, 2007
16
Asian Countries Will Dominate theGlobal Economy in the Future
Asia forecast to have 3 of 5 largest global economies by 20171
Asia pharma market to reach ~$200 Billion by 20172
~2.5 Billion lower-middle income patients currently underserved in Asia3
Asia forecast to have 3 of 5 largest global economies by 20171
Asia pharma market to reach ~$200 Billion by 20172
~2.5 Billion lower-middle income patients currently underserved in Asia3
1 Nominal GDP at market exchange rates, Economist Intelligence Unit 2 IMS Prognosis 3 Economist Intelligence Unit; Euromonitor; S&P DRI; U.S. Department of Labor
India12Russia11Brazil10Spain9
Canada8Italy7
France6UK5
China4Germany3
Japan2US1
20062006GDP RankGDP Rank11
BrazilItaly
RussiaFrance
UKIndia
GermanyJapanChina
US20172017
Valid as of November 30, 2007
17
Pfizer Well Positioned &Investing for Growth in Asia
Strategic Highlights include:● 2005: Opened Shanghai Research Center in China
● 2005–2007: Expanded clinical research activities with nearly 80 global studies ongoing & many more planned in all phases
● 2007: – Announced $300 million investment over next 5 years in South
Korea R&D to develop drugs & medical technology alongside local research centers
– Agreement reached to co-market with Novartis hypertension combination therapy Exforge in South Korea
– Completed construction of first trigeneration power plant in Singapore to provide an environmental-friendly energy source for manufacturing processes
Strategic Highlights include:● 2005: Opened Shanghai Research Center in China
● 2005–2007: Expanded clinical research activities with nearly 80 global studies ongoing & many more planned in all phases
● 2007: – Announced $300 million investment over next 5 years in South
Korea R&D to develop drugs & medical technology alongside local research centers
– Agreement reached to co-market with Novartis hypertension combination therapy Exforge in South Korea
– Completed construction of first trigeneration power plant in Singapore to provide an environmental-friendly energy source for manufacturing processes
Pfizer Ranked #1 in Asia Pharma Market Sales Pfizer Ranked #1 in Asia Pharma Market Sales for the 12 Month Period Ended 6/2007for the 12 Month Period Ended 6/2007(1) (1)
(1) IMS Valid as of November 30, 2007
Martin MackayPresident,
Pfizer Global Research & Development
November 30, 2007
Pfizer Research & Development
Asia Investor Meeting
Valid as of November 30, 2007
19
R&D Five Point Plan
Deliver the Phase II and Phase III Portfolio
Prioritize our Portfolio to Deliver the Most Value
Top-Tier Biotherapeutics Company
Raise the Bar on Productivity
Pursue Science Outside Our Walls
Deliver the Phase II and Phase III Portfolio
Prioritize our Portfolio to Deliver the Most Value
Top-Tier Biotherapeutics Company
Raise the Bar on Productivity
Pursue Science Outside Our Walls
Valid as of November 30, 2007
20
R&D Footprint
CambridgeCambridgeTokyoTokyo
ShanghaiShanghaiNew YorkNew York
SingaporeSingaporeSt. LouisSt. Louis
La JollaLa Jolla
Groton/New LondonGroton/New London
SandwichSandwich
Biotherapeutic & Bioinnovation Center
San Francisco
Biotherapeutic & Bioinnovation Center
San Francisco
Valid as of November 30, 2007
21
R&D Therapeutic Areas
GERDLiver FibrosisIBD
GERDLiver FibrosisIBD
GastrointestinalIndications
GastrointestinalIndications
Infectious DiseaseInfectious Disease
Bacterial InfectionsFungal InfectionsHCVHIVMalariaSkin & Skin Structure Infections
Bacterial InfectionsFungal InfectionsHCVHIVMalariaSkin & Skin Structure Infections
OncologyOncology
Breast CancerColorectal CancerMelanomaLung CancerPancreatic CancerThyroid NeoplasmOther Cancers
Breast CancerColorectal CancerMelanomaLung CancerPancreatic CancerThyroid NeoplasmOther Cancers
OphthalmologyOphthalmology
Age-Related Macular DegenerationDiabetic Macular EdemaGlaucoma
Age-Related Macular DegenerationDiabetic Macular EdemaGlaucoma
InflammationInflammation
OsteoarthritisRheumatoid ArthritisTransplant Rejection
OsteoarthritisRheumatoid ArthritisTransplant Rejection
