Pfizer at UBS 2008 Global Life Sciences Conference

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Pfizer at UBS 2008 Global Life Sciences Conference

  1. 1. UBS Global Life Sciences Conference Ian Read President, Worldwide Pharmaceutical Operations September 22, 2008
  2. 2. Forward-Looking Statements and Non-GAAP Financial Information Discussions at 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 2007 Annual Report on Form 10-K and in our reports on Form 10-Q and Form 8-K. Also, 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 Reports on Form 8-K dated July 23, 2008. These reports are available on our website at www.pfizer.com in the quot;Investors—SEC Filingsquot; section. 2
  3. 3. Our Path Forward Maximize Revenues from Existing, New & Diverse Sources Take Advantage of Size, Scale of Pfizer Establish a Lower, More Operate with Agility, Speed, Flexible Cost Base Focus of an Entrepreneurial Organization Innovate the Business Model Drive Greater Total Shareholder Return 3
  4. 4. Our Path Forward: Today’s Focus US Lipitor Post Today LOE Lipitor Optimize the Patent-Protected Portfolio Maximize the Value of New and Inline Products Advance Compounds in the Pipeline Maximize Capitalize on Established Products Revenues Sustainable TSR Growth Grow in Emerging Markets Revenue Invest in Complementary Businesses growth EPS Aggressively Manage Costs growth Flexible Cost Create More Flexible Operating Model Base Continuous Improvement in Processes Innovate Our Business Model 4
  5. 5. Our Broad Patent-Protected Portfolio First Half 2008 Global Product Revenues ($ Millions) % Change $6,113 1 12 1,200 Primary Care 50 1,196 13 923 / 5 603 / 33 484 11 293 * 22 225 / 841 12 551 20 / Specialty 20 473 444 10 62 401 22 358 19 221 * Represents direct sales under license agreement with Eisai Co., Ltd. Source: Pfizer 2Q2008 Earnings Release 5
  6. 6. Our Strong Global Presence United States International Revenues $12.4B in 1H2008 (+16%G) $9.5B in 1H2008 (-13%G) and Growth * #2 Europe $14.3B 6.8% Share 2.4%G #1 U.S. #4 Africa/ #1 Japan Middle East #1 Asia $24.0B $4.1B 8.6% Share $0.5B 6.4% Share $2.7B -11.2%G 5.7% Share 5.3%G 5.3% Share 10.9%G 9.2%G #1 Latin America $1.5B 5.9% Share 6.2%G * Pfizer 2Q2008 Earnings Release 6 Source: All IMS MAT 2Q2008, except as otherwise noted
  7. 7. Lots of Life Left for Lipitor United States International Revenues $3.0B in 1H2008 (+16%G) $3.1B in 1H2008 (-11%G) and Growth* • Hyper-competitive, generic, • Advocating first-line simvastatin use decelerating market growth in most EU markets Market • Heightened cost sensitivity • Access challenges Dynamics • Lack of landmark data • Reimbursement pressures • Reinforce differentiation with • Prevention focus in higher risk compelling clinical evidence patients with higher doses of Lipitor Game Plan • Target new & continuing patients • Maintain access w Ne ! C DT 7 * Pfizer 2Q2008 Earnings Release
  8. 8. Restoring Confidence in Chantix/Champix United States International Revenues $182MM 1H2008 (+264%G) $302MM 1H2008 (-3%G) and Growth* • 3 label changes • Muted media coverage • Negative media coverage • Positive support from key Market influencers & smoking bans • Physician and patient confidence Dynamics challenged • Patient willingness to pay • Education/promotional efforts on • Continue launch rollout globally process of quitting, Chantix • Support policies on smoking bans benefit/risk profile, adherence Game Plan and access/reimbursement • Grow access, reimbursement • Education/promotional efforts to • Safety studies ongoing target Rx quit season e ’r e ! Wk c Ba is making a positive impact on the lives of millions of smokers 8 * Pfizer 2Q2008 Earnings Release
  9. 9. Growing Lyrica’s Leadership United States International Revenues $510MM 1H2008 (+49%G) $686MM 1H2008 (+50%G) and Growth* • Cymbalta launch • Challenging access environment • Low diagnosis & treatment levels • Preference for cheaper alternatives Market • Generics are increasingly being • Cymbalta, Lyrica await approval for Dynamics used first Fibromyalgia • Drive earlier diagnosis, treatment • Drive earlier diagnosis & treatment and use with multi-channel efforts in neuropathic pain, epilepsy, GAD • Legitimize Fibromyalgia as a Game Plan • Legitimize Fibromyalgia as a disease disease • Enhance access • Grow 1st line use in DPN/PHN Online Educational Materials About Fibromyalgia Additional Innovative Tactics Resources to Help Manage the Condition 9 * Pfizer 2Q2008 Earnings Release