Alzheimer’s DiseaseDepressionEpilepsyGeneral Anxiety DisorderInsomniaBipolar Disorder, Manic Depressive IllnessPanic DisorderSchizophreniaSmoking Cessation
Alzheimer’s DiseaseDepressionEpilepsyGeneral Anxiety DisorderInsomniaBipolar Disorder, Manic Depressive IllnessPanic DisorderSchizophreniaSmoking Cessation
NeuroscienceNeuroscience
AsthmaCOPDAsthmaCOPD
Allergy/Respiratory
Allergy/Respiratory
Sexual HealthHot FlashesLower Urinary Track SymptomsIncontinenceOveractive BladderStress IncontinenceMixed Incontinence
Sexual HealthHot FlashesLower Urinary Track SymptomsIncontinenceOveractive BladderStress IncontinenceMixed Incontinence
Genitourinary/ Sexual Health
Genitourinary/ Sexual Health
Cardiovascular/Metabolic DiseaseCardiovascular/
Metabolic Disease
AtherosclerosisThrombosisBone HealingDiabetesHypertensionObesityOsteoporosisShort Stature/Growth
AtherosclerosisThrombosisBone HealingDiabetesHypertensionObesityOsteoporosisShort Stature/Growth
DermatologyDermatology
AlopeciaWrinklesOily skin/AcneSkin Improvement
AlopeciaWrinklesOily skin/AcneSkin Improvement
Acute PainChronic PainFibromyalgiaNeuropathic PainOsteoarthritic Pain
Acute PainChronic PainFibromyalgiaNeuropathic PainOsteoarthritic Pain
PainPain
Valid as of November 30, 2007
22
Global Reach & Unprecedented Scale
~400 projects in Discovery Research
~200 Development projects
~100 distinct new molecular entities
Breadth and depth of pipeline across several Therapeutic Areas
12,000 R&D colleagues around the world
2006 R&D spend of $7.6B was the largest in the industry
~400 projects in Discovery Research
~200 Development projects
~100 distinct new molecular entities
Breadth and depth of pipeline across several Therapeutic Areas
12,000 R&D colleagues around the world
2006 R&D spend of $7.6B was the largest in the industry
Valid as of November 30, 2007
23
Expanding the ScopeA Leader in Innovation
*Currently under development
TherapyTherapyDiseaseDiseaseMechanismMechanism
OncologyTyrosine Kinase Inhibition
HIV/AIDSCCR-5 Antagonism
Transplant Rejection, Rheumatoid ArthritisJanus Kinase 3 Inhibition
Smoking CessationNicotine Partial Agonism
Epilepsy, Neuropathic Pain, Anxiety, Sleep Disorders, Fibromyalgia
Alpha 2 Delta Blockade
Erectile Dysfunction,Pulmonary HypertensionPDE-5 Inhibition
Pain & InflammationSelective COX-2 Inhibition
CP-690,550*
Valid as of November 30, 2007
24
Oncology Leader
Phase 1Phase 1
Phase 3Phase 3
Phase 2Phase 2
PreclinicalPreclinical
MarketMarket
Angiogenesis InhibitorsAngiogenesis InhibitorsSignal Transduction InhibitorsSignal Transduction Inhibitors
Novel Cytotoxic AgentNovel Cytotoxic Agent
Signal Transduction InhibitorsSignal Transduction Inhibitors
Irreversible Pan-HER InhibitorIrreversible Pan-HER Inhibitor
Angiogenesis InhibitorsAngiogenesis Inhibitors
CD40 mAbCD40 mAbChk1 InhibitorChk1 InhibitorC-Met InhibitorC-Met Inhibitor
PARP InhibitorPARP InhibitorMulti-RTK InhibitorMulti-RTK Inhibitor
Anti-IGF-1R mAbAnti-IGF-1R mAb
Anti - CTLA4 mAbAnti - CTLA4 mAb
VEGFR InhibitorVEGFR InhibitorMTK InhibitorMTK Inhibitor
Discovery: >30 Individual Targets Undergoing InvestigationDiscovery: >30 Individual Targets Undergoing Investigation
CDK4 InhibitorCDK4 Inhibitor
TLR-9TLR-9
Valid as of November 30, 2007
25
SutentSutent
AxitinibAxitinib
CPCP--675206675206
NSCLC, Breast, and ColorectalNSCLC, Breast, and Colorectal
Thyroid and Pancreatic CancerThyroid and Pancreatic Cancer
MelanomaMelanoma
Multiple Tyrosine Kinase InhibitorMultiple Tyrosine Kinase Inhibitor
VEGFR Tyrosine Kinase InhibitorVEGFR Tyrosine Kinase Inhibitor
CTLA4 Receptor AntagonistCTLA4 Receptor Antagonist
Phase 3 ProgramsBuilding Momentum in Oncology
CompoundCompound IndicationsIndications MechanismMechanism
Valid as of November 30, 2007
26
Examples of Our Rich Portfolio of Phase 2 Candidates
CP-690550
CP-751871
PF-4383119
PF-3187207
PD-200390
CP-690550
CP-751871
PF-4383119
PF-3187207
PD-200390
RA and Transplant
Lung Cancer, Genitourinary, and Breast Cancer
Pain
Glaucoma
Insomnia
RA and Transplant
Lung Cancer, Genitourinary, and Breast Cancer
Pain
Glaucoma
Insomnia