  10. 10. Sutent – The Bedrock of Our Oncology Portfolio United States International Revenues $275MM 1H2008 (+106%G) $126MM 1H2008 (+10%G) and Growth* Increased 1st line RCC competition Rapid uptake of new agents High unmet medical needs More stringent reimbursement and Market access issues Extended treatment regimens as Dynamics patients live longer Growing opportunity in emerging Asian markets Efficacy focus Continue global launch roll-out Keep patients at the appropriate Efficacy focus dose through all treatment cycles Game Plan Remain as standard of care Highlight 2-yr mRCC survival data Highlight 2yr mRCC survival data Potential indications to drive growth Manage cost-benefit concerns mRCC FR GER SP US IT UK Patient Share – 74% 63% 63% 52% 51% 37% 1st Line Sources: US share = ImpactRx (March ’08 data; n=153); EU share = Custom Patient Record Study (fielded 4Q07; >1,200 pt records sampled) 10 * Pfizer 2Q2008 Earnings Release
  11. 11. Investing to Win in Oncology Global Oncology Opportunity: Four Research Platforms $81B by 2012 with 7% CAGR Pfizer Oncology products $1.3B 1H2008 ANTI- IMMUNO- Pfizer Assets and Advantages: ANGIOGENESIS THERAPY Among top Oncology field forces Reawakens Blocks growth #1 in Oncology Account Management for immune system of tumor blood customer focus and innovative value added vessels program * PfizerOncology.com – 24/7 access to Pfizer CYTOTOXIC/ SIGNAL oncology resources for healthcare POTENTIATORS TRANSDUCTION professionals INHIBITORS Exploit defects in repair and Blocks cancer Pfizer Strategy: cycle cells growth signals Created Business Unit focused on Oncology Pursue continuous cycle of new indications in different tumor types Accelerate clinical trial enrollment & Largest Oncology Pipeline with execution 22 compounds in development Supplement with business development Leverage biotech assets 11 * Towers Perrin
  12. 12. Promising Commercial Potential From Our Phase 3 Portfolio axitinib – Pancreatic Cancer PD-332334 – GAD apixaban – VTE Prevention esreboxetine – Fibromyalgia NMEs CP-945598 – Obesity Zithromax/chloroquine – Malaria CP-751871 – Lung Cancer PF-1228305 (Thelin) – PAH Dimebon* - Alzheimer’s apixaban – Atrial Fibrillation New apixaban – Indications VTE Treatment / axitinib – Renal cell cancer * Pending HSR approval 12
  13. 13. Two Distinct, Yet Complementary Strategic Growth Initiatives Established Products Emerging Markets • Medicines that have lost – or are • Asian, Latin American and about to lose – patent protection Eastern European countries with growing economies and • Fastest growing segment of the middle-class populations global pharmaceutical market demanding quality healthcare Market Opportunity Market Opportunity: $152B in 2007 $267B by 2012 $271B in 2006 $523B in 2012 What Makes Pfizer’s Initiatives Different From Those of Other Companies ? Why Are We Confident We Will Succeed ? Source: IMS, Internal Analysis 13
  14. 14. Established Products $523B Opportunity by 2012 Dispensing Drivers: Payers and Pharmacy Channel, with Physician Branded Emerging Markets Branded Traditional Markets and Pharmacy Influence IP-Driven Markets Brand: Moderately Important 2012 Size: $130B LOE Cliff: Moderate Dispensing Drivers: Payers and Pharmacy Channel Brand: Less Important 2012 Size: $150B Dispensing Drivers: LOE Cliff: Steepest Physician and Pharmacist Brand: Very Important 2012 Size: $235B LOE Cliff: Smallest Source: Datamonitor; EvaluatePharma; analyst reports. 14
  15. 15. Unlocking the Value in Established Products – Strategy Overview Strengths Focus Goals Brand equity A leader in 1 Oral solid dose and breadth the LOE Market Product quality and reliability Product enhancements and A leading provider Global reformulations 2 of low cost presence medicines Technology “Niche” markets innovation Outpace market Partnerships 3 Late stage growth lifecycle planning Experienced local talent 15
  16. 16. Emerging Markets $267B Opportunity by 2012 Global Pharma Revenues ($ Billions) CAGR 267 Brazil………….. 10% 152 China………….. 20% Top-priority Areas India…………… 13% Expected to Grow Mexico………….. 7% 154 13% CAGR and $71 Billion by Russia………… 16% 2012 South Korea….. 9% 83 Turkey………… 14% 7 Priority Markets 113 All Other 69 2007 2012 Source: IMS Health (Market Prognosis) 16