CompoundCompound IndicationsIndications
Valid as of November 30, 2007
27
Expanding the Scope of R&D
(interferon beta-1a) (dalteparin sodium injection)(pegvisomant for
injection)
MCSF mAbMCSF mAb
MAdCAM mAbMAdCAM mAb
IGF1R mAbIGF1R mAbPEG-hGHPEG-hGH
CD40 mAbCD40 mAb
CTLA4 mAbCTLA4 mAbETC-216ETC-216
St. Louis Biotherapeutics Center of Excellence St. Louis Biotherapeutics Center of Excellence
Staffed with ~250 ExpertsStaffed with ~250 Experts
RN624RN624RN1219RN1219
San Francisco Biotherapeutics & BioInnovation Center of ExcellenSan Francisco Biotherapeutics & BioInnovation Center of Excellence ce
Staffed with >100 ExpertsStaffed with >100 Experts
Increasing Our Focus in BiotherapeuticsIncreasing Our Focus in Biotherapeutics
Valid as of November 30, 2007
28
Expanding Science Outside Our Walls
Biotherapeutics & Bioinnovation Center
Bristol-Myers Squibb● Apixiban● WW collaboration to research, develop and commercialize
DGAT-1 inhibitors
Scripps Research Institute● Advance scientific knowledge of uncured diseases and novel
ways to treat them
Pfizer External Research Network – The Pfizer Incubator● Gain rapid, broader access to science underlying disease and to
enabling technologies
Foundation for National Institutes of Health● GAIN (Genetic Association Information Network) program
Biotherapeutics & Bioinnovation Center
Bristol-Myers Squibb● Apixiban● WW collaboration to research, develop and commercialize
DGAT-1 inhibitors
Scripps Research Institute● Advance scientific knowledge of uncured diseases and novel
ways to treat them
Pfizer External Research Network – The Pfizer Incubator● Gain rapid, broader access to science underlying disease and to
enabling technologies
Foundation for National Institutes of Health● GAIN (Genetic Association Information Network) program
Valid as of November 30, 2007
29
China R&D Center (CRDC)
Newest R&D facility
Located in the renowned Zhangjiang High Tech Park, Shanghai, China
Support Pfizer’s growth in China and other Asian countries through close alignment across Research, Development & Commercial
Newest R&D facility
Located in the renowned Zhangjiang High Tech Park, Shanghai, China
Support Pfizer’s growth in China and other Asian countries through close alignment across Research, Development & Commercial
Valid as of November 30, 2007
30
Clinical Research Unit – Singapore
One of three Pfizer Phase 1 Units
Relocated to state-of-the-art facility in Raffles Hospital – June 2007● 3,000 square meters – largest
clinical research facility● Participates in many global programs● 54 volunteer beds● Staff of 70
Harmonized to Global SOPs/Guidance
Ability to relay real-time data to Pfizer labs around the world
One of three Pfizer Phase 1 Units
Relocated to state-of-the-art facility in Raffles Hospital – June 2007● 3,000 square meters – largest
clinical research facility● Participates in many global programs● 54 volunteer beds● Staff of 70
Harmonized to Global SOPs/Guidance
Ability to relay real-time data to Pfizer labs around the world
Valid as of November 30, 2007
31
DJ (Development Japan), Tokyo
Full capacity development organization
Co-located with Pfizer Japan Headquarters
385 staff including clinical, development operations, regulatory, CMC
Organized for maximum synergy with global programs to support simultaneous approvals
Full capacity development organization
Co-located with Pfizer Japan Headquarters
385 staff including clinical, development operations, regulatory, CMC
Organized for maximum synergy with global programs to support simultaneous approvals
Valid as of November 30, 2007
32
Five Point Plan
Deliver the Phase II and Phase III Portfolio
Prioritize our Portfolio to Deliver the Most Value
Top-Tier Biotherapeutics Company
Raise the Bar on Productivity
Pursue Science Outside Our Walls
Deliver the Phase II and Phase III Portfolio
Prioritize our Portfolio to Deliver the Most Value
Top-Tier Biotherapeutics Company
Raise the Bar on Productivity
Pursue Science Outside Our Walls
Valid as of November 30, 2007
Q&A Session
Asia Investor Meeting
Valid as of November 30, 2007