  17. 17. We’re Already On Our Way… BRAZIL TURKEY All major products lack IP protection Double-digit brand growth for both patent protected and LOE products 8 product launches in 2008; 1 to go Sutent, +270% since launch Expanded field force ~ 50% since 2006 More nimble, flexible use of marketing Pfizer presence since 1957 strategies Pfizer presence since 1952 CHINA RUSSIA Norvasc #1 anti-hypertensive – even Significant potential for growth; per though off patent 5 years capita Rx consumption <$50 Field force expansion ahead of schedule Sutent, Champix launches planned Asian-specific clinical research – Aim to expand sales force 40% by 2011 oncology center of excellence Pfizer presence since 1992 Pfizer presence since early 1980’s 17
  18. 18. Growing in Emerging Markets – Strategy Overview Strengths Focus Goals Brand equity and breadth New segments A leading Pharma 1 Global Scale company in our 7 priority areas Leading market R&D Presence growth where we are already present Grow faster than Established, 2 the broader experienced Pharma market local talent Products and Global Access Partnerships initiatives 18
  19. 19. Innovation Focuses on Three Areas Customer Centricity Create access to Optimize our Create access to Optimize our new markets, new interactions with new markets, new interactions with business models, and in support of business models, and in support of and differentiated customers (e.g., Identify New Optimize Our and differentiated customers (e.g., Sources of Go-To-Market customer physicians, payers, customer physicians, payers, Growth Model experiences pharmacies, experiences pharmacies, employers and employers and consumers) consumers) Build Flexible Capabilities Develop capabilities to ensure flexible and Develop capabilities to ensure flexible and responsive use of resources and produce responsive use of resources and produce the greatest value for our customers the greatest value for our customers 19
  20. 20. Innovating the Business Model: Europe Benefits Realized Change Replaced ALL traditional sales reps with Key Account Managers, who changed their focus from GPs to new customers and influencers Sweden More resources allocated to support optimal product usage Lipitor sales went from flat-to-negative to +4% operational growth in 1H2008 Reduced GP field force 25%; created new tiered customer engagement model Germany Fully integrated team at the regional level accountable for entire portfolio Positive customer response UK Re-engineered traditional field based approach; changed 400 traditional reps to 100 account managers 20
  21. 21. Innovating the Business Model: US In Place Today Pilots to be Scaled New Models in Development Needs Based Selling Account Mgt. Closed-Loop Marketing Medical State Planning E-detail Rep visit Customized Tactics Behavioral Model Regional Business Unit Regional General Manager P&L Talent Mgmt 21
  22. 22. Cumulative Progress on Cost-Reduction Target (Second-Quarter 2008) On-track to reduce absolute Cost Reduction adjusted total costs1 by at Period (2006 Currency Rates) least $1.5 to $2.0 billion on a constant currency basis2 for FY2007 $600 Million 2008 vs. 2006 Q1 ’08 $170 Million Cumulative operational cost reduction of $1.2 billion Q2 ’08 $465 Million Reduction even after inflation and reinvestment in the Total $1.2 Billion business Much of the Remaining Cost Reductions Expected to Be Realized in the Fourth-Quarter 2008 1 “Adjust income” and its components are defined as reported net income and its components excluding purchase-accounting adjustments, acquisition- related costs, discontinued operations and certain significant items. Adjust Total Costs represents the total of Adjusted Cost of Sales, Adjusted SI&A and Adjusted R&D 22 2 Constant currency basis means that the applicable projected financial measure is based upon the actual foreign exchange rates in effect during 2006 .
  23. 23. Our Path Forward: Strategies for Growth US Lipitor Post Today LOE Lipitor Optimize the Patent-Protected Portfolio Maximize the Value of New and Inline Products Advance Compounds in the Pipeline Maximize Capitalize on Established Products Revenues Sustainable TSR Growth Grow in Emerging Markets Revenue Invest in Complementary Businesses growth EPS Aggressively Manage Costs growth Flexible Cost Create More Flexible Operating Model Base Continuous Improvement in Processes Innovate Our Business Model 23

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